National Stock Exchange of India Ltd. कंपली की लेखा नीति

Note: 1: Summary of material and other
accounting policies(I) Material accounting policies

The material accounting policies adopted by the
Company in the preparation of these standalone financial
statements ("the Financial Statements”) are as disclosed
beiow. These accounting policies have been consistently
applied by the Company for aii the years presented,
unless otherwise stated.

(a) Basis of Preparation of Standalone Financial
Statements

(i) Statement of compliance with Ind AS

The standalone financial statements comply in
aii material aspects with the Indian Accounting
Standards (Ind AS) notified under Section 133 of
the Companies Act, 2013 (the Act) [Companies
(Indian Accounting Standards) Ruies, 2015] and
other reievant provisions of the Act.

The Company has determined current and non¬
current ciassification of its assets and iiabiiities
in the financiai statements as per Ind AS 1 -
''Presentation of financiai statements''. Aii assets
and iiabiiities have been ciassified as current and
non-current as per the Company''s normai operating
cycie. Based on the nature of services rendered to
customers and time eiapsed between depioyment
of resources and the reaiisation in cash and cash
equivaients of the consideration for such services
rendered, the Company has considered an operating
cycie of 12 months.

The statement of cash fiows has been prepared
under indirect method. Profit or ioss for the reported

year is adjusted for the effects of transactions of a
non-cash nature, any deferrais or accruais of past
or future operating cash receipts or payments
and items of income or expense associated with
investing or financing cash fiows. The cash fiows
from operating, investing and financing activities
of the Company are segregated. The Company
considers aii highiy iiquid investments that are
readiiy convertibie to known amounts of cash and
are subject to an insignificant risk of changes in
vaiue to be cash equivaients.

The standaione Financiai Statements of the
Company for the year ended March 31, 2026, were
approved by the Board of Directors of the Company
on May 05, 2026.

(ii) Functional and presentation currency

These standaione financiai statements have been
prepared in Indian Rupees (H) which is the functionai
and presentation currency of the Company.

(iii) Basis of measurement

These standaione financiai statements have
been prepared in accordance with the historicai
cost basis, except as disciosed in the accounting
poiicies beiow.

• certain financiai assets and iiabiiities that are
measured at fair vaiue, and

• defined benefit pians - pian assets are measured
at fair vaiue.

Fair vaiue is the price that wouid be received on saie
of an asset or paid to transfer a iiabiiity in an orderiy
transaction between market participants at the
measurement date regardiess of whether that price
is directiy observabie or estimated using another
vaiuation technique. In estimating the fair vaiue of
an asset or a iiabiiity, the Company considers the
characteristics of the asset or iiabiiity which market
participants wouid consider when pricing the asset
or iiabiiity at the measurement date.

The Company foiiows the fair vaiue hierarchy
for financiai reporting purposes. Fair vaiue
measurements are categorised into Levei 1, 2 or
3 based on the degree to which the inputs to the
fair vaiue measurements are observabie and
the significance of the inputs to the fair vaiue
measurement in its entirety, which are described
as foiiows:

Levei 1 inputs are quoted prices (unadjusted) in
active markets for identicai assets or iiabiiities that
the entity can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset
or liability.

(b) Critical accounting estimates and judgements

The preparation of the standalone financial statements
in conformity with the recognition and measurement
principles of Ind AS requires the use of accounting
estimates and judgements that affect the reported
balances of assets and liabilities, disclosures of
contingent liabilities as at the date of standalone financial
statements and the reported amounts of income and
expenses for the periods presented. Estimates and
judgements are based on historical experience and other
factors, including expectations of future events that may
have a financial impact on the Company and that are
believed to be reasonable under the circumstances.

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

Critical accounting estimates require consideration of
higher degree of judgment or complexity, and of items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different
than those originally assessed. Actual results may differ
from these estimates.

