2 Material Accounting Policies2.1 Basis of preparation

a) Statement of compliance

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards
(Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act,
2013, (the ''Act'') and other relevant provisions of the Act.

b) Basis of measurement

The Ind AS financial statements have been prepared on the historical cost basis except for certain financial instruments
that are measured at fair values at the end of each reporting period. Accounting policies have been consistently applied
except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard
requires a change in the accounting policy hitherto in use.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between
the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and future periods are affected.

c) Functional and Presentation Currency

Company''s financial statements are presented in Indian Rupees (INR), which is also its functional currency. All amounts
disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirement of
Division II, Schedule III, unless otherwise stated.

d) Use of Estimates and Judgement

The preparation of the financial statements in conformity with the recognition and management principles of Ind AS
requires the management to make estimates and judgements that affects the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the year. The management believes that
the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due
to these estimates and the differences between the actual results and the estimates are recognised in the periods in which
the results are known / materialise.

2.2 Impairment of investments

The Company reviews its carrying value of investments carried at amortised cost / deemed cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than it is carrying amount, the impairment loss is
accounted for.

Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment
may result in change in depreciation expense in future periods.

Provisions and contingent liabilities

A provision is recognised when the Company has a present obligation because of past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These
are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are not recognized in the financial statements. Contingent assets are neither recognised nor disclosed
in the financial statements.

Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash
Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments.

Recognition of Deferred Tax assets/liabilities

Company recognizes deferred tax assets/ liabilities based on temporary differences between taxable profits and book
profits. Refer note E & E Enterprises Private Limited.

e) Measurement of fair values

A number of Company''s accounting policies and disclosures require the measurement of fair values, for both financial and
non-financial assets and liabilities. The Company has establish policies and procedure with respect to measurement of fair
values. 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: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, mutual funds and forward contracts that have quoted price. The fair value of all equity instruments (including
bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual
funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equity securities, contingent consideration.

2.3 Foreign currency

Foreign currency transactions

Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction.
Foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the balance
sheet date and exchange gains and losses arising on settlement and restatement are recognised in the statement of profit
and loss.

Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated.

2.4 Financial instruments

i. 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 or financial liability is initially measured at fair value plus / minus, for an item not at fair value through profit
and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

ii. Classification and subsequent measurement

a. Financial assets

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

- amortised cost;

- FVOCI - debt investment;

- FVOCI - equity investment; or

- FVTPL

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

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:

- the asset is held within a business model whose objective is to hold assets 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.

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

- the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling

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.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present
subsequent changes in the investment''s fair value in OCI (designated as FVOCI - equity investment). This election is
made on an investment- by- investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets: Subsequent measurement and gains and losses

Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income,
are recognised in profit or loss.

Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is
reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in
profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Debt investments at FVOCI

These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign
exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in
OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the
dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in
OCI and are not reclassified to profit or loss.

b. Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if
it is classified as held- for- trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities
at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or
loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also
recognised in profit or loss.

iii. Derecognition

Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all
or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified
terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair
value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with
modified terms is recognised in profit or loss.

iv. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when,
the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net
basis or to realise the asset and settle the liability simultaneously.

2.5 Property, plant and equipment and intangible assets

i. Recognition and measurement

Items of property, plant and equipment and intangible assets are measured at cost, less accumulated depreciation and
accumulated impairment losses, if any.

Cost of an item of property, plant and equipment and intangible asset comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item
and restoring the site on which it is located.

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.

ii. Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure
will flow to the Company.

iii. Depreciation and amortisation

Depreciation on property, plant and equipment is provided on straight line method as per the useful life prescribed in
Schedule II to the Companies Act, 2013 except mobile phones where useful life has taken 2 years. Estimated value of the
property plant & equipment at the end of its useful life is taken as “nil” except Vehicles where estimated value at the end
of its useful life is taken as 5% of Gross Value of Vehicle.

2.6 Intangible Assets

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if
any.

2.7 Impairment

A. Impairment of financial instruments

The Company recognises loss allowances for expected credit losses on:

i. Financial assets measured at amortised cost; and

ii. Financial assets measured at FVOCI- debt investments.

