materially different from that of the remaining asset.

Depreciation on plant, property and equipment

Depreciation on property, plant and equipment
(except motor vehicles) is provided on straightline
method at estimated useful life, which is in line with
the estimated useful life as specified in Schedule II of
the Companies Act, 2013.

3. SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies
applied in the preparation of the financial statements
is as given below. These accounting policies have
been applied consistently to all the periods presented
in the financial statements.

A. Property, plant and equipment

Property, plant and equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. The cost comprises
purchase price, directly attributable cost of bringing
the asset to its working condition for the intended use
and initial estimate of decommissioning, restoring and
similar liabilities. Any trade discounts and rebates are
deducted in arriving at the purchase price.

Subsequent expenditure relating to property, plant
and equipment is capitalized only when it is probable
that future economic benefit associated with these
will flow with the Company and the cost of the item
can be measured reliably.

Borrowing costs to the extent related/attributable to
the acquisition/construction of property , plant and
equipment that takes substantial period of time to get
ready for their intended use are capitalized up to the
date such asset is ready for use.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in
the statement of profit and loss when the asset is
derecognised.

The Company identifies and determines cost of
each component/ part of the asset separately, if the
component/ part has a cost which is significant to
the total cost of the asset and has useful life that is

Motor vehicles are depreciated over a period of eight
years on Stright line method. Leasehold improvement
is amortized over the period of the lease.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

B. Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if
any.

Development expenditure on software is capitalized
as part of the cost of the resulting intangible asset
only if the expenditure can be measured reliably, the
product or process is technically and commercially
feasible, future economic benefits are probable, and
the Company intends to and has sufficient resources
to complete development and to use or sell the asset.
Otherwise it is recognized in the profit or loss.

Borrowing costs to the extent related/attributable to
the acquisition/construction of intangible asset that
takes substantial period of time to get ready for their
intended use are capitalized from the date it meets
capitalization criteria till such asset is ready for use.

Intangible assets are amortized on a straight line
basis over the estimated useful economic life.

The amortization period and the amortization method
are reviewed at least at each financial year end. If
the expected useful life of the asset is significantly

different from previous estimates, the amortization
period is changed accordingly.

Gains or Losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognized in the
statement of profit and Loss when the asset is
derecognized.

A summary of amortization policies applied to the
Company's intangible assets is as below:

Interest income on credit impaired assets is
recognised by applying the effective interest
rate to the net amortised cost (net of provision)
of the financial asset.

EIR is the rate that exactly discounts the
estimated future cash payments or receipts over
the expected life of the financial instrument
or a shorter period, where appropriate, to the
gross carrying amount of the financial asset
or to the amortised cost of a financial liability.
When calculating the effective interest rate,
the expected cash flows are estimated by
considering all the contractual terms of the
financial instrument (for example, prepayment,
extension, call and similar options) but does not
consider the expected credit losses.

ii. Processing fee and application fee:

Income from application and processing fees
including recovery of documentation not
forming part of effective rate calculation charges
are recognised upfront.

iii. Delayed payment charges, penal interest,
other penal charges, foreclosure charges :

Delayed Payment charges, Penal Interest,
Other Penal Charges, Foreclosure Charges
are recognised on receipt basis on account of
uncertainty of the ultimate collection of the
same.

iv. Dividends:

Dividend income is recognized when the
Company's right to receive dividend is
established on the reporting date.

v. Fees and commission income:

Fees and commissions are recognised when the
Company satisfies the performance obligation,
at fair value of the consideration received or
receivable based on a five-step model as set out
below, unless included in the effective interest
calculation:

Step 1: Identify contract(s) with a customer: A
contract is defined as an agreement between
two or more parties that creates enforceable
rights and obligations and sets out the criteria
for every contract that must be met.

Step 2: Identify performance obligations in the
contract: A performance obligation is a promise
in a contract with a customer to transfer a good
or service to the customer.

Step 3: Determine the transaction price: The
transaction price is the amount of consideration

to which the Company expects to be entitled
in exchange for transferring promised goods
or services to a customer, excluding amounts
collected on behalf of third parties.

Step 4: Allocate the transaction price to the
performance obligations in the contract: For a
contract that has more than one performance
obligation, the Company allocates the
transaction price to each performance obligation
in an amount that depicts the amount of
consideration to which the Company expects
to be entitled in exchange for satisfying each
performance obligation.