Detailed information about each of these estimates
and judgments is included in relevant notes together
with information about the basis of calculation for each
affected line item in the standalone financial statements

The areas involving critical estimates or judgments are:

• Estimation of contingent liabilities - Refer Note 31

(c) Revenue recognition

The Company recognise the revenue in accordance with
Ind AS 115 - Revenue from Contracts with customers.
The Company derives revenue primarily from trading
services mainly in the form of transaction charges, listing
fee, book building fee, processing fee, data center-rack
charges and data connectivity charges. Revenue is
recognised upon transfer of control to the customers by
rendering of contractual services and on completion of
all the performance obligations under the contract with
a reasonable certainty of the ultimate realisation of the
dues. Revenue is recognised in an amount that reflects
the consideration which the Company expects to receive
in exchange for the services rendered. The Company
recognises revenue in the period in which it satisfies

its performance obligation by transferring promised
services to the customer. The major sources of revenue
and Company''s accounting policy are as follows:

(I) Revenue from trading Services

(i) Transaction charges - revenue in respect of
trading transactions on exchange is recognised
in accordance with the Company''s fee scales
at a point in time as an when the transaction
is completed.

(ii) Listing fees - Revenue for listings fees is
recognised when the listing event has taken
place and processing fees in relation to listing
is recognised on a straight-line basis over the
expected period to which they relate.

(iii) Book building fees - revenue is recognised
at a point in time on completion of the book
building process.

(iv) Data Centre - Rack charges - revenue is
recognised over the period of the contract
with the customer. The revenue is calculated
based on the specified charges for data centre
racks and is recognised in the period in which
the performance obligation is satisfied.

(v) Data connectivity charges - revenue is
recognised over the period of the contract
with the customer. Connectivity charges are
the fees paid by the trading members of the
Company to establish and maintain a physical
or virtual link to the exchange''s trading system.

(II) Other revenue

Revenue from all other sources is recognised in
the period in which the performance obligation is
satisfied over a period of time or point in time.

The Company considers the terms of the contract in
determining the transaction price. The transaction
price is based upon the amount the Company
expects to be entitled to in exchange for transferring
of promised services to the customer after deducting
allowances and incentives such as discounts,
volume rebates etc. Revenue excludes any taxes
and duties collected on behalf of the government.

In respect of members who have been declared as
defaulters by the Company, all amounts remaining
to be recovered from such defaulters, net of
available security and insurance cover available if
any, till the date of being declared as defaulters are
written off as bad debts. All subsequent recoveries
are accounted when received.

In respect of Listed companies and other trade
receivables where no such deposit is available
with the exchange, as per the current practice, the
amounts which are outstanding for more than 2
years are subject to 100% impairment. For amounts
lying uncollected beyond a period of 3 years are
written off. All subsequent recoveries are accounted
when received.

(d) Leases

The Company''s lease asset classes primarily consist
of leases for land, buildings and equipments. The
Company assesses whether a contract contains a lease,
at inception of the contract. Ind AS 116 defines a lease
as a contract, or a part of a contract, that conveys the
right of use an asset (the underlying asset) for a period
of time in exchange of consideration. To assess whether
as contract conveys the right to control the use of an
identified asset, the Company assesses whether: (i) the
contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits
from use of the asset through the period of the lease
and (iii) the Company has the right to direct the use of
the asset.

At the date of commencement of the lease, the Company
recognises a right-of-use asset 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
recognises the lease payments as an operating expense
on a straight-line basis over the term of the lease.

The lease payments are discounted using the interest
rate implicit in the lease. If the rate cannot be readily
determined, which is generally the case for leases in
the Company, the lessee''s incremental borrowing rate
is used, being the rate that the individual lessee would
have to pay to borrow the funds necessary to obtain an
asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security
and conditions.

To determine the incremental borrowing rate,
the Company:

• where possible, uses recent third-party financing
received by the individual lessee as a starting point,
adjusted to reflect changes in financing conditions
since third-party financing was received.

• uses a build-up approach that starts with a risk-free
interest rate adjusted for credit risk for leases held
by the Company, which does not have recent third-
party financing.

