n) Provisions, Contingent Liabilities and Contingent Assets
Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past
events, 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, for example, under an insurance contract, the reimbursement is
recognised 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. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

Decommissioning liability

The Company records a provision for decommissioning costs of a facility used for warehousing purposes and
trading of goods. Decommissioning costs are provided at the present value of expected costs (less realisable
value of assets) to settle the obligation using estimated cash flows and are recognised as part of the cost of
the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to
the decommissioning liability. The unwinding of the discount is expensed as incurred and recognised in the
statement of profit and loss as a finance cost. The estimated future costs of decommissioning are reviewed
annually and adjusted as appropriate. The impact of climate-related matters, such as changes in environmental
regulations and other relevant legislation, is considered by the Company in estimating the decommissioning
liability on the manufacturing facility. Changes in the estimated future costs or in the discount rate applied are
added to or deducted from the cost of the asset.

Onerous contracts

If the Company has a contract that is onerous, the present obligation under the contract is recognised and
measured as a provision. However, before a separate provision for an onerous contract is established, the
Company recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot
avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits
expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting
from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from
failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e.,
both incremental costs and an allocation of costs directly related to contract activities).

Contingent liability

Contingent liability is:

(a) a possible obligation arising from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity or

(b) a present obligation that arises from past events but is not recognized because;

- it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation, or

- the amount of the obligation cannot be measured with sufficient reliability.

The Company does not recognize a contingent liability but discloses its existence and other required disclosures
in notes to the standalone financial statements, unless the possibility of any outflow in settlement is remote.

Contingent asset

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by- the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity. The Company does not recognize the contingent asset in its standalone standalone financial statements
since this may result in the recognition of income that may never be realised. Where an inflow of economic
benefits is probable, the Company disclose a brief description of the nature of contingent assets at the end of
the reporting period. However, when the realisation of income is virtually certain, then the related asset is not a
contingent asset and the Company recognize such assets.

Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

o) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense, when an employee renders the related service. If the
contribution payable to the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for
example, a reduction in future payment or a cash refund.

Gratuity obligations

The liability recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of
the defined obligation at the end of the reporting period less the fair value of plan assets. The gratuity plan of
the Company is unfunded. The defined benefit obligation is calculated annually by actuaries using the projected
unit credit method.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss on the earlier of:

a) The date of the plan amendment or curtailment, and

b) The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Company recognises the following changes in the net defined benefit obligation as an expense in the
Standalone statement of profit and loss:

c) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements; and

d) Net interest expense or income.

Compensated absences

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee
benefit. The Company measures the expected cost of such absences as the additional amount that it expects to
pay as a result of the unused entitlement that has accumulated at the reporting date. The Company recognizes
expected cost of short-term employee benefit as an expense, when an employee renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for based
on the actuarial valuation using the projected unit credit method at the reporting date. Remeasurement gains/
losses are immediately taken to the statement of profit and loss and are not deferred. The obligations are
presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer
the settlement for at least twelve months after the reporting date.

p) 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

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash
flow characteristics and the Company's business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Company has applied the
practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain
a significant financing component or for which the Company has applied the practical expedient are measured
at the transaction price determined under Ind AS 115. Refer to the accounting policies in section Revenue from
contracts with customers.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or
loss, irrespective of the business model.

The Company's business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at
amortised cost are held within a business model with the objective to hold financial assets in order to collect
contractual cash flows while financial assets classified and measured at fair value through OCI are held within
a business model with the objective of both holding to collect contractual cash flows and selling.

Subsequent measurement

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

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative
gains and losses (debt instruments)

• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)

• Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)

A 'financial asset' is measured at the amortised cost if both the following conditions are met:

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

• 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.

This category is the most relevant to the Company. 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 amortisation is included in other income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss. The Company's financial assets at amortized cost includes
trade and other receivables. For more information on receivables, refer to note 6(a).

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A 'financial asset' is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and

• 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 in the other comprehensive income (OCI). However, the
Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss in the
statement of profit and loss. Upon derecognition 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. The Company has not designated any debt
instrument as at FVTOCI.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32
Financial Instruments: Presentation and are not held for trading. The classification is determined on an
instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration
recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as
other income in the statement of profit and loss when the right of payment has been established, except when
the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which
case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject
to impairment assessment.

Financial assets at fair value through profit or loss

Financial assets in this category are those that are held for trading and have been either designated by
management upon initial recognition or are mandatorily required to be measured at fair value under Ind AS
109 i.e. they do not meet the criteria for classification as measured at amortised cost or FVOCI. Management
only designates an instrument at FVTPL upon initial recognition, if the designation eliminates, or significantly
reduces, the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or
recognising gains or losses on them on a different basis. Such designation is determined on an instrument-by¬
instrument basis.

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes
in fair value recognised in the statement of profit and loss.

