Medi Assist Healthcare Services Ltd. कंपली की लेखा नीति

Mar 31, 2025

3. Material accounting policies

a. Financial instruments

(i) Recognition and initial measurement

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
instruments also include derivative contracts.

Financial instruments also covers contracts to buy or
sell a non-financial item that can be settled net in cash
or another financial instrument, or by exchanging
financial instruments, as if the contracts were financial
instruments, with the exception of contracts that were
entered into and continue to be held for the purpose
of the receipt or delivery of a non-financial item in
accordance with the entity''s expected purchase, sale
or usage requirements.

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the instruments.

Recognition and initial measurement - financial
assets and financial liabilities:

A financial asset (except for trade receivables and
unbilled revenue/contract assets) or financial liability
is initially measured at fair value plus, for an item not at
fair value through profit and loss (FVTPL), transaction
costs that are directly attributable to its acquisition
or issue. Transaction costs directly attributable to the

acquisition of financial assets or financial liabilities at
FVTPL are recognised immediately in the standalone
statement of profit and loss.

Finance income and expenses

Finance income consists of interest income on funds
invested, dividend income and gains on the disposal of
FVTPL financial assets. Interest income is recognised
as it accrues in the standalone statement of profit and
loss, using the effective interest method.

Dividend income is recognised in the standalone
statement of profit and loss on the date that the
Company''s right to receive payment is established,
it is probable that the economic benefits associated
with the dividend will flow to the Company, and the
amount of dividend can be measured reliably.

Finance expenses consist of interest expense on loans
and borrowings and financial liabilities. The costs of
these are recognised in the standalone statement of
profit and loss using the effective interest method.

(ii) Classification and subsequent measurement
Financial assets

The Company classifies financial assets as measured
at amortised cost, fair value through other
comprehensive income ("FVOG") or fair value through
profit and loss ("FVTPL") on the basis of following:

- the entity''s business model for managing the
financial assets; and

- the contractual cash flow characteristics of the
financial asset.

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

Amortised cost:

A financial asset is classified and measured at
amortised cost if both of the following conditions are
met:

- the financial asset is held within a business model
whose objective is to hold financial assets in order
to collect contractual cash flows, and

- the contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

Fair value through other comprehensive
income ("FVOG"):

A financial asset is classified and measured at FVOCI if
both of the following conditions are met:

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

- the 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.

On initial recognition of an equity investment that is not
held for trading, the Company may irrevocably elect to
present subsequent changes in the investment''s fair
value in OCI (designated as FVOCI - equity investment).
This election is made on an investment by investment
basis.

Fair value through profit and loss ("FVTPL")

A financial asset is classified and measured at FVTPL
unless it is measured at amortised cost or at FVOCI.
This includes all derivative financial assets. On initial
recognition, the Company may irrevocably designate a
financial asset that otherwise meets the requirements
to be measured at amortised cost or at FVOCI as at
FVTPL if doing so eliminates or significantly reduces
an accounting mismatch that would otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective
of the business model in which a financial asset is held
at investment level because this reflects the best way
the business is managed and information is provided
to management. The information considered includes:

- the stated policies and objectives for each of such
investments and the operation of those policies
in practice.

- the risks that affect the performance of the
business model (and the financial assets held
within that business model) and how those risks
are managed;

- the frequency, volume and timing of sales of
financial assets in prior periods, the reasons for
such sales and expectations about future sales
activity.

Transfers of financial assets to third parties in
transactions that do not qualify for derecognition are
not considered as sales for this purpose, consistent
with the Company''s continuing recognition of the
assets.

Financial assets that are held for trading or are
managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.

Financial assets: Assessment whether
contractual cash flows are solely payments of
principal and interest:

For the purposes of this assessment, ''principal'' is
defined as the fair value of the financial asset on initial
recognition. ''Interest'' is defined as consideration
for the time value of money and for the credit risk
associated with the principal amount outstanding
during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and
administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows
are solely payments of principal and interest, the
Company considers the contractual terms of the
instrument. This includes assessing whether the
financial asset contains a contractual term that could
change the timing or amount of contractual cash flows
such that it would not meet this condition. In making
this assessment, the Company considers:

Financial liabilities: Classification, subsequent
measurement and gains and losses

Financial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held for trading, or it
is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any
interest expense, are recognised in standalone
Statement of Profit and Loss.

Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and
losses are recognised in standalone statement of

- terms that may adjust the contractual coupon
rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company''s claim to cash
flows from specified assets (e.g. non-recourse
features).

