Accounting Policies of Eternal Ltd. Company

Mar 31, 2025

1. Corporate Information

Eternal Limited (formerly known as Zomato Limited) ("Eternal" or "the Company") (including trust and branches) is a public limited company incorporated and domiciled in India under the provisions of the Companies Act, 2013 (the "Act") applicable in India. The Company is listed on National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The registered office of the Company is located at Ground Floor - 12A, 94, Meghdoot, Nehru Place, New Delhi - 110019. On March 20, 2025, the name of the Company has been changed from Zomato Limited to Eternal Limited and has been approved by the Registrar of Companies.

The Company operates e-commerce platform for online food delivery transactions and provides a platform to the restaurant partners to advertise themselves to the target audience in India and abroad.

The standalone financial statements for the year ended March 31, 2025, were approved by the Board of Directors and authorised for issue on May 1, 2025.

2. Basis of preparation and measurement of standalone financial statements and summary of material accounting policies

2.1 Basis of preparation and measurement

These standalone financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS) prescribed under Section 133 of Companies Act, 2013 (the "Act"), read with rule 3 of the companies (Indian Accounting Standards) Rules, 2015 and relevant amendments rules issued thereunder and presentation requirements of Division II of schedule III and other relevant provisions of the Act (as amended from time to time).

The standalone financial statements have been prepared on the historical cost basis, except for the following assets and liabilities which have been measured at fair value:

â¢ Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments);

â¢ Defined benefits plan obligations and reimbursement right measured at fair value.

The standalone financial statements are presented in Indian Rupees "INR" or "''" and all amounts disclosed in the standalone financial statements have been rounded off to the nearest crores (as per requirement of Schedule III of the Act), unless otherwise stated. Further, amounts which are less than half a crore are appearing as "0".

2.2 Summary of material accounting policies

i. Use of estimates

The preparation of standalone financial statements in conformity with principles of Ind AS requires the management to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting year. 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 years.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.

In particular, information about the significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the standalone financial statements are disclosed in note no 2.3.

ii. Business combinations and goodwill

Business combinations are accounted as follows:

Business combinations (other than common control business combinations) - Acquisition Method

The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognized at their acquisition date fair values (except certain assets and liabilities which are required to be measured as per the applicable standard). For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable.

For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree''s identifiable net assets.

Acquisition-related costs are expensed as incurred, except for the costs of issuing debt or equity securities that are recognized in accordance with Ind AS 32 and Ind AS 109.

When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

iii. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

â¢ Expected to be realized or intended to be sold or consumed in normal operating cycle

â¢ Held primarily for the purpose of trading

â¢ Expected to be realized within twelve months after the reporting year, or

â¢ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting year.

All other assets are classified as non-current.

A liability is current when:

â¢ It is expected to be settled in normal operating cycle

â¢ It is held primarily for the purpose of trading

â¢ It is due to be settled within twelve months after the reporting year, or

â¢ There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting year.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

iv. Foreign currencies

The Company''s standalone financial statements are presented in Indian rupees, which is the Company''s functional currency.

The financial statements of each of the foreign operations (''branches'') are measured using the currency of the primary economic environment in which the branches forming part of Company operates ("functional currency"). The functional currency is normally the currency in which the foreign branches primarily generate and spends cash.

Transactions and balances

Transactions in foreign currencies are initially recorded at their respective functional currencies using the spot rates at the date when the transaction first qualifies for recognition. However, for practical reasons, the Company uses an average rate if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

Foreign Operations (''branches'')

On consolidation, the assets and liabilities of foreign operations are translated into Indian rupees at the rate of exchange prevailing at the reporting date and their statement of profit and loss are translated at exchange rates prevailing at the dates of the transactions. For practical reasons, the Company uses an average rate to translate income and expense items. The exchange differences arising on translation for consolidation are recognized in other comprehensive income ("OCI"). On disposal of a foreign operation, the component of OCI relating to that foreign operation is reclassified in statement of profit and loss.

v. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

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

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

â¢ Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities.

â¢ Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

â¢ Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

vi. Property, plant and equipment

Property, plant and equipment ("PPE") are stated at cost, less accumulated depreciation and accumulated impairment loss, if any. Such cost includes the expenditure 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.

Subsequent costs on a PPE are included in the asset''s carrying amount 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 derecognized when replaced. Rest of the subsequent costs are charged to the statement of profit and loss in the reporting period in which they are incurred.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any.

Depreciation on all property, plant and equipment are provided on a straight-line method based on the estimated useful life of the asset, which is as follows:

Property, plant and equipment	Useful lives as per Schedule II	Useful lives estimated by management
Electrical Equipment''s	10 years	3 years
Furniture & Fittings	10 years	3 years
Computers	3 years	2 years
Motor Vehicles	8 years	8 years

Leasehold improvements are amortized over the lease term or estimated useful life of such assets, whichever is lower.

The management has estimated the useful lives and residual values of all property, plant and equipment and adopted useful lives based on management''s technical assessment of their respective economic useful lives. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively (if any).

Depreciation on the assets purchased during the year is provided on pro-rata basis from the date of purchase of the assets. Individual assets costing less than INR 5,000 are fully depreciated in the year of purchase.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on 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 derecognized.

vii. Goodwill and other intangible assets

Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the acquirer''s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities less accumulated impairment losses, if any. Goodwill is tested for impairment annually or when events or circumstances indicate that the implied fair value of goodwill is less than the carrying amount.

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition.

Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Software and websites (other than those acquired in business combination) with finite lives are amortized on a straight-line basis over the estimated useful economic life being 1-3 years. All Intangible assets (other than goodwill) are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The useful life and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in

accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

An intangible asset is derecognized 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 gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Intangible assets acquired in business combination, include technology platform and trademarks which are amortized on a straight-line basis over their estimated useful life which is as follows:

Nature of assets	Life
Technology platform	5 years
Trademarks	5 years

The amortization period and method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly.

viii. Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, 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 applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease

payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognizes right-of-use ("ROU") assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and accumulated impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. The Company has lease contracts for office premises having a lease term ranging from 1-9 years.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (xvii) Impairment of non-financial assets.

Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company

exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the year in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

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

ix. Inventories

Inventories are valued at lower of cost and net realisable value. Cost is determined on first in first out basis. Inventory cost includes purchase price and other directly attributable costs (such as taxes other than those subsequently recovered from the tax authorities), freight inward and other related incidental expenses incurred in bringing the inventory to its present condition and location.

Net realisable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make the sale.

x. Revenue recognition

The Company generates revenue mainly by providing e-commerce platform services to restaurant partners. It is also engaged in business of advertisement services, subscriptions services, and other ancillary services.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated towards that performance obligation. The transaction price of goods sold and services rendered is net of any taxes collected from customers, which is remitted to government authorities and variable consideration on account of various discounts and rebates offered by the Company. The transaction price is an amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services. Consideration includes goods or services contributed by the customer, as non-cash consideration, over which Company has control.

Where performance obligation is satisfied over time, the Company recognizes revenue over the contract period. Where performance obligation is satisfied at a point in time, the Company recognizes revenue when customer obtains control of promised goods and services in the contract.

Following are the revenue recognition principles:

Food delivery transactions

The Company operates an e-commerce platform connecting the users, restaurant partners and the delivery partners. The Company has separate contractual arrangement with the users, restaurant partners and the delivery partners respectively which specify and creates enforceable rights and obligations of each of the parties.

Identification of customer

The Company considers a party to be a customer if a) it provides services to the party and b) receives consideration from the party.

â¢ Based on the contractual arrangement, the restaurant partners are considered as customers.

â¢ The users are considered customer only in case the Company charges service fee from the users.

â¢ Additionally, the Company does not consider user as a customer of the restaurant partner for the services provided by the Company, as the Company is not providing the goods and services of restaurant partner.

Service provided by restaurant partners and commission income:

The Company considers itself as a principal in an arrangement only when it controls the goods or service provided. The Company has concluded that it does not control the goods or service provided by the restaurant partners.

The Company recognizes the commission revenues earned from restaurant partners on a point of time basis.

User incentives

The Company provides various types of incentives to the users to promote the transactions on its platform.

In case where the Company has considered the user as a customer, the incentives paid to user are netted off in revenue against the amount charged from the user. In cases where the Company does not consider the user as a customer, the incentives paid to user are recorded as expenses.

Platform services and transactions

The Company provides its platform services to its users and earns revenue in the form of platform fee. This platform fee is recognized at a point in time when the services are rendered, i.e., when an order is placed and/or facilitated through the platform.

Advertisement revenue

Advertisement revenue is derived principally from the sale of online/ offline advertisements which is usually run over a contracted period of time. The revenue from advertisements is thus recognized over this contract period as the performance obligation is met over the contract period. There are some contracts where in addition to the contract period, the Company assures certain clicks/impressions (which are generated each time viewers on our platform clicks/views through the advertiser''s advertisement on the platform) to the advertisers. In these cases, the revenue is recognized when both the conditions of time period and number of clicks/impressions assured are met.

