ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Crizac Ltd.

2) MATERIAL ACCOUNTING POLICIESSTATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

The Standalone 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 (as amended from time to time), (Ind
AS compliant Schedule III), as applicable to the Standalone financial statements. The Standalone financial statements have
been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair
value or at revalued amount:

• Derivative financial instruments,

• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments),
and

• Defined benefit plans and employee share based payments;

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.
FUNCTIONAL AND PRESENTATION CURRENCY

The Standalone Financial Statements are presented in Indian Rupee (INR) All amounts disclosed in Standalone Financial
Statements and notes have been rounded off to the nearest lakhs (with two places of decimal) unless otherwise stated.

SUMMARY OF MATERIAL ACCOUNTING POLICIES(i) 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 realization in cash and
cash equivalents. The Company has identified period up to twelve months as its operating cycle.

(ii) Measurement of Fair Values

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned
above. 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.

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are
categorised within the fair value hierarchy that categorises into three levels, described as follows, the inputs to
valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in
active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level
3 inputs).

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

• Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.

• Level 3 — inputs that are unobservable for the asset or liability.

For assets and liabilities that are recognised in the Standalone Financial Statements at fair value on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization at the end of each reporting period and discloses the same.

(iii) Property, plant and equipment

An item of property, plant and equipment (PPE) that qualifies as an asset is measured on initial recognition at cost.
Following initial recognition, items of PPE are carried at their cost less accumulated depreciation and accumulated
impairment losses, if any. Item of PPE which reflects significant cost and has different useful life from the remaining
part of PPE is recognised as a separate component. The cost of an item of PPE comprises of its purchase price net
of discounts, if any including import duties and other non-refundable taxes or levies and directly attributable cost
of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning,
restoration and similar liabilities, if any.

Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met. Expenses like
plans, designs, and drawings of buildings or plant and machinery, borrowing cost on qualifying assets, directly
attributable to new manufacturing facility during its construction period are capitalised under the relevant head of
PPE if the recognition criteria are met. Subsequent costs are included in the asset''s carrying amount or recognised
as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced. Items such as spare parts, stand-by equipment
and servicing equipment that meet the definition of PPE are capitalised at cost and depreciated over their useful life.
Costs in nature of repairs and maintenance are recognised in the Standalone Statement of Profit and Loss as and
when incurred.

The Company had elected to consider the carrying value of all its PPE appearing in the Standalone Financial
Statement and used the same as deemed cost in the opening Ind AS Balance Sheet prepared on 1^st April 2019.

Capital work-in-progress and Capital advances:

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances
given towards acquisition of fixed assets outstanding at each Balance Sheet date are disclosed as Other Non-Current
Assets.

Depreciation:

Depreciation on each part of an item / component of PPE is provided on pro-rata basis using the Written Down
Value Method based on the expected useful life of the asset and is charged to the Standalone Statement of Profit
and Loss account as per the requirement of Schedule II of the Companies Act, 2013. The useful life has been
assessed based on technical evaluation, taking into account the nature of the asset and the estimated usage basis
management''s best judgement of economic benefits from those classes of assets. The estimated useful life of items
of PPE is mentioned below:

The useful lives, residual values of each part of an item of PPE and the depreciation methods are reviewed at the end
of each financial year. If any of these expectations differ from previous estimates, such change is accounted for as a
change in an accounting estimate.

Derecognition:

The carrying amount of an item of PPE is derecognised on disposal or when no future economic benefits are
expected from its use or disposal. The gain or loss arising from the derecognition of an item of PPE is measured as
the difference between the net disposal proceeds and the carrying amount of the item and is recognised in the
Standalone Statement of Profit and Loss when the item is derecognised.

(iv) Other Intangible assets

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

Cost includes the purchase price (including import duties and non-refundable taxes) and directly attributable costs
to prepare the asset for its intended use.

Amortisation:

Intangible assets comprise software licences. Software licenses are amortised over their estimated economic useful
life i.e. license period of five years using the WDV method.

The amortisation period and the amortisation method for an intangible asset with finite useful life is reviewed at the
end of each financial year. If any of these expectations differ from previous estimates, such change is accounted for
as a change in an accounting estimate.

Derecognition:

The carrying amount of an intangible asset is derecognised on disposal or when no future economic benefits
are expected from its use or disposal. The gain or loss arising from the Derecognition of an intangible asset is
measured as the difference between the net disposal proceeds and the carrying amount of the intangible asset and
is recognised in the Standalone Statement of Profit and Loss when the asset is derecognised.

