ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Shadowfax Technologies Ltd.

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

(a) Statement of compliance and basis of
preparation

The Standalone Financial Statements of
the Company comprise the Standalone
Balance Sheet as at 31 March 2026, and
the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), the
Standalone Statement of Changes in Equity,
and the Standalone Statement of Cash Flows
for the year ended 31 March 2026, the material
accounting policies and explanatory notes and
annexures (collectively, the ‘Standalone Financial
Statement’).

The Standalone Financial Statements of the
Company as at 31 March 2026 is prepared in
accordance with the Ind AS as specified under
Section 133 of the Act read with Companies
(Indian Accounting Standards) Rules 2015,
as amended, and other accounting principles

generally accepted in India, which have been
approved by the Board of Directors at their
meeting held on 14 May, 2026.

These Standalone Financial Statements have
been prepared in Indian Rupee (?) which is the
functional currency of the Company. All amounts
disclosed in the Standalone Financial Statements
and notes have been rounded off to the nearest
crores with two decimals, unless otherwise stated.

(b) Basis of measurement

These Standalone Financial Statements are
prepared in accordance with Indian Accounting
Standards (Ind AS) under the historical cost
convention on the accrual basis, except for the
following which have been measured at fair value:

a. Certain financial assets and liabilities
measured at fair value (refer accounting
policy regarding financial instruments note
2.8);

b. Share based payments and

c. Defined benefit and other long term
employee benefits

The material accounting policies used in
preparation of these standalone financial
statements have been discussed in the
respective notes.

(c) Use of estimates, assumptions and judgements

In the application of the Company’s accounting
policies, the management of the Company
is required to make estimates, assumptions
and judgements about the carrying amounts
of assets and liabilities that are not readily
apparent from other sources. The estimates and
associated assumptions are based on historical
experience and other factors that are considered
to be relevant. Actual results may differ from
these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the
revision affects only that period, or in the period of
the revision and future periods if revision affects
both current and future periods.

Information about judgements made in applying
accounting policies that have the most significant
effects on the amounts recognised in the
standalone financial statements is included in the
following notes:

(i) Judgements

Lease term: whether the Company is reasonably
certain to exercise extension options.

Information about assumptions and estimation
uncertainties at the reporting date that have
a significant risk of resulting in a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year is included
in the following notes:

(ii) Estimates

- Note 2.2-Provision for expected reversal
of revenue;

- Note 2.5 and 2.6-Useful lives of property,
plant and equipment and intangible assets:

- Note 2.7 (i)-Impairment of non¬
financial assets;

- Note 2.7 (ii)-Impairment of financial assets;

- Note 2.9-Measurement of Lease liabilities and
Right of Use Asset;

- Note 2.10-Measurement of defined benefit
obligations-key actuarial assumptions;

- Note 2.11-Share based payments-key
assumptions used in valuation;

- Note 2.13-Recognition of deferred tax assets:
availability of future taxable profit against
which deductible temporary differences and
tax losses carried forward can be utilised;

- Note 2.14-Recognition and measurement
of provisions and contingencies: key
assumptions about the likelihood and
magnitude of an outflow of resources.

(d) Fair value measurement

Certain accounting policies and disclosures of the
Company require the measurement of fair values,
for both financial and non financial assets and
liabilities. The Company has an established control
framework with respect to the measurement of
fair values. The valuation team regularly reviews

significant unobservable inputs and valuation
adjustments. Fair values are categorised into
different levels in a fair value hierarchy based
on the inputs used in the valuation techniques
as follows:

- Level 1: quoted prices (unadjusted) in active
markets 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 (i.e. as prices)
or indirectly (i.e. derived from prices).

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

When measuring the fair value of an asset or a
liability, the Company uses observable market
data as far as possible. If the inputs used to
measure the fair value of an asset or a liability fall
into different levels of the fair value hierarchy, then
the fair value measurement is categorised in its
entirety in the same level of the fair value hierarchy
as the lowest level input that is significant to the
entire measurement.

The Company recognizes transfers between
levels of the fair value hierarchy at the end of
the reporting period during which the change
has occurred. Further information about the
assumptions made in measuring fair values is
included in the following notes:

- Note 40 and 41: financial instruments

(e) Current and non-current classification

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. The Company presents assets and
liabilities in the balance sheet based on current/
non-current classification.

An asset is treated as current when it is:

• Expected to be realized or intended to be sold
or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months
after the reporting period, or

• Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period

All other assets are classified as non-current.

