Fujiyama Power Systems Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1.2 Summary of material accounting policy
information

(a) Basis of preparation

The financial statements have been prepared on accrual
basis under the historical cost basis except for certain
financial instruments and defined benefit plan that are
measured at fair values at the end of each reporting
period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.

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,
regardless of whether that price is directly observable
or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the
Company takes into account the characteristics of the
asset or liability if market participants would take those
characteristics into account when pricing the asset or
liability at the measurement date.

In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1,2, or 3 based
on the degree to which the inputs to the fair value
measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which
are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity can
access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or
liability.

Fujiyama Power Systems Limited (formerly known
as Fujiyama Power Systems Private Limited) CIN:
L31909DL2017PLC326513

The preparation of the financial statements in conformity
with Ind AS requires the management to make estimates,
judgments and assumptions. These estimates, judgments
and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the
date of the financial statements and reported amounts of
revenues and expenses during the period. The application
of accounting policies that require critical accounting
estimates involving complex and subjective judgments
and the use of assumptions in these financial statements
have been disclosed with respective accounting policies.
Critical accounting estimates and judgments could
change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates
are made as management becomes aware of changes
in circumstances surrounding the estimates. Changes in
estimates and judgements are reflected in the financial
statements in the period in which changes are made and,
if material, their effects are disclosed in the notes to the
financial statements.

(b) Revenue recognition

(i) Sale of goods and services

Revenue from sale of goods is recognised upon
transfer of control of the goods to the customers,
which generally coincides with their delivery (i.e.,
completion of performance obligation). Sales are
recorded at invoice value, net of goods and service
tax, trade discount and sales returns.

Revenue from sale of services are recognised as and
when the services are rendered as per the terms of
contract with customer.

(ii) Interest income

Interest income is recognized using the time-
proportion method, basis taking into consideration
the amount outstanding and the applicable
interest rates.

(iii) Export incentives

Export incentives are recognised on export of goods
and when the right to receive the income has been
established.

(c) Leases

Leases are classified as finance leases whenever the terms
of the lease transfer substantially all the risks and rewards
of ownership to the lessee.

The Company assesses whether a contract is or contains
a lease, at inception of the contract. The Company
recognises a right-of-use asset and a corresponding lease
liability with respect to all lease arrangements in which
it is the lessee, except for short-term leases (defined as
leases with a lease term of 12 months or less). For these
leases, the Company recognises the lease payments as
an operating expense on a straight-line basis over the
term of the lease unless another systematic basis is more
representative of the time pattern in which economic
benefits from the leased assets are consumed.

The lease liability is initially measured at the present
value of the lease payments that are not paid at
the commencement date, discounted by using the
incremental borrowing rate.

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

• Fixed lease payments (including in-substance fixed
payments), less any lease incentives receivable; and

• Variable lease payments that depend on an index

or rate, initially measured using the index or rate at the
commencement date.

The lease liability is presented as a separate line in the
statement of financial position.

The lease liability is subsequently measured by increasing
the carrying amount to reflect interest on the lease liability
(using the effective interest method) and by reducing the
carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes
a corresponding adjustment to the related right-of-use
asset) whenever:

• The lease term has changed or there is a significant
event or change in circumstances resulting in a change
in the assessment of exercise of a purchase option,
in which case the lease liability is remeasured by
discounting the revised lease payments using a revised
discount rate.

• The lease payments change due to changes in an
index or rate or a change in expected payment under
a guaranteed residual value, in which cases the lease
liability is remeasured by discounting the revised lease
payments using an unchanged discount rate (unless
the lease payments change is due to a change in a
floating interest rate, in which case a revised discount
rate is used).

• A lease contract is modified and the lease modification
is not accounted for as a separate lease, in which case
the lease liability is remeasured based on the lease term
of the modified lease by discounting the revised lease
payments using a revised discount rate at the effective
date of the modification.

The Company did not make any such adjustments during
the current year.

The right-of-use assets comprise the initial measurement
of the corresponding lease liability, lease payments made
at the commencement day, less any lease incentives
received and any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated over the shorter
period of lease term and useful life of the underlying
asset. The depreciation starts at the commencement date
of the lease.

The right-of-use assets are presented as a separate line in
the statement of financial position.

The Company applies IAS 36 to determine whether a right-
of-use asset is impaired and accounts for any identified
impairment loss as described in the ''Impairment'' policy.

(d) Foreign currency transactions and translations

Initial recognition

Transactions denominated in foreign currencies are
accounted at the exchange rates prevailing on the date of
the transaction.

Measurement of foreign currency monetary items at the
Balance Sheet date

Monetary items denominated in foreign currencies at the
year-end are restated at the exchange rates prevailing
on the date of the Balance Sheet. Non-monetary items
denominated in foreign currencies are carried at cost.

