2 Material accounting policies2.1 Statement of compliance and basis of preparation

The financial statements of the Company have been
prepared in accordance with Indian Accounting Standards
(Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time)
and presentation requirements of Division II of Schedule
III to the Companies Act, 2013, (Ind AS compliant Schedule
III), as applicable to the financial statements.

The financial statements have been prepared on a
historical cost basis, except for the following assets and
liabilities which have been measured at fair value:

- Certain financial assets and liabilities that is
measured at fair value, and

- Equity settled ESOP at grant date fair value

The accounting policies and related notes further
described the specific measurements applied for each of
the assets and liabilities.

The Company has prepared the financial statements on
the basis that it will continue to operate as a going concern.

The financial statements are presented in Rupees (Rs.) and
all values are rounded to the nearest lakhs (Rs.00,000),
except when otherwise stated.

a. Business combination and Goodwill

The Company applies the acquisition method
to account for business combination. The
consideration transferred for the acquisition of a
business comprises:

- fair values of the assets transferred,

- liabilities incurred to the former owners of the
acquired business,

- equity interests issued/ cash consideration
paid by the Company, and

- fair value of any asset or liability resulting from
a contingent consideration arrangement.

At acquisition date, the identifiable assets acquired
and the liabilities and contingent liabilities assumed
in a business combination are recognised at their
acquisition date fair values.

The excess of the fair value of consideration over
the identifiable net asset acquired is recorded as
goodwill. If the fair value of the net assets acquired is
in excess of the aggregate consideration transferred,
the Company re-assesses whether it has correctly
identified all of the assets acquired and all of the
liabilities assumed and reviews the procedures used
to measure the amounts to be recognised at the
acquisition date. If the reassessment still results in
an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then
the gain is recognised in OCI and accumulated in
equity as capital reserve. However, if there is no clear
evidence of bargain purchase, the entity recognises
the gain directly in equity as capital reserve, without
routing the same through OCI.

Acquisition-related costs are expensed as incurred.
Any contingent consideration to be transferred by the
Company is recognised at fair value at the acquisition
date. Subsequent changes to the fair value of the
contingent consideration that is deemed to be an
asset or liability is recognised in the statement of profit
and loss. Contingent consideration that is classified
as equity is not re-measured, and its subsequent
settlement is accounted for within the equity.

After initial recognition, goodwill is measured at cost
less any accumulated impairment losses.

If the initial accounting for a business combination
is incomplete by the end of the reporting period

in which the combination occurs, the Company
reports provisional amounts for the items for which
the accounting is incomplete. Those provisional
amounts are adjusted through goodwill during
the measurement period, or additional assets or
liabilities are recognised, to reflect new information
obtained about facts and circumstances that existed
at the acquisition date that, if known, would have
affected the amounts recognized at that date. These
adjustments are called as measurement period
adjustments. The measurement period does not
exceed one year from the acquisition date.

b. Current versus non-current classification

The Company segregates assets and liabilities into
current and non-current categories for presentation
in the balance sheet after considering its normal
operating cycle and other criteria set out in Ind AS
1, “Presentation of Financial Statements”. For this
purpose, current assets and liabilities include the
current portion of non-current assets and liabilities
respectively. Deferred tax assets and liabilities are
always classified as non-current.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle for determining
current and non-current classification of assets and
liabilities in the Balance sheet.

c. Foreign currencies

The Company's financial statements are presented in
Rs. which is also its functional currency. Transactions
in currencies other than the Company's functional
currency (foreign currencies) are recognised at the
rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period,
monetary items denominated in foreign currencies
are retranslated at the rates prevailing at that date.
Exchange differences arising on settlement or
translation of monetary items are recognised in the
statement of profit or loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions. Non-monetary items measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value is
determined. The gain or loss arising on translation of
non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on

the change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised
in OCI or profit or loss, respectively).

d. Fair value measurement

The Company measures financial instruments, such
as, investments in mutual funds at fair value at each
balance sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company. 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 non-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.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.

- Level 2 - Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable.

- Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognized in
the financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

This note summarises accounting policy for fair
value. Other fair value related disclosures are given
in the relevant notes.

Disclosures for valuation methods, significant
estimates and assumptions (notes 32 and 42)

Quantitative disclosures of fair value measurement
hierarchy (note 43)

Financial instruments (including those carried at
amortised cost) (notes 6, 7, 8, 16, 17, 18 and 45)

e. Revenue from contracts with customers

Revenue from contracts with customers is recognised
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration to which the Company expects to be
entitled in exchange for those goods or services.
The Company has generally concluded that it is the
principal in its revenue arrangements because it
typically controls the goods before transferring them
to the customer. Payment terms with customers are
immediate payment on delivery of goods with no
credit extended to the customer.

i) Sale of traded goods:

Revenue from sale of traded goods is recognised
at the point in time when control of the goods
is transferred to the customer, generally on
delivery of the goods.

