Swiggy Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. Material accounting policies

2.1 Statement of compliance and basis of
preparation

A. Statement of Compliance

The Standalone Financial Statements of the
Company comprise of the Standalone Balance
Sheet as at March 31, 2025, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone
Statement of Changes in Equity, the Standalone
Statement of Cash Flows for the year ended March
31, 2025, Material Accounting Policies, Notes to
the Standalone Financial Statements as at and
for the year ended March 31, 2025 (together
referred to as ''Standalone Financial Statements'')
has been prepared and presented in accordance
with the Indian Accounting Standards (''Ind AS'')
notified under Section 133 of the Companies
Act, 2013, (''the Act''), read with Rule 3 of the
Companies (Indian Accounting Standards) Rules

2015 and other relevant provisions of the Act as
amended from time to time.

The Standalone Financial Statements of the
Company for the year ended March 31, 2025 were
approved and authorised for issue in accordance
with the resolution of the Board of Directors on
May 09, 2025.

B. Functional and Presentation Currency

The Standalone Financial Statements are
presented in Indian Rupees (''), which is also the
Company''s functional currency. All amounts have
been rounded-off to the nearest million, unless
otherwise indicated.

C. Basis of Preparation

The Standalone Financial Statements are
prepared in accordance with Indian Accounting
Standards (Ind AS) under the historical cost
convention on the accrual basis, except for
the following:

- certain financial assets and liabilities which
are measured at fair value (refer accounting
policy regarding financial instruments);

- defined benefit plans - measured at
fair value;

- share-based payments and

- assets and liabilities arising in a
business combination

2.2 Business combination and goodwill

The cost of an acquisition is measured at the fair value
of the assets transferred, equity instruments issued and
liabilities incurred or assumed at the date of acquisition,
which is the date on which control is transferred to the
Company. The cost of acquisition also includes the
fair value of any contingent consideration. Identifiable
assets acquired, liabilities and contingent liabilities
assumed in a business combination are measured
initially at their fair value on the date of acquisition.

Purchase consideration paid in excess of the fair value
of net assets acquired is recognised as goodwill.
Where the fair value of identifiable assets and liabilities
exceed the cost of acquisition, after reassessing the
fair values of the net assets and contingent liabilities,
the excess is recognised as capital reserve.

Transaction costs that the Company incurs in
connection with a business combination such as

finder''s fees, legal fees, due diligence fees and
other professional and consulting fees are expensed
as incurred.

Goodwill is initially measured at cost, being the excess
of the aggregate of the consideration transferred,
over the net identifiable assets acquired and liabilities
assumed. If the fair value of the net assets acquired is
in excess of the aggregate consideration transferred,
the Company re-assesses whether it has correctly
identified all of the assets acquired and all of the
liabilities assumed and reviews the procedures used
to measure the amounts to be recognised at the
acquisition date. If the reassessment still results in an
excess of the fair value of net assets acquired over the
aggregate consideration transferred, then the gain
is recognised in OCI and accumulated in equity as
capital reserve. However, if there is no clear evidence
of bargain purchase, the entity recognises the gain
directly in equity as capital reserve, without routing
the same through OCI.

After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to
each of the Company''s cash-generating units that are
expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units.

A cash generating unit to which goodwill has been
allocated is tested for impairment at each reporting
period as presented, or more frequently when there
is an indication that the unit may be impaired. If the
recoverable amount of the cash generating unit is
less than it''s carrying amount, the impairment loss is
allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other
assets of the unit pro rata based on the carrying
amount of each asset in the unit. Any impairment loss
for goodwill is recognised in the Standalone Statement
of Profit and Loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods. Where
goodwill has been allocated to a cash-generating unit
and part of the operation within that unit is disposed of,
the goodwill associated with the disposed operation is
included in the carrying amount of the operation when
determining the gain or loss on disposal. Goodwill
disposed in these circumstances is measured based
on the relative values of the disposed operation and
the portion of the cash-generating unit retained.

Business combinations have been accounted for using
the acquisition method under the provisions of Ind AS
103, Business Combinations.

Pooling of interest method

Ind AS 103, Business Combinations, prescribes
significantly different accounting for business
combinations which are not under common control
and those under common control.

Business combinations involving entities or businesses
under common control shall be accounted for using
the pooling of interest method.

The pooling of interest method is considered to involve
the following:

i) The assets and liabilities of the combining entities
are reflected at their carrying amounts.

ii) No adjustments are made to reflect fair values or
recognize any new assets or liabilities. The only
adjustments that are made are to harmonise
accounting policies.

iii) The identity of the reserves has been preserved
and appears in the financial information of the
transferee in the same form in which they appeared
in the financial information of the transferor.

2.3 Use of estimates, assumptions and judgements

The preparation of the Standalone Financial Statements
in conformity with Ind AS requires the management to
make estimates, judgements and assumptions that
affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities on
the date of the Standalone Financial Statements
and the reported amounts of revenues and expenses
for the year reported. Actual results could differ from
those estimates.

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

Key source of estimation uncertainty and judgements
as at the date of Standalone Financial Statements,
which may cause a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year, is in respect of the following:

a. Impairment of investments

Impairment exists when the carrying value of an
asset or cash generating unit ("CGU") exceeds its
recoverable amount, which is the higher of its fair
value less costs of disposal and its value in use.
The fair value less costs of disposal calculation
is based on available data from binding sales
transactions, conducted at arm''s length, for
similar assets or observable market prices less
incremental costs for disposing of the asset.

The value in use calculation is based on a
discounted cash flow ("DCF") model and involves
use of significant estimates and assumptions
including turnover, earning multiples, growth
rates and net margins used to calculate projected
future cash flows, risk adjusted discounted rate,
future economic and market conditions.

b. 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 DCF
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. The policy has been
further explained under note 2.13.

c. Defined benefit plans

The cost of the defined benefit gratuity plan and
other post-employment benefits and the present
value of the gratuity obligation is determined
using actuarial valuation. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases and mortality
rates. Due to the complexities involved in the
valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes
in these assumptions.