Treatment of exchange differences
Exchange differences arising on settlement / restatement
of monetary assets and liabilities of the Company are
recognized as income or expense in the Statement of
Profit and Loss.

(e) Employee benefits

Employee benefits include provident fund and gratuity.
Defined contribution plan

In accordance with the provisions of the Labour Codes,
eligible employees of the Company are entitled to
receive benefits with respect to provident fund, a defined
contribution plan in which both the Company and the
employee contribute monthly at a determined rate
(currently 12% of employee''s basic salary up to maximum
of ?15,000 per month). Company''s contribution to
Provident Fund is charged as an expense in the Statement
of Profit and Loss.

Defined benefit Plan

Benefits payable to eligible employees of the Company
with respect to gratuity, a defined benefit plan is accounted
for on the basis of an actuarial valuation as at the balance
sheet date. In accordance with the Labour Codes, the plan
provides for lump sum payments to vested employees
on retirement, death while in service or on termination
of employment in an amount equivalent to 15 days basic
salary for each completed year of service. Vesting occurs
upon completion of five years of service. The company
contributes all the ascertained liabilities to a fund set up
by the company and administered by a board of trustees.
The present value of such obligation is determined by the

projected unit credit method and adjusted for past service
cost. The resultant actuarial gain or loss on change in
present value of the defined benefit obligation is reflected
immediately in the balance sheet with a charge or credit
recognised in other comprehensive income in the period
in which they occur.

(f)Taxation

Income tax expense represents the sum of the tax
currently payable and deferred tax.

(i) Current Tax:

The tax currently payable is based on taxable profit
for the year. Taxable profit differs from ''profit before
tax'' as reported in the 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. The Company''s
current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of
the reporting period.

(ii) Deferred Tax:

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax
assets are generally recognised for all deductible
temporary differences to the extent that it is
probable that taxable profits will be available against
which those deductible temporary differences can
be utilised. Such deferred tax assets and liabilities
are not recognised if the temporary difference arises
from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities
are not recognised if the temporary difference arises
from the initial recognition of goodwill.

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 all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised,

based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period.

The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow
from the manner in which the Company expects, at
the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities.

(iii) Current and deferred tax for the year:

Current and deferred tax are recognised in
statement of profit or loss, except when they relate
to items that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised in
other comprehensive income or directly in equity
respectively.

(g) Property, plant and equipment

Recognition and measurement

(i) Land and buildings held for use in the production
or supply of goods or services, or for administrative
purposes, are stated in the balance sheet at cost
less accumulated depreciation and accumulated
impairment losses if any. Freehold land is not
depreciated.

(ii) Property, plant and equipment is stated at cost,
less accumulated depreciation and accumulated
impairment losses. The initial cost of an asset
comprises its purchase price or construction cost,
any costs directly attributable to bringing the
asset into the location and condition necessary
for it to be capable of operating in the manner
intended by management, the initial estimate of any
decommissioning obligation, if any, and, for assets
that necessarily take a substantial period of time to
get ready for their intended use, finance costs. Cost
includes import duties and any non-refundable taxes
on such purchase, after deducting rebates and trade
discounts and is inclusive of freight, duties, taxes and
other incidental expenses. All cost are capitalized
which are directly attributable to bringing assets to
the condition and location essential for it to operate
in a manner as intended by the management.
In respect of assets due for capitalization, where
final bills/claims are to be received/passed, the
capitalisation is based on the engineering estimates.
Final adjustments, for costs and depreciation are

made retrospectively in the year of ascertainment of
actual cost and finalisation of claim.

(iii) Capital work in progress includes the cost of property
plant and equipment that are not yet ready for their
intended use and the cost of assets not put to use
before the Balance Sheet date.

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

Depreciation/Amortisation

Depreciation is calculated on cost of items of property,
plant and equipment less their estimated residual
values and is charged to Statement of Profit and Loss.
Depreciation on all tangible fixed assets is provided on the
straight line method over the estimated useful life of the
assets at the rates specified below.

Depreciation on addition to property, plant and
equipment is provided on pro-rata basis from the date of
acquisition of the assets. Depreciation on sale/deduction
from property, plant and equipment is provided for
upto the date of sale, deduction, discardment as the
case may be.

The estimated useful life and amortization 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. In respect of assets whose useful lives
has been revised, the unamortized depreciable amount
is charged over the revised remaining useful lives of
the assets.

(v) An item of property, plant and equipment and any
significant part initially recognized is derecognized
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or
loss arising on derecognition of property, plant and
equipment (calculated as the difference between

the net disposal proceeds and the carrying amount
of property, plant and equipment) is included in
the Statement of Profit and Loss when property,
plant and equipment is derecognized. The carrying
amount of any component accounted as a separate
component is derecognized, when replaced or when
the property, plant and equipment to which the
component relates gets derecognized.

