2 Significant Accounting Policies

2.1 Basis qf pre^intion of linancisl stHtemeitU

The financial statements have been prepared in accordance with the Indian Accounting Standards (referred lo as ^l'[nd AS¹’) as notified under flic Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 (as amended from time io time) and presentation requirements of Division II of Schedule 111 lo (he Companies Act, 2013, (Ind AS com pliant 'Schedule 111), as applicable lo llic standalone financial statement.

These financial statements have been prepared in Indian Rupee which is also the functional currency of the Company and all values are rounded to the thousands, except when otherwise Indicated. These financial statements have been prepared on historical cost basis, except for certain financial assets and liabilities which are measured at fair value or amortized cost at the end of each reporting period, as explained in the accounting policies below.

2.2 Significant accounting judgements, estimates and assumptions.

the preparation of the fompany’s standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amotml of assets or liabilities affected in future periods.

Critical accounting estimates 1. Taxes

Deferred tax assets arc recognized to the extent that it is probable that taxable profit will lie available against which the same can be utilized. A significant ifianagement judgement is required to determine the amount of deferred lax assets tha&can be recognized, based upon thb likely timing and the level of future taxable profits together with future tax planning strategies.

ii. Provisions and Contingent 1 .lability

The timing of recognition and quantification of the liability (including litigations) requires the application of judgement to existing facts and circumstances, which can he subject to change. The carrying amounts df provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

2,3 Current versus non-current classification

The Company presents assets and liabilities in (be standalone balance sheet based on current/ noncurrent classiliealion.

An asset is treated as current when it is:

i. "I ix pec led to be realized or intended to be sold or consumed in normal operating cycled'

ii. Hold primarily for the purpose of trading,

iii. Expected to he realized within twelve months after the reporting period, or i v. Cash or cash equivalent unless restricted front being exchanged or used to

settle

a liability (brat least twelve months after the reposting period Ail other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in the company's normal operating cycle.

ii. It is held primarily for the purpose of being traded:

iii. it is due to lie settled vvitlitti twelve months after the reporting date; or

iv. The company does not have an unconditional right to defer settlement of the liability for at least tw elve months after the reporting date. Terms of a

liability that could, at the option of the counterparty, result in its settlement by (he issue of equity instruments do not affect its classification.

All other liabilities arc classified as non-current.

Deferred tax assets and liabilities are classified as min-curreni assets and liabilities.

Operating cycle for current and non-current classification

The operating cycle is the time between the acquisition of assets IW processing and their realization in cosh or cash equivalents. The company has taken Operating cycle to lie twelve months.

2 A Fair value measurement of financial instruments

The Company measures financial instruments. such as. Investments at fair value at each balance sheet dale using valuation techniques. Fan 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 transfect he liability takes place either;

a) lit the principal market for the asset or liability* or

b) In the absence of a principal market, in the most advantageous market Tor ilic asset or liability

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-tin uncial asset Lakes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in Lhc etreuinstances and Tor which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized 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 I - 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 Lor assets and liabilities that are recognized 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 iair value measurement as a whole) at the end of each reporting period.

For assets and liabilities that arc recognized in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hiejaichy bv reassessing eategorisation (based on the lowest level input that is significant to the lair value measurement as a whole) at Lhe end of each reporting period.

For the purpose of fflif \ ;i I n c disclosures, die Company has determined classes of assets and liabilities on the basis of tftt nature, Characteristics anti risks oil he asset or liability and the level of the fair value hierarchy as explained above,

2.5 Property, Plant and Eqitipmen I

Property, plant and equipment are slated at cost, less accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria arc met, directly attributable cosl of bringing the asset to its working condition for die intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arris itig at the purchase price. Such a cost includes the cost of replacing part of the plant and equipment When significant pa its of pipit and equipment are required to be replaced at intervals* the Company depreciates them separately based on iheirspeeific useful lives. Likewise, when a major inspection is performed, its cosl is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. AM other repair and maintenance costs me recognized in profit or loss as incurred. Gains or losses arising from derecognition of Properly, plan! and equipment arc measured as [lie difference between the net disposal proceeds and [lie carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

2.U Intangible asset

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Follow iog initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. The useful lives of intangible assets arc assessed as cither finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment w henever there is an indication that the* intangible asset may be impaired. The ainorli/aiion period and the amortization method for an intangible asset with a finite useful life are reviewed at least at (he end of each reporting period with llie affect of any change in the estimate be ing accounted for on a prospective basis. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period nr method, as appropriate, and .are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss unless such expenditure forms pari of carrying value of another asset.

Gains or losses arising from derecognition of an intangible asset are measured as (he difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss w hen the asset is derecognized.