A liability is treated as current when:

• It is expected to be settled in normal operating
cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within twelve months
after the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

2.2 Revenue recognition

The Company generates revenue from providing
logistics and delivery services to e-commerce and
hyperlocal customers, these services are primarily
divided into three categories express, hyperlocal,
and other logistics services. Revenue is recognised
at a point in time, when control of services is
transferred to the customer i.e upon fulfilment
of delivery of products to the customer. The
transaction price of services rendered is net of any
taxes collected from customers. The transaction
price is an amount of consideration to which the
Company expects to be entitled in exchange of
promised services.

In case of mismatch in order weight, zonal rate and
prices between the Company and the customer,
the Company assesses and trues up the revenue
and the income pertaining to same is reversed
and is recorded as a reduction of revenue.

Trade receivables

A receivable is Company’s right to consideration
that is unconditional (i.e., only the passage of time
is required before payment of the consideration
is due). Refer to accounting policies of financial

assets in section 2.8 for initial recognition and
subsequent measurement of financial assets.

Contract liabilities

Contract liability is recognized where the Company
has an obligation to transfer goods or services
to a customer for which the entity has received
consideration (or the amount is due) from the
customer. Contract liabilities are recognized as
revenue when the Company performs under the
contract (i.e., transfers control of the related goods
or services to the customer).

2.3 Other income

Interest income

Interest income is recognised when it is probable
that the economic benefits will flow to the
Company and the amount of income can be
measured reliably. Interest income is accrued
on a time basis, by reference to the principal
outstanding and at the effective interest rate
applicable, which is the rate that discounts
estimated future cash receipts through the
expected life of the financial asset to that asset’s
net carrying amount on initial recognition. Interest
income is included under the head ‘other income’
in the standalone statement of profit and loss.

Dividend income on investments is recognised
when the right to receive dividend is established.

Profit on sale of mutual funds and fair value impact
on mark-to-market contracts are recognized on
transaction completion and or on reporting date
as applicable.

2.4 Property, plant and equipment

Property, plant and equipment, are carried
at cost less accumulated depreciation and
impairment losses, if any. The cost of property,
plant and equipment comprises its purchase
price, borrowing costs if capitalisation criteria
is met net of any trade discounts and rebates,
any import duties and other taxes (other than
those subsequently recoverable from the tax
authorities), any directly attributable expenditure
on making the asset ready for its intended use,
other incidental expenses.

The cost of an item of property, plant and
equipment shall be recognised as an asset if, and
only if 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.

If significant parts of an item of property, plant
and equipment have different useful lives, then
they are accounted for as separate items (major
components) of property, plant and equipment.

Subsequent expenditure is capitalized only if it
is probable that the future economic benefits
associated with the expenditure will flow to
the Company and such expenditure can be
measured reliably.

A property, plant and equipment is eliminated
from the standalone financial statement on
disposal or when no further benefit is expected
from its use and disposal. Assets retired from
active use and held for disposal are generally
stated at the lower of their net book value and net
realizable value. Any gain or losses arising disposal
of property, plant and equipment is recognized in
the standalone statement of profit and loss.

The cost of property, plant and equipment at
1 April, 2019, the Company’s date of transition
to Ind AS, was determined with reference to its
carrying value recognised as per the previous
GAAP (deemed cost), as at the date of transition
to Ind AS.

2.5 Depreciation

Depreciable amount for assets is the cost of asset
less its estimated residual value. Depreciation on
property, plant and equipment is calculated on a
straight-line basis using the rates arrived at based
on the useful lives estimated by the management.
Based on the internal technical assessment,
the management believes that the useful lives
as given below, which are different from those
prescribed in Part C of Schedule II of the Act, best
represent the period over which management
expects to use these assets.

Leasehold improvements are depreciated over the
lease term or economic life whichever is earlier.

Depreciation on additions/disposals is provided on
a pro-rata basis i.e. from/upto the date on which
asset is ready for use/disposed off. The estimated
useful lives, residual values and depreciation
method are reviewed at the end of each reporting
period, with the effect of any changes in estimate
accounted for on a prospective basis.

2.6 Intangible assets and amortization

Intangible assets with finite useful lives that
are acquired separately are carried at cost less
accumulated amortisation and accumulated
impairment losses. The cost of an intangible
asset comprises its purchase price, including
any import duties and other taxes (other than
those subsequently recoverable from the
taxing authorities) and any directly attributable
expenditure on making the asset ready for its
intended use.

The cost of internally generated intangible assets
arising from development comprise expenditure
that can be directly attributed, or allocated on
a reasonable and consistent basis, to creating,
producing and making the asset ready for its
intended use. Revenue expenditure incurred
for new product development is expensed till
technical and commercial feasibility is established
and thereafter is capitalized as intangible assets.