(v) Impairment

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that a non¬
financial asset may be impaired. Assets that have an indefinite useful life are not subject to amortisation and are
tested for impairment annually and whenever there is an indication that the asset may be impaired.

Assets that are subject to depreciation and amortisation and assets representing investments in subsidiaries are
reviewed for impairment, whenever events or changes in circumstances indicate that carrying amount may not be
recoverable. Such circumstances include, though are not limited to, significant or sustained decline in revenues or
earnings and material adverse changes in the economic environment. An impairment loss is recognised whenever
the carrying amount of an asset or its CGU exceeds its recoverable amount. The recoverable amount of an asset is
the greater of its fair value less cost to sell and value-in-use. To calculate value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risk
specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount
is determined for the CGU to which the asset belongs. Fair value less cost to sell is the best estimate of the amount
obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less
the cost of disposal. Impairment losses, if any, are recognised in the Standalone Statement of Profit and Loss and
included in depreciation and amortisation expense.

Impairment losses, on assets other than goodwill are reversed in the Standalone Statement of Profit and Loss only to
the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined
if no impairment loss had previously been recognised.

(vi) Lease accounting
Assets taken on lease:

The Company mainly has lease arrangements for building for offices. The Company assesses whether a contract is
or contains a lease, at inception of a contract in accordance with Ind AS 116. The assessment involves the exercise of
judgement about whether (i) the contract involves the use of an identified asset, (ii) the Company has substantially

all the economic benefits from the use of the asset through the period of the lease, and (iii) the Company has the
right to direct the use of the asset.

The Company recognises a right-of-use asset ("ROU") and a corresponding lease liability at the lease commencement
date. The ROU asset is initially recognised 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. They are
subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets primarily comprise buildings and are depreciated using the Written Down Value (WDV) method
over the shorter of the lease term and the estimated useful life of the underlying asset. The estimated useful life
considered for buildings is 30 years.

Where ownership of the underlying asset is expected to transfer to the Company at the end of the lease term, or
where the cost of the right-of-use asset reflects the exercise of a purchase option that the Company is reasonably
certain to exercise, depreciation is provided over the estimated useful life of the underlying asset. The estimated
useful lives of ROU assets are determined on the same basis as those of property and equipment. 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, generally discounted using an incremental borrowing rate specific to the Company, term
and currency of the contract.

Lease payments included in the measurement of the lease liability include fixed payments, variable lease payments
that depend on an index or a rate known at the commencement date; and extension option payments or purchase
options payment which the Company is reasonably certain to exercise.

Variable lease payments that do not depend on an index or rate are recognised as an expense in the period in which
the event or condition that triggers those payments occurs and are included in the line "other expenses” in the
Standalone Statement of Profit and Loss. After the commencement date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for the lease payments made and remeasured (with a corresponding
adjustment to the related ROU asset) when there is a change in future lease payments in case of renegotiation,
changes of an index or rate or in case of reassessment of options.

Short-term leases and leases of low-value assets: The Company has elected not to recognise ROU assets and lease
liabilities for short term leases as well as low value assets and recognises the lease payments associated with these
leases as an expense on a straight-line basis over the lease term.

Lease accounting by lessor

The Company as a lessor needs to classify each of its leases either as an operating lease or a finance lease. A lease
is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an
underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards
incidental to ownership of an underlying asset.

Finance lease

At the commencement date, the Company will recognise assets held under a finance lease in its Balance Sheet
and present them as a receivable at an amount equal to the net investment in the lease. Net investment is the
discount value of lease receipts net of initial direct costs using the interest rate implicit in the lease. For subsequent
measurement of finance leased assets, the Company will recognise interest income over the lease period, based on
a pattern reflecting a constant periodic rate of return on the Company''s net investment in the lease.

Operating lease

The Company will recognise lease receipts from operating leases as income on either a straight-line basis or another
systematic basis. The Company will recognise costs, including depreciation incurred in earning the lease income as
expense.