Step 5: Recognise revenue when (or as) the
Company satisfies a performance obligation

vi. Net gain on Fair value changes

Any differences between the fair values of
financial assets classified as fair value through
the profit or loss, held by the Company on
the balance sheet date is recognised as an
unrealised gain / loss. In cases there is a net
gain in the aggregate, the same is recognised
in “Net gains on fair value changes” under
Revenue from operations and if there is a net
loss the same is disclosed under “Expenses” in
the statement of profit and loss.

Similarly, any realised gain or loss on sale
of financial instruments measured at FVTPL
and debt instruments measured at FVOCI
is recognised in net gain / loss on fair value
changes. As at the reporting date, the Company
does not have any debt instruments measured
at FVOCI.

E. Investments in subsidiaries, associates and
joint ventures

The investments in subsidiaries, are carried in these
financial statements at historical ‘cost'. Where the
carrying amount of an investment in greater than its
estimated recoverable amount, it is written down
immediately to its recoverable amount and the
difference is transferred to the Statement of profit
and loss. On disposal of investment, the difference
between the net disposal proceeds and the carrying
amount is charged or credited to the statement of
profit and loss.

F. Leases

A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration.

As a Lessee

The Company recognises a right-of-use asset and
a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of
the lease term. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and
adjusted for certain re-measurements of the lease
liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be
readily determined, Company's incremental borrowing
rate. Generally, the Company uses its incremental
borrowing rate as the discount rate.

Lease payments included in the measurement of the
lease liability comprise the following:

- Fixed payments, including in-substance fixed
payments;

- Variable lease payments that depend on an
index or a rate, initially measured using the
index or rate as at the commencement date;

- Amounts expected to be payable under a
residual value guarantee; and

- The exercise price under a purchase option that
the Company is reasonably certain to exercise,
lease payments in an optional renewal period
if the Company is reasonably certain to exercise
an extension option, and penalties for early
termination of a lease unless the Company is
reasonably certain not to terminate early.

The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is a change in future lease payments arising
from a change in an index or rate, if there is a change
in the Company's estimate of the amount expected
to be payable under a residual value guarantee, or if
Company changes its assessment of whether it will
exercise a purchase, extension or termination option.

When the Lease Liability is remeasured in this way,
a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in
profit or Loss if the carrying amount of the right-of-use
asset has been reduced to zero.

The Company presents right-of-use assets that do
not meet the definition of investment property and
hence disclosed in ‘property, plant and equipment'
and lease liabilities in ‘Borrowings' in the statement of
financial position.

On application of Ind AS 116, the nature of expenses
has changed from lease rent in previous periods
to depreciation cost for the right-to-use asset, and
finance cost for interest accrued on lease liability.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-
use assets and lease liabilities for leases of properties
that are having non-cancellable lease term of less
than 12 months. The Company recognises the lease
payments associated with these leases as an expense
on a straight-line basis over the lease term.

As a Lessor

At the inception of the lease the Company classifies
each of its leases as either an operating lease or
a finance lease. The Company recognises lease
payments received under operating leases as income
on a straight-line basis over the lease term. In case of
a finance Lease, finance income is recognised over the
lease term based on a pattern reflecting a constant
periodic rate of return on the lessor's net investment
in the lease. When the Company is an intermediate
lessor it accounts for its interests in the head lease
and the sub-lease separately. It assesses the lease
classification of a sub-lease with reference to the
right-of-use asset arising from the head lease, not
with reference to the underlying asset. If a head lease
is a short term lease to which the Company applies
the exemption described above, then it classifies the
sub-lease as an operating lease.

G. Financial Instruments

i. Classification of financial instruments

The Company classifies its financial assets into

the following measurement categories:

1. Financial assets to be measured at
amortised cost

2. Financial assets to be measured at fair
value through other comprehensive
income

3. Financial instruments to be measured at
fair value through profit or loss account

The classification depends on the contractual
terms of the cashflows of the financial assets
and the Company's business model for
managing financial assets which are explained
below:

Business model assessment

The Company determines its business model
at the level that best reflects how it manages
groups of financial assets to achieve its business
objective.