Revenue towards satisfaction of a performance
obligation is measured at the amount of
transaction price (net of variable consideration)
allocated to that performance obligation. The
transaction price of goods sold and services
rendered is net of variable consideration
on account of various discounts, schemes,
Goods and Service Tax (GST) offered by the
Company as part of the contract. Retail sales
are recognised on delivery of the merchandise
to the customer, when the property in goods

and control are transferred for a price and no
effective ownership control is retained. Where
the Company is the principal in the transaction
the sales are recorded at their gross values.

ii) Sale of service

The Company's performance obligation is to
facilitate the transaction between the buyer
and the seller by providing access to its online
marketplace platform. Revenue is recognized at
a point in time, when the transaction between
the buyer and seller is completed through
the platform. The transaction price is the
commission fee earned by the Company, which
is a percentage of the gross transaction value.

iii) Interest income

Interest income is recognised on accrual basis
using Effective Interest Rate (EIR) method.

iv) Contract balances (contract liabilities)

A contract liability is recognised if a payment
is received or a payment is due (whichever is
earlier) from a customer before the Company
transfers the related goods or services.
Contract liabilities are recognised as revenue
when the Company performs under the contract
(i.e., transfers control of the related goods or
services to the customer).

There are no contract assets and trade
receivables as the Company operates retail
stores and digital marketplace and there is
no credit sales.

f. Taxes

Tax expense comprise current tax expense
and deferred tax.

Current income tax

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates
and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the
reporting date.

Current income tax relating to items recognized
outside the statement of profit or loss is recognized
outside statement of profit or loss (either in other
comprehensive income or in equity). Current tax
items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject
to interpretation and recognise provisions where
appropriate. The Company reflects the effect of
uncertainty for each uncertain tax treatment by
using either most likely method or expected value
method, depending on which method predicts better
resolution of the treatment.

Deferred tax

Deferred tax is provided using the balance sheet
approach on temporary differences between the tax
base of assets and liabilities and their carrying amounts
for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable
temporary differences, except when the deferred
tax liability arises from the initial recognition of
goodwill or an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit or loss and does not give rise to equal
taxable and deductible temporary differences.

Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognized to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilized, except when the deferred tax asset
relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each
reporting date and are recognized to the extent that it
has become probable that future taxable profits will
allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realized, or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognized outside
profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity).
Deferred tax items are recognized in correlation
to the underlying transaction either in OCI or
directly in equity.

The Company offsets deferred tax assets and
deferred tax liabilities if and only if it has a legally
enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to income taxes levied
by the same taxation authority on either the same
taxable entity which intends either to settle current
tax liabilities and assets on a net basis, or to realise
the assets and settle the liabilities simultaneously,
in each future period in which significant amounts of
deferred tax liabilities or assets are expected to be
settled or recovered.

Goods and Services Tax (GST) / value added
taxes paid on acquisition of assets or on incurring
expenses

Expenses and assets are recognised net of the
amount of GST/ value added taxes paid, except:

- When the tax incurred on a purchase of
assets or services is not recoverable from the
taxation authority, in which case, the tax paid
is recognised as part of the cost of acquisition
of the asset or as part of the expense
item, as applicable;

- When receivables and payables are stated with
the amount of tax included

The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of other
current assets in the balance sheet.

g. Property, plant and equipment and Capital work-in¬
progress (CWIP)(i) Property, plant and equipment

Freehold land is stated at cost only. All other
assets under property, plant and equipment are
stated at cost, less accumulated depreciation
and accumulated impairment losses, if any.
The cost comprises of purchase price, taxes,
duties, freight and other incidental expenses
directly attributable and related to acquisition
and installation of the concerned assets. Such
cost includes the cost of replacing part of the
plant and equipment, if the recognition criteria
are met. Likewise, when a major inspection
is performed, its cost is recognised in the
carrying amount of the plant and equipment
as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs
are recognised in profit or loss as incurred.

When significant parts of plant and equipment
are required to be replaced at intervals, the
Company depreciates them separately based
on their specific useful lives.

(ii) Capital work in progress

Capital work in progress is stated at cost, net of
accumulated impairment loss, if any.

(iii) Depreciation

Depreciation on property, plant and equipment
is provided on the straight-line method
computed on the basis of useful life and residual
value as per Schedule II to the Companies Act,
2013. However, in respect of certain class of
assets, the Company has assessed the useful
lives (as mentioned in the table below) lower
than as prescribed in Schedule II, based on the
technical assessment. The Company has used
following useful lives to provide depreciation on
property, plant and equipment:

The Company, based on technical assessment
made by technical expert and management
estimate, depreciates certain items of
plant and machinery over estimated useful
lives which are different from the useful life

prescribed in Schedule II to the Companies Act,
2013. The management believes that these
estimated useful lives are realistic and reflect
fair approximation of the period over which the
assets are likely to be used.

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 or loss when
the asset is derecognised.

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. The
residual value adopted for such assets does
not exceed five per cent of their original cost, in
accordance with Schedule II to the Companies
Act, 2013 (as amended).

h. Other intangible assets

Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their
fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated
impairment losses, if any.

Other intangible assets with finite lives (Computer
software, Technology, Non-compete, and Brand)
are amortised over the useful economic life and
assessed for impairment whenever there is an
indication that the intangible asset may be impaired.
The amortisation period and the amortisation method
for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period.
Changes in the expected useful life or the expected
pattern of consumption of future economic benefits
embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The
amortisation expense on other intangible assets
with finite lives is recognised in the statement of
profit and loss unless such expenditure forms part of
carrying value of another asset.