All assumptions are reviewed at each reporting
date. The parameter most subject to change is
the discount rate. In determining the appropriate
discount rate for plans operated in India, the

management considers the interest rates of
government bonds in currencies consistent
with the currencies of the post-employment
benefit obligation.

The mortality rate is based on publicly available
mortality tables. These mortality tables tend
to change only at intervals in response to
demographic changes. Future salary increases
and gratuity increases are based on expected
future inflation rates. The assumptions and models
used for defined benefit plans are disclosed in
note 31.

d. Share-based payments

Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which is dependent
on the terms and conditions of the grant. This
estimate also requires determination of the
most appropriate inputs to the valuation model
including the expected life of the share option,
volatility, dividend yield, forfeiture rate and making
assumptions about them. The assumptions and
models used for estimating fair value for share-
based payment transactions are disclosed in
note 32.

e. Useful lives of property, plant and equipment and
intangible assets

The company reviews the useful life and residual
value of property, plant and equipment and
intangible assets at the end of each reporting
period and this reassessment may result in change
in depreciation expense in future periods.

f. Taxes

The Company''s Jurisdiction is India. Significant
judgments are involved in determining the
provision for income taxes and tax credits
including the amount expected to be paid or
refunded. The Company reviews the carrying
amount of deferred tax assets at the end of each
reporting period. The policy for the same has
been explained under note 2.20.

g. Business combination

In accounting for business combinations,
judgment is required whether the Company
has control over the entity acquired. Control is
achieved when the Company is exposed, or has
rights, to variable returns from its involvement
with the investee and has the ability to affect

those returns through its power over the investee.
Specifically, the Company controls an investee if
and only if the Company has:

• Power over the investee (i.e., existing rights
that give it the current ability to direct the
relevant activities of the investee)

• The ability to use its power over the investee
to affect its returns.

• Exposure or rights to variable return from its
involvement with the investee.

Generally, there is a presumption that a majority
of voting rights result in control. To support this
presumption and when the Company has less
than a majority of the voting or similar rights of
an investee, the Company considers all relevant
facts and circumstances in assessing whether it
has power over an investee, including:

• The contractual arrangement with the other
vote holders of the investee

• The Company''s voting rights and potential
voting rights

• The size of the Company''s holding of voting
rights relative to the size and dispersion of the
holdings of the other voting rights holders.

• Right arising from other contractual
arrangements.

Key assumptions in estimating the acquisition
date, fair values of the identifiable assets acquired
and liabilities, identifying whether an identifiable
intangible asset is to be recorded separately
from goodwill.

h. Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and the
applicable discount rate.

The Company determines the lease term as the
non-cancellable period of a lease, together with
both periods covered by an option to extend
the lease if the Company is reasonably certain
to exercise that option; and periods covered by
an option to terminate the lease if the Company

is reasonably certain not to exercise that option.
In assessing whether the Company is reasonably
certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances
that create an economic incentive for the
Company to exercise the option to extend the
lease, or not to exercise the option to terminate
the lease. The Company revises the lease term if
there is a change in the non-cancellable period
of a lease.

The discount rate is generally based on the
incremental borrowing rate to the lease being
evaluated or for a portfolio of leases with
similar characteristics.

i. Impairment of goodwill

A cash generating unit to which goodwill has
been allocated is tested for impairment annually,
or more frequently when there is an indication
that the unit may be impaired. The impairment
indicators, the estimation of expected future cash
flows and the determination of the fair value of
CGU (including Goodwill) require the Management
to make significant judgements, estimates and
assumptions concerning the identification and
validation of impairment indicators, fair value
of assets, revenue growth rates and operating
margins used to calculate projected future cash
flows, relevant risk-adjusted discount rate, future
economic and market conditions, etc.

j. Impairment allowance for financial assets

The Company uses a provision matrix to
calculate Expected Credit Losses (''ECL'') for trade
receivables. The provision rates are based on
days past due for groupings of various customer
segments that have similar loss patterns (i.e., by
geography, customer type etc.). The provision
matrix is initially based on the Company''s historical
observed default rates. At every reporting date,
the historical observed default rates are updated
and changes in the forward-looking estimates
are analysed. The amount of ECLs is sensitive
to changes in circumstances and of forecast
economic conditions.

k. Provisions and contingent liabilities

The Company estimates the provisions that have
present obligations as a result of past events
and it is probable that outflow of resources will
be required to settle the obligations. These

provisions are reviewed at the end of each
reporting period and are adjusted to reflect
the current best estimates. The Company uses
significant judgement to disclose contingent
liabilities. Contingent liabilities are disclosed when
there is a possible obligation arising from past
events, the existence of which will be confirmed
only by the occurrence or non-occurrence of
one or more uncertain future events not wholly
within the control of the Company or a present
obligation that arises from past events where it is
either not probable that an outflow of resources
will be required to settle the obligation or a
reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor
disclosed in the Standalone Financial Statements.

2.4 Current and Non-current classification

The operating cycle is the time between the acquisition
of assets/inputs for processing and their realisation
in cash and cash equivalents. The Company has
identified twelve months as its operating cycle. The
Company presents assets and liabilities in the balance
sheet based on current/non-current classification.

An asset is treated as current when it is:

• expected to be realised or intended to be sold or
consumed in normal operating cycle

• held primarily for the purpose of trading

• expected to be realised within twelve months
after the reporting period, or

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

All other assets are classified as non-current.

Income tax assets are classified as non-current assets.

A liability is current when it is:

• expected to be settled in the normal
operating cycle.

• held primarily for the purpose of trading.