Subscription revenue

Revenues from subscription contracts are recognized over the subscription period on systematic basis in accordance with terms of agreement entered into with customer.

Sign-up revenue

The Company receives a sign-up amount from its restaurant partners and delivery partners. These are recognized on receipt or over a period of time in accordance with terms of agreement entered into with such relevant partner.

Delivery facilitation services

The Company is a technology platform provider enabling delivery partners to provide their delivery services to the restaurant partners/users and may charge a fee for providing the platform services to Delivery Partners which is recognized as revenue on a point in time basis. The Company has no control

over the delivery services provided by the delivery partners.

Interest

Interest income is recognized using the effective interest rate (EIR) method. Interest income is included under the head "other income" in the statement of profit and loss.

Contract balances:

Contract assets

The Company recognizes a contract asset when there exists a right to receive consideration in exchange for goods or services already transferred to the customer which is conditional on something other than passage of time (e.g. The Company''s future performance obligation).

Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

Contract liabilities

The Company recognizes a contract liability for an obligation to transfer goods or services to a customer for which the Company has received consideration (or the amount is due) from the customer.

xi. Retirement and other employee benefits

Retirement benefit in the form of provident fund and social security is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund/social security. The Company recognizes contribution payable to the provident fund scheme/ social security scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the

contribution due for services received before the balance sheet date, then excess is recognized as an asset (representing a reduction in future payment or a cash refund).

In case of other foreign branches, contributions are made as per the respective country laws and regulations. The same is charged to statement of profit and loss on accrual basis. There is no obligation beyond the Company''s contribution.

Defined benefit plans (Gratuity)

The Company operates a defined benefit gratuity plan in India and United Arab Emirates.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

The obligation so determined is invested in an appropriate investment product of an Insurance Company and is recognized as having ''reimbursement right'' as per Ind AS 19. The reimbursement right is treated as a separate asset measured at fair value and is not offset against the related defined benefit obligation. This investment will earn interest and the corresponding interest expense on defined benefit liability will be decreased with this interest amount. The amount recoverable from the investment product would be utilized for payment of the defined benefits payable.

Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the defined benefit liability and reimbursement right, are recognized immediately in the balance sheet with a corresponding debit or credit to OCI in the year in which they occur. They are then accumulated in a separate reserve, Remeasurements are not reclassified to statement of profit and loss in subsequent years.

The Company recognizes the following changes in the defined benefit obligation and reimbursement right as an expense in the statement of profit and loss:

â¢ Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non- routine settlements; and

â¢ Net interest expense Compensated Absences

The liabilities for earned leaves which are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. These obligations are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period by actuaries using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting year that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in profit and loss.

xii. Taxes Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.

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

equity. Management yearly evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Advance taxes and provisions for current taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.

Deferred taxes

Deferred tax is calculated on the temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

â¢ When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences.

â¢ I n respect of taxable temporary differences associated with investments in subsidiaries, 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 recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

â¢ When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences.

â¢ In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

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

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and

the deferred taxes relate to the same taxable entity and the same taxation authority.

xiii. Share based payment

Employees (including senior executives) 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.

That cost is recognized, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the year in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognized 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 statement of profit and loss expense or credit for a year represents the movement in cumulative expense recognized as at the beginning and end of that year and is recognized in employee benefits expense.

Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Company''s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions.

No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognized is the expense had the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

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

xiv. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders of the Company and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

xv. Provisions and Contingent liabilities Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, 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. The expense

relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent Liabilities

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or is a present obligation that arises from past event but is not recognized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made. Contingent liabilities are disclosed and not recognized.

xvi. Financial instruments

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 assets

Initial recognition and measurement:

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (FVTOCI), and fair value through profit or loss (FVTPL). The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them.

All financial assets, except in case of financial assets recorded at fair value through profit or loss, are recognized initially at fair value plus transaction costs that are attributable to the acquisition of the financial

asset. Transaction costs of financial assets carried at fair value through profit or loss expensed off in the statement of profit and loss. Trade receivable that does not contain a significant financing component are measured at transaction price.

In order for a financial asset to be classified and measured at amortised cost or FVTOCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at FVTOCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e. the date that the Company commits to purchase or sell the asset.

Subsequent Measurement 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:

â¢ Amortised cost: Financial assets that are held for collection of contractual cash flows those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in interest income using the effective interest rate (EIR) method. Any gain or loss arising on derecognition, and impairment losses (if any) are recognized directly in profit or loss. The Company''s financial assets subsequently measured at amortised cost includes trade receivables, loans and certain other financial assets etc.

â¢ Fair value through other comprehensive income (FVTOCI): Financial assets that are held for collection of contractual cash flows and for selling, where the assets'' cash flows represent solely payments of principal and interest, are measured at FVTOCI. Movements in the carrying amount are taken through OCI except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in profit and loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from OCI to profit or loss.

â¢ Fair value through profit or loss (FVTPL):

Financial assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. Changes in the fair value, interest income, dividend income and foreign exchange gains and losses of the financial assets at fair value through profit or loss are recognized in the statement of profit and loss. A gain or loss on the derecognition of debt investment that is subsequently measured at fair value through Profit or loss is also recognized in profit or loss.

Equity instruments: Any equity instrument in the scope of Ind AS 109 is subsequently measured at fair value through profit or loss. However, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI (if an instrument is not held for trading). The Company makes such election on an instrument-by-instrument basis.

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 following the derecognition of the investment. Dividends from such investments are recognized in profit or loss when the Company''s right to receive payments is established.

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

The Company has made an irrevocable election to present subsequent changes in the fair value of certain investment in equity and preference instruments not held for trading in other comprehensive income.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s balance sheet) when:

â¢ The rights to receive cash flows from the asset have expired, or

â¢ The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially

all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets (excluding investments in subsidiaries and associate measured at cost)

The Company assesses on a forward-looking basis the expected credit losses ("ECL") associated with its assets carried at amortised cost and FVTOCI debt instruments. Different impairment methodologies are applied depending on whether there has been a significant increase in credit risk or not. For trade receivables and contract assets, the Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company has established

a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

At each reporting date, for recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognising impairment loss allowance based on 12-month ECL.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/ expense in the statement of profit and loss.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as subsequently measured at amortised cost or fair value through profit or loss, as appropriate.

All financial liabilities are recognized initially at fair value. Financial liabilities measured at amortised cost are recorded net of directly attributable transaction costs.

The Company''s financial liabilities include trade payables, lease liabilities and other financial liabilities.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at amortised cost

After initial recognition, these liabilities are subsequently measured at amortised cost using the

EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading or financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or

modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

xvii. Impairment of non-financial assets (including investments in subsidiaries and associate measured at cost)

The Company assesses at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share

prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company''s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a year of five to ten years as the Company believes this to be the most appropriate timescale for reviewing and considering annual performance before applying a fixed terminal growth rate to the final cash flows. To estimate cash flow projections beyond years covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the entity operates, or for the market in which the asset is used.

Impairment losses are recognized in the statement of profit and loss.

For the purpose of impairment testing, goodwill acquired in a business combination is, allocated to cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. For the business which are similar in nature for the purpose of impairment testing of goodwill, the Company considers such businesses as one cash generating unit.

other assets of the unit pro rata based on the carrying amount of each asset in the unit.

For the purpose of impairment testing of Goodwill in relation to Uber Eats Business acquisition, the Company has considered the business of Uber Eats acquisition and Zomato business as one cash generating unit as nature of both business is same.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or C

Mar 31, 2024

2.2 Summary of material accounting policies

i. Use of estimates

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.

In particular, information about the significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the standalone financial statements are disclosed in note no 2.3.

ii. Business combinations and goodwill

Business combinations are accounted as follows:

Business combinations (other than common control business combinations) - Acquisition Method

The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their acquisition date fair values (except certain assets and liabilities which are required to be measured as per the applicable standard). For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable.

Acquisition-related costs are expensed as incurred.

iii. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

â¢ Expected to be realised or intended to be sold or consumed in normal operating cycle;

â¢ Held primarily for the purpose of trading;

â¢ Expected to be realised within twelve months after the reporting year, or

â¢ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting year.

All other assets are classified as non-current.

A liability is current when:

â¢ It is expected to be settled in normal operating cycle

â¢ It is held primarily for the purpose of trading

â¢ It is due to be settled within twelve months after the reporting year, or

â¢ There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting year.

