OnEMI Technology Solutions Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1. Corporate Information

OnEMI Technology Solutions Limited (Formerly
known as OnEMI Technology Solutions
Private Limited), is a public limited Company
incorporated in India on 18 June 2016 under
the provisions of the Companies Act, 2013
having Corporate Identification Number (CIN)
U72900MH2016PLC282573. The registered office
of the Company is 10^th Floor, Tower 4, Equinox
Park, LBS Marg, Kurla West, Mumbai 400070,
Maharashtra, India. The Company is listed on
National Stock Exchange (NSE) and Bombay Stock
Exchange (BSE) on 8^th May, 2026.

The Company is, inter alia, engaged in the business of

(i) providing financial technology solutions to enable
use of instant EMI / instalment solutions to consumers,
and in providing the technology platform to enable
the above, (ii) providing customer acquisition
services and loan origination services to financiers/
lending partners. The Company is also engaged in the
business of providing personal loans by using digital
lending applications viz; ''Kissht'' and ''Pay with Ring''.

2. Basis of Preparation

The financial statements of the Company have been
prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015, as
amended from time to time, and other relevant
provisions of the Companies Act, 2013. The financial
statements have been prepared on a going concern
basis under the historical cost convention, as modified
by the application of fair value measurements required
or allowed by relevant Accounting Standards, except
for certain financial instruments and assets and
liabilities acquired under business combination,
which are measured at fair value.

The accounting policies have been consistently
applied by the Company as in the previous year
unless otherwise stated under the provisions of
the Companies Act, 2013. 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 Act.
Based on the nature of the work, the Company has
ascertained its operating cycle as up to twelve
months for the purpose of current and non-current
classification of assets and liabilities.

The preparation of financial statements requires
the use of certain critical accounting estimates and
assumptions that affect the reported amounts of
assets, liabilities, revenues and expenses and the
disclosed amount of contingent liabilities.

2.1 Statement of compliance

The Balance Sheet, the Statement of Profit and
Loss and the Statement of Changes in Equity are
prepared and presented in the format prescribed in
Division II of Schedule III to the Act. The Statement
of Cash Flows has been prepared and presented
as per the requirements of IND AS 7 "Statement of
Cash Flows". The Company presents its Balance
Sheet in the order of liquidity. A statement regarding
maturity within 12 months after the reporting date
and more than 12 months after the reporting date is
presented in Notes to Financial Statement.

2.2 Functional and presentation currency

The financial statements are presented in
Indian Rupee (?), which is also the functional
currency of the Company, in denomination of
million with rounding off to two decimals as
permitted by Schedule III to the Act except where
otherwise indicated.

2.3 Presentation of financial statements

The financial statements of the Company are
presented as per Schedule III (Division II) of the
Companies Act, 2013, as notified by the Ministry
of Corporate Affairs (MCA). Financial assets and
financial liabilities are generally reported on a
gross basis except when, there is an unconditional
legally enforceable right to offset the recognised
amounts without being contingent on a future event
and the parties intend to settle on a net basis in the
following circumstances:

(i) The normal course of business

(ii) The event of default

(iii) The event of insolvency or bankruptcy of the
Company and/or its counterparties.

2.4 Foreign Currency Translation:

A) Initial recognition:

Transactions in foreign currencies are recognized
at prevailing exchange rates between reporting
currency and foreign currency on transaction date.

B) Conversion:

Transactions in foreign currencies are translated
into the functional currency using the exchange
rates at the dates of the transactions. Foreign
exchange gains and losses resulting from the
settlement of such transactions and from the
translation of monetary assets and liabilities
denominated in foreign currencies at year end
exchange rates are generally recognized in the
Statement of profit and loss.