The Company's business model is not assessed
on an instrument-by-instrument basis, but at
a higher level of aggregated portfolios and is
based on observable factors such as:

• How the performance of the business
model and the financial assets held within
that business model are evaluated and
reported to the entity's key management
personnel

• The risks that affect the performance of
the business model (and the financial
assets held within that business model)
and the way those risks are managed

• How managers of the business are
compensated (for example, whether the
compensation is based on the fair value of
the assets managed or on the contractual
cash flows collected)

• The expected frequency, value and timing
of sales are also important aspects of the
Company's assessment. The business
model assessment is based on reasonably
expected scenarios without taking
‘worst case' or ‘stress case' scenarios
into account. If cash flows after initial
recognition are realised in a way that is
different from the Company's original
expectations, the Company does not
change the classification of the remaining
financial assets held in that business
model, but incorporates such information
when assessing newly originated or
newly purchased financial assets going
forward.

The Solely Payments of Principal and Interest
(SPPI) test

As a second step of its classification process
the Company assesses the contractual terms of
financial assets to identify whether they meet
the SPPI test.

‘Principal' for the purpose of this test is defined
as the fair value of the financial asset at initial
recognition and may change over the life of
the financial asset (for example, if there are
repayments of principal or amortisation of the
premium/ discount).

In making this assessment, the Company
considers whether the contractual cash flows are
consistent with a basic lending arrangement i.e.
interest includes only consideration for the time
value of money, credit risk, other basic Lending
risks and a profit margin that is consistent
with a basic lending arrangement. Where the
contractual terms introduce exposure to risk
or volatility that are inconsistent with a basic
lending arrangement, the related financial asset
is classified and measured at fair value through
profit or loss.

The Company classifies its financial liabilities
at amortised costs unless it has designated
liabilities at fair value through the profit and
loss account or is required to measure liabilities
at fair value through profit or loss such as
derivative liabilities.

ii. Financial assets at amortised cost:

The Company classifies the financial assets at
amortised cost if the contractual cash flows
represent solely payments of principal and
interest on the principal amount outstanding
and the assets are held under a business model
to collect contractual cash flows. The gains and
losses resulting from fluctuations in fair value
are not recognised for financial assets classified
in amortised cost measurement category.

iii. Financial assets at Fair value through Other
Comprehensive Income (FVOCI):

The Company classifies the financial assets as
FVOCI if the contractual cash flows represent
solely payments of principal and interest on
the principal amount outstanding and the
Company's business model is achieved by both
collecting contractual cash flow and selling
financial assets. In case of debt instruments
measured at FVOCI, changes in fair value are
recognised in other comprehensive income.

The impairment gains or losses, foreign
exchange gains or losses and interest
calculated using the effective interest
method are recognised in profit or loss. On
de-recognition, the cumulative gain or loss
previously recognised in other comprehensive
income is reclassified from equity to profit or
loss as a reclassification adjustment. In case

of equity instruments irrevocably designated
at FVOCI, gains / losses including relating to
foreign exchange, are recognised through other
comprehensive income. Further, cumulative
gains or losses previously recognised in other
comprehensive income remain permanently in
equity and are not subsequently transferred to
profit or loss on derecognition.

iv. Financial instruments at fair value through
profit and loss account (FVTPL)

Items at fair value through profit or loss
comprise:

• Investments (including equity shares) held
for trading;

• Items specifically designated as fair value
through profit or loss on initial recognition;
and

• Debt instruments with contractual terms
that do not represent solely payments of
principal and interest.

Financial instruments held at fair value through
profit or loss are initially recognised at fair
value, with transaction costs recognised in
the statement of profit and loss as incurred.
Subsequently, they are measured at fair value
and any gains or losses are recognised in the
statement of profit and loss as they arise.

Financial instruments held for trading

A financial instrument is classified as held for
trading if it is acquired or incurred principally
for selling or repurchasing in the near term, or
forms part of a portfolio of financial instruments
that are managed together and for which there
is evidence of short-term profit taking.

Financial instruments designated as
measured at fair value through profit or loss

Upon initial recognition, financial instruments
may be designated as measured at fair value
through profit or loss. A financial asset may only
be designated at fair value through profit or loss
if doing so eliminates or significantly reduces
measurement or recognition inconsistencies
(i.e. eliminates an accounting mismatch) that
would otherwise arise from measuring financial
assets or liabilities on a different basis. As at the
reporting date, the Company does not have any
financial instruments designated as measured
at fair value through profit or loss.

A financial liability may be designated at fair
value through profit or loss if it eliminates or
significantly reduces an accounting mismatch or:

• if a host contract contains one or more
embedded derivatives; or

• if financial assets and Liabilities are both
managed and their performance evaluated
on a fair value basis in accordance
with a documented risk management or
investment strategy.