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

• not unconditional right to defer the settlement of
the liability for at least twelve months after the
reporting period.

The Company classifies all other liabilities as non¬
current.

2.5 Revenue recognition

The Company generates revenue mainly from
providing online platform services to partner merchants
(including restaurant merchant, grocery merchants and
delivery partners), advertisement services, sale of food,
subscriptions and other platform services.

Revenue is recognised when control of goods and
services is transferred to the customer upon the
satisfaction of performance obligation under the
contract at a transaction price that reflects the
consideration to which the Company expects to be
entitled in exchange for those goods or services.
The transaction price of goods sold and services
rendered is net of any taxes collected from customers
and variable consideration on account of various
discounts and schemes offered by the Company. The
transaction price is an amount of consideration to
which the entity expects to be entitled in exchange
for transferring promised goods or services. Specific
revenue recognition criteria for all key streams of
revenue have been detailed in subsequent sections.

Where performance obligation is satisfied over time,
the Company recognizes revenue over the contract
period. Where performance obligation is satisfied at
a point in time, Company recognizes revenue when
customer obtains control of promised goods and
services in the contract.

Identification of customer:

The Company considers a party to be a customer if
that party has contracted with the Company to obtain
goods or services that are an output of the Company''s
ordinary activities in exchange for consideration. Based
on the contractual obligations and the substance of
the transactions, the Company considers the partner
merchants, brands as customers. In select cases,
transacting users and delivery partners are considered
as customers when such users carry out transactions
on the platform where the services are rendered by
the Company, or the Company charges the service
charge for use of technology platform from the users
or delivery partners.

Principle vs agent consideration:

The fulfilment of the order is the responsibility of the
partner merchants, accordingly, the Gross order
value is not recognised as revenue and only the order
facilitation fee/ commission to which the Company is
entitled is recognised as revenue.

The Company considers itself a principal in
arrangements where it controls the goods or
services provided.

In respect of transactions with delivery partners, the
Company is merely a technology platform provider,
connecting delivery partners with the partner
merchants and the consumers. Accordingly, the Gross
delivery fee is not recognised as revenue. The Company
may, from time to time, collect service charge from the
delivery partners which is recognised as revenue.

Revenue from platform services

a. Order facilitation fee:

The Company generates income from partner
merchants for facilitating food/grocery ordering,
dining out and delivery services through its
technology platform.

Income generated from partner merchants, for use
of its platform related services is recognised when
the transaction is completed as per the terms
of the arrangement with the respective partner
merchants, being the point at which the Company
has no remaining performance obligation.

The fulfilment of the order is the responsibility of
partner merchants ; accordingly, the gross order
value is not recognised as revenue, only the order
facilitation fee to which the Company is entitled
is recognised as revenue.

b. Delivery income:

The Company is merely a technology platform
provider connecting delivery partners with the
Restaurant partners and the consumers and
earns revenue from delivery partners in the form
of service charges for use of technology platforms
by them.

c. Advertisement revenue:

Advertisement revenue is generated from the
sponsored listing fees paid by partner merchants
and brands. Advertisement revenue is recognized
when a consumer engages with the sponsored
listing based on the number of clicks. There
are certain contracts, where, in addition to the
clicks, the Company sells online advertisements
which are usually run over a contracted period
of time. Revenue is presented on a gross basis in
the amount billed to partner merchants as the
Company controls the advertisement space.

d. Onboarding fee:

Partner merchants and delivery partners pay one¬
time non-refundable fees to join the Company''s
network. These are recognised on receipt in
accordance with terms of agreement entered into
with such relevant partners.

e. Event income:

The company generates income from ticketing
revenue, Brand promotion fee and facilitation
fee by organizing and curating events under
different categories (music, comedy etc). Event
Income is recognized on completion of the
event. The Company considers itself a principal
in this arrangement and accordingly the revenue
is recognised at sale value minus variable
considerations such as discounts, incentives and
other such items offered to the customer.

f. Subscription fee

Revenue from the subscription contracts is
recognized over the subscription period on a
systematic basis in accordance with the terms of
agreement entered with the customer.

g. Service charge:

The Company generates revenue on account
of service charges collected from users/delivery
partners for use of technology platforms to
facilitate placement and delivery of orders.
Service charge recognised by Company is
net of discounts and incentives, if any, given/
offered by the Company on transaction-to-
transaction basis.

h. Income from sale of food:

Revenue from sale of food is recognised when
the performance obligations are satisfied i.e.
when control of promised goods are transferred
to the customer i.e. when the food is delivered
to the customer. The Company considers itself a
principal in this arrangement and accordingly the
revenue is recognised at sale value minus variable
considerations such as discounts, incentives and
other such items offered to the customer.

i. Variable consideration such as discounts and
incentives:

The Company provides various types of incentives,
discounts to users to promote the transactions
on the platform. If the Company identifies the
transacting users as one of their customers for

the services, the incentives/ discounts offered to
the transacting users are considered as payment
to customers and recorded as reduction of
revenue on a transaction-to-transaction basis.
The amount of incentive/ discount in excess of
the income earned from the transacting users is
recorded as advertising and marketing expenses.

When incentives/discounts are provided to
transacting users where the Company is not
responsible for services, the transacting users
are not considered customers of the Company,
and such incentives/discounts are recorded as
advertising and marketing expenses.

j. Other income:

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

Interest income is recognised using the effective
interest method or time-proportion method,
based on rates implicit in the transaction.

Dividend income is recognized when the
Company''s right to receive Dividend is established.

k. Contract balances:

Trade receivables

Trade receivable is the company''s right to
consideration that is unconditional (i.e., only the
passage of time is required before payment of
the consideration is due). Refer to accounting
policies of financial assets in section 2.12 for
initial recognition and subsequent measurement
of financial assets.