(h) Investment property

Investment property is a property held to earn rentals
and/or for capital appreciation. Investment property is
measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment property is
measured in accordance with Ind AS 16''s requirements for
cost model.

An investment property is derecognised upon disposal or
when the investment property is permanently withdrawn
from use and no future economic benefits are expected
from the disposal. Any gain or loss arising on derecognition
of the property (calculated as the difference between the
net disposal proceeds and the carrying amount of the
asset) is included in profit or loss in the period in which
the property is derecognised.(i)

(i) Intangible assets

Recognition and measurement

Intangible assets with finite useful lives that are
acquired separately are carried at cost less accumulated
amortization and accumulated impairment losses.
Amortization is recognized on a straight-line basis over
their estimated useful lives. The estimated useful life
and amortization 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.
Intangible assets with indefinite useful lives that are
acquired separately are carried at cost less accumulated
impairment losses.

Derecognition of Intangible assets
An intangible asset is derecognized 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 recognized in profit or loss when the asset is
derecognized.

(j) Impairment of tangible and intangible assets

At the end of each reporting period, the company reviews

the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that
those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of
the impairment loss (if any). When it is not possible to
estimate the recoverable amount of an individual asset,
the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs. When
a reasonable and consistent basis of allocation can be
identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated
to the smallest group of cash-generating units for which
a reasonable and consistent allocation basis can be
identified.

Recoverable amount is the higher of fair value less costs
of disposal and value in use. In assessing value in use,
the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects
current market assessments of the time value of money
and the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss is
recognized immediately in profit or loss.

An assessment is made annually as to see if there are any
indications that impairment losses recognized earlier may
no longer exist or may have come down. The impairment
loss is reversed, if there has been a change in the estimates
used to determine the asset''s recoverable amount since
the previous impairment loss was recognized. If it is
so, the carrying amount of the asset is increased to the
lower of its recoverable amount and the carrying amount
that have been determined, net of depreciation, had no
impairment loss been recognized for the asset in prior
years. After a reversal, the depreciation charge is adjusted
in future periods to allocate the asset''s revised carrying
amount, less any residual value, on a systematic basis over
its remaining useful life. Reversals of Impairment loss are
recognized in the Statement of Profit and Loss.

(k) Inventories

Inventories are valued at the lower of cost (on weighted
average basis) and net realisable value after providing
for obsolescence and other losses, where considered
necessary. Cost includes all expenses incurred in bringing
the goods to their present location and condition,

including octroi and other levies, transit insurance and
receiving charges. Semi-finished and finished goods
include appropriate proportion of overheads. Goods in
transit are valued at cost excluding import duties.

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

The Company measures financial instmmenlsal lair value al eadi Balance Sheet date.

Fair vulud [ ihc price llinl would be race i veil lo sell an mral nr paid lu IrHiwi''er a liabilily jn an orderly tratlGKtiOTl brelweeri market pari icipsuil* Hi I lie nremairemefil (Sale ''l1ic fair
Value mEHKnranent i* based un Die preemption dial Die tmisacliun to sell llic assel ur I:Busier 111e liability takes place Eilher:

* |n the principal mnrkd far Ihe asse; or I iahi I ily. or

* In the absence of a principal market ,in tlic mo£l advantageous market for Hit asscl or liability.

Tlic principal or the mod advanlageous market must be accessible by llic Company.

Tli e lair value of an asscl or a habilily is measured using Ihe assumptions lliat market pattidpanls would use when prioing Ihc asscl or liability, assuming lliat market particiianls
act in tlicir economic best imerest.

A far vuluc meuSiremeril of a iiiMi-liiiaii ei il asscl takes iito accounl a market pail icip mil''s ability to generate economic becuelll n Iry using llic asset in ils liighesl and tresl use ur
by selling il In anolher market [arl ici| mill lhal would Use llic asset in ilsliieliesl and lies use

"llic Compiaiy uses vain alum lechniques Ilia’ are apjtrup iriatE in llic cirpim stances and fur which ahTirinil (tala are availalilE lo measure fair value, maximising llic use of relevant
observable inputs and minimising the use of unobservable inpuls.

All assets and liabilities for which fair value is measured or disclosed in die Standalone Financial Statements are categorised with in die fair value hierarchy, described as follows,
based on llic lowest level input dial is signiilcanl to Ihc lair value incasnremciil as a whole''

* Level 1 — Qumrd (in i adjusted I market prices in active markets for identical asscl s Or liabilities

* l.evel 2 — Valuation techniques for which I he lowcsl level input Ihnt is significant lo Uie fair value niEarairement is directly Dr indirectly observable

* Level 3 Valuation techniques for which the lowest level input that is signiiicanl lo tiie fair value measurement is unobservable

For avails and liabilities that arc recognised in die Standalone Financial Statements on a recurring basis, die Company determines whether trmisfers have occurred between levels
in die hierarchy by re-assessing calcgorisation (based on tlic lowest level input tlial is significant to the fair value mcasurcmenl as a whole) at Ihc end of eadi reporting period.