Where a financial liability is designated at fair
value through profit or loss, the movement
in fair value attributable to changes in the
Company's own credit quality is calculated
by determining the changes in credit spreads
above observable market interest rates and is
presented separately in other comprehensive
income. As at the reporting date, the Company
has not designated any financial instruments as
measured at fair value through profit or loss.

v. Borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and
losses are recognized in profit or loss when the
liabilities are derecognized as well as through
the EIR amortization process. Amortized cost is
calculated by taking into account any discount
or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR
amortization is included as finance costs in the
statement of profit and loss.

vi. Derecognition of financial assets and financial
liabilities

Recognition

a) Loans and Advances are initially
recognised when the funds are transferred
to the customers' account or delivery of
assets by the dealer, whichever is earlier.

b) Investments are initially recognised on the
settlement date.

c) Borrowings are initially recognised when
funds reach the Company.

d) Other Financial assets and liabilities are
initially recognised on the trade date,

i.e., the date that the Company becomes
a party to the contractual provisions of
the instrument. This includes regular
way trades: purchases or sales of
financial assets that require delivery of
assets within the time frame generally
established by regulation or convention in
the market place.

Derecognition of financial assets due to
substantial modification of terms and conditions:

The Company derecognises a financial asset,
such as a loan to a customer, when the terms and
conditions have been renegotiated to the extent
that, substantially, it becomes a new loan, with
the difference recognised as a derecognition
gain or loss, to the extent that an impairment
loss has not already been recorded. The newly
recognised loans are classified as Stage 1 for
ECL measurement purposes, unless the new
loan is deemed to be Purchased or Originated
as Credit Impaired (POCI).

If the modification does not result in cash flows
that are substantially different, the modification
does not result in derecognition. Based on the
change in cash flows discounted at the original
EIR, the Company records a modification gain or
loss, to the extent that an impairment loss has
not already been recorded.

Derecognition of financial assets other than due
to substantial modification :

a) Financial assets

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is derecognised
when the rights to receive cash flows
from the financial asset have expired. The
Company also derecognises the financial
asset if it has both transferred the financial
asset and the transfer qualifies for
derecognition.

The Company has transferred the financial
asset if, and only if, either:

i. The Company has transferred its

contractual rights to receive cash
flows from the financial asset, or ii. It
retains the rights to the cash flows,
but has assumed an obligation
to pay the received cash flows in
full without material delay to a
third party under a ‘pass-through'
arrangement.

A transfer only qualifies for derecognition
if either:

i. The Company has transferred
substantially all the risks and
rewards of the asset, or

ii. The Company has neither transferred
nor retained substantially all the
risks and rewards of the asset, but

has transferred control of the asset.
The Company considers control
to be transferred if and only if, the
transferee has the practical ability
to sell the asset in its entirety to
an unrelated third party and is able
to exercise that ability unilaterally
and without imposing additional
restrictions on the transfer.

b) Financial liabilities

A financial liability is derecognised
when the obligation under the liability is
discharged, cancelled or expires. Where
an existing financial liability is replaced
by another from the same lender on
substantially different terms, or the terms
of an existing liability are substantially
modified, such an exchange or
modification is treated as a derecognition
of the original liability and the recognition
of a new liability. The difference between
the carrying value of the original financial
liability and the consideration paid is
recognised in profit or loss. As at the
reporting date, the Company does not
have any financial liabilities which have
been derecognised.

vii. Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal
right to offset the recognized amounts and there
is an intention to settle on a net basis, to realise
an asset and settle the liabilities simultaneously.

viii. Equity Instruments

An equity instrument is any contract that
evidences a residual interest in the assets of an
entity in accordance with the substance of the
contractual arrangements. These are recognized
at the amount of the proceeds received, net of
direct issue costs.

ix. Compound Financial Instruments

Compulsorily convertible instruments with
a fixed conversion ratio are separated into
liability and equity components. On issuance of
the said instruments, the lliability component
(being the present value of the future interest
cash outflows discounted at a market rate for
an equivalent non-convertible instrument) is
reduced from the fair value of the instrument
to arrive at the equity component. This Equity
component is disclosed separately under Other
Equity.

H. Impairment of financial assets:

The Company records allowance for expected credit
losses (ECL) for all loans and debt investments,
together with loan commitments to customers. The
ECL allowance is based on the credit losses expected
to arise over the life of the asset, unless there has been
no significant increase in credit risk since origination,
in which case the allowance is based on the 12
months' expected credit loss. Both life time expected
credit loss and 12 months' expected credit loss are
calculated on individual loan / instrument basis.