Intangible assets with indefinite useful lives
(Goodwill) are not amortised, but are tested for
impairment annually, either individually or at the cash¬
generating unit level. The assessment of indefinite
life is reviewed annually to determine whether the
indefinite life continues to be supportable. If not, the
change in useful life from indefinite to finite is made
on a prospective basis.

The useful lives of Goodwill and other intangible
assets are assessed as finite or indefinite as follows:

An intangible asset is derecognised upon disposal
(i.e. at the date the recipient obtains control) or when
no future economic benefits are expected from its
use. Any gain or loss arising upon 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.

. Borrowing costs

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time
to get ready for its intended use or sale (qualifying
asset) are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the
period in which they occur. Borrowing costs consist
of interest and other costs that an entity incurs in
connection with the borrowing of funds.

. Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

Company as a lessee

The Company's lease asset classes primarily comprise
of lease for stores, warehouse and office premises.
The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases. The Company recognises lease liabilities
to make lease payments and right-of-use assets

representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognises right of use assets at
the commencement date of the lease (i.e. the
date the underlying asset is available for use).
Right of use assets are measured at cost, less
accumulated depreciation, impairment losses, if
any and adjusted for any remeasurement of lease
liabilities. The cost of right of use assets includes
the amount of lease liabilities recognised, initial
direct cost incurred, and lease payments made
at or before the commencement date less any
lease incentives received. Right of use assets
are depreciated on a straight line basis over
the shorter of the lease term and the estimated
useful lives of the assets as follows:

If ownership of the leased asset transfers to
the Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset.

The right-of-use assets are also subject to
impairment. Refer to the accounting policies in
section (l) Impairment of non-financial assets.

(ii) Lease liabilities

The Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease term.
The lease payments include fixed payments
(including in substance fixed payments) less
any lease incentives receivable, variable
lease payments that depend on a rate, and
amounts expected to be paid under residual
value guarantees. The lease term reflects the
Company exercising the option to terminate.
Variable lease payments that do not depend on
a rate are recognised as expenses in the period
in which the event or condition that triggers the
payment occurs.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of
lease liabilities is remeasured if there is a
modification, a change in the lease term, a
change in the lease payments (e.g., changes
to future payments resulting from a change in
rate used to determine such lease payments)
or a change in the assessment of an option to
purchase the underlying asset.

(iii) Short-term leases

The Company applies the short-term lease
recognition exemption to its short-term leases
of rented premises and office equipment (i.e.,
those leases that have a lease term of 12
months or less from the commencement date
and do not contain a purchase option). Lease
payments on short-term leases are recognised
as expense on a straight-line basis over
the lease term.

k. Inventories

Inventories are valued as follows:

a) Packing material and accessories: At lower of
cost and net realisable value. Cost includes
purchase price and other direct costs and is
determined on a “first in, first out” basis.

b) Traded goods: At lower of cost and net
realisable value. Cost includes purchase price
and other incidental costs incurred in bringing
the traded goods to its present location and
condition. Cost is determined based on "first in
first out" method.

Net realisable value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and the estimated costs necessary
to make the sale.

l. Impairment of non-financial assets (including
goodwill)

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates

the asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's or cash-generating
unit's (CGU) fair value less costs of disposal and its
value in use. The recoverable amount is determined for
an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from
other assets or group of assets. When the carrying
amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written
down to its recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are
considered, if available. If no such transactions can
be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company's CGUs
to which the individual assets are allocated. These
budgets and forecast calculations generally cover a
period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future
cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most
recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady or
declining growth rate for subsequent years, unless
an increasing rate can be justified. In any case, this
growth rate does not exceed the long-term average
growth rate for the products, industries, or country or
countries in which the Company operates, or for the
market in which the asset is used.

After impairment, depreciation is provided on
the revised carrying amount of the asset over its
remaining useful life (including right of use assets).

For assets excluding goodwill, an assessment is made
at each reporting date to determine whether there is
an indication that previously recognised impairment
losses no longer exist or have decreased. If such
indication exists, the Company estimates the asset's
or CGU's recoverable amount. A previously recognised
impairment loss is reversed only if there has been a
change in the assumptions used to determine the
asset's recoverable amount since the last impairment
loss was recognised. The reversal is limited so that
the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount

that would have been determined, net of depreciation,
had no impairment loss been recognised for the
asset in prior years. Such reversal is recognised in the
statement of profit and loss unless the asset is carried
at a revalued amount, in which case, the reversal is
treated as a revaluation increase.

Goodwill is tested for impairment annually at
reporting date and when circumstances indicate that
the carrying value may be impaired.

Impairment is determined for goodwill by assessing the
recoverable amount of each CGU (or group of CGUs)
to which the goodwill relates. When the recoverable
amount of the CGU is less than it's carrying amount,
an impairment loss is recognised. Impairment losses
relating to goodwill cannot be reversed in future periods.

Impairment losses are recognized in the statement
of profit and loss.