Amortisation is recognised on a straight-line basis
over their estimated useful lives. The estimated

useful life and amortisation method are reviewed
at the end of each reporting period, with the effect
of any changes in estimate being accounted for on
a prospective basis.

The useful lives of intangible assets that is
considered for amortization of intangible assets
are as follows:

An intangible asset is derecognised on disposal, or
when no future economic benefits are expected
from use or disposal. Gains or losses arising from
derecognition of an intangible asset, measured
as the difference between the net disposal
proceeds and the carrying amount of the asset,
are recognised in standalone statement of profit
and loss when the asset is derecognised.

The cost of intangible assets at 1 April, 2019,
the Company’s date of transition to Ind AS, was
determined with reference to its carrying value
recognised as per the previous GAAP (deemed
cost), as at the date of transition to Ind AS.

2.7 Impairment

(i) Non-financial assets

At each reporting date, the Company reviews
the carrying amounts of its non-financial
assets (other than deferred tax assets) to
determine whether there is any indication of
impairment. If any such indication exists, then
the asset’s recoverable amount is estimated.

For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair
value less cost to sell and the value in- use)
is determined on an individual asset basis
unless the asset does not generate cash flows
that are largely independent of those from
other assets. In such cases, the recoverable
amount is determined for the CGU to which
the asset belongs.

An impairment loss is recognised in the
standalone statement of profit and loss

is measured by the amount by which the
carrying value of the assets exceeds the
estimated recoverable amount of the
asset. An impairment loss is reversed in the
standalone statement of profit and loss if
there has been a change in the estimates
used to determine the recoverable amount.
The carrying amount of the asset is increased
to its revised recoverable amount, provided
that this amount does not exceed the carrying
amount that would have been determined
(net of any accumulated amortization or
depreciation) had no impairment loss been
recognized for the asset in prior years.

(ii) Financial assets

The Company recognises loss allowances
for ECLs on financial assets measured at
amortised cost.

The Company follows ‘simplified approach’ for
recognition of impairment loss allowance on
trade receivables. The application of simplified
approach does not require the company
to track changes in credit risk. Rather, it
recognises impairment loss allowance based
on lifetime ECLs at each reporting date, right
from its initial recognition.

Lifetime expected credit losses are the
expected credit losses that result from all
possible default events over the expected life
of a financial instrument.

12-month expected credit losses are the
portion of expected credit losses that result
from default events that are possible within
12 months after the reporting date (or a
shorter period if the expected life of the
instrument is less than 12 months).

In all cases, the maximum period considered
when estimating expected credit losses is the
maximum contractual period over which the
Company is exposed to credit risk.

When determining whether the credit risk of
a financial asset has increased significantly
since initial recognition and when estimating
ECLs, the Company considers reasonable and

supportable information that is relevant and
available without undue cost or effort.

The Company considers a financial asset to
be in default when:

• the debtor is unlikely to pay its credit
obligations to the Company in full,
without recourse by the Company to
actions such as realising security (if any
is held); or

• the financial asset is more than 365 days
past due

Measurement of ECLs

ECLs with respect to trade receivables, the
Company has used a practical expedient by
computing the expected credit loss allowance for
trade receivables based on a provision matrix. The
provision matrix takes into account historical credit
loss experience as well as the current economic
conditions and is adjusted for forward looking
information. The expected credit loss allowance is
based on the ageing of the receivables that are due
and allowance rates used in the provision matrix.

Credit-impaired financial assets

At each reporting date, the Company assesses
whether financial assets carried at amortised cost
at FVOCI are credit-impaired. A financial asset is
‘credit-impaired’ when one or more events that
have a detrimental impact on the estimated future
cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired
includes the following observable data:

• significant financial difficulty of the debtor;

• a breach of contract such as a default or being
more than 365 days past due;

• the restructuring of a loan or advance by
the Company’s on terms that the Company
would not consider otherwise;

• it is probable that the debtor will enter
bankruptcy or other financial reorganisation; or

• the disappearance of an active market for a
security because of financial difficulties.

Presentation of allowance for ECL in the
balance sheet

Loss allowances for financial assets measured
at amortised cost are deducted from the gross
carrying amount of the assets.

2.8 Financial instruments

Recognition and initial measurement

Trade receivables and debt securities issued are
initially recognised when they are originated.
All other financial assets and financial liabilities
are initially recognised when the Company
becomes a party to the contractual provisions of
the instrument.

