Accounting Policies of Skyways Air Services Ltd. Company

Mar 31, 2025

2 Summary of material accounting policies

This note provides a list of the material accounting policies adopted in the preparation of these Indian Accounting standards (Ind-AS)
financial statements. These policies have been consistently applied to all the years.

2.01 Statement of compliance and basis of preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)
notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation and
disclosure requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III) as amended and
other relevant provisions of the Act and accounting principles generally accepted in India.

''The financial statements are presented in INR and all values are rounded to the nearest lacs, except when otherwise stated.

2.02 Basis of presentation and preparation of separate financial statements

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at
fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for services.

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, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or
liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement
date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for
leasing transactions that are within the scope of Ind AS 116 ''Leases'' and measurements that have some similarities to fair value but
are not fair value or value in use in Ind AS 36 ''Impairment of Assets''.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to
which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its
entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;

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

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

2.03 Basis of measurement

The financial statements have been prepared on a going concern basis using historical cost convention and on an accrual method of
accounting.

2.04 Recent accounting pronouncement

The Ministry of Corporate Affairs has amended the Companies (Indian Accounting Standards) Rules, 2015. These amendments are as
follows:

(i) Lease liability in sale and leaseback transaction- Amendments to Ind AS 116:

The amendment to Ind AS 116 introduces new guidance for seller-lessees in sale and leaseback transactions. It specifies that after the
commencement date, seller-lessees must apply certain paragraphs to the right-of-use asset and lease liability, ensuring no gain or
loss is recognized for the right of use retained. Additionally, the amendment includes new paragraphs in Appendix C, effective from
April 1, 2024, requiring retrospective application to relevant transactions. This aims to standardize the accounting treatment and
enhance clarity in financial reporting for these transactions.

(ii) Introduction of new Ind AS 117, Insurance contracts:

The amendment introduced new Ind AS 117, which provides comprehensive guidance on the accounting for insurance contracts. This
new standard is to apply for annual reporting periods starting on or after April 1, 2024. Ind AS 117 aims to enhance transparency and
comparability in financial statements by standardising the recognition, measurement, presentation, and disclosure of insurance
contracts.

The amendments had no significant impact on the Company''s summary statements.

2.05 Current and 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:

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

? Held primarily for the purpose of trading

? Expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

A liability is current when:

? It is expected to be settled in normal operating cycle

? It is held primarily for the purpose of trading

? It is due to be settled within twelve months after the reporting period, or

? There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

Current assets/liabilities include current portion of non-current financial assets/liabilities respectively. All other assets/ 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 realisation in cash and cash equivalents. The
Company has identified twelve months as its operating cycle.

2.06 Functional and presentation currency

These financial statements are presented in Indian rupee (INR), which is the functional currency of the Company.

2.07 Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer, at an
amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The
company has concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before
transferring them to the customers.

Performance obligation

At contract inception, the Company assess the goods and services promised in contracts with customers and identifies various
performance obligations to provide distinct goods and services to the customers.

The transaction price of services rendered is net of variable consideration on account of various elements like discounts etc. offered by
the Group as part of the contract.

Revenue from multimodal transport services rendered are recognised on the completion of the services as per the terms of contract.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of services rendered is net of variable consideration on
account of various discounts offered by the company as part of the contract.

Interest

Interest income is recognised when it is probable that the economic benefits will flow to the company and amount of income can be
measured reliably. Interest income is included under the head "other income" in the standalone statement of profit and loss.

2.08 Cash flow statement

Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows", whereby profit/loss before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated
based on the available information.

2.09 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity
of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.

2.10 Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase
taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use. It also includes
the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, wherever
applicable. Items such as spares are capitalized when they meet the definition of property, plant and equipment.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate
items (major components) of property, plant and equipment. Likewise, on initial recognition, expenditure to be incurred towards
major inspections and overhauls are identified as a separate component and depreciated over the expected period till the next
overhaul expenditure.

Subsequent costs and disposal

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future
economic benefits from the existing asset beyond its previously assessed standard of performance/life. All other expenses on existing
property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to
the statement of profit and loss for the period during which such expenses are incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal
with the carrying amount of property, plant and equipment, and are recognized net within other income/other expenses in statement
of profit and loss.

Capital work in progress

Assets in the course of construction are capitalized in capital work in progress account. At the point when an asset is capable of
operating in the manner intended by management, the cost of construction is transferred to the appropriate category of property,
plant and equipment. Costs associated with the commissioning of an asset are capitalised until the period of commissioning has been
completed and the asset is ready for its intended use.