At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt securities 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:

i. significant financial difficulty of the borrower or issuer;

ii. a breach of contract such as a default or being past due for 90 days or more;

iii. the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;

iv. it is probable that the borrower will enter bankruptcy or other financial reorganisation; or

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

The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the following,
which are measured as 12 month expected credit losses:

i. debt securities that are determined to have low credit risk at the reporting date; and

ii. other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the
financial instrument) has not increased significantly since initial recognition.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognised from initial recognition of the receivables.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and
available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on
the Company''s historical experience and informed credit assessment and including forward- looking information.

B. Impairment of non-financial assets

The Company''s non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is
estimated. An asset''s recoverable amount is the higher of an asset''s fair value less costs of the disposal and its value
in use. 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 exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The recoverable amount of an individual asset is the higher of its value in use and its fair value less costs to sell. Value
in use is based on the estimated future cash flows, 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.

An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment
losses are recognised in the statement of profit and loss.

In respect of assets for which impairment loss has been recognised in prior periods, the company reviews at each reporting
date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if
there has been a change in the estimates used to determine the recoverable amount. Such a reversal is recognized in the
statement of Profit or Loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as an
increase in revaluation.

2.8 Revenue recognition

i. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured regardless of when the payment is being made. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or
duties collected on behalf of the government.

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

iii. Interest income is recognised using the Effective Interest Rate method.

iv. Loan Processing Fees Income is accounted for on effective interest basis, Arranger fees/ Asset monitoring fees income is
accounted for on accrual basis.

2.9 Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash
that are subject to an insignificant risk of change in value and having original maturities of three months or less from the
date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted
for withdrawal and usage.

2. MATERIAL ACCOUNTING POLICIES

i) Basis of preparation

The financial statements ("financial statements") have been prepared in accordance with Indian Accounting Standards
(Ind AS) and the provisions of the Companies Act, 2013 (''the Act''). The Ind AS are prescribed under Section 133 of the
Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued
thereafter.

The financial statements have been prepared on the historical cost basis except for certain financial instruments and
plan assets of defined benefit plans, which are measured at fair value and prudential norms for Income Recognition,
assets classification and provisioning for Non-performing assets as well as contingency provision for Standard assets as
prescribed by The Reserve Bank of India (RBI) for NBFCs.

Any applicable guidance/ clarifications/ directions issued by RBI or other regulators are implemented as and when they
are issued/ applicable.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to the existing accounting standard requires a change in the accounting policy hitherto in use.

Company''s financial statements are presented in Indian Rupees (INR), which is also its functional currency. All amounts
disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirement of
Division III, Schedule III, unless otherwise stated.

ii) Basis of accounting

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are
measured at fair values at the end of each reporting period.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between
the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities.

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates and
assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The management believes that the estimates used in preparation of the financial
statements are prudent and reasonable. Future results could differ due to these estimates and the differences between
the actual results and the estimates are recognised in the periods in which the results are known / materialise.

iii) Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions
of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at
fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

Classification

Financial assets that meet the following conditions are subsequently measured at amortised cost:

• the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and

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

Financial assets that meet the following conditions are subsequently measured at fair value through other
comprehensive income (FVTOCI):

• the financial asset is held within a business model whose objective is achieved by both 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.

By default, all other financial assets are subsequently measured at fair value through profit and loss (FVTPL).
Debtjnstruments

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and
the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its
debt instruments:

Amortised.cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal
and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or
impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Effective_interest_rate_method

Income is recognised on an effective interest rate basis for financial assets other than those financial assets classified as
at FVTPL. The ''effective interest rate'' is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument.

The calculation of the effective interest rate includes transaction costs and fees that are an integral part of the contract.
Transaction costs include incremental costs that are directly attributable to the acquisition of financial asset.

If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk, the adjustment
is recorded as a positive or negative adjustment to the carrying amount of the asset in the balance sheet with an increase
or reduction in interest income. The adjustment is subsequently amortised through Interest income in the statement of
profit and loss.

The Company calculates interest income by applying the EIR to the gross carrying amount of financial assets other than
credit-impaired assets.

Financial_assets_at_fairyalue_through_profit_or loss_(FVTPL)

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising
on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend
or interest earned on the financial asset. Dividend on financial assets at FVTPL is recognised when the Company''s right
to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to
the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be
measured reliably.

Changes in the fair value of financial assets at FVTPL are recognised in the statement of profit and loss.

Impairment_of financial.assets
Lending:

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at
amortised cost, loan commitments, trade receivables and other contractual rights to receive cash or other financial asset.