2.5 Historical cost convention

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

2.6 Revenue Recognition

i) Fees and Commission income:

Fees and commission income are recognised when
the Company satisfies the performance obligation,
at the amount of transaction price (net of variable
consideration) allocated to that performance
obligation based on a five-step model as set out in
IND AS 115. Revenue from all services is recognized
at a point in time when the related services are
rendered as per the terms of the agreement.

ii) Marketing Income:

Marketing Income is recognized when the Company
satisfies the performance obligation, at the amount
of transaction price (net of variable consideration)
allocated to that performance obligation based on a
five-step model as set out above.

iii) Net gain/loss on fair value changes:

Any differences between the fair values of financial
assets classified as fair value through the profit
or loss, held by the Company on the balance
sheet date is recognised as an unrealised gain/
loss. In cases there is a net gain in the aggregate,
the same is recognised in ''Net gains on fair value
changes'' under other income and if there is a net
loss the same is disclosed under ''Expenses'' in the
Statement of Profit and Loss.

Similarly, any realised gain or loss on sale of
financial instruments measured at FVTPL and
debt or equity instruments measured at FVOCI is
recognised in net gain / loss on fair value changes.
As at the reporting date, the Company does not
have any debt instruments measured at FVOCI.

iv) Insurance commission and rewards:

Insurance commission and rewards includes
commission and rewards earned for solicitation
of insurance products/policies based on the leads
generated from its designated website using
telemarketing modes and through offline activities.
Revenue is recognized when the right to receive the
income is established as per the terms of the contract.

v) Brand and trade mark license fees:

The Company earns license fee income from
permitting the use of its brand and trademarks by
its subsidiary under a licensing agreement.

Revenue from such license arrangements is
recognized in accordance with Ind AS 115 -
Revenue from contracts with customers. The license
fee income is recognized over time, on a monthly
basis, as the performance obligation is satisfied.

vi) Other operational revenue:

Other operational revenue represents income
earned from the activities incidental to the business
and is recognised when the right to receive
the income is established as per the terms of
the contract.

vii) Corporate Guarantee Fees:

The Company provides corporate guarantees in
respect of borrowings obtained by its subsidiary.
Where such guarantees are provided for
consideration, the guarantee fees received are
recognized as a financial liability at fair value on
initial recognition, in accordance with the principles
of Ind AS 109 - Financial Instruments.

The guarantee fee income representing the fair
value of the financial guarantee is recognized as
unearned income under financial liability on the
balance sheet at the inception of the guarantee.
This income is amortized over the period of the
guarantee using the effective interest rate (EIR)
method and is recognized as corporate guarantee
fees in the statement of profit and loss.

2.7 Income taxes:

The income tax expense or credit for the period is
the tax payable on the taxable income of the current
period based on the applicable income tax rates
adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and
unused tax losses.

(i) Current Tax

Current tax assets and liabilities for the current and
prior years are measured at the amount expected to
be recovered from, or paid to, the taxation authorities.
The tax rates and tax laws used to compute the
amount are those that are enacted, or substantively
enacted, by the reporting date where the Company
operates and generates taxable income.

Current income tax relating to items recognised
outside the Statement of profit and loss is
recognised outside the statement of profit and
loss (either in other comprehensive income or
in equity). Management periodically evaluates
positions taken in the tax returns with respect to
situations in which applicable tax regulations are
subject to interpretation and establishes provisions
where appropriate.

(ii) Deferred Tax

Deferred tax assets and liabilities are recognised
for temporary differences arising between the tax
bases of assets and liabilities and their carrying
amounts. Deferred income tax is determined using
tax rates (and laws) that have been enacted or
substantively enacted by the reporting date and
are expected to apply when the related deferred
income tax asset is realised, or the deferred income
tax liability is settled.

Deferred tax assets are only recognised for
temporary differences, unused tax losses and
unused tax credits if it is probable that future
taxable amounts will arise to utilise those temporary
differences and losses. Deferred tax assets are
reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the
related tax benefit will be realised.

Deferred tax assets and liabilities are offset where
there is a legally enforceable right to offset current
tax assets and liabilities and they relate to income
taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets
on a net basis or their tax assets and liabilities are
realised simultaneously.

2.8 Leases

The determination of whether an arrangement is a
lease, or contains a lease, is based on the substance
of the arrangement and requires an assessment of
whether the fulfillment of the arrangement is dependent
on the use of a specific asset or assets or whether the
arrangement conveys a right to use the asset.

