2. Material accounting policies
2.1 Statement of Compliance
The standalone financial statements for the year ended
31 March 2025 have been prepared in accordance with
the Indian Accounting Standards (referred to as "Ind
AS") notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time) and
other relevant provisions of the Companies Act 2013 ("the
Act") (as amended from time to time).
All amounts disclosed in the financial statements and notes
have been rounded off to the nearest INR million as per the
requirement of Schedule III, unless otherwise stated.
2.2 Basis of preparation
The standalone financial statements have been prepared
on the historical cost basis as explained in the accounting
policies below, except for the following:
• certain financial assets and liabilities measured at fair
value where Ind AS requires a different accounting
treatment (refer accounting policy regarding
financial instruments);
• share-based payments.
• net defined benefit (asset)/liability - Fair value of plan
assets less present value of defined benefit obligations.
The preparation of these standalone financial statements
requires the use of certain critical accounting estimates and
judgements. It also requires the management to exercise
judgement in the process of applying the Company's
accounting policies. The areas where estimates are
significant to the standalone financial statements, or areas
involving a higher degree of judgement or complexity, are
disclosed in Note 3.
2.3 Material accounting policies
The accounting policies, as set out in the following paragraphs
of this note, have been consistently applied, to all the periods
presented in these standalone financial statements except
where a newly issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a
change in the accounting policy.
a) Current versus non-current classification
Based on the time involved between the acquisition of
assets for processing and their realisation in cash and
cash-equivalents, the Company has identified twelve
months as its operating cycle for determining current
and non-current classification of assets and liabilities
in the balance sheet.
b) Fair value measurement
The Company measures financial instruments, such as
Investment in optionally convertible preference shares
(OCRPS), Investment in equity/preference instrument
of other entities, investment in mutual funds, exchange
traded funds, bonds, debentures, government securities,
units of investment trust and units of alternative
investment funds at fair value at each balance sheet date.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:
(i) In the principal market for the asset or liability, or
(ii) 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.
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 best economic interest.
A fair value measurement of a non-financial asset takes
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 the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
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 degree to which the inputs
to the fair value measurements are observable and the
significance of the inputs to the fair value measurement
in its entirety:
(i) Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities;
(ii) Level 2 — inputs, other than quoted prices
included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and
(iii) Level 3 — Unobservable inputs for the asset or
liability reflecting Company's assumptions about
pricing by market participants.
For assets and liabilities that are recognised in the
standalone financial statements on fair value 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 period.
The Company's management determines the policies
and procedures for recurring fair value measurement,
such as investment in optionally convertible cumulative
redeemable preference instruments (OCRPS), investment
in compulsory convertible debentures (CCD) and
investment in equity/preference instruments of other
entities, investment in mutual funds, exchange traded
funds, bonds, debentures, units of investment trust and
units of alternative investment funds measured at fair value.
External valuers are involved for valuation of significant
assets, such as unquoted investments in OCRPS, and
investment in equity/preference instruments of other
entities. Involvement of external valuers is decided
upon annually by the management. Selection criteria
include market knowledge, reputation, independence
and whether professional standards are maintained.
The management decides, after discussions with
the Company's external valuers, which valuation
techniques and inputs to use for each case.
At each reporting date, the management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the
Company's accounting policies. For this analysis, the
management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.
For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above. This note summarises the accounting
policy for fair value. Other fair value related disclosures
are given in the relevant notes.
• Disclosures for significant estimates and
assumptions (Note 3)
• Disclosures for valuation methods and
quantitative disclosure of fair value measurement
hierarchy (Note 29)
c) Revenue from contracts with customers and other
income
Revenue from contracts with customers
The Company is primarily engaged in providing web
services. Revenue from contracts with customers is
recognised when control of the services is transferred
to the customer at a fixed contract price that reflects
the consideration to which the Company expects to be
entitled in exchange for those services and excluding
taxes or duties collected on behalf of the government.
The disclosures of significant accounting judgements,
estimates and assumptions relating to revenue from
contracts with customers are provided in Note 3.
The specific recognition criteria described below must
also be met before revenue is recognised.
Rendering of services
Revenue from web services is recognised based
on output method i.e. pro-rata over the period of
the contract as and when the company satisfies
performance obligations by transferring the promised
services to its customers. Revenues from lead based
services is recognised based on output method i.e. as
and when leads are consumed by the customer or on
the expiry of contract whichever is earlier. Activation
revenue is amortised over the estimated customer
relationship period.