(vii) Investment Property

Investment property comprises building or part of a building and that is held, or to be held, to earn rentals
or for capital appreciation or both. Property held under a lease is classified as investment property when
it is held to earn rentals or for capital appreciation or both.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. The cost includes the cost of replacing parts and borrowing costs for long-term
construction projects if the recognition criteria are met. When significant parts of the investment properties
are required to be replaced at intervals, the Company depreciates them separately based on their specific
useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred. The Company
depreciates building component of investment property over 30 years from the date of original purchase
using the Written Down Value Method. Though the Company measures investment properties using cost-
based measurement, the fair value of investment properties are disclosed in the notes. Investment properties
are derecognised either when they have been disposed of or when they are permanently withdrawn from
use and no future economic benefit is expected from their disposal. The difference between the net disposal
proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.
In determining the amount of consideration from the derecognition of investment properties the Company
considers the effects of variable consideration, existence of a significant financing component, non-cash
consideration, and consideration payable to the buyer (if any). Transfers are made to (or from) investment
properties only when there is a change in use. Transfers between investment property, owner-occupied
property and inventories do not change the carrying amount of the property transferred and they do not
change the cost of that property for measurement or disclosure purposes.

(viii) Revenue Recognition

Revenue from contracts with customers is recognised on transfer of control of promised services to a customer at
an amount that reflects the consideration to which the Company is expected to be entitled to in exchange for those
services. It is measured at transaction price (net of variable consideration by the Company as part of the contract)
allocated to that performance obligation. This variable consideration is estimated based on the expected value of
outflow. Revenue (net of variable consideration) is recognised only to the extent that it is highly probable that the
amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.

(ix) Cash and Cash Equivalents

Cash and cash equivalents for the purpose of Standalone Statement of Cash Flows comprise cash and cheques in
hand, bank balances, demand deposits with banks where the original maturity is three months or less and other
short term highly liquid investments net of bank overdrafts (if any) which are repayable on demand as these form an
integral part of the Company''s cash management.

(x) Income Taxes

Tax expense is the aggregate amount included in the determination of Standalone profit or loss for the period in
respect of current tax and deferred tax.

Current tax:

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from
''profit before tax'' as reported in the Standalone Statement of Profit and Loss because of items of income or expense
that are taxable or deductible in other years and items that are never taxable or deductible in accordance with the
applicable tax laws. Current tax is measured using tax rates that have been enacted by the end of reporting period
for the amounts expected to be recovered from or paid to the taxation authorities.

Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
Standalone Financial Statement and the corresponding tax bases used in the computation of taxable profit in
accordance with the applicable tax laws. Deferred tax assets and liabilities are generally recognised for all deductible
and taxable temporary differences respectively. However, in case of temporary differences that arise from initial
recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit or
does not give rise to equal taxable and deductible temporary differences, deferred tax assets or liabilities are not
recognised. Also, for temporary differences if any that may arise from initial recognition of deferred tax liabilities is
not recognised. Deferred tax assets are recognised to the extent it is probable that taxable profits will be available
against which those deductible temporary difference can be utilized.

The Company recognises a deferred tax asset arising from unused tax losses or tax credits only to the extent it
has a sufficient taxable temporary difference or there is convincing evidence that sufficient taxable profits will be

available. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or
all of such deferred tax assets to be utilized. Deferred tax assets and liabilities are measured at the tax rates that have
been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in
the years in which those temporary differences are expected to be recovered or settled.

Uncertain tax positions:

The management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The Company reflects the effect of uncertainty for each uncertain
tax treatment by using one of two methods, the expected value method (the sum of the probability - weighted
amounts in a range of possible outcomes) or the most likely amount (single most likely amount method in a range
of possible outcomes), depending on which is expected to better predict the resolution of the uncertainty. The
Company applies consistent judgements and estimates if an uncertain tax treatment affects both the current and
the deferred tax.

Presentation of current and deferred tax:

Current tax and deferred tax are recognised in profit or loss, except to the extent that they relate to items recognised
outside profit or loss. Current tax and deferred tax relating to items recognised in other comprehensive income
("OQ''O or directly in equity are recognised in OCI or directly in equity, respectively, consistent with the recognition
of the underlying transaction or event.

The Company offsets current tax assets and current tax liabilities when it has a legally enforceable right to set off the
recognised amounts and intends either to settle them on a net basis or to realise the asset and settle the liability
simultaneously.

Deferred tax assets and deferred tax liabilities are offset only when the Company has a legally enforceable right to
set off current tax assets against 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 or different taxable entities that
intend to settle current tax balances 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 assets or deferred tax liabilities are expected to be
recovered or settled.

