Provisions, contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and when
a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted
to their present values, where the time value of money is material.

Contingent liability is disclosed for:

Ý Possible obligations which will be confirmed only by future events not wholly within the control of the
Group or

Ý Present obligations arising from past events where 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.

Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain,
related asset is disclosed.

k. 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.

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted for transaction
costs. However trade receivables that do not contain a significant financing component are measured at
transaction price. Subsequent measurement of financial assets and financial liabilities is described below.

Subsequent measurement

i. Financial assets carried at amortised cost - a financial asset is measured at the amortised cost if both
the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method.

ii. Investments in equity instruments - Investments in equity instruments which are held for trading are
classified as at fair value through profit or loss (FVTPL). For all other equity instruments, the Group
makes an irrevocable choice upon initial recognition, on an instrument by instrument basis, to classify
the same either as at fair value through other comprehensive income (FVOCI) or fair value through
profit or loss (FVTPL). Amounts presented in other comprehensive income are not subsequently
transferred to profit or loss. However, the Group transfers the cumulative gain or loss within equity.
Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment.

iii. Investments in mutual funds - Investments in mutual funds are measured at fair value through profit
and loss (FVTPL).

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 nonfinancial 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.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy
of valuation techniques, as summarised below:

Level 1 financial instruments: Those where the inputs used in the valuation are unadjusted quoted prices
from active markets for identical assets or liabilities that the Group has access to at the measurement date.
The Group considers markets as active only if there are sufficient trading activities with regards to the
volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price
quotes available on the balance sheet date.

Level 2 financial instruments: Those where the inputs that are used for valuation and are significant, are
derived from directly or indirectly observable market data available over the entire period of the instrument's
life.

Level 3 financial instruments: Those that include one or more unobservable input that is significant to the
measurement as whole. Based on the Group's business model for managing the investments, the Group has
classified its investments and securities for trade at FVTPL. Financial liabilities are carried at amortised cost
using the effective interest rate method. For trade and other payables the carrying amount approximates
the fair value due to short maturity of these instruments.

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets)
are derecognised (i.e. removed from the Group's balance sheet) when the contractual rights to receive the
cash flows from the financial asset have expired, or when the financial asset and substantially all the risks
and rewards are transferred. Further, if the Group has not retained control, it shall also derecognise the
financial asset and recognise separately as assets or liabilities any rights and obligations created or retained
in the transfer.

Financial liabilitiesSubsequent measurement

Subsequent to initial recognition, all financial liabilities are measured at amortised cost using the effective
interest method.

De-recognition of financial liabilities

A financial liability is de-recognised 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 de-recognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognised in the consolidated statement of profit and
loss.

Convertible debentures

Convertible debentures are separated into liability and equity components basis the terms of the contract.
On issuance of the convertible debentures, the fair value of the liability component is determined using
a market rate for an equivalent non-convertible instrument. This amount is classified as financial liability
measured at amortised cost until it is extinguished on conversion. The remainder of the proceeds is
recognised in equity since conversion option meets the fixed for fixed criteria.

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 recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.

l. Impairment of financial assets

In accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for measurement and
recognition of impairment loss for financial assets. The Group factors historical trends and forward looking
information to assess expected credit losses associated with its assets and impairment methodology applied
depends on whether there has been a significant increase in credit risk.

Loan assets

The Group follows a 'three-stage' model for impairment based on changes in credit quality since initial
recognition as summarised below:

Ý Stage 1 (1-30 days) includes loan assets that have not had a significant increase in credit risk since initial
recognition or that have low credit risk at the reporting date.

Ý Stage 2 (31-60 days) includes loan assets that have had a significant increase in credit risk since initial
recognition but that do not have objective evidence of impairment.

Ý Stage 3 (more than 90 days) includes loan assets that have objective evidence of impairment at the
reporting date.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for
Stage 2 and Stage 3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and Loss
Given Default, defined as follows:

Probability of Default (PD) - The PD represents the likelihood of a borrower defaulting on its financial
obligation (as per "Definition of default and credit-impaired" above), either over the next 12 months (12
months PD), or over the remaining lifetime (Lifetime PD) of the obligation.

Loss Given Default (LGD) - LGD represents the Group's expectation of the extent of loss on a defaulted
exposure. LGD varies by type of counterparty, type and preference of claim and availability of collateral or
other credit support.

Exposure at Default (EAD) - EAD is based on the amounts the Group expects to be owed at the time of
default. For a revolving commitment, the Group includes the current drawn balance plus any further amount
that is expected to be drawn up to the current contractual limit by the time of default, should it occur.