A prepayment feature is consistent with the solely
payments of principal and interest criterion if the
prepayment amount substantially represents unpaid
amounts of principal and interest on the principal
amount outstanding, which may include reasonable
additional compensation for early termination
of the contract. Additionally, for a financial asset
acquired at a significant discount or premium to its
contractual par amount, a feature that permits or
requires prepayment at an amount that substantially
represents the contractual par amount plus accrued
(but unpaid) contractual interest (which may also
include reasonable additional compensation for
early termination) is treated as consistent with this
criterion if the fair value of the prepayment feature is
insignificant at initial recognition.

profit and loss. Any gain or loss on derecognition is
also recognised in standalone Statement of Profit and
Loss.

(iv) Derecognition
Financial assets

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive
the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership
of the financial asset are transferred or in which the
Company neither transfers nor retains substantially
all of the risks and rewards of ownership and does not
retain control of the financial asset.

Financial liabilities

The Company derecognises a financial liability when
its contractual obligations are discharged or cancelled,
or expire. The Company also derecognises a financial
liability when its terms are modified and the cash
flows under the modified terms are substantially
different. In this case, a new financial liability based
on the modified terms is recognised at fair value.
The difference between the carrying amount of the
financial liability extinguished and the new financial
liability with modified terms is recognised in the
standalone statement of profit and loss.

(v) Offsetting financial instruments:

Financial assets and financial liabilities are offset and
the net amount presented in the balance sheet when,
and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the
asset and settle the liability simultaneously.

b. Foreign currency transactions

Transactions in foreign currencies are translated into
the respective functional currency of the Company at
the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency
at the exchange rate at the reporting date. Non¬
monetary assets and liabilities that are measured at
fair value in a foreign currency are translated into the
functional currency at the exchange rate when the
fair value was determined. Non-monetary items that
are measured based on historical cost in a foreign
currency are translated at the exchange rate at the
date of the transaction. Foreign currency differences
are generally recognised in the standalone statement
of profit and loss.

c. Cash and cash equivalents

Cash and cash equivalents in the standalone balance
sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.

For the purpose of the standalone statement of cash
flows, cash and cash equivalents consist of cash
excluding restricted cash balance and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company''s cash management. Any cash and
cash equivalents, other bank balances with significant
restrictions with regards to the Company''s ability to
freely use it is disclosed appropriately by way of a foot
note.

d. Statement of cash flows

Cash flows are reported using indirect method,
whereby net profit before tax is adjusted for the effects

of transactions of a non-cash nature and any deferrals
or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing
activities of the Company are segregated.

e. Earnings per share

The basic earnings per share (''EPS'') is computed by
dividing the net profit after tax for the year attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the year.

The weighted average number of equity shares
outstanding during the period and for all periods
presented is adjusted for events, such as bonus
shares, stock split, other than the conversion of
potential equity shares that have changed the number
of equity shares outstanding, without a corresponding
change in resources.

The number of shares used in computing diluted
earnings per share comprises the weighted average
number of shares considered for deriving basic
earnings per share and also the weighted average
number of equity shares that could have been issued
on the conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted
as of the beginning of the period unless issued at a
later date. In computing dilutive earning per share,
only potential equity shares that are dilutive i.e. which
reduces earnings per share or increases loss per share
are included.

Diluted EPS adjust the figures used in the determination
of basic EPS to consider:

• The after-income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and

• The weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

f. Revenue from operations

Income from services

The Company follows Ind AS 115 "Revenue from
Contracts with Customers". Revenue is recognised
upon transfer of control of promised services to
customers in an amount that reflects the consideration
the Company expects to receive in exchange for those
services (net of goods and services tax). Revenue
is recognised when the amount of revenue can be
reliably measured, it is probable that future economic
benefits will flow to the entity and specific criteria
have been met as described below.

Revenue is measured at the fair value of the
consideration received or receivable. Amounts
disclosed as revenue are net of indirect taxes, trade

allowances, rebates and amounts collected on behalf
of third parties and is not recognised in instances
where there is uncertainty with regard to ultimate
collection. In such cases revenue is recognised on
reasonable certainty of collection.

Revenue from software subscription fee is recognised
on the basis of number of claims processed by the
Company in accordance with the terms of the service
agreement entered with the customer.

Revenue from licenses where the customers obtains
"right to access" is recognised over the access period
as per the contract with the customers.