• Make adjustments specific to the lease.

If a readily observable amortising loan rate is available to
the individual lessee (through recent financing or market
data) which has a similar payment profile to the lease, the
Company use that rate as a starting point to determine
the incremental borrowing rate.

The lease liability is initially measured at amortised 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.

Right-of-use assets are generally depreciated over the
shorter of the asset''s useful life and the lease term on a
straight-line basis. If the Company is reasonably certain
to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset''s useful life.

Refer note 1(ii)(d) for the other accounting policies
relevant to leases.

(e) Trade receivables

Trade receivables are amounts due from customers for
services performed in the ordinary course of business and
reflects Company''s unconditional right to consideration
(that is, payment is due only on the passage of time). Trade
receivables are recognised initially at the transaction
price as they do not contain significant financing
components. The Company holds the trade receivables
with the objective of collecting the contractual cash
flows and therefore measures them subsequently at
amortised cost using the effective interest method, less
loss allowance for credit impairment.

(f) Financial assets

Financial assets are recognised when the Company
becomes a party to the contractual provisions of the
instruments. The Company derecognises a financial
asset when the contractual rights to the cash flows from
the financial asset expire or it transfers the financial asset.

The classification of financial assets depends on the
objective of the business model for which it is held
and is determined at the time of initial recognitions as
given below.

• Classification of financial assets at amortised cost: The
Company classifies its financial assets at amortised
cost only if both of the following criteria are met:

- Asset is held with a business model whose
objective is to collect the contractual cash flows

- The contractual terms give rise to cash flows that
are solely payments of principal and interest

Financial assets classified at amortised cost
comprise of trade receivables, bonds, debentures and
government securities.

• Classification of financial assets at fair value through
other comprehensive income (FVOCI): Financial
assets at FVOCI comprise:

- Equity securities (listed or unlisted) which are
not held for trading, and for which the Company
has irrevocably elected at initial recognition to
recognise changes in fair value through OCI rather
than profit or loss. These are strategic investments
and the Company considers this classification to
be more relevant.

- Debt securities where the contractual cash flows
are solely principal and interest and the objective
of the Company''s business model is achieved
both by collecting contractual cash flows and
selling financial assets.

• Classification of financial assets at fair value through
profit or loss (FVPL): The Company classifies the
following financial assets at FVPL:

- Debt investments (Mutual funds) that do not
qualify for measurement at either amortised cost
or FVOCI.

- Equity instruments for which the entity has not
elected to recognise fair value gains and losses
through OCI.

Refer note 1 (ii)(g) for the other accounting policies
relevant to investments and financial assets.

[g) Property, plant and equipment (including
Capital Work in Progress)

Freehold land is carried at the historical cost of
acquisition. All other items of property, plant and
equipment are stated at historical cost less depreciation.
Cost comprises of purchase price and any initial directly
attributable cost of bringing the asset to its working
condition for its intended use.

Depreciation methods, estimated useful lives and
residual value

Depreciation is calculated using the straight-line method
to allocate their cost, net of their residual values, over
their estimated useful lives as prescribed in Schedule
II of the Companies Act, 2013 except in respect of
certain categories of assets, where the useful life of the
assets has been assessed based on the management''s
technical evaluation.

The useful lives for computer systems office automation,
computer systems - others, telecommunication systems,
trading systems and clearing & settlement systems have
been determined based on technical evaluation done by
the management''s expert which are lower than those
specified by Schedule II to the Companies Act, 2013,
in order to reflect the actual usage of the assets.The
Company believes that the technically evaluated useful
lives, different from Schedule II of the Companies Act,
2013, best represent the period over which these assets
are expected to be used. The residual values are not
more than 5% of the original cost of the asset. The assets''
residual values and useful lives are reviewed at the end
of each reporting period, and adjusted on a prospective
basis, if appropriate.

Refer note 1 (ii)(j) for the other accounting policies
relevant to Property, plant and equipment (including
Capital Work in Progress).

