obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are
determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.

A disclosure of contingent liability is made when there is: (i) a possible obligation arising from a past event, the existence of
which will be confirmed by occurrence or non-occurrence of one or more uncertain future events not within our control; or (ii)
a present obligation arising from a past event which is not recognised as it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote,
no provision or disclosure is made. Contingent assets are not recognised in the financial statements. However, contingent assets
are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income
are recognised in the period in which the change occurs.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and short
notice.

Borrowing cost

Borrowing cost includes arranger fees, processing fees, stamp duty on issuance of debenture certificates and other associated
transaction cost related to borrowing from banks and other financial institutions. In accordance with Accounting Standard 16,
borrowing costs are recognised upfront.

Retirement and other employee benefits

Defined Contribution Plans: Retirement benefits in the form of provident fund and employee state insurance schemes are
defined contribution schemes and the contributions are charged to the Profit and Loss Account for the year when the
contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective
funds.

Defined Benefit Plan: We operate a defined benefit scheme, i.e., a gratuity scheme for our employees. The costs of providing
benefits under this plan is determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried
out for each plan using the projected unit credit method. In accordance with the gratuity fund's rules, actuarial valuation of
gratuity liabilities is calculated based on certain assumptions regarding rate of interest, salary growth, mortality and staff
alteration as per projected unit credit method.

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year. Actuarial gains/losses are immediately taken to profit and loss account and are
not deferred.

Provision for Leave availment is made in accordance with Accounting Standard 15 “Employee benefits”.
Employee Stock Compensation Cost

Employees (including senior executives) receive remuneration in the form of share-based payment transactions, whereby
employees render services as consideration for equity instruments (equity-settled transactions).

In accordance with the Guidance Note on Accounting for Employee Share-based Payments, issued by the ICAI, the cost of
equity-settled transaction is measured using the fair value method and recognized, together with a corresponding increase in
the “Employees Stock options outstanding account” in reserves. 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 our best
estimate of the number of equity instruments that will ultimately vest. The expense or credit recognized in the Profit and Loss
Account for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and
is recognized in employee benefits expense.

CHANGES IN ACCOUNTING POLICIES

Other than as stated below, there have been no changes in our accounting policies during Fiscal 2018, 2019 and 2020 and in
the nine months ended December 31, 2020, except for the changes as necessitated by applicable laws.

Borrowing Cost

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