The expected credit loss is a product of exposure at default, probability of default and loss given default. The Company
has devised an internal model to evaluate the probability of default and loss given default based on the parameters set out
in Ind AS 109. The Company has a dedicated Asset Monitoring team which evaluates asset performance on a continued
basis to flag of early warning signals. Probability of default have been adjusted with forward looking inputs from anticipated

change in future macro-economic conditions to comply with Ind AS 109. The forward looking macro-economic conditions
based adjustment is driven through a multi linear regression model which forecasts systemic gross non-performing assets
under baseline future economic scenarios. Accordingly, the financial instruments are classified into Stage 1 - Standard
Assets with zero to thirty days past due (DPD), Stage 2 - Significant Credit Deterioration or overdue between 31 to 90
days and Stage 3 - Default Assets with overdue for more than 90 days. The Company also takes into account the below
qualitative parameters in determining the increase in credit risk for the financial assets:

1) Significant negative deviation in the business plan of the borrower

2) Internal rating downgrade for the borrower or the project

3) Current and expected financial performance of the borrower

4) Need for refinance of loan due to change in cash flow of the project

5) Significant decrease in the value of collateral

6) Change in market conditions and industry trends

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is
used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase
in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month
ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12
months after the reporting date.

Default Assets wherein the management does not expect any realistic prospect of recovery are written off to the Statement
of Profit and Loss.

Derecognition_of_financial_assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of financial assets in entirety, the difference between the asset''s carrying amount and the sum of the
consideration received and receivable, is recognised in the statement of profit and loss.

Financial liabilities and equity instruments

Classification_as_debt_or_equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equityjnstrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued are recognised at the proceeds received, net of direct issue costs.

Financialjiabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest rate method or at FVTPL.

Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by
the Company as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated
as at FVTPL.

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at
the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at
amortised cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter
period, to the amortised cost of a financial liability.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan
arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on
the reporting date, the Company does not classify the liability as current, if the lender agreed, after the reporting period
and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

Derecognition_of_financialjiabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled
or have expired. An exchange between the Company and the lender of debt instruments with substantially different terms
is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

2. SIGNIFICANT ACCOUNTING POLICIES

i) Basis of preparation

The financial statements (“financial statements”) have been prepared in accordance with Indian Accounting Standards
(Ind AS) and the provisions of the Companies Act, 2013 (''the Act''). The Ind AS are prescribed under Section 133 of the
Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued
thereafter.

The financial statements have been prepared on the historical cost basis except for certain financial instruments and
plan assets of defined benefit plans, which are measured at fair value and prudential norms for Income Recognition,
assets classification and provisioning for Non-performing assets as well as contingency provision for Standard assets as
prescribed by The Reserve Bank of India (RBI) for NBFCs.

Any applicable guidance/ clarifications/ directions issued by RBI or other regulators are implemented as and when they
are issued/ applicable.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to the existing accounting standard requires a change in the accounting policy hitherto in use.

Company''s financial statements are presented in Indian Rupees (INR), which is also its functional currency. All amounts
disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirement of
Division III, Schedule III, unless otherwise stated.

ii) Basis of accounting

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are
measured at fair values at the end of each reporting period.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between
the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities.

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates and
assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The management believes that the estimates used in preparation of the financial
statements are prudent and reasonable. Future results could differ due to these estimates and the differences between
the actual results and the estimates are recognised in the periods in which the results are known / materialise.

iii) Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions
of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at
fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

Classification

Financial assets that meet the following conditions are subsequently measured at amortised cost:

• the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and

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

Financial assets that meet the following conditions are subsequently measured at fair value through other
comprehensive income (FVTOCI):

• the financial asset is held within a business model whose objective is achieved by both 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.

By default, all other financial assets are subsequently measured at fair value through profit and loss (FVTPL).

Debt instruments

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and
the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its
debt instruments:

Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal
and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or
impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Effective interest rate method

Income is recognised on an effective interest rate basis for financial assets other than those financial assets classified as
at FVTPL. The ''effective interest rate'' is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument.

The calculation of the effective interest rate includes transaction costs and fees that are an integral part of the contract.
Transaction costs include incremental costs that are directly attributable to the acquisition of financial asset.

If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk, the adjustment
is recorded as a positive or negative adjustment to the carrying amount of the asset in the balance sheet with an increase
or reduction in interest income. The adjustment is subsequently amortised through Interest income in the statement of
profit and loss.

The Company calculates interest income by applying the EIR to the gross carrying amount of financial assets other than
credit-impaired assets.