(h) Investment properties

Property that is held for long-term rental yields or for
capital appreciation or both, and that is not occupied
by the Company, is accounted as investment property.
Investment property is measured initially at its cost,
including related transaction costs.

Investment properties are depreciated using the straight¬
line method over their estimated useful lives. Investment
properties generally have a useful life of 60 years. The
useful life has been determined based on technical
evaluation performed by the management expert.

(i) Intangible assets

Intangible assets purchased are measured at cost as at
the date of acquisition, as applicable, less accumulated
amortisation and accumulated impairment, if any.

Costs associated with maintaining software programmes
are recognised as an expense as incurred. Development
costs of internally generated intangible assets that
are directly attributable to the design and testing of
identifiable and unique software products controlled by
the Company are recognised as intangible assets when
the following criteria are met:

• it is technically feasible to complete the software so
that it will be available for use

• management intends to complete the software and
use or sell it

• there is an ability to use or sell the software

• it can be demonstrated how the software will generate
probable future economic benefits

• adequate technical, financial and other resources
to complete the development and to use or sell the
software are available, and

• the expenditure attributable to the software during its
development can be reliably measured.

Directly attributable costs that are capitalised as part of
the software include employee costs and an appropriate
portion of relevant overheads.

Research expenditure and development expenditure
that do not meet the criteria above are recognised as
an expense as incurred. Development costs previously
recognised as an expense are not recognised as an asset
in a subsequent period.

Capitalised development costs are recorded as intangible
assets and amortised from the point at which the asset is
available for use.

Computer software is amortised over a period of 4 years.

(j) Core Settlement Guarantee Fund

The Company contributes to Settlement Guarantee
Fund/Core Settlement Guarantee Fund in accordance
with Securities Exchange Board of India (''SEBI'') (Stock
Exchanges and Clearing Corporations) Regulation
2018. The Company contributes amounts pertaining to
Minimum Required Contribution to the Core Settlement
Guarantee Fund maintained by NSE Clearing Limited
(subsidiary of the Company), which is determined as
per SEBI guidelines. The contribution to Settlement
Guarantee Fund/Core Settlement Guarantee Fund is
recorded as an expense and such amounts are separately
disclosed as other current liability in balance sheet.

Post interoperability, the exchange is required to
proportionately contribute to Core SGF of the clearing
corporations, namely NSE Clearing Limited, Indian
Clearing Corporation Limited and Metropolitan Clearing
Corporation of India Limited which clears and settles

the trades of the exchange. Such contributions are also
recorded as an expense and separately disclosed under
current liability in the balance sheet.

(II) Other Accounting Policies

(a) Rounding of amounts

All amounts disclosed in the standalone financial
statements and notes have been rounded off to the
nearest crores as per the requirement of Schedule III,
unless otherwise stated. Figures representing 0.00
denotes the amount below rounding off convention.

(b) Foreign currency translation and transactions

Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and
from the translation of monetary assets and liabilities
denominated in foreign currencies at the period end
exchange rates are recognised in the Statement of Profit
and Loss.

Non-monetary items that are measured at fair value in
a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
Translation differences on assets and liabilities carried at
fair value are reported as part of the fair value gain or loss.
For example, translation differences on non-monetary
assets and liabilities such as equity instruments held at
fair value through profit or loss are recognised in profit or
loss as part of the fair value gain or loss and translation
differences on non-monetary assets such as equity
investments classified as FVOCI are recognised in other
comprehensive income.

(c) Income taxes

Income tax expense comprises current tax expense and
the net change in the deferred tax asset or liability during
the period.

Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this
case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.

The income tax expense or credit for the period is the tax
payable on the current period''s taxable income based
on the applicable income tax rate adjusted by changes
in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses, if any.

Current income taxes:

The current income tax charge is calculated based on
the tax laws enacted or substantively enacted at the
end of the reporting period. Management periodically
evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject
to interpretation. It recognises provisions where
appropriate based on amounts expected to be paid to
the tax authorities.