Contract assets

Contract asset is Company''s right to consideration
in exchange for services that the Company
has transferred to a customer where that right
is conditioned on something other than the
passage of time.

Contract liabilities

Contract liability is recognised where the company
has an obligation to transfer goods or services
to a customer for which the entity has received
consideration (or the amount is due) from the
customer. Contract liabilities are recognised as
revenue when the Company performs under the

contract (i.e., transfers the control of the related
goods or services to the customer).

2.6 Property, plant and equipment

Property, Plant and equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met,
directly attributable cost of bringing the property,
plant and equipment to its location and condition
necessary for it to be capable of operating in the
manner intended by the management.

The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if it is
probable that future economic benefits associated
with the item will flow to the Company and the cost of
the item can be measured reliably.

When significant parts of plant and equipment are
required to be replaced at intervals, the Company
depreciates them separately based on their specific
useful lives. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount
of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and
maintenance costs are recognised in the Standalone
Statement of Profit or Loss as incurred. The present
value of the expected cost for the decommissioning
of an asset after its use is included in the cost of
the respective asset if the recognition criteria for
a provision are met. Subsequent expenditure is
capitalised only if it is probable that the future
economic benefits associated with the expenditure
will flow to the Company and the cost of the item can
be measured reliably.

Gains or losses arising from derecognition of the
assets are measured as the difference between the
net disposal proceeds and the carrying amounts of the
assets and are recognized in the Standalone Statement
of Profit and Loss when the assets are derecognized.

Capital work in progress

Amount paid towards the acquisition of property,
plant and equipment outstanding as of each reporting
date and the cost of property, plant and equipment
not ready for their intended use before such date are
disclosed under capital work-in-progress. The capital
work- in-progress is carried at cost, comprising direct
cost, related incidental expenses and attributable
interest. No depreciation is charged on the capital
work in progress until the asset is ready for their
intended use.

• a breach of contract such as a default or being
over due on a case to case basis;

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

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

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

Presentation of allowance for ECL in the balance sheet

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

Impairment of non-financial assets

Non-financial assets including property, plant and
equipment and intangible assets with finite life and
intangible assets under development are evaluated
for recoverability whenever there is any indication that
their carrying amounts may not be recoverable. If any
such indication exists, the recoverable amount (i.e.
higher of the fair value, less cost to sell and the value-
in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that
are largely independent of those from other assets. In
such cases, the recoverable amount is determined for
the CGU to which the asset belongs.

If the recoverable amount of an asset (or CGU) is
estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its
recoverable amount. An impairment loss is recognised
in the Standalone Statement of Profit and Loss. For
assets excluding goodwill, an assessment is made at
each reporting date to determine whether there is
an indication that previously recognised impairment
losses no longer exist or have decreased. If such
indication exists, the Company estimates the asset''s
or CGU''s recoverable amount.

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 available. If no such transactions can be
identified, an appropriate valuation model is used.

2.7 Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination are measured at
fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated
impairment losses (if any). While developing an
intangible asset the expenses incurred during the
research phase are charged to Standalone Statement
of Profit and Loss in the period in which the expenditure
is incurred while expenditure incurred during
development phase are capitalized. Subsequent
expenditure is capitalised only when it increases the
future economic benefits embodied in the specific
asset to which it relates. All other expenditure is
recognised in profit or loss as incurred.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognised in the
Standalone Statement of Profit and Loss when the
asset is derecognised.

2.8 Depreciation and amortisation

Depreciation on property, plant and equipment and
amortisation of intangible assets with finite useful lives
is calculated on a straight-line basis over the useful
lives of the assets estimated by the management.

The Company has used the following useful lives to
provide depreciation on Property, plant and equipment
and amortisation of intangible assets:

approximation of the period over which the assets are likely to
be used. Hence, the useful lives for these assets is different from
the useful lives as prescribed under part C of Schedule II of The
Companies Act 2013.

The residual values, useful lives, and methods of
depreciation of property, plant and equipment are
reviewed at the end of each reporting period and
adjusted prospectively, if appropriate.

Depreciation on additions/ disposals is provided on a
pro-rata basis i.e., from/ up to the date on which asset
is ready for use/ disposed of. Individual assets costing
less than INR 5,000 are fully depreciated in the year
of purchase.

Intangible assets with finite lives are assessed for
impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible
asset with a finite useful life are reviewed at least at the
end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of
future economic benefits embodied in the asset are
adjusted prospectively.

2.9 Impairment

Impairment of Financial assets

The Company assesses at the end of each reporting
period whether a financial asset or a group of financial
assets is impaired. Ind AS 109 (''Financial instruments'')
requires expected credit losses to be measured
through a loss allowance. The Company recognises
lifetime expected losses for all contract assets and/or
all trade receivables that do not constitute a financing
transaction. For all other financial assets, expected
credit losses are measured at an amount equal to
the 12 month expected credit losses or at an amount
equal to the lifetime expected credit losses if the credit
risk on the financial asset has increased significantly
since initial recognition.

Credit-impaired financial assets

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

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

• significant financial difficulty of the debtor;

A previously recognised impairment loss is reversed
only if there has been a change in the assumptions
used to determine the asset''s recoverable amount
since the last impairment loss was recognised. The
reversal is limited so that the carrying amount of the
asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been
determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years. Such
reversal is recognised in the Standalone Statement of
Profit and Loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as a
revaluation increase.

A cash generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised
in the Standalone statement of Profit and Loss. An
impairment loss recognised for goodwill is not reversed
in subsequent periods.

2.10 Leases

Company as a lessee

The Company''s lease assets primarily consist of
leases for buildings. The Company assesses whether
a contract contains a lease at the inception of a
contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves
the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of
the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.

