q) Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive)
as a result of a 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. When the Company expects some or all of a provision to be
reimbursed, the reimbursement is recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the
statement of profit and loss, net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. The
unwinding of discount is recognized in the statement of profit and loss as a finance cost.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the
current best estimate. If it is no longer probable that an outflow of resources would be
required to settle the obligation, the provision is reversed.

A contingent liability is a possible obligation that arisesfrom past events whose existence will
be confirmedby the occurrence or non-occurrence of one or more uncertain future events
beyond the control of theCompany 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 recognize
contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised but disclosed inthe financial statements when an inflow
of economic benefits is probable.

r) 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.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to
the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified into four categories:

• Debt instruments at amortised cost;

• Debt instruments at fair value through other comprehensive income (FVTOCI);

• Debt instruments, derivatives and equity instruments at fair value through profit or loss
(FVTPL);

• Equity instruments measured at fair value through other comprehensive income (FVTOCI).

i. Debt instruments at amortised cost

A ‘debt instrument’ 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 that 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. Amortised cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included in finance income in the statement of
profit and loss. The losses arising from impairment are recognised in the statement of
profit and loss.

ii. Debt instruments at FVTOCI

A ‘debt instrument’ is classified as at the FVTOCI if both ofthe following criteria are met:

a. The objective of the business model is achieved bothby collecting contractual cash
flows and selling thefinancial assets, and

b. The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at
each reporting date at fair value. Fair value movements are recognized inthe other
comprehensive income (OCI). However, theCompany recognizes interest income,
impairment losses and reversals and foreign exchange gain or loss in the statement of
profit and loss. On de-recognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to statement of profit and loss. Interest
earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR
method.

iii. Debt instruments at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not
meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at
FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all
changes recognized in the statement of profit and loss.

iv. Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as at FVTPL. For all other equity
instruments, the Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The Company makes such

election on an instrument-by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to statement of profit and loss, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with all
changes recognized in the statement of profit and loss.

Equity investment in subsidiaries and joint ventures arecarried at historical cost as per
the accounting policychoice given by Ind AS 27.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is primarily derecognised (i.e. removed from the
Company’scombined balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a
third party under a ‘pass-through’ arrangementand either (a) the Company has
transferred substantially all the risks and rewards of the asset, or (b) the Company has
neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets:

• Financial assets that are debt instruments, and are measured at amortised cost e.g.,
loans, debtsecurities and deposits;

• Trade receivables or any contractual right to receive cash or another financial asset that
result fromtransactions that are within the scope of Ind AS 115.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on
trade receivables. The application of simplified approach does not require the Company to
track changes in credit risk. Rather, it recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, twelve month ECL is used to
provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL
is used. If, in the subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on a twelve month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over
the expected lifeof a financial instrument. The 12-month ECL is a portion of the lifetime ECL
which results from default events that are possible within 12 months after the reportingdate.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs. The Company’s
financial liabilities include trade and other payables and borrowings, etc.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

i. Financial liabilities at FVTPL

Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for trading if they are incurred for
the purpose of repurchasing in the near term.

ii. Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest¬
bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisationis
included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires.

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.

s) Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by the Company are measured at their fair values and
recognised as income in the statement of profit and loss.

t) Accounting for foreign currency transactions

Items included in the financial statements of the Company are measured using the currency
of the primary economic environment in which the Company operates (‘the functional
currency’). The financial statements are presented in Indian Rupees (INR), which is the
Company’s presentation currency and functional currency.

Transactions in currencies other than the functional currency are translated into the
functional currency at the exchange rates that approximates the rate as at the date of the
transaction. Monetary assets and liabilities denominated in other currencies are translated
into the functional currency at exchange rates prevailing on the reporting date. Non¬
monetary assets and liabilities denominated in other currencies and measured at historical
cost or fair value are translated at the exchange rates prevailing on the dates on which such
values were determined.

All exchange differences are included in statement of profit and loss.

u) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, which are subject to
an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the Company’s cash
management.

v) Dividends

The Company recognises a liability to make cash distributions to equity holders of the
Company when the distribution is authorised and the distribution is no longer at the
discretion of the Company. As per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders. A corresponding amount is recognised directly in
equity.

w) Earnings per share
Basic earnings per share

Basic earnings per share are calculated by dividing the profit/ (loss) attributable to the
shareholders of the Company by the weighted average number of equity shares outstanding
during the financial year.

Diluted earnings per share

Diluted earnings per share is calculated by dividing the profit/ (loss)attributable to the
shareholders of the Company (after adjusting the corresponding income/ charge for dilutive
potential equity shares, if any) by the weighted average number of equity shares outstanding
during the financial year plus the weighted average number of additional equity shares that
would have been issued on conversion of all the dilutive potential equity shares.

4. Significant accounting judgments, estimates and assumptions

The preparation of the Company’s financial statements requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, accompanying disclosures and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that

require a material adjustment to the carrying amount of assets or liabilities affected in
future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, are described below.
The Company based its assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that
are beyond the control of the Company. Such changes are reflected in the assumptions when
they occur.

Income taxes

The Company is subject to income tax laws as applicable in India. Significant judgment is
required in determining provision for income taxes. There are many transactions and
calculations for which the ultimate tax determination is uncertain during the ordinary course
of business. The Company recognizes liabilities for anticipated tax issues based on estimates
of whether additional taxes will be due. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact the
income tax and deferred tax provisions in the period in which such determination is made.

In assessing the realisability of deferred tax assets, management considers whether it is
probable, that some portion, or all, of the deferred tax assets will not be realized. The
ultimate realization of deferred tax assets is dependent upon the generation of future
taxable income during the periods in which the temporary differences become deductible.
Management considers the projected future taxable income and tax planning strategies in
making this assessment. Based on the level of historical taxable income and projections for
future taxable incomes over the periods in which the deferred tax assets are deductible,
management believes that it is probable that the Company will be able to realize the
benefits of those deductible differences in future.

Useful lives of property, plant and equipment(‘PPE’) and intangible assets

Management reviews the estimated useful livesand residual value of PPE and Intangibles at
the endof each reporting period. Factors such as changesin the expected level of usage,
technological developments and product life-cycle, could significantly impact the economic
useful lives andthe residual values of these assets. Consequently, the future depreciation
charge could be revised andmay have an impact on the profit of the future years.

Employee benefit obligations

The costs of the defined benefit obligations are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate
discount rate for plans operated in India, the management considers the interest rates of
government bonds in currencies consistent with the currencies of the post-employment
benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries.
Those mortality tables tend to change only at interval in response to demographic changes.
Future salary increases and gratuity increases are based on expected future inflation rates.
Further details about gratuity obligations are given in Note No. 39.

Contingencies

Management judgment of contingencies is based on the internal assessments and opinion
from the consultants for the possible outflow of resources, if any.

5. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment
Rules, 2022, applicable from April 1, 2022.