Current tax assets and tax Liabilities are offset where the
entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.

The Company applies significant judgement in identifying
uncertainties over income tax treatments. Uncertain tax
positions are reflected in the overall measurement of
the Company''s tax expense and are based on the most
likely amount or expected value that is to be disallowed
by the taxing authorities whichever better predict the
resolution of uncertainty. Uncertain tax balances are
monitored and updated as and when new information
becomes available, typically upon examination or action
by the taxing authorities or through statute expiration.

The Company considers when a particular amount
payable for interest and penalties on income taxes
is determined to be within the scope of Ind AS 37, it is
presented as part of financing cost or other expenses,
respectively unless when there is an overall settlement
with tax authority and the interest and penalties cannot
be identified separately in which case it is determined to
be part of income taxes and accounted under Ind AS 12.

Deferred income taxes:

Deferred income tax is provided in full, using the liability
method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the standalone financial statements.
Deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the
transaction affects neither accounting profit nor taxable
profit (tax loss). Deferred income tax is determined
using tax rates (and laws) that have been enacted or
substantively enacted by the end of the reporting period
and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax
liability is settled.

The carrying amount of deferred tax assets are reviewed
at the end of each reporting period and are recognised
only if it is probable that future taxable amounts will
be available to utilise those temporary differences
and losses.

Deferred tax assets are not recognised for temporary
differences between the carrying amount and tax bases
of investments in subsidiaries and associates where it
is not probable that the differences will reverse in the
foreseeable future and taxable profit will not be available
against which the temporary difference can be utilised.

Deferred tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate
to the same taxation authority.

(d) Leases

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.

As a lessee

Leases are recognised as a right-of-use asset and a
corresponding liability at the lease commencement date
i.e. the date at which the lease asset is first available for
use by the Company. Contracts may contain both lease
and non-lease components. The Company allocates the
consideration in the contract to the lease and non-lease
components based on their relative stand-alone prices.

Assets and liabilities arising from a lease are initially
measured on present value basis. Lease liabilities include
the net present value of the following lease payments.

• fixed payments (including in-substance fixed
payments), less any lease incentives receivable.

• variable lease payments that are based on an index or
a rate, initially measured using the index or rate as at
the commencement date.

• Amounts expected to be payable by the Company
under residual value guarantees.

• The exercise price of a purchase option if the Company
is reasonable certain to exercise that option, and

• payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option.

Lease payments are allocated between principal and
finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of liability
for each period. Lease payments to be made under
reasonably certain extension options are also included
in the measurement of the liability.

The right-of-use assets are initially recognised 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.

As a lessor

Lease for which the Company is a lessor is classified as
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. For operating leases, rental income is recognised
on straight line basis over the term of the relevant lease.

Entity''s specific details about the Company''s leasing
policy are provided in note 1(i)(d)

(e) Impairment of assets

Intangible assets that have an indefinite useful life
and intangibles under development are not subject to
amortisation and are tested annually for impairment, or
more frequently if events or changes in circumstances
indicate that they might be impaired. Other assets are
tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the
amount by which the asset''s carrying amount exceeds
its recoverable amount. The recoverable amount is the
higher of an asset''s fair value less costs of disposal and
value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-financial
assets that suffered an impairment are reviewed for
possible reversal of the impairment at the end of each
reporting period.

(f) Cash and cash equivalents

Cash and Cash equivalents includes cash on hand,
deposits held at call with financial institutions,
government securities and other short-term highly liquid
investments with original maturities of three months or
less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of
changes in value. These do not include bank balances
earmarked/restricted for specific purposes.

(g) Investments & other financial assets
(i) Classification

The Company classifies its financial assets in the

following measurement categories:

• those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and

• those measured at amortised cost.

The classification depends on the Company''s business
model for managing the financial assets and the
contractual terms of the cash flows.