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

i) Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised,
initial direct costs incurred, lease payments made
at or before the commencement date less any
lease incentives received and an estimate of costs
to be incurred by the lessee in dismantling and
removing the underlying asset, restoring the site
on which it is located or restoring the underlying
asset to the condition required by the terms and
conditions of the lease. Right-of-use assets are
depreciated on a straight-line basis over the
shorter of the lease term or the estimated useful
lives of the assets whichever is earlier.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset. The right-of-use assets
are also subject to impairment. Refer to the
accounting policies in section 2.9, Impairment of
non-financial assets.

ii) Lease liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made
over the lease term. The lease payments include
fixed payments (including in-substance fixed
payments) less any lease incentives receivable,
variable lease payments that depend on an index
or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments
also include the exercise price of a purchase
option reasonably certain to be exercised by
the Company and payments of penalties for
terminating the lease, if the lease term reflects
the Company exercising the option to terminate.
Variable lease payments that do not depend on
an index or a rate are recognised as expenses
(unless they are incurred to produce inventories)
in the period in which the event or condition that
triggers the payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate

at the lease commencement date as the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of
lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments (e.g., changes to future payments
resulting from a change in an index or rate used
to determine such lease payments) or a change
in the assessment of an option to purchase the
underlying asset. The Company''s lease liabilities
are included in financial liabilities.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease
exemption (i.e., those leases that have a lease
term of 12 months or less from the commencement
date and do not contain a purchase option).
It also applies the lease of low-value assets
recognition exemption to leases of assets that are
considered to be low value. Lease payments on
short term leases and leases of low-value assets
are recognised as expenses on a straight-line
basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an asset are classified as operating
leases. Rental income arising is accounted for on
a straight-line basis over the lease terms and is
included in revenue in the Standalone Statement
of Profit or Loss due to its operating nature. Initial
direct costs incurred in negotiating and arranging
an operating lease are added to the carrying
amount of the leased asset and recognised over
the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the
period in which they are earned.

2.11 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.

2.12 Financial instruments

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

Financial assets and liabilities are recognised when
the Company becomes a party to the contract that
gives rise to financial assets and liabilities. Financial
assets and 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 measured on initial
recognition of financial asset or financial liability.

a. Financial assets

Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instrument.

Initial recognition and measurement

On initial recognition, a financial asset is
recognised at fair value. In case of financial assets
which are recognised at fair value through profit
and loss (FVTPL), its transaction cost is recognised
in the Standalone Statement of Profit and Loss.
However, trade receivables are measured at
transaction price. In other cases, the transaction
cost is attributed to the acquisition value of the
financial asset.

Financial assets are subsequently classified and
measured at:

• Amortised cost

• Fair value through other comprehensive
income (FVTOCI)

• Fair value through profit and loss (FVTPL)

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

Financial assets at amortised cost

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

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

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

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method. Amortised cost is
calculated by taking into account any
discount or premium on acquisition and fees
or costs that are an integral part of the EIR.
The EIR amortisation is included in finance
income in the Standalone Statement of Profit
and Loss. The losses arising from impairment
are recognised in the Standalone Statement
of Profit and Loss. This category generally
applies to trade and other receivables.

Financial assets at FVTOCI

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

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

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

Further, in cases where the Company has made
an irrevocable election based on its business
model, for its investments which are classified as
equity instruments. Dividends are recognised as
income in the statement of profit and 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 the statement of profit and loss.

Financial assets at FVTPL

Financial assets are measured at fair value
through profit or loss unless they are measured
at amortised cost or at fair value through other
comprehensive income on initial recognition.
The transaction costs directly attributable to the
acquisition of financial assets at fair value through
profit or loss are immediately recognised in the
statement of profit and loss.

In addition, the Company may elect to designate
a Financial asset, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL if
doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as
''accounting mismatch'').

Investment in subsidiaries

Equity investments in subsidiaries are carried at
cost less accumulated impairment losses, if any.
Where an indication of impairment exists, the
carrying amount of the investment is assessed
and written down immediately to its recoverable
amount. On disposal of investments in subsidiaries,
the difference between net disposal proceeds
and the carrying amounts are recognised in the
Statement of Profit and Loss.

Derecognition

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

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

b) The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a ''pass-through''
arrangement; and either

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

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

When the Company has transferred its rights
to receive cash flows from an asset or has
entered into a pass-through arrangement,
it evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all the risks and rewards of
the asset, nor transferred control of the
asset, the Company continues to recognise
the transferred asset to the extent of the
Company''s continuing involvement. In that

case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a
basis that reflects the rights and obligations
that the Company has retained.

b. Financial liabilities

Initial recognition and measurement

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

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings
and payables, net of directly attributable
transaction costs.

The Company''s financial liabilities include
trade and other payables, lease liabilities and
bank overdrafts.

Subsequent measurement

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

Financial liabilities at fair value through profit or
loss

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

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

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

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

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through
the EIR amortisation process. Amortised cost is
calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation
is included as finance costs in the Standalone
Statement of Profit and Loss.

Derecognition

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

c. Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

2.13 Fair value measurement

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must
be accessible by the Company

Fair value hierarchy:

All assets and liabilities for which fair value is measured
or disclosed in the Standalone Financial Statements

are categorised within the fair value hierarchy,
described as follows, based on the lowest level input
that is significant to the fair value measurement as
a whole:

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable.

For assets and liabilities that are recognised in the
Standalone Financial Statements on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hie

---

Mar 31, 2024

1. Company overview

Swiggy Limited ("the Company" or "Swiggy") was incorporated on December 26, 2013, as a private limited company, with its registered office situated at Bengaluru. The Company is principally engaged in facilitating the food orders and delivery through its own application platform, subscription services to enable logistics in the food e-commerce market. Effective August 2020 the Company is merely a technology platform provider where delivery partners can provide their delivery services to restaurant partners and consumers through the Swiggy platform.