At the end of each reporting period, the Company
performs an assessment of whether the loan's /
investment's credit risk has increased significantly
since initial recognition by considering the change in
the risk of default occurring over the remaining life of
the asset.

The method and significant judgments used while
computing the expected credit losses and information
about the exposure at default, probability of default
and loss given default have been set out in note 50
(Risk Management).

Simplified approach for trade/other receivables
and contract assets

The Company follows ‘simplified approach' for
recognition of impairment loss allowance on trade/
other receivables that do not contain a significant
financing component. The application of simplified
approach does not require the Company to track
changes in credit risk. It recognises impairment loss
allowance based on lifetime ECLs at each reporting
date, right from its initial recognition. At every reporting
date, the historical observed default rates are updated
for changes in the forward-looking estimates. For
trade receivables that contain a significant financing
component a general approach is followed.

Write-offs

The Company reduces the gross carrying amount of a
financial asset when the Company has no reasonable
expectations of recovering a financial asset in its
entirety or a portion thereof. This is generally the case
when the Company determines that the borrower
does not have assets or sources of income that could
generate sufficient cash flows to repay the amounts
subjected to write-offs. Any subsequent recoveries
against such loans are credited to the statement of
profit and loss.

I. Determination of fair value

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest
and best use or by selling it to another market
participant that would use the asset in its highest and
best use. In order to show how fair values have been
derived, financial instruments are classified based on
a hierarchy of valuation techniques, as summarised
below:

Level 1: quoted prices (unadjusted) in active market
for identical assets or liabilities.

Level 2: inputs other than quoted prices included in
Level 1 that are observable for the asset or liability,
either directly (e.g. as prices) or indirectly (e.g. derived
from the prices).

Level 3: inputs for the current assets or liability that are
not based on observable market data (unobservable
inputs).

J. Retirement and other employee benefits

Defined Contribution schemes

The employees of the Company who have opted, are
entitled to receive benefits under the Provident Fund
Scheme and Employee Pension Scheme, defined
contribution plans in which both the employee and
the Company contribute monthly at a stipulated
rate. The Company has no liability for future benefits
other than its annual contribution and recognises
such contributions as an expense in the period
in which employee renders the related service. If
the contribution payable to the scheme for service
received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the
scheme is recognised as a liability after deducting the
contribution already paid.

Defined benefit plans

Provision for Gratuity is recorded on the basis of
actuarial valuation certificate provided by the actuary
using Projected Unit Credit Method.

The calculation of defined benefit obligations is
performed annually by a qualified actuary using the
projected unit credit method. When the calculation
results in a potential asset for the Company, the
recognised asset is limited to the present value
of economic benefits available in the form of any
future refunds from the plan or reductions in future
contributions to the plan. To calculate the present
value of economic benefits, consideration is given to
any applicable minimum funding requirements.

Any changes in the liabilities over the year due to
changes in actuarial assumptions or experience
adjustments within the plans, are recognised

immediately in ‘Other comprehensive income' and
subsequently not reclassified to the statement of
profit and loss. Net interest expense / (income) on the
defined liability / (assets) is computed by applying the
discount rate, used to measure the net defined liability
/ (asset). Net interest expense and other expenses
related to defined benefit plans are recognised in the
statement of profit and loss.

When the benefits of a plan are changed or when a
plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment
is recognised immediately in the statement of profit
and loss. The Company recognises gains and losses
on the settlement of a defined benefit plan when the
settlement occurs.

Other Long Term Employee Benefits

The Company treats accumulated leave expected to
be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes.
Such long-term compensated absences are provided
for based on the actuarial valuation using the
projected unit credit method at the year end. Actuarial
gains/losses are immediately taken to the statement
of profit and loss and are not deferred.

K. Share based payments

Employees stock options plans (“ESOPs”) - Equity
settled

The Company grants share option schemes for the
purpose of providing incentives and rewards to
eligible participants who contribute to the success
of the Company's operations. Employees (including
directors) of the Company receive remuneration in the
form of share-based payments, whereby employees
render services as consideration for equity instruments
(“equity settled transactions”).

The cost of equity-settled transactions with
employees and directors for grants is measured by
reference to the fair value at the date at which they
are granted. The cost of equity-settled transactions is
recognised in statement profit and loss, together with
a corresponding increase in other equity, representing
contribution received from the shareholders, over
the period in which the performance and/or service
conditions are fulfilled. The cumulative expense
recognised for equity-settled transactions at the end
of each reporting period until the vesting date reflects
the extent to which the vesting period has expired
and the Company's best estimate of the number of
equity instruments that will ultimately vest.