Company as lessee-

All leases are accounted for by recognising a right-
of-use asset and a lease liability except for:

- Leases of low value assets; and

- Leases with a duration of 12 months or less.

Lease liabilities are measured at the present value
of the contractual payments due to the lessor over

the lease term, with the discount rate determined
by reference to the rate inherent in the lease
unless (as is typically the case) this is not readily
determinable, in which case the Company''s
incremental borrowing rate on commencement
of the lease is used. Variable lease payments are
expensed in the period to which they relate.

On initial recognition, the carrying value of the lease
liability also includes:

- amounts expected to be payable under any
residual value guarantee;

- the exercise price of any purchase option
granted in favour of the Company if it is
reasonably certain to assess that option;

- any penalties payable for terminating the lease,
if the term of the lease has been estimated on
the basis of termination option being exercised.

Right-of-use assets are initially measured at the
amount of the lease liability, reduced for any lease
incentives received, and increased for:

- lease payments made at or before
commencement of the lease;

- initial direct costs incurred; and

- the amount of any provision recognised where
the Company is contractually required to
dismantle, remove or restore the leased asset.

Subsequent to initial measurement lease liabilities
increase as a result of interest charged at a constant
rate on the balance outstanding and are reduced
for lease payments made. Right-of-use assets
are amortised on a straight-line basis over the
remaining term of the lease or over the remaining
economic life of the asset if, rarely, this is judged to
be shorter than the lease term.

When the Company revises its estimate of the term
of any lease, it adjusts the carrying amount of the
lease liability to reflect the payments to make over
the revised term, which are discounted using a
revised discount rate. The carrying value of lease
liabilities is similarly revised when the variable
element of future lease payments dependent on
a rate or index is revised, except the discount rate
remains unchanged. In both cases an equivalent
adjustment is made to the carrying value of the
right-of-use asset, with the revised carrying
amount being amortised over the remaining
(revised) lease term. If the carrying amount of the
right-of-use asset is adjusted to zero, any further
reduction is recognised in the statement of profit
and loss.

2.9 Financial Instrument

Recognition offinancial instruments

Financial assets and liabilities, with the exception
of loans, debt securities, deposits and borrowings
are initially recognised on the trade date, i.e., the
date on which the Company becomes a party to
the contractual provisions of the instrument. This
includes regular way trades of financial assets that
require delivery of assets within the time frame
generally established by regulation or convention
in the market place. Investments are initially
recognized on the settlement date.

I) Financial Assets

i) Initial measurement

Financial assets are initially measured at
transaction price, which generally represents
fair value. Transaction costs that are directly
attributable to the acquisition or issue of
financial assets are added to or deducted from
the fair value of the financial assets, on initial
recognition. For financial assets measured at
FVTPL, such costs are recognised immediately
in the Statement of Profit and Loss.

ii) Subsequent measurement

Based on the business model, the contractual
characteristics of the financial assets and
specific elections where appropriate, the
Company classifies and measures financial
assets in the following categories:

- Amortised cost

- Fair value through other comprehensive
income (''FVOCI'')

- Fair value through profit and loss (''FVTPL'')

The classification depends on the contractual
terms of the cash flows of the financial assets,
the Company''s business model for managing
financial assets and, in case of equity
instruments, the intention of the Company
whether strategic or non-strategic. The said
classification methodology is detailed below-

Business model assessment

The Company determines its business model
at the level that best reflects how it manages
groups of financial assets to achieve its
business objective. The Company''s business
model is not assessed on an instrument-
by-instrument basis, but at a higher level

of aggregated portfolios and is based on
observable factors such as:

a. How the performance of the
business model and the financial assets
held within that business model are
evaluated and reported to the entity''s key
management personnel.

b. The risks that affect the performance
of the business model (and the financial
assets held within that business model)
and the way those risks are managed.

c. The expected frequency, value and timing
of sales are also important aspects of the
Company''s assessment. The business
model assessment is based on reasonably
expected scenarios without taking
''worst case'' or ''stress case'' scenarios
into account. If cash flows after initial
recognition are realised in a way that is
different from the Company''s original
expectations, the Company does not
change the classification of the remaining
financial assets held in that business
model but incorporates such information
when assessing newly originated or newly
purchased financial assets going forward.