Revenue from health management services comprise
of rendering health administration work. Such
amounts are recognised as revenue on a pro-rata
basis during the period of the underlying contract
with the customers. Performance obligations while
rendering services are satisfied over time.

Revenue from services also comprise business
support services incurred for other companies and are
recognised as and when these services are rendered.

Revenue in excess of invoicing are classified as unbilled
receivables where related performance obligations
are rendered over the contract term and right to
consideration is unconditional. Invoicing in excess of
revenues are classified as 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 goods
or services to 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.

g. Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are
measured at cost less accumulated depreciation and
accumulated impairment losses. The cost of an item
of property, plant and equipment comprises:

a) its purchase price, including import duties and
non-refundable purchase taxes, after deducting
trade discounts and rebates.

b) any costs directly attributable to bringing the
asset to the location and condition necessary
for it to be capable of operating in the manner
intended by management.

c) the initial estimate of the costs of dismantling
and removing the item and restoring the site on
which it is located, the obligation for which an
entity incurs either when the item is acquired or
as a consequence of having used the item during
a particular period for purposes other than to
produce inventories during that period.

An item of property, plant and equipment is eliminated
from the standalone financial statements on disposal
or when no further benefit is expected from its use
and disposal. Any gain or loss on disposal of an item
of property, plant and equipment is recognised in the
standalone statement of profit and loss.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company.

The cost of property, plant and equipment not ready
for intended use before such date are disclosed under
capital work-in-progress.

Depreciation

Depreciation on property, plant and equipment is
provided on straight-line method over the useful lives
determined based on internal assessment by the
management which in certain instances are different
from those prescribed under Part C of Schedule II of
the Companies Act, 2013 in order to reflect actual
usage of the assets. The Company estimates the useful
lives for property, plant and equipment as follows:

Leasehold improvements are depreciated over the
lease term or the useful lives of the assets, whichever
is lower.

Depreciation is provided on a pro-rata basis i.e. from
the date on which asset is ready for use and the
depreciation charge for the year is recognised in the
standalone statement of profit and loss.

The useful lives and methods of depreciation of
property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if
appropriate.

h. Intangible assets

(i) Recognition and measurement
Acquired intangible assets

Intangible assets are recognised when it is probable
that the future economic benefits that are attributable
to the assets will flow to the Company and the cost of
the asset can be measured reliably. Intangible assets
are stated at cost less accumulated amortisation and
impairment losses, if any.

The estimated useful life of an identifiable intangible
asset is based on a number of factors including the
effects of obsolescence, demand, competition, and
other economic factors such as the stability of the
industry and technology required to obtain the
expected future cash flows from the asset.

Intangible assets under development

Research costs are expensed as incurred. Development
expenditures on an individual project are recognised
as an intangible asset when the Company can
demonstrate:

• The technical feasibility of completing the
intangible asset so that the asset will be available
for use or sale.

• Its intention to complete and its ability and
intention to use or sell the asset.

• How the asset will generate future economic
benefits.

• The availability of resources to complete the
asset.

• The ability to measure reliably the expenditure
during development.

Following initial recognition of the development
expenditure as an asset, the asset is carried at cost
less accumulated amortisation and accumulated
impairment losses, if any. Amortisation of the asset
begins when development is complete, and the asset
is available for use. It is amortised over the period
of expected future benefit. Amortisation expense
is recognised in the standalone statement of profit
and loss unless such expenditure forms part of
carrying value of another asset. During the period
of development, the asset is tested for impairment
annually.

Subsequent expenditure

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 the standalone statement
of profit and loss as incurred.

Amortisation

Amortisation is recognised in the standalone
statement of profit and loss on a straight-line
basis over the estimated useful lives of intangible
assets from the date that they are available for use.
Management believes that period of amortisation is
representative of the period over which the Company
expects to derive economic benefits from the use of
the assets. Amortisation methods and useful lives are
reviewed periodically including at each financial year
end. Amortisation on additions and disposals during
the year is provided on proportionate basis.

Derecognition of intangible assets

An intangible asset is derecognised upon disposal (i.e.,
at the date the recipient obtains control) or when no
future economic benefits are expected from its use or
disposal. Any gain or loss arising upon derecognition
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.

i. Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following
financial assets and credit risk exposure:

a) Financial assets which are measured at amortised
cost e.g., loans receivables, deposits and bank
balance.

b) Trade receivables or contract assets/unbilled
receivables or another financial asset that result
from transactions that are within the scope of Ind
AS 115.