(xi) Foreign currency translation
Initial Recognition:

On initial recognition, transactions in foreign currencies entered into by the Company are recorded in the functional
currency (i.e. Indian Rupees), by applying to the foreign currency amount, the spot exchange rate between the
functional currency and the foreign currency at the date of the transaction.

Measurement of foreign currency items at reporting date:

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non monetary items
that are measured at historical cost in a foreign currency, are translated using the exchange rate at the date of the
transaction. Non-monetary items that are measured at fair value in a foreign currency, are translated using the
exchange rates at the date when the fair value is measured. Exchange differences arising out of foreign exchange
translations and settlements during the year are recognised in the Standalone Statement of Profit and Loss.

(xii) Employee Benefits
Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
services are provided. Liabilities for salaries, including non-monetary benefits that are expected to be settled wholly
within twelve months after the end of the period in which the employees render the related service are recognized
in respect of employees'' services up to the end of the reporting period.

Post-Employment Benefits

The Company operates the following post-employment schemes:

Defined Contribution Plan

Defined contribution plans are post-employment benefit plans under which the Company pays fixed contributions
into state managed retirement benefit schemes and will have no legal or constructive obligation to pay further
contributions, if any, if the state managed funds do not hold sufficient assets to pay all employee benefits relating to
employee services in the current and preceding financial years. The Company''s contributions to defined contribution
plans are recognised in the Standalone Statement of Profit and Loss in the financial year to which they relate.

The Company recognises contribution payable to a defined contribution plan as an expense in the Standalone
Statement of Profit and Loss when the employees render services. If the contributions payable for services received
from employees before the reporting date exceeds the contributions already paid, the deficit payable is recognised
as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution
due for services received before the reporting date, the excess is recognised as an asset to the extent that the
prepayment will lead to a reduction in future payments or a cash refund.

Defined Benefit Plans

The Company operate a gratuity scheme for employees.

Recognition and measurement of defined benefit plans:

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations
being carried out at each reporting date. The defined benefit obligations recognised in the Standalone Balance
Sheet represent the present value of the defined benefit obligations.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit
liability are recognised in the Standalone Statement of Profit and Loss. Remeasurements of the net defined benefit
liability comprising actuarial gains and losses are recognised in Other Comprehensive Income. Such remeasurements
are not reclassified to the Standalone Statement of Profit and Loss in the subsequent periods. The Company presents
the above liability as current and non-current in the Balance Sheet as per actuarial valuation by the independent
actuary;

(xiii) Share based Payments:

The Company operates equity settled share-based plan for the employees. ESOP granted to the employees are
measured at fair value of the stock options at the grant date. Such fair value of the equity settled share based
payments is expensed on a straight-line basis over the vesting period, based on the Company''s estimate of equity
shares that will eventually vest, with a corresponding increase in equity (employee stock option reserve). At the end
of each reporting period, the Company revises its estimate of number of equity shares expected to vest. The impact
of the revision of the original estimates, if any, is recognised in the Standalone Statement of Profit and Loss such that
cumulative expense reflects the revision estimate, with a corresponding adjustments to the employee stock option
reserve.

(xiv) Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial assets

Initial recognition and measurement:

All financial assets are recognised initially at fair value, plus in the case of financial assets not recorded at fair value
through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However,
trade receivables that do not contain a significant financing component are measured at transaction price.

Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference
between the fair value and the transaction price is recognised as a gain or loss in the Standalone Statement of Profit
and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for an
identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level
2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between
the fair value and transaction price is deferred appropriately and recognised as a gain or loss in the Standalone
Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in factor that market
participants take into account when pricing the financial asset.

Subsequent measurement

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

• The Company''s business model for managing the financial asset and

• The contractual cash flow characteristics of the financial asset

Based on the above criteria, the Company classifies its financial assets into the following categories:

Financial assets measured at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

• The Company''s business model objective for managing the financial asset is to hold financial assets in order to
collect contractual cash flows, and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

This category applies to cash and bank balances, trade receivables and other financial assets of the Company. Such
financial assets are subsequently measured at amortised cost using the effective interest method. The effect of
the amortisation under effective interest method is recognised as interest income over the relevant period of the
financial asset under other income in the Standalone Statement of Profit and Loss. The amortised cost of a financial
asset is also adjusted for loss allowance, if any.

Financial assets measured at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if both of the following conditions are met:

• The Company''s business model objective for managing the financial asset is achieved both by collecting
contractual cash flows and selling the financial assets, and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding

Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are
recognised in the Other Comprehensive Income (OCI). However, the Company recognises interest income and
impairment losses and its reversals in the Standalone Statement of Profit and Loss.

