1. Corporate information
Pine Labs Private Limited ('Company') was incorporated on May 18, 1998 under the Companies Act 1956. It is mainly engaged in providing services related to transaction processing, payment solutions, gifting solutions and petroleum retail automation (including supply of material) to its customers.
2. Basis of brparation
The financial statements of the Company have been brpared in accordance with the generally accepted accounting principles in India. The Company has brpared these financial statements to comply in all material aspects with the Accounting Standards notified under Companies (Accounting Standard) Rules, 2006 (as amended, specified) section 133 of the Companies Act 2013. The financial statements have been brpared on an accrual basis and under the historical cost convention and the accounting policies followed are consistent with the brvious year.

2.1   Summary of significant accounting policies
(a) Use of estimates
The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods

(b) Tangible fixed assets
Tangible Assets are stated at cost, net of accumulated debrciation and accumulated impairment losses, if any, except in case of land which is carried at revalued amount. Cost comprises of the purchase price including import duties and non-refundable taxes, and directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management. Subsequent costs related to an item of Property, Plant and Equipment are recognized in the carrying amount of the item if the recognition criteria are met.
(c) Debrciation on tangible fixed assets
Debrciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management as below:
Particulars                 Useful life (in years)
Computers                       3
Office equipment's           5
Furniture and fixtures*      5
Vehicle*                           3
Plant &machinery*           5
Server and networks        6

Leasehold improvements are debrciated over lower of lease term or seven years.
*For these class of assets, based on internal assessment and technical evaluation carried out by the management believes that the useful lives as given above best rebrsent the period over which management expects to use these assets. Hence the useful lives for these assets are different from the useful lives as brscribed under Part C of Schedule II of the Companies Act 2013.

(d) Intangible assets
Intangible assets are computer software licenses and are amortized on a straight-line basis over the lower of license period or 3 years.

(e) Leases
Where the Company is the lessee

(i)Operating leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease.

(ii) Finance leases
The Company leases certain tangible assets and such leases where the Company has substantially all the risks and rewardsof ownership are classified as finance leases. Finance leases are capitalized at the inception of the lease at the lower of thefair value of the leased asset and the brsent value of the minimum lease payments.
Each lease payment is apportioned between the finance charge and the reduction of the outstanding liability. The outstanding liability is included in other short/long-term borrowings. The finance charge is charged to the Statement of Profit and Loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

(f) Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.All other borrowing costs are expensed in the period they occur.

(g) Impairment of tangible and intangible assets
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors.  An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.  The recoverable amount is the greater of the asset's net selling price and value in use.  In assessing value in use, the Company measures its 'value in use' based on undiscounted cash flows of next five years projections estimated based on current prices.

(h) Cash and cash equivalents
Cash and cash equivalents comprise cash, demand depositswith bank and in hand and other short-term highly liquid investments with an original maturity of three months or less.

(i) Inventories
Traded goods comprising of stocks of products delivered along with the services provided, are valued at the lower of cost (determined on weighted average basis) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost to make the sale.
The Company provides for obsolete and slow-moving inventory based on management estimates of the usability of inventory.

(j) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Income from services
i. Revenue from software development and allied products and services is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
ii. Revenue on time-and-materials jobs is recognized based on resources deployed in accordance with the specific terms agreed with the customer.
iii. Revenue from maintenance services are recognized pro-rata over the period of contract as and when the services are rendered.
iv. Income from facilitation of schemes is recognized on completion of such services on gross basis. (Refer note 34)
Other Income
Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

(k) Foreign currency translation
Foreign currency transactions and balances

(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(ii) Subsequent recognition
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction, and non-monetary terms which are carried at fair market value and other similar valuation denominated in foreign currency are reporting using the exchange rate that the existed when the values were determined.

(iii) Exchange differences
Exchange differences arising on the settlement of monetary items or on reporting Company's monetary items at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expenses in the year in which they arise.

(l) Employee benefits
i. Provident Fund: Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective fund.
ii. Gratuity: Gratuity liability is 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.
iii. Compensated absences: Short term compensated absences are provided based on estimates and Long-term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.
iv. Actuarial gains/losses are immediately taken to statement of profit and loss and are not deferred.
(m) Income taxes
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws brvailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that enough future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available
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 tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

(n) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

(o) Provisions
A provision is recognized when the Company has a brsent obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their brsent 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.

(p) Contingent liabilities
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 brsent obligation that is not recognized 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 recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

(q) Employee Stock Option
Measurement and disclosure of the employee share-based payment plans is done in accordance with the Guidance Note on Accounting for Employee Share-based Payments, issued by the Institute of Chartered Accountants of India. The employees of the Company are entitled to share options of the Holding Company. The Company measures compensation cost relating to employee stock options using the intrinsic value method and based on cost charged by the Holding Company. Compensation expense is amortized over the vesting period of the option.

(r) Segment reporting
Identification of segments:The Company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment rebrsenting a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operates.

Inter segment transfers:The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices

Allocation of common costs:Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Unallocated items:Includes general corporate income and expense items which are not allocated to any business segment.
Segment policies:The Company brpares its segment information in conformity with the accounting policies adopted for brparing and brsenting the financial statements of the Company.

(a)     Employee benefits

         i.            Provident Fund: Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective fund.

        ii.            Gratuity: Gratuity liability is 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.

      iii.            Compensated absences: Short term compensated absences are provided based on estimates and Long-term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.

      iv.            Actuarial gains/losses are immediately taken to statement of profit and loss and are not deferred.