The Solely Payments of Principal and
Interest (SPPI) test

As a second step of its classification process
the Company assesses the contractual terms
of financial assets to identify whether they
meet the SPPI test.

''Principal'' for the purpose of this test is defined
as the fair value of the financial asset at initial
recognition and may change over the life
of the financial asset (for example, if there
are repayments of principal or amortisation
of the premium/discount). In making this
assessment, the Company considers whether
the contractual cash flows are consistent
with a basic lending arrangement i.e. interest
includes only consideration for the time value
of money, credit risk, other basic lending
risks and a profit margin that is consistent
with a basic lending arrangement. Where the
contractual terms introduce exposure to risk
or volatility that are inconsistent with a basic
lending arrangement, the related financial
asset is classified and measured at fair value
through profit or loss.

a. Financial assets carried at amortised
cost

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 (''Asset held 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 (''SPPI'') on
the principal amount outstanding.

After initial measurement and based on
the assessment of the business model
as asset held to collect contractual cash
flows and SPPI, such financial assets are
subsequently measured at amortised
cost using effective interest rate
(''EIR'') method.

''nterest income from these financial
assets is included in finance income
using the EIR method. Any gain and loss
on derecognition is also recognised in
statement of profit and loss.

The EIR method is a method of calculating
the amortised cost of a financial
instrument and of allocating interest over
the relevant period. The EIR is the rate that
exactly discounts estimated future cash
flows (including all fees paid or received
that form an integral part of the EIR,
transaction costs and other premiums or
discounts) through the expected life of
the instrument, or, where appropriate, a
shorter period, to the net carrying amount
on initial recognition.

b. Financial assets at fair value through
other comprehensive incomes

Financial assets that are held within a
business model whose objective is both
to collect the contractual cash flows and
to sell the assets, (''Contractual cash
flows of assets collected through hold
and sell model'') and contractual cash
flows that are SPPI, are subsequently
measured at FVOCI. Movements in the
carrying amount of such financial assets

are recognised in Other Comprehensive
Income (''OCI''), except dividend income
which is recognised in statement of
profit and loss. Amounts recorded in
OCI are not subsequently transferred to
the statement of profit and loss. Equity
instruments at FVOCI are not subject to an
impairment assessment.

c. Financial assets at fair value through
profit or loss

Financial assets, which do not meet the
criteria for categorization as at amortised
cost or as FVOCI, are measured at FVTPL.
Subsequent changes in fair value are
recognised in the statement of profit and
loss. The company records investments
in equity instruments, mutual funds and
Treasury bills at FVTPL.

iii) Derecognition of financial assets

A financial asset (or a part thereof) is
derecognised when the contractual rights to
receive the cash flows from the asset expire, or
when the asset is transferred and substantially
all the risks and rewards of ownership are
transferred with no continuing involvement.

The Company transfers financial assets
through partial assignment transactions and
derecognises the transferred portion when
it does not retain control or any continuing
involvement in the asset.

A write-off of a financial asset is considered a
derecognition event.

On derecognition, the difference between
the carrying amount of the asset and the
consideration received (including any new
asset acquired, net of any liability assumed) is
recognised in the Statement of Profit and Loss.

Write-off

The Company writes off financial assets, either
partially or in full, when there is no reasonable
expectation of recovery based on past
experience and assessment of the borrower''s
financial condition.

Amounts written off that exceed the
accumulated loss allowance are recognised as
an expense in the Statement of Profit and Loss
in the period in which the write-off occurs.