For the purpose of fair value disclosures, llie Company has determined classes of assets md liabilities on llie basis of ihe nature, characteristics and riiks of Hie i-scl or liabilily
and die level of the fair value hierarchy as explained above.

This mile summarises accounting policy for fair value. Ciller fair value related rlisclo^ires are given in iherdevanl limes

* Disclosures for valual ion melhods. significant estimates ami assumpl ions

* Quaiilil at ive disclosures of fair value measurement Incnrchy

* Kin uncial in-triimcnls (including Ihuse carried al amortised oosl)

c. Revalue rroognluou

Revenue from apEraliuns is recognised when control of Die services are Iransfened to die Customer al a IransaCliun price lliat reflECLS die Cunsirleratiun to which ihc Company
expects to be cut il led in exchange far lliose services.. To del cm line when Id necugjiisE revenue. Die Company follows dte following 3-slepi |iTocese>:

* IdcnL i Tying llie conlmct w ilii a cusl-.m icr

* Ideiitity inglhenuderlyiiig pertiomiincc obi igal ions

* Octcnn i n in^, Die transaction price

* Allocating Die Imimclion puce to ihe pErformancE obligations

* Re c oe n ising re venue wh abas performance ohljgal i onfsl an sal isficd

Tlic tiansaclion price of services rendered is net of variable considttalion. The transaclion price fur a contract excludes any amounls collected on behalf of third parties The
Company has generally concluded that it is the principal in its revenue aiTangemcntg except for Die agency services below, because il lypically controls the services before
transferring Ihcm to Ihe customer.

Revenue is recognised when she Company sal isllts a pterfurn lance obi igatiuu by Irarisforiug a premised service lo Die customer, which is when llie customer nlaaius ecu Urn I of
the service. A pei''fui i nance obligation may be satisfied at a point m lime or ovei time. Hie amonnl of icvciiue iccvgniscd is Die liansavlion piicc alio Lined Lo llic satisfied
performance obligation

1''he -pieeilie rEcOguitimi criteria ilescritied tie law must be met before revenue is re cognised:

Income bom ser vices
(I) Ri''liiiiiiTvIilii vitvices

Ihe (Tompany is engaged in Die business of providing cloud based intelligent cu Corner eiigagemmt software solid ions. Revenue is recognized over llie specified subscripl ion
pEricd or On Die basis of underlying services |ierformeiL as ihe Case may tie, in accordance willi Die arraitganeid wilh llie enStomers. The CTompany recognises revenue far a
salcs-based or usage-based royalty promised in the contract only when (or as? Ihc subscqnenl sale or usage occurs.

(LL) Campaign services

Ihe (lompiany provides SMS campaign services Dial are bundled logeDier wiDi llie relainer Services. ''Hie Cumpariy recogn iscs re ven ue based (hi Die usage of messaging services
i.c . when llic Company''s services arc used based on Die specific Icims of Ihe contract wilh customers.

''I he Company recognises revenue either on a gross or ncl basis depending on Ihe nature of ils role in Die Iramaedion. in accordance wilh Ind AS 115. Revenue is recorded on a
gross basis when Ihc Company acts as a. principal in Ihc transaction. meaning it has control over I lie services before I hey are Iransfened to llie customer.

Revenue is recorded on a net basis when Ihc Company acts as an agenl. facilitating a transaction between a supplier and the customer In Diis case, llic revenue is recorded as
the net amounl rdMined alter ilEihicliug IIie oust Df Services provided by Ihc supplier.

The dclcmiinalion of whether revenue is recognised on a gross or net basis is assessed on a Iraiissclioii-by-lransaclion basis, considering specific Icrms and conditions of cadi

arrangement

(hi I In stall ntJwi services

The Company provides a one-lime installalion services that are btmd led logellierwitli llie relaincrstiip services, llic Company recognises revenue from installation services over
time because the customer simultaneously receives and consumes Die belief! is provided tollicm. The Company rises an inptil method in measuriig progress of Die installalion
services because there is a direct relationship between Die Company''s effort and the transfer of service lo die customer, ihe Company recognises revenue on Ihc basis of tlic
milestone achieved which correlates wjUi efforts expended relative to Ihe lotal cxpcclcd efforts to complete die service.

ON) installation sendees (cont''d)

In contracts with customers where she rctainership. campaign services and installation services are bundled together, die Company has applied the guidance in hid AS 115 by
a[iplying ihe revenue recognition criteria for each divine! performance obligation. For aJIocaling the transaction price, Hie Company has measured the revalue in respect of cadi
performance obligation of a contract and its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its
standalone sclliig price. In cases where die Company is unable to detenu inc the standalone selling price, the Company uses the expected cost plus margin approach in estimating
the standalone celling price.