For assets measured at fair value, gains and losses will
either be recorded in profit or loss or other comprehensive
income. For investments in debt instruments, this will
depend on the business model in which the investment
is held. For investments in equity instruments, this
will depend on whether the Company has made an
irrevocable election at the time of initial recognition to
account for the equity investment at fair value through
other comprehensive income. The Company reclassifies
debt investments when and only when its business model
for managing those assets changes.

(ii) Recognition

Regular way purchases and sales of financial assets
are recognised on trade-date, being the date on
which the Company commits to purchase or sale
the financial asset.

(iii) Measurement

At initial recognition, the Company measures a
financial asset (excluding trade receivables which
do not contain a significant financing component)
at its fair value. and, in the case of a financial asset
not at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition
of the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss are
expensed in profit or loss.

Debt instruments

Subsequent measurement of debt instruments
depends on the Company''s business model for
managing the asset and the cash flow characteristics
of the asset. There are three measurement
categories into which the Company classifies its
debt instruments:

• Amortised cost: Assets that are held for
collection of contractual cash flows where
those cash flows represent solely payments of
principal and interest are measured at amortised
cost. A gain or loss on a debt investment that is
subsequently measured at amortised cost and is
not part of a hedging relationship is recognised in
the statement of profit or loss when the asset is
derecognised or impaired. Interest income from
these financial assets is included in other income
using the effective interest rate method.

• Fair value through other comprehensive income
(FVOCI): Assets that are held for collection
of contractual cash flows and for selling the

financial assets, where the assets'' cash flows
represent solely payments of principal and
interest, are measured at fair value through other
comprehensive income (FVOCI). Movements
in the carrying amount are taken through OCI,
except for the recognition of impairment gains
or losses, interest revenue and foreign exchange
gains and losses which are recognised in the
statement of profit and loss. When the financial
asset is derecognised, the cumulative gain or
loss previously recognised in OCI is reclassified
from equity to the statement of profit or loss and
recognised under other income. Interest income
from these financial assets is included in other
income using the effective interest rate method.

• Fair value through profit or loss (FVPL): Assets
that do not meet the criteria for amortised cost or
FVOCI are measured at fair value through profit
or loss. A gain or loss on financial assets that is
subsequently measured at fair value through
profit & loss is recognised in profit or loss and
presented in the statement of profit and loss
under other income in the period in which it
arises. Interest or dividend income, if any from
these financial assets is separately included in
other income.

Equity investments (other than Investments in
subsidiaries and associates)

The Company subsequently measures all equity
investments at fair value. Where the Company''s
management has elected to present fair value
gains and losses on equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and losses to profit
or loss. Dividends from such investments continue
to be recognised in profit or loss as other income
when the Company''s right to receive payments
is established. Impairment losses (and reversal
of impairment losses) on equity investments
measured at FVOCI are not reported separately
from other changes in fair value.

Changes in the fair value of financial assets at fair
value through profit or loss are recognised in other
income in the statement of profit and loss.

Equity Investments (in subsidiaries and
associates)

Investments in subsidiaries and associates are
carried at cost less accumulated impairment losses,
if any. Where an indication of impairment exists,
the carrying amount of the investment is assessed
and written down immediately to its recoverable
amount. The accounting policy on impairment of

non-financial assets is disclosed in Note 1(i i) (e)
above. On disposal of investments in subsidiaries,
associates and joint venture, the difference between
net disposal proceeds and the carrying amounts are
recognised in the statement of profit and loss.

(iv) Impairment of financial assets

The Company assesses on a forward-looking basis
the expected credit losses associated with its
assets carried at amortised cost and FVOCI debt
instruments. The impairment methodology applied
depends on whether there has been a significant
increase in credit risk.

For trade receivables only, the Company applies
the simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected
lifetime losses to be recognised from initial
recognition of the receivables.

(v) De-recognition of financial assets

A financial asset is de-recognised only when

• The Company has transferred the rights to
receive cash flows from the financial asset or

• retains the contractual rights to receive the
cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to
one or more recipients.