Pursuant to a special resolution passed in the extraordinary general meeting of the shareholders of the Company held on February 19, 2024, post which the Company has converted from Private Limited Company to Public Limited Company, and consequently the name of the Company has changed to ''Swiggy Limited'' vide new certificate of incorporation obtained from the Registrar of Companies approved on April 10, 2024.

The Company is also in the business of preparing food in its own kitchen and selling through the aforesaid platform and customer support services. The Company is also in the business of (i) dining out platform which enables customers to discover and make table reservation with respect to various restaurants, (ii) event organization and curation.

2. Material accounting policies

2.1 Statement of compliance and basis of preparation

The Standalone Financial Statements of the Company comprise of the Standalone Balance Sheet as at March 31, 2024, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity, the Standalone Statement of Cash Flows for the year ended March 31, 2024, Material Accounting Policies, Notes to the Standalone Financial Statements as at and for the year ended March 31, 2024 (together referred to as ''Standalone Financial Statements'') has been prepared under Indian Accounting Standards (''Ind AS'') notified under Section 133 of the Companies Act, 2013, (''the Act'') and other relevant provisions of the Act as amended from time to time.

The Standalone Financial Statements of the Company for the yearended March 31,2024 were approved and authorised - for issue in accordance with the resolution of the Board of Directors on June 28, 2024.

The Standalone Financial Statements are presented in Indian Rupees (R), which is also the Company''s functional currency. All amounts have been rounded-off to the nearest million, unless otherwise indicated.

The Standalone Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis, except for the following:

- certain financial assets and liabilities which are measured at fair value (refer accounting policy regarding financial instruments);

- defined benefit plans - measured at fair value;

- share-based payments and

- assets and liabilities arising in a business combination

The Material Accounting Policies used in preparation of the Standalone Financial Statements have been discussed in the respective notes.

2.2 Business combination and goodwill

The cost of an acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition, which is the date on which control is transferred to the Company. The cost of acquisition also includes the fair value of any contingent consideration. Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition.

Purchase consideration paid in excess of the fair value of net assets acquired is recognised as goodwill. Where the fair value of identifiable assets and liabilities exceed the cost of acquisition, after reassessing the fair values of the net assets and contingent liabilities, the excess is recognised as capital reserve.

Transaction costs that the Company incurs in connection with a business combination such as finder''s fees, legal fees, due diligence fees and other professional and consulting fees are expensed as incurred.

2.2 Business combination and goodwill (Contd.)

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company''s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment at each reporting period as presented, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than it''s carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in Standalone Statement of Profit and Loss. An impairment loss recognised for goodwill is not reversed in subsequent periods. Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

Business combinations have been accounted for using the acquisition method under the provisions of Ind AS 103, Business Combinations.

Pooling of interest method

Ind AS 103, Business Combinations, prescribes significantly different accounting for business combinations which are not under common control and those under common control.

Business combinations involving entities or businesses under common control shall be accounted for using the pooling of interest method.

The pooling of interest method is considered to involve the following:

i) The assets and liabilities of the combining entities are reflected at their carrying amounts.

ii) No adjustments are made to reflect fair values or recognize any new assets or liabilities. The only adjustments that are made are to harmonies accounting policies.

iii) The identity of the reserves has been preserved and appear in the financial information of the transferee in the same form in which they appeared in the financial information of the transferor.

2.3 Use of estimates, assumptions and judgements

"The preparation of the Standalone Financial Statements in conformity with Ind AS requires the management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the Standalone Financial Statements and the reported amounts of revenues and expenses for the year reported. Actual results could differ from those estimates.

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.

Key source of estimation uncertainty as at the date of Standalone Financial Statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of the following:

a. Impairment of investments

Impairment exists when the carrying value of an asset or cash generating unit ("CGU") exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs For disposing of the asset, The value in use calculation is based on a discounted cash flow ("DCF") model and involves use of significant estimates and assumptions including turnover, earning multiples, growth rates and net margins used to calculate projected future cash flows, risk adjusted discounted rate, future economic and market conditions.

b. 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 DCF model The policy has been further explained under note 2.13.

c. Defined benefit plans

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation is determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables. These mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. The assumptions and models used for defined benefit plan are disclosed in note 31.

d. Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility, dividend yield, forfeiture rate and making assumptions about them The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in note 32.

e. Useful lives of property, plant and equipment and intangible assets

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

f. Taxes

Significant judgments are involved in determining the provision for income taxes and tax credits including the amount expected to be paid or refunded. The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has been explained under note 2.21.

g. Business combination

In accounting for business combinations, judgment is required whether Company has control over the entity acquired. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has'':

* Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)

* The ability to use its power over the investee to affect its returns.

* Exposure or rights to variable return from its involvement with the investee.

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

* The contractual arrangement with the other vote holders of the investee ¦ The Company''s voting rights and potential voting rights

* The size of the Company''s holding of voting rights relative to the size and dispersion of the holdings of the other voting rights holders.

* Right arising from other contractual arrangements.

Key assumptions in estimating the acquisition date fair values of the identifiable assets acquired and liabilities, identifying whether an identifiable intangible asset is to be recorded separately from goodwill.

h. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate to the lease being evaluated or for a portfolio of leases with similar characteristics.

i. Impairment of goodwill

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired

The impairment indicators, the estimation of expected future cash flows and the determination of the fair value of CGU (including Goodwill) require the Management to make significant judgements, estimates and assumptions concerning the identification and validation of impairment indicators, fair value of assets, revenue growth rates and operating margins used to calculate projected future cash flows, relevant risk-adjusted discount rate, future economic and market conditions, etc

2.3 Use of estimates, assumptions and judgements (Contd.)

j. Provisions and contingent liabilities

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The Company uses significant judgement to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the Standalone Financial Statements.

