2.10 Provisions

Provisions are recognised when the enterprise has a present obligation (legal or constructive) as a
result of past events, and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

When the effect of the time value of money is material, the enterprise determines the level of provision
by discounting the expected cash flows at a pre-tax rate reflecting the current rates specific to the
liability. The expense relating to any provision is presented in the Statement of Profit and Loss net of
any reimbursement.

2.11 Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The Company does not recognize a contingent liability but discloses its existence in
the financial statements.

2.12 Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings
per share. Basic EPS vis calculated by dividing the net profit or loss for the year attributable to equity
shareholders (after deducting preference dividend and attributable taxes) by the weighted average
number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity shares are
deemed converted as of the beginning of the period, unless they have been issued at a later date. In
computing the dilutive earnings per share, only potential equity shares that are dilutive and that either
reduces the earnings per share or increases loss per share are included.

2.13 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the Ind AS requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets
and liabilities and the accompanying disclosure and the disclosure of contingent liabilities, at the end of
the reporting period. 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. Although these estimates are based on the management's best knowledge
of current events and actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future
periods.

In particular, information about significant areas of estimation, uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amounts recognized in the
financial statements is included in the following notes:

i. Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based
on the expected utility of the assets. Uncertainties in these estimates relate to technological
obsolescence that may change the utility of certain software and IT equipment.

ii. Lease term of right-to-use assets

Management reviews its estimate of the lease term of right-to-use assets at each reporting date, based
on the expected utility of the leased property. Uncertainties in this estimate relate to business
obsolescence/discontinuance that may change the lease term for certain right-to-use assets.

iii. Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value
less costs of disposal calculation is based on available data from binding sales transactions, conducted
at arm's length, for similar assets or observable market prices less incremental costs for disposing of
the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the
budget for the next five years and do not include restructuring activities that the Company is not yet
committed to or significant future investments that will enhance the asset's performance of the CGU
being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well
as the expected future cash-inflows and the growth rate used for extrapolation purposes.

iv. Defined employee benefit assets and liabilities

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

v. Impairment of loans portfolio

The measurement of impairment losses across all categories of financial assets requires judgement, in
particular, the estimation of the amount and timing of future cash flows and collateral values when
determining impairment losses and the assessment of a significant increase in credit risk. These
estimates are driven by a number of factors, changes in which can result in different levels of
allowances.

It has been the Company's policy to regularly review its models in the context of actual loss experience
and adjust as and when necessary.

vi. Effective Interest Rate (EIR) method

The Company's EIR methodology, recognises interest income / expense using a rate of return that
represents the best estimate of a constant rate of return over the expected behavioural life of loans
given / taken and recognises the effect of potentially different interest rates at various stages and other
characteristics of the product life cycle (including prepayments and penalty interest and charges).

This estimation, by nature, requires an element of judgement regarding the expected behaviour and
life-cycle of the instruments, as well expected changes to Company's base rate and other fee
income/expense that are integral parts of the instrument.

2.14 Operating Cycle

Based on the nature of products/activities of the company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents, the company has determined its operating cycle
as 12 months.

2.15 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31, 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the Company.