II) Financial liabilities

i) Initial measurement

The Company recognizes all financial liabilities
initially at fair value adjusted for transaction
costs that are directly attributable to the
issue of financial liabilities except in the case
of financial liabilities recorded at FVTPL
where the transaction costs are charged to
the Statement of Profit and Loss. Generally,
the transaction price is treated as fair value
unless there are circumstances which prove
to the contrary in which case, the difference,
if material, is charged to the statement of Profit
and Loss.

ii) Subsequent measurement

The Company subsequently measures all
financial liabilities at amortized cost using the
EIR method as per IND AS 109.

iii) Derecognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged,
cancelled or expires. Where an existing
financial liability is replaced by another from
the same lender on substantially different
terms, or the terms of an existing liability are
substantially modified, such an exchange or
modification is treated as a derecognition
of the original liability and the recognition of
a new liability. The difference between the
carrying value of the original financial liability
and the consideration paid is recognised in the
Statement of Profit and Loss.

iv) Financial liabilities and equity instrument

The Company classifies financial instruments,
at the time of initial recognition, as either
financial liabilities or equity instruments
in accordance with the substance of the
contractual terms and the definitions
provided under Ind AS 32 - Financial
Instruments: Presentation.

Equity Instruments

An instrument is classified as equity when it
evidences a residual interest in the assets of
the Company after all its liabilities and meets
the following conditions:

• The instrument does not contain a
contractual obligation to deliver cash or
another financial asset, or to exchange
financial assets or liabilities under
potentially unfavourable conditions; and

• If the instrument will or may be settled in
the Company''s own equity instruments, it
is either:

- A non-derivative that includes no
contractual obligation to deliver a
variable number of the Company''s
equity instruments; or

- A derivative that will be settled only
by the Company exchanging a fixed
amount of cash or another financial
asset for a fixed number of its own equity
instruments ("fixed-for-fixed" test).

Financial Liabilities

A financial instrument is classified as a
financial liability if it:

• Contains a contractual obligation to
deliver cash or another financial asset to
another entity; or

• Is a contract that may be settled in the
Company''s own equity instruments but
does not meet the equity classification
criteria (i.e., fails the fixed-for-fixed
condition).

Instruments with both liability and equity
components are bifurcated and accounted for
as compound financial instruments under Ind
AS 32, with each component classified and
measured separately.

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 financial liability and an
equity instrument.

(a) 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 by the company are recognised
at the proceeds received, net of directly
attributable transaction costs.

(b) Financial liabilities

Financial liabilities are measured at
amortized cost. The carrying amounts
are determined based on the EIR method.
Interest expense is recognised in the
statement of profit and loss. Any gain
or loss on de-recognition of financial
liabilities is also recognised in profit or
loss. Undrawn loan commitments are not
recorded in the balance sheet.

(c) Debt securities and other borrowed
funds:

After initial measurement, debt issued, and
other borrowed funds are subsequently
measured at amortised cost. Amortised
cost is calculated by taking into account
any discount or premium on issue funds,
and transaction costs that are an integral
part of the Effective Interest Rate (EIR).

2.10 Provisioning on Financial Assets

(i) Overview of the provisioning principles:

The Company recognises provision for losses
for financial assets measured at amortised cost,
based on:

• A probability-weighted assessment of
credit losses;

• The time value of money; and

• Reasonable and supportable forward¬
looking information.

The Company has established a policy to perform an
assessment, at the end of each reporting period, of
whether a financial assets credit risk has increased
significantly since initial recognition, by considering
the change in the risk of default occurring over the
remaining life of the financial instrument.

Exposure staging into Stage 1, Stage 2, or Stage 3
will be determined using the Days Past Due (DPD)
buckets, as per the Loan portfolio statement on
which the default loss guarantee have been offered.

Determining Significant Increase in credit risk :

To determine if the risk of default of a financial
instrument has increased significantly since
initial recognition, the current risk of default at the
reporting date compared with the risk of default at
initial recognition. Assessment of whether there has
been a significant increase in credit risk required
at each reporting date. The Company does the

assessment of significant increase in credit risk at
a borrower level. If a borrower has various facilities
having different past due status, then the highest
days past due (DPD) is considered to be applicable
for all the facilities of that borrower.