The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

iv. Foreign currencies

The Company''s standalone financial statements are presented in Indian rupees, which is the Company''s functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currencies using the spot rates at the date when the transaction first qualifies for recognition. However, for practical reasons, the Company uses an average rate if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

Foreign Operations (''branches'')

On consolidation, the assets and liabilities of foreign operations are translated into Indian rupees at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. For practical reasons, the Company uses an average rate to translate income and expense items. The exchange differences arising on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that foreign operation is recognised in profit or loss.

v. Fair value measurement

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

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

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

â¢ Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

â¢ Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

â¢ Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

input that is significant to the fair value measurement as a whole) at the end of each reporting year.

vi. Property, plant and equipment

Subsequent costs on a PPE are included in the asset''s carrying amount 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. Rest of the subsequent costs are charged to the statement of profit and loss in the reporting period in which they are incurred.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any.

Depreciation on all property plant and equipment are provided on a straight-line method based on the estimated useful life of the asset, which is as follows:

I improvements to leasehold assets not owned by the Company are amortized over the lease year or estimated useful life of such improvements, whichever is lower.

An item of property, plant and equipment and any significant part initially recognized is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

vii. Goodwill and other intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition.

Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Software and websites (other than those acquired in business combination) with finite lives are amortized on a straight-line basis over the estimated useful economic life being 1-3 years. All Intangible assets (other than goodwill) are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The useful life and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization year or method, as appropriate and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Intangible assets acquired in business combination, include brand, technology platform, trademarks and

Non-compete which are amortized on a straightline basis over their estimated useful life which is as follows:

The amortization year and method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization year is changed accordingly.

viii. Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a year of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and accumulated impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred and lease payments made at or before the commencement date less any lease incentives

received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. The Company has lease contracts for office premises having a lease term ranging from 1-9 years.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (xvii) Impairment of non-financial assets.

Lease liabilities

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

In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

ix. Inventories

Net realisable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make the sale.

x. Revenue recognition

The Company generates revenue from online food delivery transactions, advertisements, subscriptions, sale of traded goods and other platform services.

of goods sold and services rendered is net of any taxes collected from customers, which is remitted to government authorities and variable consideration on account of various discounts and rebates offered by the Company. The transaction price is an amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services. Consideration includes goods or services contributed by the customer, as non-cash consideration, over which Company has control. Where performance obligation is satisfied over time, the Company recognizes revenue over the contract period. Where performance obligation is satisfied at a point in time, the Company recognizes revenue when customer obtains control of promised goods and services in the contract.

Platform services and transactions

The Company operates as an internet portal connecting the Users, Restaurant Partners and the Delivery Partners. The Company has separate contractual arrangement with the User, Restaurant Partners and the Delivery Partners respectively which specify the rights and obligations of each of the parties. A user initiates the transaction which requires acceptance from the Restaurant Partner and Delivery Partner. The acceptance of the transaction, combined with the contractual agreement creates enforceable rights and obligations for each of the parties.

Identification of customer

The Company considers a party to be a customer if a) it is providing any services to the party and b) is receiving any consideration from the party. Based on the contractual arrangement, the Restaurant Partners are considered as customers. The users are considered customers in limited circumstances when a specific service fee is charged to the user.

Service provided by Restaurant Partners and commission income:

The Company considers itself as a principal in an arrangement only when it controls the goods or

service provided. The Company has concluded that it does not control the goods or service provided by the Restaurants.

The Company recognises the commission revenues earned from Restaurant Partners on a point of time basis.

Incentives

The Company provides various types of incentives to the users to promote the transactions on its platform.

In most of the cases, the Company is not responsible for services to the user or does not receive consideration from the user. In such cases, the Company does not consider the User as a customer and hence the incentives paid to Users are recorded as expenses. Further, the Company does not consider User as a customer of the Restaurant Partner for the services provided by the Company, as the Company is not providing the goods and services of Restaurant Partner. In case where Company has considered the users as a customer, the incentives paid to users are netted off in revenue against the amount charged from the users.

Advertisement revenue

Advertisement revenue is derived principally from the sale of online advertisements which is usually run over a contracted period of time. The revenue from advertisements is thus recognised over this contract period as the performance obligation is met over the contract period. There are some contracts where in addition to the contract period, the Company assures certain clicks/impressions (which are generated each time viewers on our platform clicks/views through the advertiser''s advertisement on the platform) to the advertisers. In these cases, the revenue is recognised when both the conditions of time period and number of clicks/impressions assured are met.

Subscription revenue

Revenues from subscription contracts are recognized over the subscription period on systematic basis in

accordance with terms of agreement entered into with customer.

Sign-up revenue

The Company receives a sign-up amount from its restaurant partners and delivery partners. These are recognised on receipt or over a period of time in accordance with terms of agreement entered into with such relevant partner.

Delivery facilitation services

The Company is a technology platform provider enabling delivery partners to provide their delivery services to the Restaurant Partners/Users and may charge a fee for providing the platform services to Delivery Partners which is recognised as revenue on a point in time basis. The Company has no control over the delivery services provided by the delivery partners.

Sale of traded goods

Revenue is recognized to depict the transfer of control of promised goods to merchants upon the satisfaction of performance obligation under the contract in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. Consideration includes goods contributed by the customer, as non-cash consideration, over which entity has control.

The amount of consideration disclosed as revenue is net of variable considerations like incentives or other items offered to the customers.

Interest

Interest income is recognized using the effective interest method. Interest income is included under the head "other income" in the statement of profit and loss.

Contract balances:

Contract assets

Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

Contract liabilities

The Company recognizes a contract liability for an obligation to transfer goods or services to a customer for which the Company has received consideration (or the amount is due) from the customer.

xi. Retirement and other employee benefits

The Company operates a defined benefit gratuity plan in India and United Arab Emirates.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the net defined benefit liability are recognized immediately in the statement of assets and liabilities with a corresponding debit or credit to OCI in the year in which they occur. They are then accumulated in a separate reserve. Remeasurements are not reclassified to statement of profit or loss in subsequent years.

The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

â¢ Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non- routine settlements; and

â¢ Net interest expense Compensated Absences

xii. Taxes Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.

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

Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.

Deferred taxes

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

Deferred tax liabilities are recognised for all taxable temporary differences, except:

â¢ When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences.

â¢ In respect of taxable temporary differences associated with investments in subsidiaries, 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 for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised, except:

â¢ When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences.

â¢ In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

xiii. Share based payment

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.

For cancelled options, the payment made to the employee shall be accounted for as a deduction from equity, except to the extent that the payment exceeds the fair value of the equity instruments of the Company, measured at the cancellation date. Any such excess from the fair value of equity instrument shall be recognized as an expense.

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

xiv. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares, compulsorily convertible cumulative preference shares and compulsorily convertible preference share outstanding during the year.

Mar 31, 2023

Summary of significant accounting policies

a) Use of estimates

The preparation of the consolidated financial
statements in conformity with the principles of Ind
AS requires the management to make judgements,
estimates and assumptions that effect the reported
amounts of revenues, expenses, assets and liabilities

and the disclosure of contingent liabilities, at the
end of the reporting year. 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
years.

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the
estimate is revised if the revision affects only that
year, or in the year of the revision and future years
if the revision affects both current and future years.

In particular, information about the significant areas
of estimation, uncertainty and critical judgements
in applying accounting policies that have the most
significant effect on the amounts recognised in the
consolidated financial statements are disclosed in
note no 2.4.

b) Business combination and goodwill

Business combinations are accounted for using the
acquisition method or pooling of interest method.

Acquisition Method

The cost of an acquisition is measured as the
aggregate of the consideration transferred measured
at acquisition date fair value and the amount of any
non-controlling interests in the acquiree. For each
business combination, the Group elects whether to
measure the non-controlling interests in the acquiree
at fair value or at the proportionate share of the
acquiree''s identifiable net assets. Acquisition-related
costs are expensed as incurred.

At the acquisition date, the identifiable assets
acquired and the liabilities assumed are recognised
at their acquisition date fair values. For this purpose,
the liabilities assumed include contingent liabilities
representing present obligation and they are

measured at their acquisition fair values irrespective
of the fact that outflow of resources embodying
economic benefits is not probable. However, the
following assets and liabilities acquired in a business
combination are measured at the basis indicated
below:

i) Deferred tax assets or liabilities, and the
assets or liabilities related to employee benefit
arrangements are recognised and measured in
accordance with Ind AS 12, Income Tax and Ind
AS 19, Employee Benefits respectively.

ii) Liabilities or equity instruments related to share
based payment arrangements of the acquiree
or share - based payments arrangements of
the Group entered into to replace share-based
payment arrangements of the acquiree are
measured in accordance with Ind AS 102, Share-
based Payments at the acquisition date.

iii) Assets (or disposal groups) that are classified as
held for sale in accordance with Ind AS 105, NonÂ¬
current Assets Held for Sale and Discontinued
Operations are measured in accordance with that
standard.

iv) Reacquired rights are measured at a value
determined on the basis of the remaining
contractual term of the related contract. Such
valuation does not consider potential renewal of
the reacquired right.