For trade receivables and contract assets, the
Company applies a simplified approach in calculating
ECLs. Therefore, the Company does not track changes
in credit risk, but instead recognises a loss allowance
based on lifetime ECLs at each reporting date. The
Company has established a provision policy that is
based on its historical credit loss experience, adjusted
for forward-looking factors specific to the debtors and
the economic environment. For other financial assets,
expected credit loss is measured at the amount equal
to twelve months expected credit loss unless there
has been a significant increase in credit risk from

initial recognition, in which case those are measured
at lifetime expected credit loss.

Write off

The gross carrying amount of a financial asset is written
off (either partially or in full) to the extent that there is
no realistic prospect of recovery. This is generally the
case when the Company determines that the debtor
does not have assets or sources of income that could
generate sufficient cash flows to repay the amounts
subject to the write-off. However, financial assets that
are written off could still be subject to enforcement
activities in order to comply with Company''s
procedures for the recovery of amount due.

j. Impairment of non-financial assets

In accordance with Ind AS 36, 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. The 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 Company 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.

k. Leases

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. 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.

Company as a lessee

The Company''s leased asset class primarily consist of
leases for buildings. The Company, at the inception
of a contract, assesses whether the contract is a
lease or not lease. A contract is, or contains, a lease
if the contract conveys the right to control the use
of an identified asset for a time in exchange for a

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 the right to obtain substantially
all the economic benefits from use of the asset
throughout the period of use; and

(iii) the Company has the right to direct the use of the
asset.

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
cost of the right-of-use asset measured at inception
shall comprise the amount of the initial measurement
of the lease liability adjusted for any lease payments
made at or before the commencement date less any
lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by
the lessee in dismantling and removing the underlying
asset or restoring the underlying asset or site on which
it is located. The right-of-use assets is subsequently
measured at cost less accumulated amortisation,
accumulated impairment losses, if any and adjusted
for any remeasurement of the lease liability. The
right-of-use asset is subsequently depreciated using
the straight-line method from the commencement
date to the end of the lease term. Right-of-use assets
are tested for impairment whenever there is any
indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in
the standalone statement of profit and loss.

The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease. The
lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate. For
leases with reasonably similar characteristics, the
Company, on a lease by lease basis, may adopt either
the incremental borrowing rate specific to the lease
or the incremental borrowing rate for the portfolio
as a whole. The lease payments shall include fixed
payments, variable lease payments, residual value
guarantees, exercise price of a purchase option where
the Company is reasonably certain to exercise that
option and payments of penalties for terminating the
lease, if the lease term reflects the lessee exercising
an option to terminate the lease. The lease liability is
subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability,
reducing the carrying amount to reflect the lease
payments made and remeasuring the carrying amount
to reflect any reassessment or lease modifications or
to reflect revised in-substance fixed lease payments.

The Company recognises the amount of the re¬
measurement of lease liability due to modification as
an adjustment to the right-of-use asset and standalone
Statement of Profit and Loss depending upon the
nature of modification. Where the carrying amount
of the right-of-use asset is reduced to zero and there
is a further reduction in the measurement of the
lease liability, the Company recognises any remaining
amount of the re-measurement in the standalone
statement of profit and loss.

The Company has elected not to recognise right-of-use
assets and lease liabilities for short-term leases that
have a lease term of 12 months or less and leases of
low-value assets. The Company recognises the lease
payments associated with these leases as an expense
on a straight-line basis over the lease term.

Critical judgements in determining the lease
term

In determining the lease term, management considers
all facts and circumstances that create an economic
incentive to exercise an extension option, or not
exercise a termination option. Extension options (or
periods after termination options) are only included in
the lease term if the lease is reasonably certain to be
extended (or not terminated).

For leases of buildings, the following factors are
normally the most relevant:

(a) If there are significant penalties to terminate (or
not extend), the Company is typically reasonably
certain to extend (or not terminate).

(b) If any leasehold improvements are expected to
have a significant remaining value, the Company
is typically reasonably certain to extend (or not
terminate).

(c) Otherwise, the Company considers other factors
including historical lease durations and the costs
and business disruption required to replace the
leased asset.

l. Borrowing costs

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.

m. Employee benefits

(i) Short-term employee benefits:

Employee benefits payable wholly within twelve
months of receiving employee services are classified
as short-term employee benefits. These benefits
include salaries and wages, bonus and ex-gratia.
The undiscounted amount of short-term employee
benefits expected to be paid in exchange for employee
services is recognised as an expense for the related
service rendered by employees.