L. Income taxes

Tax expense comprises current and deferred tax.
Current income-tax is measured at the amount

expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961. The tax rates and tax
Laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting
date.

Deferred income taxes reflect the impact of temporary
timing differences between taxabLe income and
accounting income originating during the current year
and reversal of timing differences for the earlier years.
Deferred tax is measured using the tax rates and
the tax Laws enacted or substantiveLy enacted at the
reporting date.

Deferred tax liabilities are recognized for all taxable
temporary timing differences. Deferred tax assets
are recognized for deductibLe temporary timing
differences only to the extent that there is reasonable
certainty that sufficient future taxable income will be
avaiLabLe against which such deferred tax assets can
be realized.

At each reporting date, the Company re-assesses
unrecognized deferred tax assets. It recognizes
unrecognized deferred tax asset to the extent that it
has become reasonabLy certain or virtuaLLy certain, as
the case may be, that sufficient future taxable income
wiLL be avaiLabLe against which such deferred tax
assets can be reaLized.

The carrying amount of deferred tax assets are
reviewed at each reporting date. The Company
writes-down the carrying amount of deferred tax
asset to the extent that it is no Longer reasonabLy
certain or virtuaLLy certain, as the case may be, that
sufficient future taxable income will be available
against which deferred tax asset can be reaLized.
Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will
be available.

Minimum alternate tax

Minimum Alternate Tax credit is recognised as
deferred tax asset onLy when and to the extent there
is convincing evidence that the Company wiLL pay
normal income tax during the specified period. Such
asset is reviewed at each baLance sheet date and the
carrying amount of the MAT credit asset is written
down to the extent there is no Longer a convincing
evidence to the effect that the Company wiLL pay
normal income tax during the specified period.

M. Finance costs

Finance costs represents Interest expense recognised
by applying the Effective Interest Rate (EIR) to the
gross carrying amount of financial liabilities other
than financial liabilities classified as FVTPL.

The EIR in case of a financial liability is computed

• At the rate that exactly discounts estimated
future cash payments through the expected
life of the financial liability to the gross carrying
amount of the amortised cost of a financial
liability.

• By considering all the contractual terms of
the financiaL instrument in estimating the cash
fLows.

• IncLuding aLL fees paid between parties to the
contract that are an integral part of the effective
interest rate, transaction costs, and all other
premiums or discounts.

Any subsequent changes in the estimation of the
future cash flows is recognised in interest income with
the corresponding adjustment to the carrying amount
of the assets.

Interest expense includes issue costs that are initially
recognised as part of the carrying value of the financial
liability and amortised over the expected life using
the effective interest method. These include fees and
commissions payable to advisers and other expenses
such as external legal costs, rating fee etc, provided
these are incremental costs that are directly related to
the issue of a financial liability.

N. Foreign currency transactions and balances

i. Initial recognition:

Foreign currency transactions are recorded in
the reporting currency (which is Indian Rupees),
by appLying to the foreign currency amount the
exchange rate between the reporting currency
and the foreign currency at the date of the
transaction.

ii. Conversion:

Foreign currency monetary items are
retransLated using the exchange rate prevaiLing
at the reporting date. Non-monetary items,
which are measured in terms of historicaL
cost denominated in a foreign currency, are
reported using the exchange rate at the date
of the transaction. Non-monetary items, which
are measured at fair vaLue or other simiLar
vaLuation denominated in a foreign currency, are
transLated using the exchange rate at the date
when such value was determined.

iii. Exchange differences:

All exchange differences arising on settlement
or translation of monetary items are recognized
as income or as expenses in the period in which
they arise.

O. Earnings per share

Basic earnings per share is calculated by dividing the
net profit or Loss for the period attributable to equity
shareholders (after deducting attributable taxes)
by the weighted average number of equity shares
outstanding during the period.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.

P. Segmental reporting

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, whose operating
results are regularly reviewed by the Company's chief
operating decision maker to make decisions for which
discrete financial information is available. Based
on the management approach as defined in Ind AS
108, the chief operating decision maker evaluates
the Company's performance and allocates resources
based on an analysis of various performance indicators
by business segments and geographic segments.

The Joint Managing Directors of the Company
assesses the financial performance and position of
the Company and make strategic decisions and hence
has been identified as being chief operating decision
maker.