A financial asset (unless it is a trade receivable
without a significant financing component) or
financial liability is initially measured at fair value
plus or minus, for an item not at FVTPL, transaction
costs that are directly attributable to its acquisition
or issue. A trade receivable without a significant
financing component is initially measured at the
transaction price.

(i) Financial assets

Classification and subsequent
measurement

On initial recognition, a financial asset is
classified as measured at:

- Amortised cost

- Fair value through other comprehensive
income (FVOCI)

- Fair value through profit and loss (FVTPL)

Financial assets are not reclassified
subsequent to their recognition, except
during the period the Company changes its
business model for managing financial assets.

Financial assets at amortised cost (Debt
instrument)

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

a) The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

b) Contractual terms of the asset give
rise on specified dates to cash flows
that are solely payments of principal
and interest (SPPI) on the principal
amount outstanding.

Financial assets at FVOCI (Debt instrument)

A debt instrument is measured at FVOCI if it
meets both of the following conditions and is
not designated as at FVTPL:

a) The asset is held within a business model
whose objective is achieved by both
collecting contractual cash flows and
selling financial assets, and

b) Contractual terms of the financial asset
give rise on specified dates to cash flows
that are solely payments of principal
and interest (SPPI) on the principal
amount outstanding.

Financial assets at FVTPL (Debt instrument)

FVTPL is a residual category for debt
instruments. Any debt instrument, which
does not meet the criteria for categorization
as at amortized cost or as FVTOCI, is classified
as at FVTPL.

In addition, the Company may elect to
designate a debt instrument, which otherwise
meets amortized cost or FVTOCI criteria, as
at FVTPL. However, such election is allowed
only if doing so reduces or eliminates a
measurement or recognition inconsistency
(referred to as ‘accounting mismatch’).

Debt instruments included within the FVTPL
category are measured at fair value with
all changes recognized in the standalone
statement of profit and loss.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest rate
(EIR) method. Amortised 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 amortisation is
included in finance income in the standalone
statement of profit and loss. The losses

arising from impairment are recognised in
the standalone statement of profit and loss.
This category generally applies to trade and
other receivables.

Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e.,
removed from the balance sheet) when:

The rights to receive cash flows from the asset
have expired, or

The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in
full without

material delay to a third party under a ‘pass¬
through’ arrangement; and either :

a) the Company has transferred substantially all
the risks and rewards of the asset, or

b) the Company has neither transferred nor
retained substantially all the risks and rewards
of the asset but has transferred control of
the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company’s continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on
a basis that reflects the rights and obligations that
the Company has retained.

(ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss or at amortised cost (loans
and borrowings, payables), as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs. The Company’s financial liabilities include
trade and other payables, lease liabilities, loans
and borrowings.

Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
in the near term.

Gains or losses on liabilities held for trading are
recognised in the profit or loss

Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own
credit risk are recognized in OCI. These gains/
losses are not subsequently transferred to Profit
and Loss. However, the Company may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised
in the standalone statement of profit and loss. The
Company has not designated any financial liability
as at fair value through profit and loss.

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expired. 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 in the respective carrying amounts is

recognised in the standalone statement of profit
and loss.

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 recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

2.9 Leases

The determination of whether an arrangement is
(or contains) a lease is based on the substance of
the arrangement at the inception of the lease. The
arrangement is, or contains, a lease if the contract
conveys the right to control the use of identified
assets for the period of time in exchange of
a consideration.

To assess where the Company has the right to
control the use of identified assets, the Company
assesses whether the :

1) the contract involves the use of identified
assets,

2) whether the Company has the right to obtain
substantially all the economic benefits from
the use of assets throughout the period of
use and

3) whether the Company has the right to direct
the use of assets.

Company as lessee

The Company recognises a right-of-use assets
and a lease liability at the lease commencement
date. The right-of-use (“ROU”) 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 cost 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. The estimated life of such
right-of-use assets are determined on the same
basis as those of property, plant and equipment.
The right-of-use assets is periodically assessed
for impairment.

The lease liability is initially measured at the present
value of future lease payments, discounted using
the implicit rate of interest or if that rate cannot be
readily determined, the Company’s incremental
borrowing rate. Generally the Company uses the
incremental borrowing rate.

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

The Company has elected not to recognise right-
of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or
less and leases of low-value assets. The Company
recognises the lease payments associated with
these leases as an expense over the lease term.

2.10 Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognised in
respect of employees’ services up to the end
of the reporting period and are measured
at the amounts expected to be paid when
the liabilities are settled. The liabilities are
presented as current employee benefit
obligation in balance sheet.