2.7 Depreciation and Amortization

Depreciation oil Property, plant and equipment is provided on the straight-line basis over the useful lives of assets specified in Schedule II to the Companies Act. 2013,

Software being intangible asset is amortized on straight-line basis over a period of 3 years.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. The amortization period and the unionization method are reviewed at least at each financial year end.

2.8 "Impairment of Financial and Nnn-Financtal Assets"

'The impairment provisions for Financial Assets ars based on assumptions about risk of default and expected cash loss rates. Mie Company ustj$ judgement in making these assumptions and selecting the inputs to the impairment calc illation, based on Company’s past;

history, existing murk el conditions as well as forward looking estimates at the cud of each repotting period."

In the case o fnon-ft nan da I assets, assessment of imps i rment indicators i n vol ves eon s i d oral ion of fuiu re risks. Further, the company estimates the assets’ recoverable amount, which is higher of an asset's nr Cash Generating Units (CGU’s) fair value less costs of disposal and iis value in use.

In assessing value in use. the estimated future cash flows Fire discounted to their present value using a pre-tax discount rale that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less cosls of disposal, rceon l market transactions arc taken into account, if no such transactions can lie identified, an appropriate valuation mode! is used.

2.9 Revenue Recognition

The company is primarily engaged in financial consultancy and providing financial technology related services.

Revenue fixmi operation

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved by the parties, in writing, tip the contract, the parties lo contract are committed lo perform their respective obligations under the contract, and the contract is legally enforceable. Revenue Is recognized upon transfer of control of promised products or services (''performance obligations") to customers in an amount that reflects the consideration the Company has received or expects to receive in exchange for these products or services (“transaction price”). When there is uncertainly as to collectability, revenue recognition is postponed until such uncertainty is resolved.

Contract balances

i. Trade receivable*

The amounts billed on the customer for work performed and are unconditionally due for payment i.e.. only passage of time is required before payment falls due, arc disclosed in the balance shed as trade receivables.

ii. Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration or is due from the customer, 11’a customer pays consideration before the Company transfers goods or sendees lo the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier).

Contract liabilities are recognised as revenue when the Company performs under the contract.

Interest income

Interest income from a financial asset is recognised using an effective interest rate mel hod.

Dividend

Dividend income is recognised when the Company's right le receive the payment is established, which is generally when shareholders approve the dividend.

2.10 Taxes on income

Current income tax

[ax expense for the year comprises current and deferred tax. The tax Currently payable is based on taxable profit lor the year. Taxable profit differs from net profit as reported in the standalone state meal of profit and foss because it excludes items of income or expense lit at arc taxable or deductible in other years and it first her excludes items I hat are never taxable tar deductible. The Company's liability for current tax is calculated using the tax rates and tax laws that have been on acted or substantively enacted by the end of the reporting period.

Current income lax relating to items recognised omsidc profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax ilems arc recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with res pec I to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred fax

Deferred tax is provided using the liability method on temporary differences between the Sax bases of assets and liabilities, and their carrying amounts for financial reporting purposes at the reporting date,

"Deferred lax liabilities are recognised for all taxable temporary differences, except:'¹

I. When the deferred tax liability arises from the initial recognition of goodwiEl or an asset or liability In a transaction (hat is not a business combination and. at the time of the transact ion, affects neither the accounting pro lit nor taxable profit or Joss.

ii. In respect of taxable temporary differences associated with investments in subsidiary and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that (he temporary differences will not reverse in I he foreseeable future. Deferred tax

assets are. recognised Ibr till deductible temporary differences, the carry forward of unused tax credits and any unused lax losses. Deferred lax assets are recognised to the extent that it Is probable that taxable pro 111 will be available against which the deductible temporary differences, and the catty forward of unused lax credits and unused lax hisses can be utilised, except:

i. When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of:m asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting pro lit nor taxable profit or loss,

ii. In respect of deductible temporary jjjljf Terences associated with i live si meins in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that die temporary differences will reverse in the foreseeable future and taxable profit will be available again si wh ich the tom pora ty di fferejefces can be ui i I i sed. The carrying a mount of deferred tax afi^ste is reviewed at cadi reporting dale and reduced to ihe cxieni lhal it is no longer probable that sufficient taxable profit will be available to allow all orparl of the deferred tax asset to be utilised. Unrecognized deferred lax asseis are reassessed at each reporting date and are recognised to the extent dial it has become probable that future taxable profits will allow ilie deferred tax asset to be recovered.

Deferred lax assets and liabilities arc measured at the lax rales than are ex peeled to apply in the year when [he asset is realized or 1 lie liability is settled. based on lax rales {and lax laws) that have becri enacted or stiJbs tan lively on acted at the report in g date. Deferred lax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred lax items are recognised in correlation to the underlying transaction cither in OCt or directly in equity.