Forward-looking economic information is included in determining the 12-month and lifetime PD, EAD and
LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an ongoing basis.

Trade receivables

In respect of trade receivables, the Group applies the simplified approach of Ind AS 109, which requires
measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected
credit losses are the expected credit losses that result from all possible default events over the expected life
of a financial instrument.

Other financial assets

In respect of its other financial assets, the Group assesses if the credit risk on those financial assets has
increased significantly since initial recognition. If the credit risk has not increased significantly since initial
recognition, the Group measures the loss allowance at an amount equal to 12-month expected credit losses,
else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Group uses the change in the risk of a default occurring over the
expected life of the financial asset. To make that assessment, the Group compares the risk of a default
occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the
financial asset as at the date of initial recognition and considers reasonable and supportable information,
that is available without undue cost or effort, that is indicative of significant increases in credit risk since
initial recognition. The Group assumes that the credit risk on a financial asset has not increased significantly
since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.

Write-offs

Financial assets are written off either partially or in their entirety to the extent that there is no realistic
prospect of recovery. Any subsequent recoveries are credited to impairment on financial instrument in
consolidated statement of profit and loss.

m. Impairment of non-financial assets

At each reporting date, the Group assesses whether there is any indication that an asset may be impaired.
If any such indication exists, the Group estimates the recoverable amount of the asset. Recoverable amount
is higher of an asset's net selling price and its value in use. If such recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount,
the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and
is recognised in the consolidated statement of profit and loss. If at the reporting date there is an indication
that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount.

n. Earnings per equity share

Basic earnings per equity share is calculated by dividing the net profit or loss for the period attributable to
equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding during the
period is adjusted for events including a bonus issue.

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

o. Segment reporting

The Group identifies segment basis the internal organization and management structure. The operating
segments are the segments for which separate financial information is available and for which operating
profit/loss amounts are regularly reviewed by the CODM ('chief operating decision maker') in deciding how
to allocate resources and in assessing performance.

p. Foreign currencyFunctional and presentation currency

Items included in the financial statement of the Group are measured using the currency of the primary
economic environment in which the entity operates ('the functional currency'). The consolidated financial
statements have been prepared and presented in Indian Rupees (INR), which is the Holding Company's
functional and presentation currency.

Transactions and balances

Foreign currency transactions are recorded in the functional currency, by applying to the exchange rate
between the functional currency and the foreign currency at the date of the transaction. Foreign currency
monetary items outstanding at the balance sheet date are converted to functional currency using the
closing rate. Non-monetary items denominated in a foreign currency which are carried at historical cost are
reported using the exchange rate at the date of the transaction.

Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates
different from those at which they were initially recorded, are recognized in the consolidated statement of
profit and loss in the year in which they arise.

q. Investment property

Investment properties are land and buildings that are held for long term lease rental yields and/or for
capital appreciation. Investment properties are initially recognised at cost including transaction costs.
Subsequently investment properties comprising buildings are carried at cost less accumulated depreciation
and accumulated impairment losses, if any.

Depreciation on buildings is provided over the estimated useful lives of 60 years. The residual values,
estimated useful lives and depreciation method of investment properties are reviewed, and adjusted on
prospective basis as appropriate, at each reporting date. The effects of any revision are included in the
Statement of Profit and Loss when the changes arise.

An investment property is de-recognised when either the investment property has been disposed of or do
not meet the criteria of investment property i.e. when the investment property is permanently withdrawn
from use and no future economic benefit is expected from its disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognised in the Statement of Profit and Loss in
the period of de-recognition.

r. Classification of leases -

The Group enters into leasing arrangements for various premises. The assessment (including measurement)
of the lease is based on several factors, including, but not limited to, transfer of ownership of leased asset
at end of lease term, lessee's option to extend/terminate etc. After the commencement date, the Group
reassesses the lease term if there is a significant event or change in circumstances that is within its control
and affects its ability to exercise or not to exercise the option to extend or to terminate.

Leases

upto 31 March 2019, assets acquired on leases where a significant portion of risk and rewards of ownership
are retained by the lessor are classified as operating leases. Lease rental are charged to statement of profit
and loss on straight-line basis except where scheduled increase in rent compensate the lessor for expected
inflationary costs.

For any new contracts entered into on or after 1 April 2019, the Group considers whether a contract is, or
contains a lease (the transition approach has been explained and disclosed in Note 48). A lease is defined as
'a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of
time in exchange for consideration'.