The Company has assessed its revenue arrangements based on the substance of the transaction and business model against specific criteria to determine if it is acting as principal
or agent

(lv) Service Income from Croup Companies

The Company has appointed subsidiaries as Limited Ri& Distributor to sell, use and offer to sale, display and market the platform in their territories. The Company has agreed
to maintain an agreed upon profitability in Ihe sntisidiaries for Ihe revenue derived from ihe Cupillary Loyally Platform.

Ollier htroiiic

(I) hum-si Innimc

For all financial instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate
CLlRj EIR is the rate that exactly discounts ihe estimated future cash payments or receipts over the expected life of tlicfnancial instrument ora shorter period, where appropri at e,
Lo ihe gross carrying amount of Hi e financial asset Or to ihe amortised cost of a financial liability. When calculating Ihe c fie dive interest rale, the Company climates the exacted
cash flows by considering all tlie contractual terms of die financial instrument but does not consider tlie expected credit losses. Interest income is included in other income in
the Standalone Statement of Profit and Loss.

(II) DJvl.-toM.-l lur rnm''

Dividend income is recognized when lire right to receive payment is cStabbTied, wliidi is generally when diarchoblers ajtprovc the dividend, provided it isprottable that I tie
economic benefits associated with the dividend will flow to tlie Company, and tlie amount of tlie dividend can be measured reliably.

Contract balance*

Contract assets

A contract asset is tlie right lo consideration in exchange for services transferred lo ihe customer. If ihe Company performs by transferring services to a customer before tlie
customer pays consideration or before payment is due. a contract asset is recognised for die earned consideration that is conditional. Contract assets are transferred to receivables
when the rights become unconditional and contract liabilities are recognized as and when the performance obligation is satisfied

Contract assets are subject to impairment assessment. Refer to account ing policies on impairment of financial assets in section (I) Financial instrumenls inilia I recognition and
subsequent measurement below

Trade receivables

A receivable is recognised If an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of tlie consideration is due). Refer to
accounting policies of financial assets in section (I) Financial instruments initial recognition and subsequent measurement below

Deterred contract costs

Deferred contract costs are incremental costs that are associated wilh acquiring customer coni rads and consists primarily of sales commissions to employees and certain referral
fees paid to third-party resellers. Incremental costs of otrtainiiig a Coni rad. are capitalised if these costs are recoverable. Costs lo fulfil a contract are capitalised if Ihe costs relate
directly lo the contract, generate or enhance resources used in satisfying the contract and are expected to be recovered. Other contract costs arc expensed as incurred.

Capitalised contract costs arc subsequently amortised on a. systematic basis as llie Company recognises the related revenue. An impairment loss is recognised in Standalone
Statement of Profit and Loss to Ihe extent that the carrying amount of the capitalised contract costs exceeds Ihe remaining amount of consideration that the Company ex pc Js to
receive in exchange for Ihe services to which Ihe couLrad costs reties less Ihe costs that relate directly Lo providing Ihe services and that have not been recognised as expenses.
The maximum period over which tlie Company expeels lo derive henefit from contracts entered into with cu&omcrs is 3 years. Tlie Company has elected to apply the practical
expedient to recognise ihe incremental cost s of obtaining a coni rad as an ex|xnse when incurred where the unionisation period of the asset that, would Otherwise be recognised
is over year or less.

Contract It abilities

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

d. Taxes on income
Current income tax

Tax expense for Ihe period comprises current and deferred tax. The tax currently payable is based on taxable profit for tlie year. Taxable profit differs from net profit as reported
m the Standalone Statement of Profit and Loss because il excludes Hems of income or expense that are taxable or deductible in oilier years and it liirther excludes items Ilia! are
never taxable or deductible. Current income tax assets and liabilities arc measured at the amount expected to be recovered from or pa id to tlie taxation authorities, Tlie Company''s
liability for current lax is calculated using tlie lax rales and tax laws that have been enacted or substantively hi acted by the end of the reporting period.

CutTHit income tax relating to items recognised outside profit or loss is recognised outside Standalone Statement of Profit and Loss (cither m other comprehensive income or in
equity). Cuirrent tax items sire recognised in correlation Lo the underlying transaction either in OCI Or directly in equity. Management periodically evaluates posit nais taken in
the lax returns with resped to situations in which applicable lax regulations are sjbjcct lo inlcqireCaliori and considers whether it is probable that a taxation authority wall accept
an uncertain tax treatment. ''Hie Company shall reflect the effect of uncertainty for cacti uncertain tax treatment by using either most likely method or expected value method,
depending mi which method predicts belter resolution of the tie Him cut.