(ii) Post-employment benefits:

Defined contribution plans

A defined contribution plan is a post-employment
benefit plan under which an entity pays specified
contributions to a separate entity and has no obligation
to pay any further amounts. The Company makes
specified monthly contributions towards employee
provident fund and employees state insurance to a
Government administered scheme which is a defined
contribution plan. The Company''s contribution is
recognised as an expense in the standalone statement
of profit and loss during the period in which the
employee renders the related service.

Defined benefit plans

The Company''s gratuity benefit scheme is a defined
benefit plan. The Company''s net obligation in respect
of a defined benefit plan is calculated by estimating
the amount of future benefit that employees have
earned in return for their service in the current and
prior periods; that benefit is discounted to determine
its present value.

The present value of the obligation under such
benefit plan is determined by independent qualified
actuary using the Projected Unit Credit Method which
recognises each period of service that give rise to
additional unit of employee benefit entitlement and
measures each unit separately to build up the final
obligation.

The obligation is measured at present values of
estimated future cash flows. The discount rates
used for determining the present value are based
on the market yields on Government Securities as
at the balance sheet date. The Company classifies
the gratuity as current and non-current based on
the actuarial valuation reports or based on expected
future cash flows.

Actuarial gains or losses are recognised in other
comprehensive income (OCI). Further, the profit
or loss does not include an expected return on
plan assets. Instead net interest recognised in the
standalone statement of profit and loss is calculated
by applying the discount rate used to measure the

defined benefit obligation to the net defined benefit
liability or asset. The actual return on the plan assets
above or below the discount rate is recognised as part
of re-measurement of net defined liability or asset
through other comprehensive income.

Re-measurements comprising actuarial gains or losses
and return on plan assets (excluding amounts included
in net interest on the net defined benefit liability) are
not reclassified to the standalone statement of profit
and loss in subsequent periods.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in the
standalone statement of profit and loss as past service
cost.

The Company has considered only such changes in
legislation which have been enacted up to the balance
sheet date for the purpose of determining defined
benefit obligation.

(iii) Other long- term employee benefits:
Compensated absences

The employees can carry-forward a portion of the
unutilised accrued compensated absences and utilise
it in future service periods. The Company records
an obligation for such compensated absences in the
period in which the employee renders the services that
increase this entitlement. The obligation is measured
by independent qualified actuary using the Projected
Unit Credit Method. Accumulated leave, which is
expected to be utilized within the next 12 months, is
treated as short-term employee benefit.

(iv) Share-based compensation:

Employees of the Company receive remuneration
in the form of share-based payments, whereby
employees render services as consideration for equity
instruments (equity-settled transactions).

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. Further details
are given in Note 28.

That cost is recognised, together with a corresponding
increase in employee stock option reserve in equity.
The equity instruments generally vest in a graded
manner over the vesting period. The fair value
determined at the grant date is expensed over the
vesting period of the respective tranches of such
grants (accelerated amortisation).

The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting
date reflects the extent to which the vesting period
has expired and the Company''s best estimate of the
number of equity instruments that will ultimately vest.

The expense or credit in the standalone statement of
profit and loss for a period represents the movement
in cumulative expense recognised as at the beginning
and end of that period and is recognised in employee
benefits expense.

When the terms of an equity-settled award are
modified, the minimum expense recognised is
the grant date fair value of the unmodified award,
provided the original vesting terms of the award are
met. An additional expense, measured as at the date
of modification, is recognised for any modification
that increases the total fair value of the share-based
payment transaction, or is otherwise beneficial to the
employee.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

n. Taxation

Income tax comprises current and deferred tax.
Income tax expense is recognised in the standalone
statement of profit and loss except to the extent it
relates to items directly recognised in equity or in
other comprehensive income.

Current income tax

Current tax comprises the expected tax payable or
receivable on the taxable income for the year and any
adjustment to the tax payable or receivable in respect
of previous years. The amount of current tax reflects
the best estimate of the tax amount expected to be
paid or received after considering the uncertainty, if
any, related to income taxes. It is measured using tax
rates (and tax laws) enacted or substantively enacted
by the reporting dates.

Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off
the recognised amounts, and it is intended to realise
the assets and settle the liability on a net basis or
simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits (if any). Deferred tax
is not recognised for:

- temporary differences arising on the initial
recognition of assets or liabilities in a transaction
that is not a business combination and that
affects neither accounting nor taxable profit or
loss at the time of transaction.