When the Group acquires a business, it assesses the
financial assets and liabilities assumed for appropriate
classification and designation in accordance with
the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date. This
includes the separation of embedded derivatives in
host contracts by the acquiree.

Pooling of interest method

Ind AS 103, Business Combinations, prescribes
significantly different accounting for business

combinations which are not under common control
and those under common control.

Business combinations involving entities or
businesses under common control shall be accounted
for using the pooling of interest method.

The pooling of interest method is considered to
involve the following:

i) The assets and liabilities of the combining entities
are reflected at their carrying amounts.

ii) No adjustments are made to reflect fair values or
recognize any new assets or liabilities. The only
adjustments that are made are to harmonies
accounting policies.

iii) The financial information in respect of prior years
should be restated as if the business combination
had occurred from the beginning of the preceding
year in the consolidated financial statements,
irrespective of the actual date of the business
combination.

iv) The identity of the reserves has been preserved
and appear in the financial information of the
transferee in the same form in which they
appeared in the financial information of the
transferor.

v) The difference, if any, between the consideration
and the amount of share capital of the acquired
entity is transferred to capital reserve.

If the business combination is achieved in stages, any
previously held equity interest is re-measured at its
acquisition date fair value and any resulting gain or
loss is recognised in consolidated statement of profit
and loss or OCI, as appropriate.

the scope of Ind AS 109, Financial Instruments, is
measured at fair value with changes in fair value
recognised in the consolidated statement of profit
and loss. If the contingent consideration is not within
the scope of Ind AS 109, it is measured in accordance
with the appropriate Ind AS and shall be recognised
in the consolidated financial statements. Contingent
consideration that is classified as equity is not
re-measured at subsequent reporting dates and
subsequently its settlement is accounted for within
equity.

Goodwill is initially measured at cost, being the excess
of the aggregate of the consideration transferred
and the amount recognised for non-controlling
interests, and any previous interest held, over the net
identifiable assets acquired and liabilities assumed. If
the fair value of the net assets acquired is in excess of
the aggregate consideration transferred, the Group
re-assesses whether it has correctly identified all of
the assets acquired and all of the liabilities assumed
and reviews the procedures used to measure the
amounts to be recognised at the acquisition date.
If the reassessment still results in an excess of the
fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognised
in OCI and accumulated in equity as capital reserve.
However, if there is no clear evidence of bargain
purchase, the entity recognises the gain directly in
equity as capital reserve, without routing the same
through OCI.

After initial recognition, goodwill is measured at cost
less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group''s cash-generating units
that are expected to benefit from the combination,
irrespective of whether other assets or liabilities of
the acquiree are assigned to those units.

A cash generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit

may be impaired. For the business which are similar
in nature for the purpose of impairment testing of
goodwill, the group considers such businesses as one
cash generating unit.

I f the recoverable amount of the cash generating
unit is less than its carrying amount, the impairment
loss is allocated first to reduce the carrying amount
of any goodwill allocated to the unit and then to the
other assets of the unit pro rata based on the carrying
amount of each asset in the unit.

For the purpose of impairment testing of goodwill,
the group considers business forecast of similar
businesses together.

Any impairment loss for goodwill is recognised
in the consolidated statement of profit and loss.
An impairment loss recognised for goodwill is not
reversed in subsequent years. Where goodwill has
been allocated to a cash-generating unit and part
of the operation within that unit is disposed of, the
goodwill associated with the disposed operation is
included in the carrying amount of the operation when
determining the gain or loss on disposal. Goodwill
disposed in these circumstances is measured based
on the relative values of the disposed operation and
the portion of the cash-generating unit retained.

If the initial accounting for a business combination is
incomplete by the end of the reporting year in which
the combination occurs, the Group reports provisional
amounts for the items for which the accounting is
incomplete.

Those provisional amounts are adjusted through
goodwill during the measurement year, or additional
assets or liabilities are recognised, to reflect new
information obtained about facts and circumstances
that existed at the acquisition date that, if known,
would have affected the amounts recognized at that
date. These adjustments are called as measurement
year adjustments. The measurement year does not
exceed one year from the acquisition date.

Investment in associates and joint ventures
Associate

An associate is an entity over which the Group has
significant influence. Significant influence is the
power to participate in the financial and operating
policy decisions of the investee but is not control or
joint control over those policies.

Joint Venture

A joint venture is a type of joint arrangement whereby
the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control
of an arrangement, which exists only when decisions
about the relevant activities require unanimous
consent of the parties sharing control.

The considerations made in determining whether
significant influence or joint control are similar
to those necessary to determine control over the
subsidiaries.

The Group''s investments in its associates or joint
venture are accounted for using the equity method.
Under the equity method, the investment in a joint
venture is initially recognised at cost. The carrying
amount of the investment is adjusted to recognise
changes in the Group''s share of net assets of the
associates or joint venture since the acquisition date.
Goodwill relating to the associate or joint venture is
included in the carrying amount of the investment and
is not tested for impairment individually.

The consolidated statement of profit and loss reflects
the Group''s share of the results of operations of
the associate or joint venture. Any change in OCI of
those investees is presented as part of the Group''s
OCI. In addition, when there has been a change
recognised directly in the equity of the joint venture,
the Group recognises its share of any changes, when
applicable, in the consolidated statement of changes
in equity. Unrealised gains and losses resulting from
transactions between the Group and associate,

or joint venture are eliminated to the extent of the
interest in the associate or joint venture.

If an entity''s share of losses of an associate or joint
venture equals or exceeds its interest in the associate
or joint venture (which includes any long term
interest that, in substance, form part of the Group''s
net investment in the associate or joint venture),
the entity discontinues recognising its share of
further losses. Additional losses are recognised only
to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf
of the associate or joint venture. If the associate or
joint venture subsequently reports profits, the entity
resumes recognising its share of those profits only
after its share of the profits equals the share of losses
not recognised.

The aggregate of the Group''s share of profit and loss
of an associate and a joint venture is shown on the
face of the consolidated statement of profit and loss.

The financial statements of the associate or joint
venture are prepared for the same reporting year as
the Group. When necessary, adjustments are made
to bring the accounting policies in line with those of
the Group.

After application of the equity method, the Group
determines whether it is necessary to recognise an
impairment loss on its investment in its associate
or joint venture. At each reporting date, the Group
determines whether there is objective evidence
that the investment in the associate or joint
venture is impaired. If there is such evidence, the
Group calculates the amount of impairment as the
difference between the recoverable amount of the
associate or joint venture and its carrying value,
and then recognises the loss as ''Share of profit of
an associate or joint venture'' in the consolidated
statement of profit and loss.

Upon loss of significant influence over associate
or joint control over the joint venture, the Group

measures and recognises any retained investment
at its fair value. Any difference between the carrying
amount of the associate or joint venture upon loss
of significant influence or joint control and the fair
value of the retained investment and proceeds from
disposal is recognised in the consolidated statement
of profit and loss.

c) Current versus non- current classification

The Group presents assets and liabilities in the
consolidated statement of assets and liabilities based
on current/ non-current classification. An asset is
treated as current when it is:

i) Expected to be realised or intended to be sold or
consumed in normal operating cycle;

ii) Held primarily for the purpose of trading;

iii) It is expected to be realised within twelve months
after the reporting year; or

i v) Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting year.

All other assets are classified as non-current.

A liability is current when:

i ) i t is expected to be settled in normal operating
cycle;

ii) Held primarily for the purpose of trading;

iii) It is due to be settled within twelve months after
the reporting year; or

iv) There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting year.

The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The group has identified twelve
months as its operating cycle.

d) Foreign currencies

The Group''s consolidated financial statements
are presented in INR, which is also the Parent
Company''s functional currency. For each entity,
the Group determines the functional currency and
items included in the statements of each entity are
measured using that functional currency. Functional
currency is the currency of the primary economic
environment in which the entities forming part of
Group operates and is normally the currency in which
the entities forming part of Group primarily generates
and expends cash. The Group uses the direct method
of Consolidation and on disposal of foreign operations
the Gain or Loss that is reclassified to consolidated
statement of profit or loss reflect the amount that
arises from using this method.

Transactions and balances

Transactions in foreign currencies are initially
recorded by the Group''s entities at their respective
functional currency spot rates at the date the
transaction first qualifies for recognition. However,
for practical reasons, the Group uses an average rate
if the average approximates the exchange rates at the
date of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency
spot rates of exchange at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognised in
consolidated statement of profit and loss with the
exception of the following:

i) In the consolidated financial statements that
include the foreign operation and the reporting
entity (e.g., consolidated financial statements
when the foreign operation is a subsidiary), such

exchange differences are recognised initially in
OCI. These exchange differences are reclassified
from equity to profit and loss on disposal of the
net investment.

ii) Tax charges and credits attributable to exchange
differences on those monetary items are also
recorded in OCI.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.