2.4 Current and Non-current classification

The operating cycle is the time between the acquisition of assets/inputs for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle. The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is treated as current when it is:

• expected to be realised or intended to be sold or consumed in normal operating cycle ¦ held primarily for the purpose of trading

• expected to be realised within twelve months after the reporting period, or

• cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve

months after the reporting period

All other assets are classified as non-current.

A liability is current when it is:

• expected to be settled in normal operating cycle.

• held primarily for the purpose of trading.

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

¦ not unconditional right to defer the settlement of the liability for at least twelve months after the reporting

period.

The Company classifies all other liabilities as non-current.

2.5 Revenue recognition

The Company generates revenue mainly from providing online platform services to partner merchants (including restaurant merchant, grocery merchants and delivery partners), advertisement services, sale of food, subscriptions and other platform services.

Revenue is recognised when control of goods and services is transferred to the customer upon the satisfaction of performance obligation under the contract at a transaction price that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The transaction price of goods sold and services rendered is net of any taxes collected from customers and variable consideration on account of various discounts and schemes offered by the Company. The transaction price is an amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services. Specific revenue recognition criteria for all key streams of revenue have been detailed in subsequent sections

Where performance obligation is satisfied overtime, the Company recognizes revenue over the contract period. Where performance obligation is satisfied at a point in time, Company recognizes revenue when customer obtains control of promised goods and services in the contract.

2.5 Revenue recognition (Contd.J Identification of customer:

The Company considers a party to be a customer if that party has contracted with the entity to obtain goods or services that are an output of the entity''s ordinary activities in exchange for consideration. Based on the contractual obligations and the substance of the transactions, the Company considers the restaurant merchants, other merchants as customers In select cases, transacting users and delivery partners are considered as customers when such users carry out transactions on the platform where the services are rendered by the Company, or the Company charges the service charge for use of technology platform from the users or delivery partners.

Principle vs agent consideration:

The fulfilment of the order is the responsibility of the partner merchants. Accordingly, the Gross order value is not recognised as revenue and only the order facilitation fee/ commission to which the Company is entitled is recognised as revenue.

The Company considers itself a principal in arrangements where it controls the goods or services provided.

In respect of transaction with delivery partners, the Company is merely a technology platform provider, connecting delivery partners with the restaurant partners and the consumers. Accordingly, the Gross delivery fees is not recognised as revenue. The Company may, from time to time, collect service charge from the delivery partners which is recognised as revenue.

Revenue from platform services

a. Order facilitation fee:

Company generates income from partner merchants for facilitating food/grocery ordering, dining out and delivery services through its technology platform.

Income generated from partner merchants, for use of its platform related services is recognised when the transaction is completed as per the terms of the arrangement with the respective partner merchants, being the point at which the Company has no remaining performance obligation.

The fulfilment of the order is the responsibility of partner merchants; accordingly, the gross order value is not recognised as revenue, only the order facilitation fee to which the Company is entitled is recognised as revenue.

b. Delivery income:

The Company earned delivery income by providing food/grocery delivery services. Such income was recorded by the Company on gross basis, as fulfilment of the food delivery order was the responsibility of the Company. Delivery fee was recognised as revenue at the point of order fulfilment.

Effective August 2020, the Company is merely a technology platform provider connecting delivery partners with the Restaurant partners and the consumers and earns revenue from delivery partners in the form of service charges for use of technology platform by them.

c. Advertisement revenue:

Advertisement revenue is generated from the sponsored listing fees paid by partner merchants and brands. Advertisement revenue is recognized when a consumer engages with the sponsored listing based on the number of clicks. There are certain contracts, where, in addition to the clicks, the Company sells online advertisements which are usually run over a contracted period of time. Revenue is presented on a gross basis in the amount billed to partner merchants as the Company controls the advertisement space.

d. Onboarding fee:

Partner merchants and delivery partners pay one-time non-refundable fees to join the Company''s network. These are recognised on receipt or over a period of time in accordance with terms of agreement entered into with such relevant partner.

e. Event income:

Company generates income from ticketing revenue, Brand promotion fee and facilitation fee by organizing and curating events under different categories (music, comedy etc). Event Income is recognized on completion of the event. The Company considers itself a principal in this arrangement and accordingly the revenue is recognised at sale value minus variable considerations such as discounts, incentives and other such items offered to the customer.

f. Subscription fee

Revenue from the subscription contracts is recognized over the subscription period on a systematic basis in accordance with the terms of agreement entered with the customer.

g. Service charge:

Company generates revenue on account of service charges collected from users/delivery partners for use of technology platform to facilitate placement and delivery of orders. Service charge recognised by Company is net of discounts and incentives, if any, given/offered by the Company on transaction-to-transaction basis.

h. Income from sale of food:

Revenue from sale of food is recognised when the performance obligations are satisfied i.e when control of promised goods are transferred to the customer i.e. when the food is delivered to the customer. The Company considers itself a principal in this arrangement and accordingly the revenue is recognised at sale value minus variable considerations such as discounts, incentives and other such items offered to the customer.

i. Variable consideration such as discounts and incentives:

The Company provides various types of incentives, discounts to users to promote the transactions on the platform. If the Company identifies the transacting users as one of their customers forthe services, the incentives/ discounts offered to the transacting consumers are considered as payment to customers and recorded as reduction of revenue on a transaction-to-transaction basis. The amount of incentive/ discount in excess of the income earned from the transacting consumers is recorded as advertising and marketing expenses.

When incentives/discounts are provided to transacting users where the Company is not responsible for services, the transacting consumers are not considered customers of the Company, and such incentives/discounts are recorded as advertising and marketing expenses.

j. Other income:

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

Interest income is recognised using the effective interest method or time-proportion method, based on rates implicit in the transaction.

Dividend income is recognized when the Company''s right to receive Dividend is established.

k. Contract balances:

Trade receivables

A receivable is the company''s right to consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section 2.13 b for initial recognition and subsequent measurement of financial assets.