- temporary differences related to investments in
subsidiary and associates, when the timing of
the reversal of the temporary differences can be
controlled and it is probable that the temporary
differences will not reverse in the foreseeable
future.

Deferred tax assets are recognised to the extent that it
is probable that future taxable profits will be available
against which they can be used. The existence of
unused tax losses is strong evidence that future
taxable profit may not be available. Therefore, in case
of a history of recent losses, the Company recognises
a deferred tax asset only to the extent that it has
sufficient taxable temporary differences or there
is convincing other evidence that sufficient taxable
profit will be available against which such deferred tax
asset can be realised. Deferred tax assets recognised
or unrecognised are reviewed at each reporting date
and are recognised/reduced to the extent that it is
probable/no longer probable respectively that the
related tax benefit will be realised.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws
that have been enacted or substantively enacted by
the reporting date. The measurement of deferred
tax reflects the tax consequences that would follow
from the manner in which the Company expects, at
the reporting date, to recover or settle the carrying
amount of its assets and liabilities.

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

Deferred tax relating to items recognised outside
profit or loss is recognised in other comprehensive
income (OCI). Deferred tax items are recognised in
correlation to the underlying transaction either in OCI
or directly in equity.

o. Cash and cash equivalents

Cash and cash equivalents in the standalone balance
sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.

For the purpose of the standalone statement of cash
flows, cash and cash equivalents consist of cash
excluding restricted cash balance and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company''s cash management. Any cash and

cash equivalents, other bank balances with significant
restrictions with regards to the Company''s ability to
freely use it is disclosed appropriately by way of a foot
note.

---

Mar 31, 2024

3. MATERIAL ACCOUNTING POLICIES a. Financial instruments

(i) Recognition and initial measurement

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 instruments also include derivative contracts.

Financial instruments also covers contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial instruments, with the exception of contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity''s expected purchase, sale or usage requirements.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Recognition and initial measurement - financial assets and financial liabilities:

A financialasset (except for trade receivables and unbilled revenue/contract assets) or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in the standalone statement of profit and loss.

Finance income and expenses:

Finance income consists of interest income on funds invested, dividend income and gains on the disposal of FVTPL financial assets. Interest income is recognised as

it accrues in the standalone statement of profit and loss, using the effective interest method.

Dividend income is recognised in the standalone statement of profit and loss on the date that the Company''s right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of dividend can be measured reliably.

Finance expenses consist of interest expense on loans and borrowings and financial liabilities. The costs of these are recognised in the standalone statement of profit and loss using the effective interest method.

(ii) Classification and subsequent measurement Financial assets:

The Company classifies financial assets as measured at amortised cost, fair value through other comprehensive income ("FVOG") or fair value through profit and loss ("FVTPL") on the basis of following:

- the entity''s business modelfor managing the financial assets; and

- the contractualcash flow characteristics of the financial asset.

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

Amortised cost:

A financial asset is classified and measured at amortised cost if both of the following conditions are met:

- the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

- the contractual terms of the financialasset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Fair value through other comprehensive income ("FVOCI"):

A financial asset is classified and measured at FVOCI if both of the following conditions are met:

- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

- the 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.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in OCI (designated as FVOCI - equity investment). This election is made on an investment by investment basis.

Fair value through profit and loss ("FVTPL"):

A financial asset is classified and measured at FVTPL unless it is measured at amortised cost or at FVOCI. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets: Business model assessment:

The Company makes an assessment of the objective of the business model in which a financial asset is held at investment level because this reflects the best way the business is managed and information is provided to management. The information considered includes:

- the stated policies and objectives for each of such investments and the operation of those policies in practice.

- the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed.

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered as sales for this purpose, consistent with the Company''s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest:

For the purposes of this assessment, ''principal'' is defined as the fair value of the financial asset on initial recognition. ''Interest'' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractualcash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This

includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

- contingent events that would change the amount or timing of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company''s claim to cash flows from specified assets (e.g. non-recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

(iii) Financial assets: Subsequent measurement and gains and losses

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in standalone statement of profit and loss.
Financial assets at amortised cost	These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in standalone Statement of Profit and Loss. Any gain or loss on derecognition is recognised in standalone statement of profit and loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends are recognised as income in standalone 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 standalone statement of profit and loss.