Group Companies

On consolidation, the assets and liabilities of foreign
operations are translated into Indian Rupees at the
rate of exchange prevailing at the reporting date and
their consolidated financial statements of profit and
loss are translated at exchange rates prevailing at
the dates of the transactions. For practical reasons,
the group uses an average rate to translate income
and expense items, if the average rate approximates
the exchange rates at the dates of the transactions.
The exchange differences arising on translation for
consolidation are recognised in OCI. On disposal of a
foreign operation, the component of OCI relating to
that particular foreign operation is recognised in the
consolidated statement of profit and loss.

Any goodwill arising in the acquisition/ business
combination of a foreign operation on or after April 1,
2015 and any fair value adjustments to the carrying
amounts of assets and liabilities arising on the
acquisition are treated as assets and liabilities of the
foreign operation and translated at the spot rate of
exchange at the reporting date.

e) Fair value measurement

The Group measures financial instruments
such as derivatives at fair value at each balance
sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

i) In the principal market for the asset or liability; or

ii) In the absence of a principal market, in the
most advantageous market for the asset
or liability.

The principal or the most advantageous market must
be accessible by the Group.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability, assuming
that market participants act in their economic best
interest.

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

The Group uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the consolidated financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:

i) Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.

ii) Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable.

iii) Level 3 â Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognised in the
consolidated financial statements on a recurring
basis, the Group determines whether transfers have
occurred between levels in the hierarchy by reÂ¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting year.

External valuers are involved for valuation of
significant assets and liabilities. Involvement of
external valuers is decided on the basis of nature
of transaction and complexity involved. Selection
criteria include market knowledge, reputation,
independence and whether professional standards
are maintained.

At each reporting date, the finance team analyses
the movements in the values of assets and liabilities
which are required to be remeasured or re-assessed
as per the Group''s accounting policies. For this
analysis, the team verifies the major inputs applied
in the latest valuation by agreeing the information
in the valuation computation to contracts and
other relevant documents. A change in fair value of
assets and liabilities is also compared with relevant
external sources to determine whether the change
is reasonable.

For the purpose of fair value disclosures, the Group
has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of
the asset or liability and the level of the fair value
hierarchy as explained above.

This note summarises accounting policy for fair value.
Other fair value related disclosures are given in the
relevant notes.

f) Property, plant and equipment

Property, plant and equipment are stated at cost,
less accumulated depreciation and accumulated
impairment loss, if any.

Such cost includes the cost of replacing part of
the plant and equipment. When significant parts of
plant and equipment are required to be replaced at
intervals, the Group depreciates them separately
based on their specific useful lives. Likewise, when a
major inspection is performed, its cost is recognised
in the carrying amount of the plant and equipment
as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs are
recognised in consolidated statement of profit and
loss as incurred.

Capital work in progress is stated at cost, net of
accumulated impairment loss, if any.

Depreciation on all property plant and equipment
are provided on a straight-line method based on the
estimated useful life of the asset, which is as follows:

Improvements to leasehold buildings not owned by the
Group are amortized over the lease year or estimated
useful life of such improvements, whichever is lower.

The management has estimated the useful lives and
residual values of all property, plant and equipment
and adopted useful lives based on management''s
technical assessment of their respective economic
useful lives. The residual values, useful lives and
methods of depreciation of property, plant and
equipment are reviewed at each financial year end
and adjusted prospectively, if appropriate.

Depreciation on the assets purchased during the
year is provided on pro-rata basis from the date of
purchase of the assets. Individual assets costing
less than INR 5,000 are fully depreciated in the year
of purchase.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds
and the carrying amount of the asset) is included in
the consolidated statement of profit and loss when
the asset is derecognised.

g) Goodwill and intangible assets

Goodwill represents the cost of acquired business as
established at the date of acquisition of the business
in excess of the acquirer''s interest in the net fair value
of the identifiable assets, liabilities and contingent
liabilities less accumulated impairment losses, if any.
Goodwill is tested for impairment annually or when
events or circumstances indicate that the implied fair
value of goodwill is less than the carrying amount.

Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair
value at the date of acquisition.

Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and
accumulated impairment losses. Internally generated
intangibles, excluding capitalised development costs,
are not capitalised and the related expenditure is
reflected in consolidated statement of profit and loss
in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as
either finite or indefinite.

Intangible assets (other than those acquired in
business combination) with finite lives are amortised
on a straight-line basis over the estimated useful
economic life being 1-3 years. All intangible assets
(other than goodwill) are assessed for impairment
whenever there is an indication that the intangible
asset may be impaired. The amortisation year and
the amortisation method for an intangible asset
with a finite useful life are reviewed at least at the
end of each reporting year. Changes in the expected
useful life or the expected pattern of consumption
of future economic benefits embodied in the asset
are considered to modify the amortisation year or
method, as appropriate, and are treated as changes in
accounting estimates. The amortisation expense on
intangible assets with finite lives is recognised in the
consolidated statement of profit and loss unless such
expenditure forms part of carrying value of another
asset.

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 gains or losses arising from
derecognition of an intangible asset are measured as
the difference between the net disposal proceeds and
the carrying amount of the asset and are recognised
in the consolidated statement of profit and loss when
the asset is derecognised.

Intangible assets acquired in business combination,
include brand, consumer contracts and relationship,
technology platform, content review, trademarks

h) Leases

The Group assesses at contract inception whether
a contract is, or contains, a lease i.e, if the contract
conveys the right to control the use of an identified
asset for a year of time in exchange for consideration.

Group as a lessee

The Group applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets.
The Group recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.

i) Right of use assets

The Group recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and accumulated impairment losses,
and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before

the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a
straight-line basis over the shorter of the lease term
and the estimated useful lives of the assets. The
company has lease contracts for office premises
having a lease term ranging from 1 to 9 years.

I f ownership of the leased asset transfers to the
Group at the end of the lease term or the cost reflects
the exercise of a purchase option, depreciation is
calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to
impairment. Refer to the accounting policies in
section (s) Impairment of non-financial assets.

ii) Lease liabilities

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

In calculating the present value of lease payments,
the Group uses its incremental borrowing rate at the
lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in

the lease term, a change in the lease payments (e.g.
changes to future payments resulting from a change
in an index or rate used to determine such lease
payments) or a change in the assessment of an option
to purchase the underlying asset.

iii) Short term leases and lease of low value assets

The Group applies the short-term lease recognition
exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of
12 months or less from the commencement date and
do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to
leases of office equipment that are considered to be
low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense
on a straight-line basis over the lease term.

i) Inventories

Traded goods are valued at lower of cost and net
realisable value. Cost is determined on first in first
out basis. Inventory cost includes purchase price
and other directly attributable costs (such as taxes
other than those subsequently recovered from the
tax authorities), freight inward and other related
incidental expenses incurred in bringing the inventory
to its present condition and location.

Net realisable value is the estimated selling price in
the ordinary course of business less estimated cost
necessary to make the sale.

j) Revenue recognition

The Group generates revenue from online food delivery
transactions, online delivery of goods, warehousing
services, advertisements, subscriptions, sale of
traded goods and other platform services.

government authorities and variable consideration on
account of various discounts and schemes offered
by the Group. The transaction price is an amount
of consideration to which the entity expects to
be entitled in exchange for transferring promised
goods or services. Consideration includes goods or
services contributed by the customer, as non-cash
consideration, over which Group has control.

Where performance obligation is satisfied over time,
Group recognizes revenue over the contract period.
Where performance obligation is satisfied at a point
in time, Group recognizes revenue when customer
obtains control of promised goods and services in
the contract.

Revenue is recognized net of any taxes collected
from customers, which are remitted to governmental
authorities.

Revenue from Platform services and transactions

The Group operates as an internet portals connecting
the Users, Restaurant Partners/ third party
merchants and the Delivery Partners. The Group has
separate contractual arrangement with the User,
Restaurant Partners/ third party merchants and the
Delivery Partners respectively which specify the
rights and obligations of each parties. A user initiates
the transaction which requires acceptance from
the Restaurant partner/ third party merchants and
Delivery Partner. The acceptance of the transaction,
combined with the contractual agreement creates
enforceable rights and obligations for each parties.

Identification of customer

The Group considers a party to be a customer
if a) it is providing any services to the party and
b) is receiving any consideration from the party. Based
on the contractual arrangement, the Restaurant
Partners/third party merchants are considered as
customers.

In case of end user, the Group has entered in two type
of arrangement :

i) The users are considered customers in limited
circumstances when a specific service fee is
charged to the user; and

ii) The users are considered as customers where
Group, is responsible for delivery of goods to the
end users.