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

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising
on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend
or interest earned on the financial asset. Dividend on financial assets at FVTPL is recognised when the Company''s right
to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to
the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be
measured reliably.

Changes in the fair value of financial assets at FVTPL are recognised in the statement of profit and loss.

Impairment of financial assets
Lending:

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at
amortised cost, loan commitments, trade receivables and other contractual rights to receive cash or other financial asset.

The expected credit loss is a product of exposure at default, probability of default and loss given default. The Company
has devised an internal model to evaluate the probability of default and loss given default based on the parameters set out
in Ind AS 109. The Company has a dedicated Asset Monitoring team which evaluates asset performance on a continued
basis to flag of early warning signals. Probability of default have been adjusted with forward looking inputs from anticipated
change in future macro-economic conditions to comply with Ind AS 109. The forward looking macro-economic conditions
based adjustment is driven through a multi linear regression model which forecasts systemic gross non-performing assets
under baseline future economic scenarios. Accordingly, the financial instruments are classified into Stage 1 - Standard
Assets with zero to thirty days past due (DPD), Stage 2 - Significant Credit Deterioration or overdue between 31 to 90
days and Stage 3 - Default Assets with overdue for more than 90 days. The Company also takes into account the below
qualitative parameters in determining the increase in credit risk for the financial assets:

1) Significant negative deviation in the business plan of the borrower

2) Internal rating downgrade for the borrower or the project

3) Current and expected financial performance of the borrower

4) Need for refinance of loan due to change in cash flow of the project

5) Significant decrease in the value of collateral

6) Change in market conditions and industry trends

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is
used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase
in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month
ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12
months after the reporting date.

Default Assets wherein the management does not expect any realistic prospect of recovery are written off to the Statement
of Profit and Loss.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of financial assets in entirety, the difference between the asset''s carrying amount and the sum of the
consideration received and receivable, is recognised in the statement of profit and loss.

Financial liabilities and equity instruments

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued are recognised at the proceeds received, net of direct issue costs.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest rate method or at FVTPL.

Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by
the Company as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated
as at FVTPL.

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at
the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at
amortised cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter
period, to the amortised cost of a financial liability.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan
arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on
the reporting date, the Company does not classify the liability as current, if the lender agreed, after the reporting period
and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled
or have expired. An exchange between the Company and the lender of debt instruments with substantially different terms
is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

A Basis of Preparation

The financial statements are prepared under the historical cost convention, on accrual basis, and comply with the accounting standards referred to in Section 211(3C) of the Companies Act, 1956.

b Revenue Recognition

Company follows accrual system of accounting and takes into account expense and incomes as accrued. Dividend income is recognised when the company''s right to receive dividend established by the reporting date.

c Provision for Current and Deferred Taxation

Provision for current tax is made at the amount expected to be paid to taxation authority in accordance with the Income Tax Act, 1961.

d Investment

Investment share stated at cost.

A Basis of Preparation

The financial statements are prepared under the historical cost convention, on accrual basis, and comply with the accounting standards referred to in Section 211(3C) of the Companies Act, 1956.

b Revenue Recognition

Company follows accrual system of accounting and takes into account expense and incomes as accrued. Dividend income is recognized when the company''s right to receive dividend established by the reporting date.

c Provision for Current and Deferred Taxation

Provision for current tax is made at the amount expected to be paid to taxation authority in accordance with the Income Tax Act, 1961.

d Investment

Investments are stated at cost.

I) Basis of Accounting:

Financial Statements are prepared on accrual basis of accounting.

ii) Investments:

a) Investments ( Long Term ) are stated at cost.

iii) Interest on Demand/Call loans:

Interest on demand/call loans ore accounted as on year end or on date of repayment of demand/call loans whichever is earlier.

iv) Deferred Tax Liabilities/ Assets: There are no deferred tax assets / liabilities.

v) Prior Period Items: Prior period adjustements represent excess or short provision for income tax of earlier years.

I) Basis of Accounting:

Financial Statements are prepared on accrual basis of accounting.

ii) Investments:

Investments ( Long Term ) are stated at cost.

iii) Interest on Demand/Call loans:

Interest on demand/call loans are accounted as on year end or on date of repayment of j demand/call loans whichever is earlier.

iv) Deferred Tax Liabilities/ Assets:

There are no deferred tax assets / liabilities.

v) Prior Period Items:

Prior period adjustements represent excess or snort provision for income tax of earlier years.