Deferred tax

Inferred ifix is I he lax expected la k payable ar rean''inlile on di iTerences I''d worn ill: Carrying viIuek of iskeLs arid linbi lilies in iIie Si hi ldalune Kinanuiid SlUEmEiils mil iIie
corresj nun In i" lax ¦; used in Hie compulation ul Mil taxable profit mill is accounted for using the li»tii I ity muilel. Deferred lax I i »tri lilies gaierally reco^iised fur til llic

I ax able Iniipurli)'' differences In unlnn, deferred (me rmlriUE only [EE^iiirEii lu iIie Erltiil ll i :il in probable ill Hi liilurc Iralile pro Ills will lie available SgairuJ which iIie
temfKmtry differences em be utilised

Deferred Ins: assets nre recognized far nil deductible temporary differences. eerry forward of niinsed Ins credits nnd nnnsed liut losses, ta die orient Hint il is pcohohlc Mini taxable
profit will be available against wiiicli tlic deductible temporary differences. and the cany forward of unusedlax credits and unused lax losses can be utilized

Hie carry ine amount of deferred lax assets, is reviewed at each Dalancc Shcel date and reduced to (he extent that il is no longer probable dial sufficient laxable profit will be
available lo allow all or pari of llic deferred tax assel lo he utilized Unrecognised deferred tax assets are re-assessed k each report ing date and are recognised lo IIie exlciil lliat
il has become probable tliat liiturc taxable protils will allow the deterred lax asset lo be recovered

Deferred lax assels mill liabilitiES hie meamred Hi Hie tax rules lhat are Expected ta apply >ⁿ llie year when lire asscl is realised nr lire liability is Settled, based err tux rales [Mid
tax laws) dial laws been enacted urSnbstnnli vely enacted al the Balance Slieel dale

Deferred tax relating to items recognised otilside Standalone Statement of Profit and Loss is recognised outside profit or loss (either in other comprehensive income or in erfiity).
Deferred tax ileum arc recognised in eomelalien to the underlying transaction either in QCI or d:rcclly in eifiity.

Deferred tax asscls and deferred lax liabilities arc offset if a legally enforceable right exists to sel off current tax assets against current tax htlihliesaiidlhe deferred taxes relate
to Ihe same taxable entity and tlic same taxation authority.

o. Property, pUirt mttl equipment

Properly. plain arid Biqu iprcrinil are staled at cost, nel of accnmnlaled ikprEcialiori and accumulated impaimienl losses, if any. Such oust in duties ihe end uf replacing pari of Ihe
property, planl and Etpiipiaienl and borrowing costs fur lung-term cvnslmdrun projects i f the rectigjiifiiHi crileria are mel. When significant ports of properly, plant and etpiipmenl
are recpiired lo he replaced al intervals. Ihe Cbm puny depreciates liicm separately balled in IliEir rpecific useful lives. All oilier repair and maintenance costs are recognised in
Standalone Staiement of Protil and Loss as incurred.

Snlkseipuerit cuds are irioluded in die ami''s carrying a muu nl ur recognised an a separate assd, as apprupriale. urily wlien it is [probable Ilial Finnic economic betubfils associated
wilh Ihe item will ffow lo the Company and Ihe cost of the item can be measured reliably. The carrying amounl of any component accounted for as a sqraratc asscls arc
derecognised when replaced, .¦’ill oilier repairs aid maintenance are charged to Standalone Statement of Profit aid Loss Juripg Ihe reporting period in which lliey are mcuired

The Company identifies and determines cost of each component pail ofthcasscl sepaialcly. iftlic oompoiieiil/part has a cost which issigniilcanl to tiielotal cost of tlic asscl
! i living useful life Mini is materially ililferenl from dial of die remain ing ami. ilicst Components are tleprEcialEil over their useful lives, lire remaining assel is depreciated uver
the life of I he principal a*;ci

Leasehold impaovemenlsare depreeialed over the [period of lease it estimated useful life, whichever is lower, mi straight line basis

Ihe managemait tielieves lhat dies; Eslimated useful lives are reahdiu and reflcd fair approximation of ihe preriud over which llie assets are likely Lube used.

1''lie residual values, nstli.l lives and melhorls ofdcpiecr Uion of pioperly, plant and et|u ipaniei It arc reviewed al each final mini year end and adjusted prospieel i vely, if appropriate

An ilem of properly, plant and ct)uipiment and any significant part initially recognised is derecognised upon disposal or when no tin tire economic benefits are expected from its
use or disjKisal. Any gain or loss arising on derecognition of die asset (calculated as tie difference between the net disposal proceeds and Ihe carrying amount of llic asset) is
included in the Staiivln lone Statemcul of Pro tit and Los when the asscl is derecognised.

F. 1 ri 111 ri ” i 11 ti- assrdx

Ineligible assets act)uired separately arc measured on initial recognition ad cost. Following initial recognition, intangible asscls arc carried al cost less any accumulated
am on i sal ion anil ncoi mutated impairment losses.