Where the Company has transferred an asset, it
evaluates whether it has transferred substantially
all risks and rewards of ownership of the financial
asset. In such cases, the financial asset is de¬
recognised. Where the Company has not transferred
substantially all risks and rewards of ownership of
the financial asset, the financial asset is not de¬
recognised.

Where the Company has neither transferred a
financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the
financial asset is de-recognised if the Company has
not retained control of the financial asset. Where the
Company retains control of the financial asset, the
asset is continued to be recognised to the extent of
continuing involvement in the financial asset.

Purchase and sale of investment are accounted at
trade date.

(vi) Income recognition

Interest income

Interest income from financial assets at fair value
through profit or loss is disclosed as interest income

within other income. Interest income on financial
assets at amortised cost and financial assets at
FVOCI is calculated using the effective interest
method and is recognised in the statement of profit
and loss as part of other income.

Interest income is calculated by applying the
effective interest rate to the gross carrying amount
of a financial asset except for financial assets that
subsequently become credit-impaired. For credit-
impaired financial assets the effective interest rate
is applied to the net carrying amount of the financial
asset (after deduction of the loss allowance).

Dividends

Dividends are recognised as other income in the
statement profit and loss only when the 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 the
dividend can be reliably measured. This applies
even if they are paid out of pre-acquisition profits,
unless the dividend clearly represents a recovery of
part of the cost of the investment.

Entity''s specific details about the Company''s
investments and other financial assets are provided
in note 1(i)(f).

(h) Financial liabilities

(i) Classification as debt or equity

Financial liabilities and equity instruments issued
by the Company are classified according to the
substance of the contractual arrangements entered
into and the definitions of a financial liability and an
equity instrument.

(ii) Initial recognition and measurement

Financial liabilities are recognised when the
Company becomes a party to the contractual
provisions of the instrument. Financial liabilities are
initially measured at the amortised cost unless at
initial recognition, they are classified as fair value
through profit and loss.

(iii) Subsequent measurement

Financial liabilities are subsequently measured
at amortised cost using the effective interest rate
method. Financial liabilities at FVTPL are stated
at fair value, with any gains of losses arising on re¬
measurement recognised in the statement of profit
and loss, except for the amount of change in the fair
value of the financial liability that is attributable to

changes in the credit risk of that liability which is
recognised in other comprehensive income.

(iv) Derecognition

A financial liability is derecognised when the
obligation specified in the contract is discharged,
cancelled or expires.

(i) Derivatives

Derivatives are initially recognised at fair value on
the date a derivative contract is entered into and are
subsequently re-measured to their fair value at the end
of each reporting period.

(j) Offsetting financial instruments

Financial assets and liabilities are offset, and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously.
The legally enforceable right must not be contingent on
future events and must be enforceable in the normal
course of business and in the event of default, insolvency
or bankruptcy of the Company or the counterparty.

(k) Property, plant and equipment (including
Capital Work in Progress)

The Company''s accounting policy for land is explained in
note 1(i)(g) above. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate
asset is derecognised when replaced. All other repairs
and maintenance are charged to profit or loss during the
reporting period in which they are incurred.

An asset''s carrying amount is written down immediately
to its recoverable amount if the asset''s carrying amount
is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by
comparing proceeds with carrying amount and are
included in profit or loss.

Depreciation on assets purchased/disposed off during
the period is provided on pro rata basis with reference to
the date of additions/deductions.

Fixed assets whose aggregate cost is H 5,000 or less are
depreciated fully in the year of acquisition.

(l) Investment properties

Investment property is measured initially at its cost,
including related transaction costs. Subsequent
expenditure is capitalised to the asset''s carrying amount
only when it is probable that future economic benefits
associated with the expenditure will flow to the Company
and the cost of the item can be measured reliably. All
other repair and maintenance costs are expensed
when incurred. When part of an investment property
is replaced, the carrying amount of the replaced part
is derecognised.

(m) Trade and other payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end of
financial period which are unpaid. They are recognised
initially at their fair value and subsequently measured at
amortised cost using the effective interest method.