Interest income is accrued on time basis, by reference to the principal outstanding and at the effective interest rate
applicable.

Foreign currencies

Determination of functional currency:

Currency of the primary economic environment in which the Company operates (“the functional currency”) is
Indian Rupee (INR) in which the company primarily generates and expends cash. Accordingly, the Management
has assessed its functional currency to be Indian Rupee (INR).

Transactions in foreign currency are recorded on the basis of the exchange rate prevailing as on the date of
transaction. Monetary assets and liabilities denominated in foreign currency are restated at rates prevailing at the
year-end. The net loss or gain arising out of such restatement is dealt with in the Statement of Profit and Loss.

Leases

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company
assesses whether:

(i) the contract involves the use of an identified asset (ii) the company has substantially all of the economic benefits
from use of the asset through the period of the lease (iii) the company has the right to direct the use of the asset.

The company as a lessee

At the commencement of the lease, the company recognises a right of use asset (ROU) and a corresponding lease
liability for all lease arrangements in which it is a leasee, except for leases with a term of 12 months or less (Short
term lease) and low value leases. For those Short term and low value leases, the company recognizes the lease
payments as an operating expense on a straight line basis over the term of the lease. Certain lease arrangements
includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease
liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and
impairment losses. Right-of-use assets are depreciated from the commencement date on a straight-line basis over
the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for
recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less.
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash
flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile of these leases. Lease liabilities are re-measured with a
corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Ministry of Corporate Affairs (MCA) vide its notification dated July 24, 2020, has directed the companies to
recognise the short term waivers received on account of COVID-19 pandemic, up to June 2021, as other income
in the profit and loss account.

Employee benefits

Defined contribution plan

The Company makes defined contribution to Government Employee Provident Fund, Government Employee
Pension Fund, Employee Deposit Linked Insurance and Employee State Insurance, which are recognized in the

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