On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is reclassified from
equity to Standalone Statement of Profit and Loss.

Further, the Company, through an irrevocable election at initial recognition, has measured certain investments in
equity instruments at FVTOCI. The Company has made such election on an instrument by instrument basis. These
equity instruments are neither held for trading nor are contingent consideration recognised under a business
combination. Pursuant to such irrevocable election, subsequent changes in the fair value of such equity instruments
are recognised in OCI. However, the Company recognises dividend income from such instruments in the Standalone
Statement of Profit and Loss when the right to receive payment is established, it is probable that the economic
benefits will flow to the Company and the amount can be measured reliably.

On derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is not reclassified
from the equity to Standalone Statement of Profit and Loss. However, the Company may transfer such cumulative
gain or loss into retained earnings within equity.

Financial assets measured at fair value through profit or loss (FVTPL)

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as explained above. This
is a residual category applied to all other investments of the Company excluding investments in subsidiary and
associate companies. Such financial assets are subsequently measured at fair value at each reporting date. Fair value
changes are recognised in the Standalone Statement of Profit and Loss.

Derecognition:

A financial asset is derecognised when the right to receive cash flows from the assets has expired, or has been
transferred, and the Company has transferred substantially all of the risks and rewards of ownership.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial
asset, but retains control of the financial asset, the Company continues to recognise such financial asset to the extent

of its continuing involvement in the financial asset. In that case, the Company also recognises an associated liability.
The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that
the Company has retained. On derecognition of a financial asset, (except as mentioned in above for financial assets
measured at FVTOCI), the difference between the carrying amount and the consideration received is recognised in
the Standalone Statement of Profit and Loss.

Impairment of financial assets:

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the
following:

• Trade receivables

• Financial assets measured at amortised cost (other than trade receivables)

• Financial assets measured at fair value through other comprehensive income (FVTOCI) )- in case of debt
instrument

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL
is measured and recognised as loss allowance. In case of other assets (listed as above), the Company determines
if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk
of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognised as
loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and
recognised as loss allowance. Subsequently, if the credit quality of the financial asset improves such that there is no
longer a significant increase in credit risk since initial recognition, the Company reverts to recognising impairment
loss allowance based on 12-month ECL.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range
of outcomes, taking into account the time value of money and other reasonable information available as a result of
past events, current conditions and forecasts of future economic conditions.

As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of trade
receivables. The provision matrix is prepared based on historically observed default rates over the expected life of
trade receivables and is adjusted for forward looking estimates. At each reporting date, the historically observed
default rates and changes in the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the
Standalone Statement of Profit and Loss.

Investment in subsidiaries

The Company has elected to recognise its investments in subsidiary companies at cost in accordance with the option
available in Ind AS 27, ''Separate Financial Statements''. Cost includes cash consideration paid on initial recognition,
adjusted for embedded derivative and estimated contingent consideration (earn out), if any.

Financial Liabilities

Initial recognition and measurement:

The Company recognises a financial liability in its Balance Sheet when it becomes party to the contractual provisions
of the instrument. All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities
not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of
the financial liability. Where the fair value of a financial liability at initial recognition is different from its transaction
price, the difference between the fair value and the transaction price is recognised as a gain or loss in the Standalone
Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market price
in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from
observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between
the fair value and transaction price is deferred appropriately and recognised as a gain or loss in the Standalone
Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in factor that market
participants take into account when pricing the financial liability.

Subsequent measurement :

All financial liabilities of the Company are subsequently measured at amortised cost using the effective interest
method. The cumulative amortisation using the effective interest method of the difference between the initial
recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments,
if any) of the financial liability over the relevant period of the financial liability to arrive at the amortised cost at
each reporting date. The corresponding effect of the amortisation under effective interest method is recognised as
interest expense under finance cost in the Standalone Statement of Profit and Loss.

Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When 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 the
derecognition of the original liability and the recognition of a new liability. The difference between the carrying
amount of the financial liability derecognised and the consideration paid is recognised in the Standalone Statement
of Profit and Loss.

Offsetting of financial assets and financial liabilities:

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet wherever there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis or to realise the asset and settle the liability simultaneously.

(xv) Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holders of company by
the weighted average number of equity shares outstanding during the period. The weighted average number of
equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights
issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares
outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable to equity shareholders of the Company and the weighted
average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.