xii) Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal obligation
that is reasonably estimable, and it is probable that an outflow of economic benefits will be required
to settle the obligation. Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the reporting date. These estimates
are reviewed at each reporting date and adjusted to reflect the current best estimates.

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

xiii) Other expenses

Other expenses are recognised in the Statement of Profit and Loss when the related goods or
services are received or the liability is incurred. These include administrative expenses, legal &
professional fees, rent, repair maintenance and other operating expenses that are not directly
attributable to financing or investment activities. Expenses are recorded on an accrual basis unless
otherwise stated.

xiv) Cash & cash equivalents

Cash and cash equivalents in balance sheet comprise of cash on hand, cash at banks and short term
deposits with an original maturity of twelve months or less which are subject to insignificant risk of

changes in value. The Company considers all highly liquid investments with a remaining maturity at
the date of purchase of three months or less and that are readily convertible to known amounts of
cash to be cash equivalents.

Fixed Deposits with original maturity exceeding Twelve months are classified as non-current
investments.

For the purpose of Cash Flow Statement, cash and cash equivalents consists of cash and
bank balances reported under Current Assets

xv) Other assets & Other Liabilities

Other assets include non-financial and financial assets such as prepaid expense, security deposits,
advances, input tax credit, TDS receivable etc. These are recorded at cost or carrying value based on
the nature of transaction.

Other liabilities include non-financial and financial liabilities such as employee payable, other
payables, statutory liabilities, advances received etc. These are recorded at there settlement value
and are accrued when the obligation arises.

xvi) Segment reporting

The Company is primarily engaged in providing innovative Digital Lending and Supply Chain Finance
(SCF) technology product solutions to a wide range of clients. Accordingly, the Company operates in
only one business segment and therefore, Accounting Standard 17 - "Segment Reporting" issued
by the Institute of Chartered Accountants of India is not applicable to the company.