Advertising revenue is derived from displaying web
based banner ads and sale of online advertisements.
Revenue from banner advertisement is recognised pro
rata over the period of display of advertisement as per
contract. Revenue from sale of online advertisements is
recognised based on output method and the Company
applies the practical expedient to recognize advertising
revenue in the amount to which the Company has a
right to invoice.
Contract balances
Trade receivables
A receivable represents the Company's right to an
amount of 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 m) Financial instruments.
Contract liabilities
A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers services
to the customer, a contract liability is recognised. The
Company recognises contract liability for consideration
received in respect of unsatisfied performance
obligations and reports these amounts as deferred
revenue and advances from customers in the balance
sheet. The unaccrued amounts are not recognised
as revenue till all related performance obligations are
fulfilled. The Company generally receives transaction
price in advance for contracts with customers that
run up for more than one year. The transaction price
received in advance does not have any significant
financing component as the difference between
the promised consideration and the cash selling
price of the service arises for reasons other than the
provision of finance.
Other income
Interest income
For all financial assets measured at amortised cost,
interest income is recorded using the effective interest
rate (EIR). EIR is the rate that exactly discounts the
estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter
period, where appropriate, to the net carrying amount
of the financial asset or to the amortised cost of a
financial liability. When calculating EIR, the Company
estimates the expected cash flows by considering all
the contractual terms of the financial instrument but
does not consider the expected credit losses. Interest
income is included in other income in the statement of
profit and loss.
Dividends
Dividend is recognised when the Company's right to
receive the payment is established, which is generally
when shareholders approve the dividend.
d) Property, plant and equipment
Capital work in progress and property, plant and equipment
are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any, Such cost includes
the cost of replacing parts of the plant and equipment
and borrowing costs for long-term construction projects if
the recognition criteria are met. When significant parts of
property, plant and equipment are required to be replaced
at intervals, the Company depreciates them separately
based on their specific useful lives.
Capital work in progress includes cost of property,
plant and equipment under development as at the
balance sheet date.
Advances paid towards the acquisition of property,
plant and equipment outstanding at each balance
sheet date is classified as capital advances and cost of
assets not ready for use at the balance sheet date, are
disclosed under capital work- in- progress.
The Company has adopted component accounting as
required under Schedule II to the Companies Act, 2013.
The Company identifies the components separately, if
it has useful life different from the respective property,
plant and equipment.
Based on the analysis, Company believes that it does
not have any asset having useful life of its major
components different from the property, plant and
equipment, hence Company believes that there is
no material impact on the financial statement of the
Company due to component accounting.
Depreciation is calculated on a written down value
basis using the rates arrived at based on the useful lives
prescribed under Schedule II to Companies Act, 2013.
The Company has used the following rates to provide
depreciation on its Property, plant and equipment:
An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on de-recognition of the asset (calculated as the
difference between the net disposal proceeds and the
carrying amount of the asset) is included in the statement
of profit and loss when the asset is derecognised.
Advances paid towards the acquisition of property,
plant and equipment outstanding at each balance
sheet date is classified as capital advances and cost of
assets not ready for use at the balance sheet date are
disclosed under capital work- in- progress.
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.
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
e) Intangible assets
Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated
impairment losses (if any). Internally generated
intangibles, excluding capitalised development costs,
are not capitalised and the related expenditure is
reflected in profit or loss in the period in which the
expenditure is incurred.
The useful lives of intangible assets are assessed as
either finite or indefinite.
Intangible assets with finite lives are amortised over
the useful economic life and 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 considered to modify the amortisation period or
method, as appropriate, and are treated as changes
in accounting estimates. The amortisation expense on
intangible assets with finite lives is recognised in the
statement of profit and loss unless such expenditure
forms part of carrying value of another asset.
Intangible assets with indefinite useful lives are not
amortised, but are tested for impairment annually,
either individually or at the cash-generating unit level.
The assessment of indefinite life is reviewed annually
to determine whether the indefinite life continues to
be supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis.
Gains or losses arising from de-recognition 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 statement of profit
or loss when the asset is derecognised.
Unique telephone numbers are amortised on a written
down value basis at 40% annually.
Intangibles being Software acquired by the Company
are amortised on a written down value basis
at 40% annually.