(ii) Defined contribution plan

The Company’s contribution to provident
fund, employee state insurance scheme,
social security etc. are considered as defined
contribution plans and are charged as an
expense based on the amount of contribution

required to be made as and when services are
rendered by the employees.

(iii) Defined benefit plan

Post employment benefit plans other than
defined contribution plans include liabilities
for gratuity is determined by using projected
unit credit method with actuarial valuation
made at the end of each financial year. The
Company’s gratuity scheme is unfunded.

The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have
terms approximating to the terms of the
related obligation.

Actuarial gains and losses are recognised
in other comprehensive income. Interest
recognised in the statement of profit and
loss is calculated by applying a discount
rate used to measure the defined benefit
obligation to the net defined benefit liability
or asset. Remeasurement gains and losses are
recognised in the period in which they occur,
directly in other comprehensive income.
They are included in retained earnings in the
standalone statement of changes in equity
and in standalone statement of assets and
liabilities. Remeasurement gains and losses
are not reclassified to standalone statement
of profit and loss in subsequent periods.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in profit or loss as past
service cost.

(iv) Compensated absences

Compensated absences which are not
expected to occur within twelve months
after the end of the period in which the
employee renders the related services are
recognised at an actuarially determined
liability at the present value of the defined
benefit obligation at the Balance sheet
date. In respect of compensated absences

expected to occur within twelve months after
the end of the period in which the employee
renders the related services, liability for
short-term employee benefits is measured
at the undiscounted amount of the benefits
expected to be paid in exchange for the
related service. The current and non-current
classification of compensated absences is as
per the actuarial valuation report.

2.11 Share based payments

The Company measures compensation cost
relating to employee stock options plans using
the fair valuation method in accordance with Ind
AS 102, Share-Based Payment. Compensation
expense is amortized over the vesting period as
per graded vesting method. The cost of equity-
settled transactions is determined by the fair
value at the date when the grant is made using
Black-Scholes model. That cost is recognised,
together with a corresponding increase in share
based payment reserve in other equity, over the
period in which the performance and/or service
conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for
equity-settled transactions at each reporting date
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.

When an award is cancelled by the Company or
by the counterparty, any remaining element of the
fair value of the award is expensed immediately
through the standalone statement of profit
and loss.

2.12 Earnings per share

The basic earnings per share is computed by
dividing the profit/(loss) attributable to the
shareholders of the Company for the year by
the weighted average number of equity shares
outstanding during the reporting period.

Diluted earnings per share is computed by
dividing the profit/(loss) after tax as adjusted for
dividend, interest (net of any attributable taxes)
other charges to expense or income relating to the
dilutive potential equity shares, by the weighted

average number of equity shares considered
for deriving basic earnings per share and the
weighted average number of equity shares which
could have been issued on the conversion of all
dilutive potential equity shares.

Potential equity shares are deemed to be dilutive
only if their conversion to equity shares would
decrease the net profit per share or increase
the net loss per share. Potential dilutive equity
shares are deemed to be converted as at the
beginning of the period, unless they have been
issued at a later date. Dilutive potential equity
shares are determined independently for each
period presented.

2.13 Income taxes

The income tax expense or credit for the period
is the tax payable on the current period’s taxable
income based on the applicable income tax rate
adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences
and to unused tax losses, if any.

The current income tax charge is calculated on
the basis of the tax laws enacted or substantively
enacted at the end of the reporting period.
Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulation is subject to
interpretation. It establishes provisions, where
appropriate, on the basis of amounts expected to
be paid to the tax authorities.

Current tax assets and tax liabilities are offset
where the Company has a legally enforceable
right to offset and intends either to settle on a
net basis, or to realise the asset and settle the
liability simultaneously.

Deferred income tax is provided in full, using the
liability method, on temporary differences arising
between the tax bases of assets and liabilities and
their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially
enacted by the end of the reporting period and
are expected to apply when the related deferred
income tax asset is realised or the deferred income
tax liability is settled.

Deferred tax assets are recognised for all
deductible temporary differences and unused
tax losses, if any, only if it is probable that future
taxable amounts will be available to utilise those
temporary differences and losses.

Deferred tax assets and liabilities are offset
when there is a legally enforceable right to
offset current tax assets and liabilities and when
the deferred tax balances relate to the same
taxation authority.

Current and deferred tax are recognised in the
standalone statement of profit and loss, except
to the extent that it relates to items recognised
in other comprehensive income or directly in
equity. In this case, the tax is also recognised
in other comprehensive income or directly in
equity, respectively.