Principal vs Agent Consideration

The Group considers itself as a principal in an
arrangement when it controls the goods or service
provided.

For majority of its transactions, the Group has
concluded that it does not control the good or service
provided by the restaurant and accordingly the Group
presents the commission from its restaurant partner/
third party merchants as revenue.

In respect of transaction with delivery partners, the
Group has entered two type of arrangements:

i) Where, the Group has netted off the delivery
charges received from the users with the delivery
charges paid to the delivery partner and recorded
net delivery charges as expense.

ii) Where, the Group has concluded that it
control the delivery service provided by the
delivery partner, the Group recognized the
delivery fees received from the end user
as revenue.

Incentives

The Group provides various types of incentives to the
users to promote the transactions on its platform.

I n most of the cases Group is not responsible for
services to the user or does not receive consideration
from the user. In such cases, the Group does not
consider the user as a customer and hence the
incentives paid to users are recorded as expenses.
Further, the Group does not consider user as a
customer of the restaurant partner/ third party

merchants for the services provided by the Group, as
the Group is not providing the goods and services of
Restaurant partner/ third party merchants. In case
where Group has considered the users as a customer,
the incentives paid to users are netted off in revenue
against the amount charged from the users.

Revenue recognition

Revenue is recognised on completion of delivery or on
users visit to the restaurant. Revenue is recognized
net of any taxes collected from customers, which are
remitted to governmental authorities.

Revenue recognition for other revenue streams is as
follows:

Advertisement revenue

Advertisement revenue is derived principally from
the sale of online advertisements which is usually
run over a contracted year of time. The revenue
from advertisements is thus recognised over this
contract year as the performance obligation is met
over the contract year. There are some contracts
where in addition to the contract year, the Group
assures certain "clicks" (which are generated each
time viewers on our platform clicks through the
advertiser''s advertisement on the platform) to the
advertisers. In these cases, the revenue is recognised
when both the conditions of time year and number of
clicks assured are met.

Subscription revenue

Revenues from subscription contracts are recognized
over the subscription year on systematic basis in
accordance with terms of agreement entered into
with customer.

Sign-up revenue

The Group receives a sign-up amount from its
restaurant partners and delivery partners. These
are recognised on receipt or over a year of time in
accordance with terms of agreement entered into
with such relevant partner.

Warehousing services

Revenue from rendering of warehousing services is
recognised when control over the services transfers
to the customer i.e., when the customer has the ability
to control the use of the transferred services provided
and generally derive their remaining benefits.

Delivery services

The Group has entered in two types of arrangement:

i) Where Group is merely a technology platform
provider for delivery partners to provide their
delivery services to the Restaurant partners/third
party merchants/consumers and not providing
or taking responsibility of the said services,
the group has recorded net delivery charges as
expenses. For the service provided by the Group
to the delivery partners, the Group may charge a
platform fee from the delivery partners.

ii) Where Group is responsible for delivery of
goods to the end users, group has recognized
the delivery fees received from the end user as
revenue, as group considers itself as a principal
in arrangement with delivery partners.

Sale of traded goods

Revenue is recognized to depict the transfer of control
of promised goods to merchants upon the satisfaction
of performance obligation under the contract in an
amount that reflects the consideration to which the
entity expects to be entitled in exchange for those
goods. Consideration includes goods contributed by
the customer, as non-cash consideration, over which
Group has control.

The amount of consideration disclosed as revenue is
net of variable considerations like incentives or other
items offered to the customers.

Interest

I nterest income is recognized using the effective
interest method. Interest income is included under

the head "other income" in the consolidated statement
of profit and loss.

Contract balances

The Policy for Contract balances i.e. contract assets,
trade receivables and contract liabilities are as
follows:

i) Contract assets:

A contract asset is the right to receive consideration
in exchange for services already transferred to
the customer (which consist of unbilled revenue).
By transferring services to a customer before the
customer pays consideration or before payment is
due, a contract asset is recognised for the earned
consideration that is unconditional.

ii) Trade receivables:

A receivable represents the Group''s right to an amount
of consideration that is unconditional (i.e.; only the
passage of time is required before payment of the
consideration is due). Refer to accounting policies
of financial assets in financial instruments - initial
recognition and subsequent measurement.

iii) Contract liabilities:

A contract liability is the obligation to deliver
services to a customer for which the Group has
received consideration or part thereof (or an
amount of consideration is due) from the customer.
If a customer pays consideration before the Group
deliver 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 Group performs
under the contract.

k) Retirement and other employee benefits

Retirement benefit in the form of provident fund and
social security is a defined contribution scheme. The
group has no obligation, other than the contribution
payable to the provident fund/social security.
The group recognizes contribution payable to the
provident fund scheme/ social security scheme as

an expense, when an employee renders the related
service. If the contribution payable to the scheme
for service received before the balance sheet date
exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability
after deducting the contribution already paid. If the
contribution already paid exceeds the contribution
due for services received before the balance sheet
date, then excess is recognized as an asset to the
extent that the pre-payment will lead to, for example,
a reduction in future payment or a cash refund.

I n case of other foreign subsidiary companies and
foreign branches, contributions are made as per
the respective country laws and regulations. The
same is charged to consolidated statement of profit
and loss. There is no obligation beyond the Group''s
contribution.

The group operates a defined benefit gratuity plan in
India and United Arab Emirates.

The cost of providing benefits under the defined
benefit plan is determined using the projected unit
credit method.

Remeasurements, comprising of actuarial gains and
losses, excluding amounts included in net interest
on the net defined benefit liability are recognised
immediately in the consolidated statement of assets
and liabilities with a corresponding debit or credit to
retained earnings through OCI in the year in which
they occur. Remeasurements are not reclassified
to consolidated statement of profit and loss in
subsequent years.

Past service costs are recognised in the consolidated
profit and loss on the earlier of:

i) The date of the plan amendment or curtailment;
and

ii) The date that the Group recognises related
restructuring costs.

Net interest is calculated by applying the discount
rate to the net defined benefit liability. The Group
recognises the following changes in the net defined
benefit obligation as an expense in the consolidated
statement of profit and loss:

i) Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and

ii) Net interest expense.

Compensated Absences

The liabilities for leaves which are not expected to
be settled wholly within 12 months after the end of
the year in which the employees render the related
service. They are therefore measured as the present
value of expected future payments to be made in
respect of services provided by employees up to
the end of the reporting year by actuaries using
the projected unit credit method. The benefits are
discounted using the market yields at the end of the
reporting year that have terms approximating to the
terms of the related obligation. Remeasurements
as a result of experience adjustments and changes
in actuarial assumptions are recognised in other
comprehensive income/loss.

l) Taxes
Current income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting
date in the countries where the Group operates and
generates taxable income.

Current income tax relating to items recognised
outside consolidated profit and loss is recognised

outside consolidated profit and loss (either in other
comprehensive income or in equity). Current tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
Management yearly evaluates positions taken in
the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Advance taxes and provisions for current income
taxes are presented in the consolidated statement
of assets and liabilities after off-setting advance tax
paid and income tax provision arising in the same tax
jurisdiction and where the relevant tax paying units
intends to settle the asset and liability on a net basis.

Deferred taxes

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

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

i ) When the deferred tax liability arises from the
initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit nor taxable profit and loss.

ii) In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, 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 for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences, and the carry

forward of unused tax credits and unused tax losses
can be utilised, except:

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

i i) i n respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

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

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.

m) Share based payments

Employees (including senior executives) of the Group
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.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in
equity, over the year in which the performance and /
or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for
equity-settled transactions at each reporting date
until the vesting date reflects the extent to which
the vesting year has expired and the Group''s best
estimate of the number of equity instruments that
will ultimately vest. The expense or credit in the
consolidated statement of profit and loss for a year
represents the movement in cumulative expense
recognised as at the beginning and end of that year
and is recognised in employee benefits expense.

Service and non-market performance conditions are
not taken into account when determining the grant
date fair value of awards, but the likelihood of the
conditions being met is assessed as part of the Group''s
best estimate of the number of equity instruments that
will ultimately vest. Market performance conditions
are reflected within the grant date fair value. Any
other conditions attached to an award, but without
an associated service requirement, are considered
to be non-vesting conditions. Non-vesting conditions

are reflected in the fair value of an award and lead to
an immediate expensing of an award unless there are
also service and /or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and / or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or
service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
expense had the terms had not been modified, if the
original terms of the award are met. An additional
expense is recognised for any modification that
increases the total fair value of the share-based
payment transaction or is otherwise beneficial to the
employee as measured at the date of modification.

For cancelled options, the payment made to the
employee shall be accounted for as a deduction
from equity, except to the extent that the payment
exceeds the fair value of the equity instruments of
the Company, measured at the cancellation date. Any
such excess from the fair value of equity instrument
shall be recognised as an expense.