Advances paid towards the acquisition of intangible
assets outstanding at each balance sheet date are
classified as capital advances and cost of assets not
ready for use at the balance sheet date, are disclosed
under capital work- in-progress.
f) Leases
The Company's lease asset classes primarily consist of
leases for buildings. The Company assesses whether a
contract contains a lease, at 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:
(1) the contact involves the use of an identified asset
(2) the Company has substantially all of the economic
benefits from use of the asset through the period of
the lease and (3) the Company has the right to direct
the use of the asset. At the date of commencement
of the lease, the Company recognizes a right-of-use
asset ("ROU") and a corresponding lease liability for
all lease arrangements in which it is a lessee, except
for leases with a term of twelve months or less (short¬
term leases) and low value leases. For these short¬
term and low value leases, the Company recognizes
the lease payments as an operating expense on a
straight-line basis over the term of the lease. Leases
for which the Company is a lessor is classified as a
finance or operating lease. Whenever the terms of the
lease transfer substantially all the risks and rewards of
ownership to the lessee, the contract is classified as a
finance lease. All other leases are classified as operating
leases. When the Company is an intermediate lessor,
it accounts for its interests in the head lease and the
sublease separately. The sublease is classified as a
finance or operating lease by reference to the right-
of-use asset arising from the head lease. For operating
leases, rental income is recognized on a straight line
basis over the term of the relevant lease. Certain
lease arrangements include the options to extend or
terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options
when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses. Right-of-use assets are depreciated
from the commencement date on a straight-line basis
over the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable. For the purpose of impairment
testing, the recoverable amount (i.e. the 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 Cash
Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized
cost at the present value of the future lease payments.
The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country of
domicile of the leases. Lease liabilities are remeasured
with a corresponding adjustment to the related right
of use asset if the Company changes its assessment
if whether it will exercise an extension or a termination
option. Lease liability and ROU asset have been
separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.
Finance leases were capitalised at the commencement
of the lease at the inception date fair value of the leased
property or, if lower, at the present value of the minimum
lease payments. Lease payments were apportioned
between finance charges and reduction of the lease
liability so as to achieve a constant rate of interest on
the remaining balance of the liability. Finance charges
were recognised in finance costs in the statement of
profit or loss.
A ROU asset was depreciated over the useful life of the
asset. However, if there was no reasonable certainty
that the Company will obtain ownership by the end
of the lease term, the asset was depreciated over the
shorter of the estimated useful life of the asset and
the lease term.
g) Investment in subsidiaries and associates
The Company records the investment in equity,
preference and debt (fixed to fixed only) instruments
of subsidiaries and associates at cost less
impairment loss, if any.
On disposal of investment in subsidiaries and
associates, the difference between net disposal
proceeds and the carrying amount is recognised in the
Statement of profit and loss.
h) Impairment of non-financial assets
The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is
the higher of an asset's or cash-generating unit's (CGU)
fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or group
of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its 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 no such
transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.
The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company's CGUs to
which the individual assets are allocated. These budgets
and forecast calculations generally cover a period of five
years. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after
the fifth year. To estimate cash flow projections beyond
periods covered by the most recent budgets/forecasts,
the Company extrapolates cash flow projections in
the budget using a steady or declining growth rate for
subsequent years, unless an increasing rate can be
justified. In any case, this growth rate does not exceed
the long-term average growth rate for the products,
industries, or country or countries in which the entity
operates, or for the market in which the asset is used.
Impairment losses are recognised in the statement
of profit and loss. After impairment, depreciation is
provided on the revised carrying amount of the asset
over its remaining useful life.
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. 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 statement of profit or loss unless the
asset is carried at a revalued amount, in which case,
the reversal is treated as a revaluation increase.
i) Taxes
Current Income tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted, at the reporting date.
Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income (loss) or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences, except when the deferred tax
liability arises from the initial recognition of goodwill or
an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences, and the carry forward
of unused tax credits and unused tax losses can be
utilised except when the deferred tax asset relating to
the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of
the transaction, affects neither the accounting profit
nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income (loss) or in equity).
Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a
legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate
to the same taxable entity and the same taxation authority.
Sales/ value added taxes/ Service tax/ Goods and
service tax (GST) paid on acquisition of assets or
on incurring expenses
Expenses and assets are recognised net of the amount
of sales/ value added taxes/ GST paid, except:
• When the tax incurred on a purchase of assets
or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised
as part of the cost of acquisition of the asset or as
part of the expense item, as applicable
• When receivables and payables are stated with
the amount of tax included
The net amount of tax recoverable from, or payable to,
the taxation authority is included as part of receivables
or payables in the balance sheet.
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