Intangible asters widi Unite lives are amurliscd over die useful economic life and assessed for impairment whenever itierc is an indicafLoii that die intangible asset may be
mi|>aircd. Ihe amortisation period and Ihe amortisation method for an inlangible asscl widi a tin He useful life are reviewed at least at Ihe end of each reporting period wiili the
effect uf any ehmge in Ihe Edimate tie ins, accounted for an apru^ieetive bams. Tti e amort isatimi expense on inlarigiblE assets is recognised in die Snuidalune SLalemenl of Prufil
and Loss un less such cxpoenditurc fonns pail of carrying value of anodier asset.

An intangible asset is derecognised upon disposal (i.a, at the date Ihe recipient obtains control) or when no future economic benefits arc expected from ils use or disposal. Any
gain ur loss nr mug upon derecognidun uf lire asscl (calculated as die difference between ihe net dispusil proceeds arid die cwrying amount of the asset) is included bi die
SlandaluiiE Statement olTrolH and Loss, whai lire asscl is ilereco^i ised.

Em cm a lly gew r a led jiUingililg assets

Inleraally general ed inlangible assets, excluding, capitalised development costs, arc not capitalised and expenditure is reflccled in llic Standalone -''Statement of Profit and Loss in
the year in which die expenditure is incurred.

Soil ware proitiel development are expensed as incurred unless technical and commercial I''eaahilily of Ihe project it demon drilled. figure econom ic benefits arc probable, the
Company has an inteiilioa and ability I o complete and use or sell the software and die cost can be measured reliably, llic costs whi d i can be capital ised including die cost of
employees and overhead costs lhat arc directly attributable Io preparing die asscl for its intended use.

internally generated intangible assets (conl''d)

The Company lias identified certain intangibles which arc being internally generated. In the research phase of an internal project, an entity cannot demonstrate Uiat an intangible
asset exists thh‘ will generale probable future economic benefits Therefore, this expenditure is recognised as sin expense when it is incurred. An intangible asset arising from
development for from the development phase of sin inlemsiJ project) :-l i :lI I tie recognised if, and only if, sin entity can demons rale all of the following:

(a) the lectin icfij feasibility of completing (lie iitangible asset so Dial it will tie available for use or sale.

(b) its intention to complete the intangible asset and use or sell it.

(c) its ability to use or sell the intangible asset.

£d) how tlic intangible asset will generate probable iliturc economic benefits. Among other tilings, the entity can demonstrate the existence of a market for (lie output of the
intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.

(e) (lie availability of adequate technical, tinancial and other resources to complete the development and to use or sell the intangible asset.

(f) its ability to measure reliably the expenditure attributable to the intangible asset during its development.

The Company had Completed the research and acceptance phase and the projecLs are in the development jrfiase. ''Hie Company has done evalu ai i on of I tie internally generated
software and concluded on being treated as intangible assets. Refer note -1 for fun her disclosure.

Amortisation of the asset begins when development is Complete, and I tie asset is availaMe for use. It is amortised over I lie |seriod of three years. Amort isal ion expense is
recognised in the Standalone Statement of Profit and Loss unless such expenditure forms part of carrying value of another asset,

Patent

Patents and licenses arc measured on initial recognition at professional charges incurred on registration of such patents in connection with the Company customer sen icing
melhodology and if Die regislrai inri of llie patent is under pn.ie.ress, Stic same is recognised as Intangible assets under development.

g. Bor rowing costs

Borrowing costs directly attributable to Ihe acquisition* construction or production of an asset that necessarily lakes a subslant ial period of lime to get ready for ils intended use
or sale arc capitalised as part of the cost of the asset until such time as the assets are substantially ready for the intended use or sale. All other borrowing costs are expensed in
the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an adjustment to Ihe borrowing cOsLs

la. leases

file Company iias lease Contracts for office spaces, the Company assesses at contract inception whether a contract is, or contains, a lease. that is, if Ihe contract conveys Ihe
right to control the use of an identified a^et fur a period of lime in exchange for consideration.

Company as a Ipssiw

The Company applies a single recognition and measurement approach for all leases, except for diort-term leases and leases of low-value assets. The Company recognises lease
liabilities to make lease payments and right-of-use assets representing the right to use tlic underlying assets.

Rlghlof-use assets

''Ihe Company recognises right -of-u-e assets ai Ihe commencement date of the lease (i.e,„ the date the underlying asset is avail aide for use). RigfvbofnJSG assets are measured at
CQSt, less any accumulated depreciation and accumulated impairment losses, and adjusted for any rerrieasunemenl of leise liabilities. ''Hie Co& of rigjit-of-use assets includes the
amount of lease hath lilies recognised initial direct costs incurred, and lease payments made at or before Die commencement dote less any lease incentives received. Kight-oft
use assets are depreciated on a straight-line ttasis over liie shorter of tlic lease term and the estimated useful lives of the assets.