Deterred tax assets and deferred tax liabilities are offset if a legal K enforceable right exisls So .set off current lax assets against current lax liabilities and the deferred (axes relate to the same taxable entity and the same taxation authority.

-All other acquired tax bene Ills realized arc recognised in profit or loss."

2.1J burnings Per Share

Basic earnings per equity share is com puled by dividing the net profit attributable to the equity shareholders of the Company bj the weighted average nutttfeer of equity shares Opt standing during the period. The weighted average number df equity shares outstanding during the period is adjusted for events such as fresh issue, bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity shares holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion oTall dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if I heir conversion to equity shares would decrease the net pin fit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at (he beginning of the period nil less they have been issued at a later date. Dilutive potential equity shares arc determined independently for each period presented.

2.12 Leases

Where (lie Company is lessee

['he Company applies a single recognition and measure mem approach for all leases, except for shortterm leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-usc assets representing the light to use the underlying assets,

i) Right-of-use asset

"The Company recognises right-of-use assets at the commencement date of the lease (i.c.„ the date [lie underlying asset is available for use). Right-of-use assets are measured at cost, icss any accumulated depreciation and impairment losses, and adjusted for any re measurement of lease liabilities. The cost of right-of-usc assets includes the amount of lease liabilities recognised, initial direct costs incurred, and letwe payments made at or before the commencement date less any lease incentives received. Right-of-usc assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

The right-of-uso assets are also subject to impairment." ii) Lease Liabilities

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

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at lhe lease commencement dale because ihe interest rate implicit in the lease is not readily determinable. Alter the commencement dale, the amount saf lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, ihe cany mg 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 tease payments) or a change in the assessment of an option to purchase the underlying asset.

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

The Company applies the short-term lease recognition exemption to its short-term leases (i.c.. those leases that have a lease term of 12 months or fess from the commencement date and do nol contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that arc considered to be low value. Lease payincuts on shon-term leases and leases of tow-value assets are recognised as expense on a straight-line basis over the lease term.

2.13 f oreign currcncics tinnsuetions a11d tians)ation

The Company’s financial statements arc presented in Indian Rupee, which is also the Company’s functional currency.

In preparing the financial statements, transactions in currencies other than the Company's functional currency arc recorded at ihe rates of exchange prevailing on the date of trait sac lion. At the end of each reporting period, monetary items denominated in ihe foreign currencies are re-Ira ns la ted at the rates prevailing at the end of I lie reporting period. Mon-monetary items carried at fair value that are denominated in foreign currencies are retran^ted al the rates prevailing on the date When the fair value was determined. Noii-moneiaiy items are measured in terms of historical cos! in a foreign currency are not retranslated.

Exchange differences arising on the rctrausEation pr settlement of other monetary items are included in Ihe (statement of profit and loss for the period.

2 A A Cash and Cash equivalents

Cash and cash equivalent in Ihe balance sheet comprise cash at banks and on hand and short-term deposits with ari original maturity oflhrce months or less, which are subject to an insignificant risk of changes in value. For the purpose of (lie statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as ihey are considered an integral part of the Company’s cash Management.

2. J 5 Em p I * >y cc hen c 11 is Defined lienellE ]>J:ms

Gratuity liabjlH; is a defined benefit obligation and is provided for on ihc basis of a a actuarial valuation on Projected ('nit Credit Method made :u the end of the financial year Actuarial gains and losses for both defined benefit plans are recognised iti loll in the period in which they occur in the statement of OCI.

Re-mcasuremems^ comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined bene lit liability and the return oti plan assets {excluding amounts included in net interest on the net defined lie tie lit liability), are recognised immediately in Ihc standalone balance sheet with a corresponding debit or credit 10 retained earnings through OCI in the period in which they occur, Ke-measure men is are not reclassified to profit or loss in subsequent periods

"Net interest is calculated by applying the discount rale to the net defined benefit liability or asset Past service costs arc recognised in pm lit or loss on the earlier of:

Ý The date of the plan amendment or curtail mem, and

•The date that the Company recognises related rest met u ring costs

Termination henefils

I he Company recognizes terminal ion henclli as a liability and an expense when the Com pan; has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will he required to settle the obligation and a reliable estimate can be made of the amount of the obligation, [f the termination benefits fall due more than 12 months after the balance sheet date, they are measured ai present value of future casli flows using die discount rate determined h\ reference to market yields at the balance sheet date on government bonds.

Compensated Absences

The Company treats accumulated leave expected to be carried forward beyond twelve months, as longterm employee benefit for measurement purposes! Such long-term compensated advances are provided for based on Ihc actuarial valuation using (he projeeicd unit credit method at the year-end. K cm ensure men I gains/losses on defined belief 11 plans arc immediate]; lakcn to the Statement of Profit & Loss and arc not deferred.