Contract assets

Contract asset is Company''s right to consideration in exchange for services that the Company has transferred to a customer where that right is conditioned on something other than the passage of time.

2.5 Revenue recognition (Contd.)

Contract liabilities

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

2.6 Property, plant and equipment

Plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met, directly attributable cost of bringing the plant and equipment to its working condition for the intended use and cost of replacing part of the plant and equipment.

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in Standalone Statement of Profit or Loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

Gains or losses arising from derecognition of the assets are measured as the difference between the net disposal proceeds and the carrying amounts of the assets and are recognized in the Standalone Statement of Profit and Loss when the assets are derecognized.

Capital work in progress

Amount paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work-in-progress. The capital work- in-progress is carried at cost, comprising direct cost, related incidental expenses and attributable interest. No depreciation is charged on the capital work in progress until the asset is ready forthe intended use.

2.7 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination are measured at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses (if any). While developing an intangible asset the expense incurred during research phase are charged to Standalone Statement of Profit and Loss in the period in which the expenditure is incurred while expenditure incurred during development phase are capitalized. Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Standalone Statement of Profit and Loss when the asset is derecognised.

Depreciation on property, plant and equipment and amortisation on intangible assets with finite useful lives is calculated on a straight-line basis overthe useful lives of the assets estimated by the management.

The Company has used the following useful lives to provide depreciation on plant and equipment and amortisation of intangible assets:

Asset category	Useful lives estimated by the management
Plant and equipment*	5
Office equipment	5
Computer equipment	3
Furniture and fixtures*	5
Leasehold improvements	Lower of lease term
	or useful life
Computer software	5
Non-com pete asset	3
Customer contracts*	3
Technology*	10
Trademark*	5-15
Other intangible assets*	3-12

* Based on an internal technical evaluation, management believes that the useful lives in the table above are realistic and reflect fair approximation of the period over which the assets are likely to be used. Hence, the useful lives for these assets is different from the useful lives as prescribed under part C of Schedule II of The Companies Act 2013.

The residual values, useful lives, and methods of depreciation of property, plant and equipment are reviewed at the end of each reporting period and adjusted prospectively, if appropriate.

Depreciation on additions/ disposals is provided on a pro-rata basis i.e., from/ up to the date on which asset is ready for use/ disposed of.

Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are adjusted prospectively.

2.9 Impairment

Impairment of Financial assets

The Company assesses at the end of each reporting period whether a financial asset or a Company of financial assets is impaired. Ind AS 109 (''Financial instruments'') requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all contract assets and/or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

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:

* significant financial difficulty of the debtor;

* a breach of contract such as a default or being more than 180 days past due;

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

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

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

Presentation of allowance for ECL in the balance sheet

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.

Impairment of non-financial assets

Non-financial assets including property, plant and equipment and intangible assets with finite life and intangible assets under development are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the Standalone Statement of Profit and Loss. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount.

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 available. If no such transactions can be identified, an appropriate valuation model is used.

A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Standalone Statement of Profit and Loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than it''s carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in Standalone statement of Profit and Loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

2.10 Leases

Company as a lessee

The Company''s lease assets primarily consist of leases for buildings. The Company assesses whether a contract contains a lease at the inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

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

i) Right-of-use assets

The Company recognises right-of-use assets atthe commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets whichever is earlier.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in section 2.10, Impairment of non-financial assets.

ii) Lease liabilities

Atthe commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date as the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of Interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Company''s lease liabilities are included in financial liabilities.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease exemption (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of assets that are considered to be low value. Lease payments on short term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

2.10 Leases (Contd.)

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the Standalone Statement of Profit or Loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

2.11 Financial instruments

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

Financial assets and liabilities are recognised when the Company becomes a party to the contract that gives rise to financial assets and liabilities. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (otherthan financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

a. 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.

b. Financial assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument. Initial recognition and measurement

On initial recognition, a financial asset is recognised at fair value. In case of financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost is recognised in the Standalone Statement of Profit and Loss. However, trade receivables are measured at transaction price. In other cases, the transaction cost is attributed to the acquisition value of the financial asset.

Financial assets are subsequent classified and measured at: .

• Amortised cost

• Fair value through other comprehensive income (FVOCI)

• Fair value through profit and loss (FVTPL)

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

Financial assets at amortised cost (Debt instrument)

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

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

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

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Standalone Statement of Profit and Loss. The losses arising from impairment are recognised in the Standalone Statement of Profit and Loss. This category generally applies to trade and other receivables.

Financial assets at FVOCI (Debt instrument)

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

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

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

Derecognition

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

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

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either

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

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

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

Financial assets at FVTPL (Debt instrument)

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

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

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Standalone Statement of Profit and Loss.

c. Financial liabilities

Initial recognition and measurement

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

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, lease liabilities, loans and borrowings including ^ bank overdrafts.

Subsequent measurement

Financial liabilities at fair value through profit or loss

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

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss.

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

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the ElR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Standalone Statement of Profit and Loss.

Derecognition

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

d. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.12 Fair value measurement

In determining the fair value of its financial instruments, the Company uses following hierarchy and assumptions that are based on market conditions and risks existing at each reporting date.

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the iowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the Standalone Financial Statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting;

2.13 Inventories

Inventory is stated at the lower of cost and net realisable value. Cost of inventories comprise of all cost of purchase and other cost incurred in bringing the inventories to their present location and condition. Cost is determined using weighted average method. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

2.14 Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. 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 the borrowing costs.

2.15 Share issue expenses

Incremental costs directly attributable to the issue of equity shares will be adjusted with securities premium.

2.16 Foreign currency

Transactions in foreign currencies are initially recorded by the respective entities of the Company at their respective functional currency spot rates, at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised as income or expenses in the period in which they arise.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.