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

Tlic right-of-use assets arc also subject to impairment. Refer to the accounting policies stated under ’Impairment of non-fmancial assets'',
leus* liabilities

At Ihe commencement dale of Ihe lease_L the Company recognises lease liabilities measured at Ihe present value of lease payments to tie made over the lease term. ''Hie lease
paymcnLs include fixed payments (iiclucEug in subdarite fixed payments) less any lease incentives receivable, variable lease payments Ihat depend chi an index or a rale, anil
amounts expected to be paid under residual value guarantees. The lease payments also include ihe exercise price of a purchase option reasonably ceitain to be exercised by the
Company and payments of penalties for terminating the lease, if like lease term reflects the Company exercising Ihe option to lemiiiiole. Variable lease payments that do not
depend on ail inrlex or a rale are recognised as expenses I unless Ihcy are incurred to produce inventories) in Ihe period in which the event or condition Dial triggers Ihe payment
occurs.

In calculating the present value of lease payments, ihe Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit m the
lease is not readily determinable- After tlic commencement date, the amount of lease liabilities is increased to reflect tlic accretion of interest and reduced for the lease payments
made. Ill addition* Die carrying amount of leise liabilities is rcmea?aired if there is a modification* a change in Die lease term, a change in the lease payments (e.g.* changes to
future payments resulting, from a change in an index or rite used to determine such lease payments) or a change in the asse s.-mcril of oil option to purchase Ihe iiulerlying hsscI

Short term leases artel teases of low-value assets

''l1ie Company applies 111c short-term lease recognition exemption to ils rfiort-lerm leases (j.e_ those lenses llial have a lease lemi of 12 months or less from Use commencement
dale and do riot contain a purchase option). Il also applies llie lease of low-value assets recognition exemption to leases of ofTiee equipment that are considered lo tie low value.
Lease payments on rfiorl-lcrm leases and leases of low-value assets are recognised as expense On a rfraighl-linc basis over the lease term.

L Impairment of Eton financial assets

As al llie end of each accounting year, (lie Cbm pan y reviews the carrying amounts of its property plant and ecpiipmerit and intangible assets determine whether there is any
indication that those assets have suffered an inipaimienl loss. If such indication exists, the said assets arc tested for inipairmenl so as lo detenuinc llie impairment loss, if any.
Intangible assets with indefinite life are lerfed for impairment each year.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:

(i) in the case of an individual asset, at the higher of the fair value less costs of disposal and the value in use: and

(ii) in the case of a cash generating unit (CG U) (a group of assets that generates identified, independent casli flows), at tlic hi slier of the cash generating unit''s net fair value less
costs of disposal and the value in use.

The amount of value in use is detenu ined as die present value of estimated future ca-rfi flows from the continuing use of an asset and from its disposal at the end of its useful
life. For this purpose, llie discount rale (pre-tax) is detenu ined bused on the weighted average corf of capital of the Company suitably adjusted for risks specified Co the erf i mated
cash flows of the asset.

For this purpose, a curfi generating mil is ascertained as the rfiiallerf klcn lit! able group of asset! llial .generates curfi inflows llial are largely iiulepeiuleiit of the cash inflows
from other assets or groups of assets.

If recoverable amount of an asset (Or cash .general mg unit) is estimated to tie less than its carrying amount, such deficit is recognised immediately in the Standalone Statement
of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount.

In assessing value in use. the estimated Aiturc cash flows arc discounted to tlicir present value using a pre-tax discount rale that reflects current market assessments of the time
value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions arc taken into account. If no such transactions can
be idcuLi llecl, an appropriate valuation model is used. These calculations arc corrotiorai ed by valuation Multiples oilier available fair value indicators.

The Company liases its iriifiaimienl calculation on detailed budgets and focecarf calculations, which lire prepared separately for cadi of llie Company''s CGUs to which llie
individual assets are allocated. To estimate cash flow projections beyond pc-rimls covered by llie morf recent budge! ^forecasts, llie Company cxlrajmimes cash flow projections
in the budget using a steely or dec I in mg growth rate for subservient years, unless an increasing rate Can Ik justified. In any Case, this grow lit rale does riot exceed llie long-term
average growth rale for tine products, industries:, or country in which the Company operates, or for the market in which the asset is used.

Impairment losses are recognised in llie Slandxloue Statement of Profit and Loss.

When an impairment loss subserviently reverses, llie canying amount of Hie asset (Or Carfi .generating unit) is increased to the revised erfimate of ils recoverable amount, but so
that the increased carrying amount docs not exceed the carrying amount that would have been determined had no impairment loss is recognised for the asset (or cash generating
unit) in prior years. A reversal of an impairment loss is recognised immediately in the Standalone Statement of Profit and Loss.