(ii) The calculation of provision:

The Company calculates provision based on
four probability-weighted scenarios to measure
the expected cash shortfalls, discounted at an
approximation to the EIR. A cash shortfall is the
difference between the cash flows that are due to
an entity in accordance with the contract and the
cash flows that the entity expects to receive. The
mechanics of the provision calculations are outlined
below and the key elements are, as follows:

Probability of Default (PD): The PD represents the
likelihood of a borrower defaulting on its financial
obligation, either over the next 12 months (12M
PD), or over the remaining lifetime (Lifetime PD) of
the obligation.

Exposure at Default (EAD) represents the expected
balance at default, taking into account the
repayment of the principal and interest from the
balance sheet date to the date of default.

Loss Given Default (LGD) The Loss Given Default
is an estimate of the loss arising in the case where
a default occurs at a given time. It is based on the
difference between the contractual cash flows
due and those that the Company would expect
to receive.

FLDG refers to an arrangement under which the
Company provides a Guarantee to lending Bank/
NBFCs to cover a specified portion of credit losses
arising from defaults in a loan portfolio sourced
or facilitated by the Company, subject to a pre¬
agreed cap.

Under the Company''s business model, (First Loss
Default Guarantee) obligations are treated as
financial guarantees and are typically based on
the business arrangements (maximum capped at
5%of the disbursed portfolio by the lending Banks/
NBFCs.)

For Trade Receivables, the company follows a
simplified approach for calculation of expected
credit loss.

2.11 Determination of Fair Value

The Company measures certain financial
instruments at fair value at each balance sheet
date. Fair value is the price that would be received

to sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date in the principal market
or in absence of the principal market, the most
advantageous market.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair
value, maximising the use of relevant observable
inputs and minimising the use of unobservable
inputs. In order to show how fair values have
been derived, financial instruments are classified
based on a hierarchy of valuation techniques, as
summarised below:

Level 1 includes financial instruments measured
using quoted prices.

Level 2 Financial instruments the fair value of
financial instruments that are not traded in an active
market 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. The Company evaluates the
leveling at each reporting period on an instrument-
by- instrument basis and reclassifies instruments,
when necessary, based on the facts at the end of
the reporting period.

2.12 Cash and Cash Equivalents

Cash and cash equivalents comprise the net
amount of short-term, highly liquid investments
that are readily convertible to known amounts of
cash (short-term deposits with an original maturity
of three months or less) and are subject to an
insignificant risk of change in value, cheques on
hand and balances with banks. They are held for the
purposes of meeting short-term cash commitments
(rather than for investment or other purposes).

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash on hand,
cheques on hand, balances with banks (of the
nature of cash and cash equivalents).

2.13 Property, Plant and Equipment

Property, plant and equipment ("PPE") are carried
at cost, less accumulated depreciation and
impairment losses, if any. The cost of PPE comprises
its purchase price net of any trade discounts and
rebates, any import duties and other taxes (other
than those subsequently recoverable from the tax
authorities), any directly attributable expenditure
on making the asset ready for its intended use and
other incidental expenses. Subsequent expenditure
on PPE after its purchase is capitalized only if it is
probable that the future economic benefits will flow
to the enterprise and the cost of the item can be
measured reliably.

Depreciation is calculated using the straight¬
line method to write down the cost of property
and equipment to their residual values over their
estimated useful lives as specified under schedule
II of the Act. Land is not depreciated. Individual
assets having value up to ?5,000 is depreciated
fully in the year of purchase of assets

The estimated useful lives are, as follows:

(i) Computer and other Equipment - 3 Years

(ii) Servers & Networks - 6 Years

(iii) Office equipment - 5 years

(iv) Furniture and fixtures - 10 years

(v) Leasehold improvements - over the remaining
period of Lease

Depreciation is provided on a pro-rata basis
from the date on which such asset is ready for its
intended use. The residual values, useful lives and
methods of depreciation of property, plant and
equipment are reviewed at each financial year end
and adjusted prospectively, if appropriate.

PPE is derecognized on disposal or when no future
economic benefits are expected from its use. Any
gain or loss arising on derecognition of the asset
(calculated as the difference between the net
disposal proceeds and the carrying amount of the
asset) is recognized in other income / expense in
the statement of profit and loss in the year the asset
is derecognized.