Depreciation and amortisation

Depreciation on Property, plant and equipment has been provided on the straight-line method (SLM) to allocate their cost, net of their
residual values, as per useful life prescribed in Schedule II to the Act. Management''s assessment of independent technical
evaluation/advice takes into account, inter alia, the nature of the assets, the estimated usage of the assets, the operating conditions
of the assets, past history of replacement and maintenance support. The depreciation method, asset''s residual values and useful lives
are reviewed, and adjusted if appropriate, at the end of each reporting period prospectively.

Depreciation on tangible fixed assets has been provided on the straight line method as per the useful life prescribed in Schedule II to
the Companies Act, 2013 except in respect of mobile phones in which case life of the asset is considered to be 2 years. Leasehold land
is amortized on a straightline basis over the unexpired period of the leases.

Additions on account of insurance spares, additions/extensions forming an integral part of existing plants and the revised carrying
amount of the assets identified as impaired, are depreciated over residual life of the respective asset.

An item of property, plant and equipment is dereocgnised upon disposal or when no future economic benefits are expected to arise
from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between sales proceeds and the carrying amount of the asset and is recognised in statement of profit
Dep reciation methods, useful lives and residual values are reviewed at each financial year and changes in estimates, if any, are
accounted for prospectively.

2.11 Investment properties

Property that is held for long term rental yields or for capital appreciation or for both, and that is not occupied by the Company, is
classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where
applicable borrowing costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation
and accumulated impairment loss, if any.

Though the Company measures investment property using cost-based measurement, the fair value of investment property is disclosed
in the notes. Fair values are determined based on an annual evaluation performed by an external independent valuer applying a
valuation model as per Ind AS 113 "Fair value measurement".

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use
and no future economic benefit is expected from their disposal.

The difference between the net disposal proceeds and the carrying amount of the asset is recognised in statement of profit and loss in
the period of derecognition.

The Company depreciates building component of investment property over 60 years.

Transfer of property from investment property to the property, plant and equipment is made when the property is no longer held for
long term rental yields or for capital appreciation or both at carrying amount of the property transferred.

2.12 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets are amortised over their estimated useful life. Software is amortised using the straight-line method over the
estimated useful life of three years or the tenure of the respective software license, whichever is lower.

The amortization period and the amortization 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 revised to reflect the changed pattern, if any.

Subsequent costs and disposal

Subsequent expenditure related to an item of an intangible assets is added to its book value only if it increases the future economic
benefits from the existing asset beyond its previously assessed standard of performance/life.

Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the
carrying amount of the asset, are recognised in statement of profit and loss when the asset is derecognised.

2.13 Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of all of its tangible and intangible assets to
determine whether there is any indication based on internal/ external factors that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss
(if any). When it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable
amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be
identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. 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 assets for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount
of asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in statement of
profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the assets (or cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal
of an impairment loss is recognised immediately in statement of profit and loss.

Borrowing costs directly relating to the acquisition, construction or production of a qualifying capital project under construction are
capitalised and added to the project cost during construction until such time that the assets are substantially ready for their intended
use i.e. when they are capable of commercial production. Where funds are borrowed specifically to finance a project, the amount
capitalised represents the actual borrowing costs incurred. Where surplus funds are available out of money borrowed specifically to
finance a project, the income generated from such current investments is deducted from the total capitalized borrowing cost. Where
the funds used to finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of
rates applicable to relevant general borrowings of the company during the year. Capitalisation of borrowing costs is suspended and
charged to profit and loss during the extended periods when the active development on the qualifying assets is interrupted.

2.14 Foreign currency transactions and translations

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in
which the Company operates (''the functional currency''). The financial statements are presented in Indian rupee (INR), which is the
Company''s functional and presentation currency.

Transactions in currencies other than the functional currency are translated into the functional currency at the exchange rates ruling
at the date of the transaction. Monetary assets and liabilities denominated in other currencies are translated into the functional
currency at exchange rates prevailing on the reporting date. Non-monetary assets and liabilities denominated in other currencies and
measured at historical cost or fair value are translated at the exchange rates prevailing on the dates on which such values were
determined.

All exchange differences are included in statement of profit and loss except any exchange differences on monetary items designated
as an effective hedging instrument of the currency risk of designated forecasted sales or purchases, which are recognized in the other
comprehensive income.

2.15 Non-current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather
than through continuing use. Non- current assets classified as held for sale are measured at the lower of their carrying amount and
fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance
costs and income tax expense. Any expected loss is recognized immediately in the statement of profit and loss.

The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the assets is available for
immediate sale in its present condition. Actions required to complete the sale/ distribution should indicate that it is unlikely that
significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale
and the sale expected within one year from the date of classification.

The Company treats sale of the asset to be highly probable when:

• The appropriate level of management is committed to a plan to sell the asset

• An active programme to locate a buyer and complete the plan has been initiated (if applicable)

• The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

• The sale is expected to qualify for recognition as a completed sale within one year from the date of classification , and

• Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan
will be withdrawn.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

Assets and liabilities classified as held for sale are presented separately as current items in the balance sheet.