Financial liabilities: Classification, subsequent measurement and gains and losses:

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in standalone Statement of Profit and Loss.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in standalone statement of profit and loss. Any gain or loss on derecognition is also recognised in standalone Statement of Profit and Loss.

(iv) Derecognition Financial assets:

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

Financial liabilities:

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the standalone statement of profit and loss.

(v) Offsetting financial instruments:

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

b. Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currency of the Company at the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency

at the exchange rate at the reporting date. Nonmonetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in the standalone statement of profit and loss.

c. Cash and cash equivalents

Cash and cash equivalents in the standalone balance sheet comprise cash at banks and on hand and shortterm deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the standalone statement of cash flows, cash and cash equivalents consist of cash excluding restricted cash balance and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management. Any cash and cash equivalents, other bank balances with significant restrictions with regards to the Company''s ability to freely use it is disclosed appropriately by way of a foot note.

d. Statement of cash flows

Cash flows are reported using indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated.

e. Earnings per share

The basic earnings per share (''EPS'') is computed by dividing the net profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, stock split, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at a later date. In computing dilutive earning per share, only potential equity shares that are dilutive i.e. which reduces earnings per share or increases loss per share are included.

Diluted EPS adjust the figures used in the determination of basic EPS to consider:

• The after-income tax effect of interest and other financing costs associated with dilutive potential equity shares; and

• The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

f. Revenue from contracts with customers

Income from services

The Company follows Ind AS 115 "Revenue from Contracts with Customers". Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services (net of goods and services tax). Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future economic benefits willflow to the entity and specific criteria have been met as described below.

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of indirect taxes, trade allowances, rebates and amounts collected on behalf of third parties and is not recognised in instances where there is uncertainty with regard to ultimate collection. In such cases revenue is recognised on reasonable certainty of collection.

Revenue from software subscription fee is recognised on the basis of number of claims processed by the Company in accordance with the terms of the service agreement entered with the customer.

Revenue from licenses where the customers obtains "right to access" is recognised over the access period as per the contract with the customers.

Revenue from health management services comprise of rendering health administration work. Such amounts are recognised as revenue on a pro-rata basis during the period of the underlying contract with the customers. Performance obligations while rendering services are satisfied over time.

Revenue from services also comprise business support services incurred for other companies and are recognised as and when these services are rendered.

Revenue in excess of invoicing are classified as unbilled receivables where related performance obligations are rendered over the contract term and right to consideration is unconditional. Invoicing in excess of revenues are classified as 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 goods or services to 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.

g. Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of property, plant and equipment comprises:

a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

An item of property, plant and equipment is eliminated from the standalone financial statements on disposal or when no further benefit is expected from its use and disposal. Any gain or loss on disposal of an item of property, plant and equipment is recognised in the standalone statement of profit and loss.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

The cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work-in-progress.

Depreciation

Depreciation on property, plant and equipment is provided on straight-line method over the useful lives determined based on internal assessment by the management which in certain instances are different from those prescribed under Part C of Schedule II of the Companies Act, 2013 in order to reflect actual usage of

the assets. The Company estimates the useful lives for property, plant and equipment as follows:

Leasehold improvements are depreciated over the lease term or the useful lives of the assets, whichever is lower.

Depreciation is provided on a pro-rata basis i.e. from the date on which asset is ready for use and the depreciation charge for the year is recognised in the standalone statement of profit and loss.

The useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

h. Intangible assets

(i) Recognition and measurement Acquired intangible assets:

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can be measured reliably. Intangible assets are stated at cost less accumulated amortisation and impairment losses, if any.

The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors such as the stability of the industry and technology required to obtain the expected future cash flows from the asset.

Intangible assets under development:

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Company can demonstrate:

• The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;

• Its intention to complete and its ability and intention to use or sell the asset;

• How the asset will generate future economic benefits;

• The availability of resources to complete the asset;

• The ability to measure reliably the expenditure during development.

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less accumulated amortisation and accumulated impairment losses, if any. Amortisation of the asset begins when development is complete, and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the standalone statement of profit and loss unless such expenditure forms part of carrying value of another asset. During the period of development, the asset is tested for impairment annually.

Subsequent expenditure:

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 the standalone statement of profit and loss as incurred.

Amortisation

Amortisation is recognised in the standalone statement of profit and loss on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. Management believes that period of amortisation is representative of the period over which the Company expects to derive economic benefits from the use of the assets. Amortisation methods and useful lives are reviewed periodically including at each financial year end. Amortisation on additions and disposals during the year is provided on proportionate basis.