Classification of leases

The Group enters into leasing arrangements for various assets. The assessment of the lease is based on

several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term,

lessee's option to extend/purchase etc.

Recognition and initial measurement

At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease
liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the
asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement
date (net of any incentives received).

The Group enters into leasing arrangements for various assets. The assessment of the lease is based on

several factors, including, but not limited to, transfer of ownership of leased assets at end of lease term,

lessee's option to extend/ purchase etc.

Recognition and initial measurement

At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance
sheet. The rigth-of-use asset is measured at cost, which is made up of the initial measurement of the
lease liability, any initial direct costs incurred by the Group, an estimate of the any costs to dismantle and
remove the asset at the end of the lease (if any), and any lease payments made in advance of the lease
commencement date (net of any incentive received).

Subsequent measurement

The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group
also assesses the right-of-use asset for impairment when such indicators exist.

At lease commencement date, the Group measures the lease liability at the present value of the lease
payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily
available or the Groups incremental borrowing rate. Lease payments included in the measurement of the
lease liability are made up of fixed payments (including in substance fixed payments) and variable payments
based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments
made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there
are changes in in-substance fixed payments. When the lease liability is re-measured, the corresponding
adjustment is reflected in the right-of-use asset.

The Group has elected to account for short-term leases using the practical expedients. Instead of recognising
a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in
statement of profit and loss on a straight-line basis over the lease term.

s. Treasury shares

The Company had created "Indiabulls Ventures Limited - Employee Welfare Trust" ('Trust') for the
implementation of schemes namely employees stock options plans, employees stock purchase plan and
stock appreciation rights plan. During the year ended 31 March 2021, name of the Trust has been changed
to "Udaan Employee Welfare Trust" ("Udaan-EWT"). The Company treats Udaan-EWT as its extension and
the Company's own shares held by Udaan-EWT are treated as treasury shares. Treasury shares are presented
as a deduction from other equity. The original cost of treasury shares and the proceeds of any subsequent
sale are presented as movements in equity.

t. Dividend

Provision is made for the amount of any dividend declared on or before the end of the reporting period
but not distributed at the end of the reporting period, being appropriately authorised and no longer at the
discretion of the Company. The final dividend on shares is recorded as a liability on the date of approval
by the shareholders, and interim dividends are recorded as a liability on the date of declaration by the
Company's Board of Directors.

u. Inventory

Items of Inventories are valued at lower of cost or net realizable value after providing for obsolescence and
other losses, where considered necessary. Cost is determined on Weighted Average basis. Cost includes
all charges in bringing the goods to their present location and condition, including octroi and other levies,
transit insurance and receiving charges. Net Realizable Value represents the estimated selling price in the
ordinary course of business less estimated costs necessary to make the sale

v. Recent Accounting Pronouncements

The Ministry of Corporate Affairs (MCA) on 31 March 2023, has issued Companies (Indian Accounting
Standard) Amendment Rules, 2023 in consultation with the National Financial Reporting Authority (NFRA).

The notification states that these rules shall be applicable from 1 April 2023 and would thus be applicable
for the financial year ending 31 March 2024.

- Amendments to Ind AS 1, "Presentation of Financial Statements"

Companies should now disclose material accounting policy information rather than their significant
accounting policies, together with other information, which is relevant to an understanding of financial
statements.

- Amendments to Ind AS 8, "Accounting policies, Change in Accounting Estimates and Errors"

1. Definition of 'change in account estimate' has been replaced by revised definition of 'accounting
estimate'

2. As per revised definition, accounting estimates are monetary amounts in the financial statements
that are subject to measurement uncertainty

3. A company develops an accounting estimate to achieve the objective set out by an accounting
policy.

4. Accounting estimates include: a) Selection of a measurement technique (estimation or valuation
technique) b) Selecting the inputs to be used when applying the chosen measurement technique.

- Amendments to Ind AS 12, "Income Taxes"

1. Narrowed the scope of the Initial Recognition Exemption (IRE) (with regard to leases and
decommissioning obligations)

2. Now IRE does not apply to transactions that give rise to equal and offsetting temporary differences

3. Accordingly, companies will need to recognise a deferred tax asset and a deferred tax liability
for temporary differences arising on transactions such as initial recognition of a lease and a
decommissioning provision.

- Based on preliminary assessment, the Company does not expect these amendments to have any
significant impact on financial statements.