2.16 Borrowing Costs

Borrowing cost includes interest and other costs incurred in connection with the borrowing of funds and charged to statement of profit
& loss on the basis of effective interest rate (EIR) method. Borrowing cost also includes exchange differences to the extent regarded
as an adjustment to the borrowing cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing
costs are recognized as expense in the period in which they occur.

2.17 Retirement and other employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity fund and compensated absences.

Defined contribution plans

The Company''s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and
are charged as an expense based on the amount of contribution required to be made and when services are rendered by the
employees.

Defined benefit plans

The Company has a defined benefit plan (the "Gratuity Plan"). The Gratuity Plan provides a lump sum payment to employees who
have completed five years or more of service at retirement, disability or termination of employment, being an amount based on the
respective employee''s last drawn salary and the number of years of employment with the Company.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to
market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation. The interest cost is calculated by applying the discount rate to the balance of the defined benefit obligation. This cost is
included in employee benefit expense in the statement of profit and loss.

The liability or asset recognised in the balance sheet in respect of gratuity plan is the present value of the defined benefit obligation at
the end of the reporting period. The defined benefit obligation is calculated annually by actuaries using the projected unit credit
method.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees
are recognised during the year when the employees render the service. These benefits include compensated absences which are
expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under :

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future
compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee
renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet
date on the basis of actuarial valuation.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the
period in which they occur, directly in other comprehensive income and are never reclassified to statement of profit and loss. Changes
in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in
the statement of profit and loss as past service cost.

2.18 Investment in Subsidiaries, associates and joint ventures

A subsidiary is an entity that is controlled by another entity. An associate is an entity over which the Company 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.

The Company''s investments in its subsidiaries, associates and joint ventures are accounted at cost less impairment

The Company''s investment in subsidiaries, associates and Joint venture are carried at cost less impairment as per IND AS 27. The
Company regardless of the nature of its involvement with an entity (the investee), determines whether it is a parent by assessing
whether it controls the investee. The Company controls an investee when it is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee.

The Company reviews its carrying value of investments carried at cost annually, or more frequently when there is indication for
impairment. If the recoverable amount is less than its carrying amount, the impairment loss is recorded in the Statement of Profit and
When an impairment loss subsequently reverses, the carrying amount of the Investment is increased to the revised estimate of its
recoverable amount, so that the increased carrying amount does not exceed the cost of the Investment. A reversal of an impairment
loss is recognised immediately in Statement of Profit or Loss.

The Company considers investment in an entity as a joint venture 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.

2.19 Dividend

The Company recognizes a liability to pay dividend to equity holders of the Company, when the distribution is authorised and the
distribution is no longer at the discretion of the Comapny. As per the corporate laws in India, a distribution is authorised when it is
approved by the shareholders. A corresponding amount is recognised directly in equity.

2.20 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''s lease asset classes primarily comprise of lease for land and building. 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 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 building (i.e. 30 and
60 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 ''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 period 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.

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

The Company applies the short-term lease recognition exemption to its short-term leases (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 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.

Company as a lessor:

Leases for which the Company is a lessor is classified as finance or operating lease. Leases in which the Company does not transfer
substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is
accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.

Determining whether an arrangement contains a lease

An arrangement, which is not in the legal form of a lease, should be accounted for as a lease, if:

i) fulfilment of the arrangement is dependent on the use of a specific asset or assets (the asset); and

ii) the arrangement conveys a right to use the asset.

At inception of an arrangement, the Company determines whether the arrangement is or contains a lease.

At inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other consideration
required by the arrangement into those for the lease and those for other elements on the basis of their relative fair values. If it is
impracticable to separate the payments reliably, then a finance lease receivable is recognised at an amount equal to the fair value of
the underlying asset; subsequently, the receivable is reduced as payments are made and a finance income is recognised using the
interest rate implicit in the lease.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised
as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight-line basis
over the lease term.

2.21 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker of the Company is responsible for allocating resources and assessing performance of the operating
segments.

2.22 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by
dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and
other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares
which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.
Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

2.23 Taxes on income

Income tax expense comprises current and deferred tax. It is recognised in statement of profit and loss except to the extent that it
relates items recognised directly in equity or in Other Comprehensive Income.

Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are
never taxable or deductible. The current tax is calculated using tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period.

Current tax assets and liabilities are offset only if, the Company:

i) has a legally enforceable right to set off the recognised amounts; and

ii) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax

Deferred tax is provided using the Balance sheet 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 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.

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 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.

Current and deferred tax for the year

Current and deferred tax are recognised in statement of profit and loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprenhensive
income or directly in equity respectively.