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

n) Segment reporting

Operating segments are defined as components of
an enterprise for which discrete financial information
is available that is evaluated regularly by the chief
operating decision maker, in deciding how to allocate
resources and assessing performance. The Group''s
chief operating decision maker (CODM) is the Chief
Executive Officer and Managing Director.

The Group has identified business segments as
reportable segments. The business segments
comprise:

i) India food ordering and delivery

ii) Hyperpure supplies (B2B business)

iii) Quick commerce business

iv) All other segments (residual)

India food ordering and delivery is the online platform
through which the Group facilitate food ordering and
delivery of the food items by connecting the end
users, restaurant partners and delivery personnel.

Hyperpure is our farm-to-fork supplies offering for
restaurants in India and sale of items to businesses
for onward sales.

Quick commerce business is the quick commerce
online platform facilitating quick delivery of goods and
other essentials by connecting the end users, delivery
personnel and sellers and providing delivery services.
Quick commerce also provides the warehousing
services to the sellers.

The Group has combined and disclosed balancing
number in all other segments which are not reportable.

Revenue and expenses directly attributable to
segments are reported under each reportable
segment. Expenses which are not directly identifiable
to any reporting segment have been allocated to
respective segments based on the number orders,
number of employees or gross market value as
reviewed by CODM.

o) Earnings per share

Basic earnings per share are calculated by dividing the
net profit and loss for the year attributable to equity
shareholders of the Parent Company (after deducting
preference dividends and attributable taxes) by
the weighted average number of equity shares,
compulsorily convertible cumulative preference

shares and compulsorily convertible preference
shares outstanding during the year.

For the purpose

Mar 31, 2022

1 Corporate Information

Zomato Limited (formerly known as Zomato Private Limited) is domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The registered office of the company is located at GF - 12A, 94, Meghdoot, Nehru Place, New Delhi - 110019.

On April 22, 2020 the Registrar of Companies, Delhi has accorded their approval to change the name of the Company from Zomato Media Private Limited to Zomato Private Limited.

The Company has converted from Private Limited Company to Public Limited Company, pursuant to a special resolution passed in the extraordinary general meeting of the shareholders of the Company held on April 05, 2021 and consequently the name of the Company has changed to Zomato Limited pursuant to a fresh certificate of incorporation by the Registrar of Companies on April 09, 2021.

The Company (including trust and branches), which primarily operates as an internet portal which helps in connecting the Users, Restaurant Partners and the Delivery Partners and also provide platform to restaurant partners to advertise themselves to the target audience in India and abroad and supply of high quality ingredients to Restaurant Partners.

The standalone financial statements for the year ended March 31, 2022 were approved by the Board of Directors and authorised for issue on May 23, 2022.

2 Basis of preparation of standalone financial statements and significant accounting policies

2.1 Basis of preparation

These standalone financial statements have been prepared in accordance with Indian

Accounting Standard (Ind AS) prescribed under Section 133 of Companies Act, 2013 (the "Act"), read with rule 3 of the companies (Indian Accounting Standards) Rules, 2015 and relevant amendments rules issued thereunder.

The standalone financial statements have been prepared on the historical cost basis, except for the following assets and liabilities which have been measured at fair value:

- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments);

- Defined benefits plan - plan assets measured at fair value;

- Contingent consideration is measured at fair value;

- Share based payments

This note provides a list of the significant accounting policies adopted in the preparation of these standalone financial statements.

The standalone financial statements are presented in Indian Rupees or "INR" and all amounts disclosed in the standalone financial statements have been rounded off to the nearest million (as per requirement of Schedule III), unless otherwise stated.

2.2 Summary of significant accounting policies

i. Use of estimates

In particular, information about the significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the standalone financial statements are disclosed in note No. 28.

ii. Business combinations and goodwill

Business combinations are accounted for using the acquisition method or pooling of interest method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree''s identifiable net assets. Acquisition-related costs are expensed as incurred.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at their acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. However, the following assets and liabilities acquired in

a business combination are measured at the basis indicated below:

? Deferred tax assets or liabilities, and the assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with Ind AS 12 Income Tax and Ind AS 19 Employee Benefits respectively.

? Liabilities or equity instruments related to share based payment arrangements of the acquiree or share - based payments arrangements of the Company entered into to replace share-based payment arrangements of the acquiree are measured in accordance with Ind AS 102 Share-based Payment at the acquisition date.

? Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that standard.

? Reacquired rights are measured at a value determined on the basis of the remaining contractual term of the related contract. Such valuation does not consider potential renewal of the reacquired right.

If the business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognised in profit or loss or OCI, as appropriate.

Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of Ind AS 109 Financial Instruments, is measured at fair value with changes in fair value recognised in the statement of profit or loss account. If the contingent consideration is not within the scope of Ind AS 109, it is measured in accordance with the appropriate Ind AS. Contingent consideration that is classified as equity is not re-measured at subsequent reporting dates and subsequent its settlement is accounted for within equity.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI.

of the Company''s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

If the recoverable amount of the cash generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit.

For the purpose of impairment testing of Goodwill in relation to Uber Eats Business acquisition, the Company has considered the business of Uber Eats acquisition and Zomato business as one Cash generating unit as nature of both business is same.

Any impairment loss for goodwill is recognised in the standalone financial statement of profit and loss. An impairment loss recognised for goodwill is not reversed in subsequent years. Where goodwill has been allocated to a cashgenerating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cashgenerating unit retained.

If the initial accounting for a business combination is incomplete by the end of the reporting year in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted through goodwill during the measurement year, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. These adjustments are called as measurement year adjustments. The measurement year does not exceed one year from the acquisition date.

iii. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ noncurrent classification. An asset is treated as current when it is:

a. Expected to be realised or intended to be sold or consumed in normal operating cycle

b. Held primarily for the purpose of trading

c. Expected to be realised within twelve months after the reporting year, or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting year.

All other assets are classified as non-current.

A liability is current when:

a. It is expected to be settled in normal operating cycle

b. It is held primarily for the purpose of trading

c. It is due to be settled within twelve months after the reporting year, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting year.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

iv. Foreign currencies

The Company''s standalone financial statements are presented in Indian Rupees. For each foreign branch, the Company determines the functional currency and items included in the standalone financial statements of each entity are measured using that functional currency.

Functional currency is the currency of the primary economic environment in which the entities forming part of Company operates and is normally the currency in which the entities forming part of Company primarily generates and expends cash.

Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency spot rates at the date the transaction first qualifies for recognition. However, for practical reasons, the company uses an average rate if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss with the exception of the following:

a. In the standalone financial statements that include the foreign operation and the reporting entity (e.g. financial statements when the foreign operation is a branch), such exchange differences are recognised initially in OCI. These exchange differences are reclassified from equity to profit or loss on disposal of investment.

b. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in OCI.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

Foreign branches

On consolidation, the assets and liabilities of foreign operations are translated into Indian Rupees at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. For practical reasons, the company uses an average rate to translate income and expense items. The exchange differences arising on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognised in profit or loss.

v. Fair value measurement

The Company measures financial instruments (recorded at fair value through P&L or OCI) at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair

value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a. In the principal market for the asset or liability, or

b. In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

a. Level 1 - quoted (unadjusted) market prices in active markets for identical assets or liabilities

b. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

c. Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year.

External valuers are involved for valuation of significant assets and liabilities. Involvement of external valuers is decided on the basis of nature of transaction and complexity involved. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

At each reporting date, the finance team analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Company''s accounting policies. For this analysis, the team verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. A change in fair value of assets and liabilities is also compared with relevant external sources to determine whether the change is reasonable.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

vi. Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment loss, if any.

Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any.

Depreciation on all property, plant and equipment are provided on a straight line method based on the estimated useful life of the asset, which is as follows:

Property, plant and	Useful	Useful lives
equipment	lives as per	estimated by
	Schedule II	management
Air Conditioner	5 years	3 years
Electrical Equipments	5 years	3 years
Furniture & Fittings	10 years	3 years
Computers	3 years	2 years
Motor Vehicles	8 years	8 years
Telephone Instruments	5 years	2 years

Based on the expected useful lives of these assets, the Company has considered below

mentioned useful lives for different classes of assets:

â¢ The useful life of electrical equipments, furniture and fittings, computers, air conditioners, telephone instruments and plant & equipment are estimated as 3,3,2,3, 2 and 10 years respectively. These lives are lower than those indicated in schedule II to Companies Act 2013.

â¢ Improvements to leasehold buildings not owned by the Company are amortized over the lease year or estimated useful life of such improvements, whichever is lower.

Depreciation on the assets purchased during the year is provided on pro rata basis from the date of purchase of the assets. Individual assets costing less than INR 5,000 are fully depreciated in the year of purchase.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.

vii. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition.

Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets (other than those acquired in business combination) with finite lives are amortised on a straight line basis over the estimated useful economic life being 1-2 years. All Intangible assets (other than goodwill) are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation year and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting year. Changes in the expected useful life or the expected pattern of consumption of future economic

benefits embodied in the asset are considered to modify the amortisation year or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

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 gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

Intangible assets acquired in business combination, include brand, technology platform, trademarks and non-compete which are amortized on a straight line basis over their estimated useful life which is as follows:

Nature of Assets	Life
Brand	2 -3 years
Technology platform	5 years
Trademarks	5 years
Non-Compete	3 years

The amortisation year and method are reviewed at least at each financial year-end. If the expected useful life of the asset is significantly different from previous estimates, the amortisation year is changed accordingly.

viii. Leases

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and accumulated impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets the Company has lease contracts for office premises having a lease term ranging from 1-9 years.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (xvii) Impairment of non-financial assets.

ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments

include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the year in which the event or condition that triggers the payment occurs.

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

and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

ix. Revenue recognition

The Company generates revenue from online food delivery transactions, advertisements, subscriptions, sale of traded goods and other platform services.

Revenue is recognized to depict the transfer of control of promised goods or services to customers upon the satisfaction of performance obligation under the contract in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Consideration includes goods or services contributed by the customer, as non-cash consideration, over which Company has control.

Where performance obligation is satisfied over time, Company recognizes revenue over the contract year. Where performance obligation is satisfied at a point in time, Company recognizes revenue when customer obtains control of promised goods and services in the contract.

Revenue is recognized net of any taxes collected from customers, which are remitted to governmental authorities.

Revenue from Platform services and transactions

The Company operates as an internet portal connecting the Users, Restaurant Partners and the Delivery Partners. The Company has separate contractual arrangement with the User, Restaurant Partners and the Delivery Partners respectively which specify the rights and obligations of each parties. A user initiates the transaction which requires acceptance from the Restaurant Partner and Delivery Partner. The acceptance of the transaction, combined with the contractual agreement creates enforceable rights and obligations for each parties.

Identification of customer

Principal vs Agent Consideration

The Company considers itself as a principal in an arrangement when it controls the goods or service provided. For majority of its transactions, the Company has concluded that it does not control the good or service provided by the restaurant or delivery partner and accordingly the Company presents the commission from its restaurant partner as revenue and net delivery charges paid to the delivery partner as expense.

Incentives

The Company provides various types of incentives to the users to promote the transactions on its platform.

In most of the cases Company is not responsible for services to the user or does not receive consideration from the user. In such cases, the Company does not consider the user as a customer and hence the incentives paid to users are recorded as expenses. Further, the Company does not consider User as a customer of the restaurant partner for the services provided by the Company, as the Company is not providing the goods and services of Restaurant partner.

Revenue recognition

Revenue is recognised on completion of delivery or on users visit to the restaurant. Revenue is recognized net of any taxes collected from

customers, which are remitted to governmental authorities.

Revenue recognition for other revenue streams is as follows:

Advertisement revenue

Advertisement revenue is derived principally from the sale of online advertisements which is usually run over a contracted year of time. The revenue from advertisements is thus recognised over this contract year as the performance obligation is met over the contract year. There are some contracts where in addition to the contract year, the Company assures certain "clicks" (which are generated each time viewers on our platform clicks through the advertiser''s advertisement on the platform) to the advertisers. In these cases, the revenue is recognised when both the conditions of time year and number of clicks assured are met.

Subscription revenue

Revenues from subscription contracts are recognized over the subscription year on systematic basis in accordance with terms of agreement entered into with customer.

Sign-up revenue

The Company receives a sign-up amount from its restaurant partners and delivery partners. These are recognised on receipt or over a year of time in accordance with terms of agreement entered into with such relevant partner.

Delivery facilitation services

The Company is merely a technology platform provider for delivery partners to provide their delivery services to the Restaurant partners/ consumers and not providing or taking responsibility of the said services. For the service provided by the Company to the delivery partners, the Company may charge a platform fee from the delivery partners.

Interest

Interest income is recognized using the effective interest method. Interest income is included under the head "other income" in the statement of profit and loss.

Contract balances

The Policy for Contract balances i.e. contract assets trade receivables and contract liabilities is as follows:

Contract assets

A contract asset is the right to consideration in exchange for services transferred to the customer (which consist of unbilled revenue). If the Company performs by transferring services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is unconditional.

Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in financial instruments - initial recognition and subsequent measurement.

Contract liabilities

A contract liability is the obligation to transfer services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers services to the customer, a contract liability is recognised 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.

x. Retirement and other employee benefits

The Company operates a defined benefit gratuity plan in India and United Arab Emirates.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the net defined benefit liability are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the year in which they occur. Remeasurements are not reclassified to profit or loss in subsequent years.

Past service costs are recognised in profit or loss on the earlier of:

a. The date of the plan amendment or curtailment; and

b. The date that the Company recognises related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability. The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

a. Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

b. Net interest expense

Compensated Absences

The liabilities for leaves which are not expected to be settled wholly within 12 months after the end of the year in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting year by actuaries using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting year that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in other comprehensive income / loss.

xi. Taxes

Current income tax

in the countries where the Company operates and generates taxable income.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.

Deferred taxes

Deferred tax liabilities are recognised for all taxable temporary differences, except:

a. When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss,

b. In respect of taxable temporary differences associated with investments in subsidiaries, 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 for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

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

b. In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

xii. Share based payment

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.

That cost is recognised, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the year in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting year has expired and the Company''s best estimate of the number of equity instruments that will ultimately vest. The statement of profit and loss expense or credit for a year represents the movement in cumulative expense recognised as at the beginning and end of that year and is recognised in employee benefits expense.

Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Company''s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Nonvesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions.

No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognised is the expense had the terms had not been modified, if the original terms of the award are met. An additional expense is recognised for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

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

xiii. Segment reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and assessing performance.

The Group''s chief operating decision maker is the Chief Executive Officer and Managing Director.

The Group has identified business segments as reportable segments. The business segments comprise:

1. India food ordering and delivery

2. Hyperpure (B2B business)

3. All other segments (residual)

India food ordering and delivery is the online platform through which we facilitate food ordering and delivery of the food items by connecting the end users, restaurant partners and delivery personnel.

Hyperpure is our farm-to-fork supplies offering for restaurants in India.

The Group has combined and disclosed balancing number in all other segments which are not reportable

Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to any reporting segment as reviewed by CODM have been disclosed as unallocable expenses which included items such as server and tech infrastructure costs, corporate salary costs and other corporate expenses.

xiv. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year

attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares, compulsorily convertible cumulative preference shares and compulsorily convertible preference share outstanding during the year.

xv. Provisions and Contingent liabilities

i) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, 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. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

ii) Contingent Liabilities

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one are more uncertain future events not wholly within the control of the Company, or is a present obligation that arises from past event but is not recognised because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable

estimate of the amount of the obligation cannot be made. Contingent liabilities are disclosed and not recognised.

xvi. Financial instruments

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.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through statement of profit and loss are recognised immediately in statement of profit and loss.

Financial assets

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through statement of profit and loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Classification and Subsequent measurement

Financial assets that meet the following conditions are subsequently measured at amortised cost less impairment loss (except for debt investments that are designated as at fair value through profit or loss on initial recognition):

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

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

Financial assets that meet the following conditions are subsequently measured at fair value through other comprehensive income (except for debt investments that are designated as at fair value through profit or loss on initial recognition):

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

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

The Company subsequently measures certain investments in mutual funds in scope of Ind AS 109 at fair value, with net changes in fair value recognised in the consolidated statement of profit and loss. Also, the Company has made an irrevocable election to present subsequent changes in the fair value of certain investment in equity and preference instruments not held for trading in other comprehensive income.

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. Trade receivables, cash and cash equivalents, other bank balances, loans and other financial assets are classified for measurement at amortised cost.

Financial assets at amortised cost are subsequently measured at amortised cost using effective interest method. The effective interest method is a method of calculating the amortised cost of an instrument and of allocating interest income over the relevant year. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees paid or received that form an integral part

of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter year, to the net carrying amount on initial recognition.

Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received net of direct issue cost.

The Company subsequently measures certain equity investments in scope of Ind AS 109 at fair value, with net changes in fair value recognised in the statement of profit and loss. Also, the Group has made an irrevocable election to present subsequent changes in the fair value of certain equity investments not held for trading in other comprehensive income.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s summary statements of assets and liabilities) when:

i) The rights to receive cash flows from the asset have expired, or

ii) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

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:

i) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits and bank balance;

ii) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115.

The company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables.

The application of simplified approach does not require the Company to track changes in

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