The intangible assets are amortised over the estimated useful lives as given below:

Derecognition of intangible assets

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition 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.

i. Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets which are measured at amortised cost e.g., loans receivables, deposits and bank balance.

b) Trade receivables or contract assets/unbilled receivables or another financial asset that result from transactions that are within the scope of Ind AS 115.

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision policy that is based on its historical credit loss experience, adjusted for forwardlooking factors specific to the debtors and the economic environment. For other financial assets, expected credit loss is measured at the amount equal to twelve months expected credit loss unless there has been a significant increase in credit risk from initial recognition, in which case those are measured at lifetime expected credit loss.

Write off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Company''s procedures for the recovery of amount due.

j. Impairment of non-financial assets

In accordance with Ind AS 36, 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. The 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 Company 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.

j. Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. 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.

Company as a lessee

The Company''s leased asset class primarily consist of leases for buildings. The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a 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 the right to obtain substantially all the economic benefits from use of the asset throughout the period of use; and

(iii) the Company has the right to direct the use of the asset.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less accumulated amortisation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the standalone statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if

the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The Company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and standalone Statement of Profit and Loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in the standalone statement of profit and loss.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases as an expense on a straightline basis over the lease term.

Critical judgements in determining the lease term:

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

For leases of buildings, the following factors are normally the most relevant:

(a) If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate);

(b) If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to extend (or not terminate);

(c) Otherwise, the Company considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset.

k. Employee benefits

(i) Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefits expected to be paid in exchange for employee services is recognised as an expense for the related service rendered by employees.

(ii) Post-employment benefits Defined contribution plans:

A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. The Company makes specified monthly contributions towards employee provident fund and employees state insurance to a Government administered scheme which is a defined contribution plan. The Company''s contribution is recognised as an expense in the standalone statement of profit and loss during the period in which the employee renders the related service.

Defined benefit plans:

The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.

The present value of the obligation under such benefit plan is determined by independent qualified actuary using the Projected Unit Credit Method which recognises each period of service that give rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at present values of estimated future cash flows. The discount rates used for determining the present value are based on the market yields on Government Securities as at the balance sheet date. The Company classifies the gratuity as current and non-current based on the actuarial valuation reports or based on expected future cash flows.

Actuarial gains or losses are recognised in other comprehensive income (OCI). Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognised in the standalone statement of profit and loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognised as part of remeasurement of net defined liability or asset through other comprehensive income.

Re-measurements comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are not reclassified to the standalone statement of profit and loss in subsequent periods.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in the standalone statement of profit and loss as past service cost.

The Company has considered only such changes in legislation which have been enacted up to the balance sheet date for the purpose of determining defined benefit obligation.

(iii) Other long- term employee benefits Compensated absences:

The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured by independent qualified actuary using the Projected Unit Credit Method. Accumulated leave, which is expected to be utilized within the next 12 months, is treated as shortterm employee benefit.

(iv) Share-based compensation

Employees of the Company receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions).

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. Further details are given in Note 28.

That cost is recognised, together with a corresponding increase in employee stock option reserve in equity. The equity instruments generally vest in a graded manner over the vesting period. The fair value determined at the grant date is expensed over the vesting period of the respective tranches of such grants (accelerated amortisation).

The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company''s best estimate of the number of equity instruments that willultimately vest. The expense or credit in the standalone statement of profit and loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense.

When the terms of an equity-settled award are modified, the minimum expense recognised is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognised for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

l. Taxation

Income tax comprises current and deferred tax. Income tax expense is recognised in the standalone statement of profit and loss except to the extent it relates to items directly recognised in equity or in other comprehensive income.

Current income tax

Current tax comprises the expected tax payable or receivable on the taxable income for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting dates.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the assets and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits (if any). Deferred tax is not recognised for:

- temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of transaction;

- temporary differences related to investments in subsidiary and associates, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets recognised or unrecognised are reviewed at each reporting date and are recognised/reduced to the extent that it is probable/no longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

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

Deferred tax relating to items recognised outside profit or loss is recognised in other comprehensive income (OCI). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

m. Cash and cash equivalents

Cash and cash equivalents in the standalone balance sheet comprise cash at banks and on hand and shortterm deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the standalone statement of cash flows, cash and cash equivalents consist of cash excluding restricted cash balance and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management. Any cash and cash equivalents, other bank balances with significant restrictions with regards to the Company''s ability to freely use it is disclosed appropriately by way of a foot note.