2.14 Impairment of Non-Financial Asset

Non-financial assets are tested for impairment
whenever events or changes in circumstances
indicate that the carrying amount may not be
recoverable. An impairment loss is recognized
for the amount by which the asset''s carrying
amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset''s
fair value less costs of disposal and value in use.
For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there
are separately identifiable cash inflows which are
largely independent of the cash inflows from other
assets. Non- financial assets other than goodwill
that suffered an impairment are reviewed for
possible reversal of the impairment at the end of
each reporting period. In assessing value in use, the
estimated future cash flows are discounted to their
present value using a pre-tax discount rate that
reflects current market assessments of the time
value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent
market transactions are taken into account. If no
such transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted share
prices for publicly traded companies or other
available fair value indicators.

2.15 Intangible Assets

Intangible assets represent computer software
acquired by the Company carried at cost of
acquisition less amortization. The cost of the item
of intangible assets comprises its purchase price,
including non- refundable taxes or levies and any
directly attributable cost of bringing the asset to its
working condition for its intended use; any trade
discounts and rebates are deducted in arriving
at the purchase price. Other Indirect Expenses
incurred relating to assets under development, net
of income earned during the asset development
stage prior to its intended use, are disclosed under
Intangible Assets Under Development and are
capitalized when asset is ready for the intended use.

At intangible asset is derecognised on disposal, or
when no future economic benefits are expected
from its use or disposal. Gains or losses arising from
de-recognition of an intangible asset is recognized
in profit or less when the asset is recognized.

Amortisation methods, estimated useful lives
and residual value Intangible assets, comprising
software, are amortised over the estimated life
of 5 years on a straight-line basis from the date
of capitalization. Software developed in-house
is amortized over estimated life of 5 years on a
straight-line basis from the date of capitalisation till
the previous financial year. However, beginning from
current financial year software developed inhouse
is amortized over estimated life of 10 years on a
straight-line basis from the date of capitalisation.
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.

2.16 Retirement and Other Employee Benefits

Defined contribution plans

The Company''s contribution to provident fund
are considered as defined contribution plans and
are charged as an expense based on the amount
of contribution required to be made and when
services are rendered by the employees.

Defined benefits plan

The Company pays gratuity to the employees
whoever has completed five years of service with
the Company at the time of resignation / retirement.
The gratuity is paid @15 days salary for every
completed year of service as per the Payment
of Gratuity Act, 1972. The liability in respect of
gratuity and other post-employment benefits is
calculated using the Projected Unit Credit Method
and spread over the period during which the
benefit is expected to be derived from employees''
services. As per Ind AS 19, the service cost and the
net interest cost are charged to the statement of
profit and loss. Remeasurement of the net defined
benefit liability, which comprise actuarial gains
and losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling (if any,
excluding interest), are recognised in OCI.

Short-term employee benefits

All employee benefits payable wholly within twelve
months of rendering the service are classified as
short- term employee benefits. Benefits such as
salaries, wages etc. and the expected cost of ex-
gratia are recognised in the period in which the
employee renders the related service. A liability
is recognised for the amount expected to be paid
when there is a present legal or constructive
obligation to pay this amount as a result of
past service provided by the employee and the
obligation can be estimated reliably.

The cost of short-term compensated
absences is accounted as under:

In case of accumulative compensated absences,
the employees can carry-forward a portion of
the unutilised accrued compensated absences
and utilise it in future service periods. Leave
encashment occurs only at the time of separation,
with basic salary considered for encashment. Since
the compensated absences fall due wholly within
twelve months after the end of the period in which
the employees render the related service and are
also expected to be utilised wholly within twelve

months after the end of such period, the benefit is
classified as a short-term employee benefit.

Long term employee benefits:

Share based payments.

The Company recognizes compensation expense
relating to share-based payments in net profit using
fair value in accordance with Ind AS 102 - Share-
based Payment. The estimated fair value of awards
is charged to income on a straight-line basis over
the requisite service period for each separately
vesting portion of the award as if the award was in¬
substance, multiple awards with a corresponding
increase to share options outstanding amount.