Interest earned on instruments designated at FVTPL is accrued in interest income, using the EIR, taking into
account any discount/ premium and qualifying transaction costs being an integral part of instrument. Interest
earned on assets mandatorily required to be measured at FVTPL is recorded using the contractual interest
rate. Dividend income on equity investments are recognised in the statement of profit and loss as other income
when the right of payment has been established.

De-recognition

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 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' arrangement;
and 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.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When
it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognise the transferred asset to the extent of the Company's
continuing involvement. In that case, the Company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Company could
be required to repay.

Impairment of financial assets

Further disclosures relating to impairment of financial assets are also provided in the following notes:

• Disclosures for significant assumptions - see note 2.4

• Trade receivables and contract assets - see note 6(a) and 6(b)

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at
fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from the
sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a
significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs.
Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based
on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment.

The Company considers a financial asset in default when contractual payments are 90 days past due. However,
in certain cases, the Company may also consider a financial asset to be in default when internal or external
information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before
taking into account any credit enhancements held by the Company. A financial asset is written off when there
is no reasonable expectation of recovering the contractual cash flows.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, as appropriate.

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, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

Financial liabilities at fair value through profit or loss

Financial liabilities at amortised cost (loans and borrowings)

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.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/
losses are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or
loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or
loss. The Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at amortised cost (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 amortisation is included as finance costs in the statement of profit
and loss.

This category generally applies to borrowings. For more information refer note 9(a) and 9(a).

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as
per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the cumulative
amount of income recognised in accordance with the principles of Ind AS 115.

Derecognition

A financial liability is derecognised 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 derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities.
For financial assets which are debt instruments, a reclassification is made only if there is a change in the
business model for managing those assets. Changes to the business model are expected to be infrequent. The
Company's senior management determines change in the business model as a result of external or internal
changes which are significant to the Company's operations. Such changes are evident to external parties.
A change in the business model occurs when the Company either begins or ceases to perform an activity
that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification
prospectively from the reclassification date which is the first day of the immediately next reporting period
following the change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the
asset and settle the liability simultaneously.

q) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, that are readily convertible to a known amount of cash and
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.

r) Dividends

The Company recognises a liability to pay dividend to equity holders of the parent 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.

s) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to the equity holders of the
Company by the weighted average number of equity share outstanding during the financial year.

The weighted average number of equity shares outstanding during the period is adjusted for events such as
bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding, without a corresponding change in resources.

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

t) Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as
income on a systematic basis over the periods that the related costs, for which it is intended to compensate,
are expensed. when the grant related to property, plant and equipment are recognised as Deferred income
under non-current /current liability and" recognised as income over useful life of the related assets.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit
of the underlying asset.

u) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured
as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of
any non-controlling interests in the acquiree. For each business combination, the Company elects whether to
measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's
identifiable net assets. Acquisition-related costs are expensed as incurred.

The Company determines that it has acquired a business when the acquired set of activities and assets include
an input and a substantive process that together significantly contribute to the ability to create outputs. The
acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the
inputs acquired include an organised workforce with the necessary skills, knowledge, or experience to perform
that process or it significantly contributes to the ability to continue producing outputs and is considered unique
or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing
outputs.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at their
acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing
present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of
resources embodying economic benefits is not probable. However, the following assets and liabilities acquired
in a business combination are measured at the basis indicated below:

? Deferred tax assets or liabilities, and the liabilities or assets related to employee benefit arrangements
are recognised and measured in accordance with Ind AS 12 Income Tax and Ind AS 19 Employee Benefits
respectively.

? Potential tax effects of temporary differences and carry forwards of an acquiree that exist at the acquisition
date or arise as a result of the acquisition are accounted in accordance with Ind AS 12.

? Liabilities or equity instruments related to share based payment arrangements of the acquiree or share -
based payments arrangements of the Company entered into to replace share-based payment arrangements
of the acquiree are measured in accordance with Ind AS 102 Share-based Payments at the acquisition date.

? Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current
Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

? Reacquired rights are measured at a value determined on the basis of the remaining contractual term of the
related contract. Such valuation does not consider potential renewal of the reacquired right.

When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic circumstances and pertinent
conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts
by the acquiree.

If the business combination is achieved in stages, any previously held equity interest is re-measured at its
acquisition date fair value and any resulting gain or loss is recognised in profit or loss or OCI, as appropriate.

Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date.
Contingent consideration classified as an asset or liability that is a financial instrument and within the scope
of Ind AS 109 Financial Instruments, is measured at fair value with changes in fair value recognised in profit
or loss in accordance with Ind AS 109. If the contingent consideration is not within the scope of Ind AS 109,
it is measured in accordance with the appropriate Ind AS and shall be recognised in profit or loss. Contingent
consideration that is classified as equity is not re-measured at subsequent reporting dates and subsequent its
settlement is accounted for within equity.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and
the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable
assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate
consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired
and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at
the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over
the aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital
reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in
equity as capital reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to
each of the Company's cash-generating units that are expected to benefit from the combination, irrespective of
whether other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit
is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount
of each asset in the unit. Any impairment loss for goodwill is recognised in profit or loss. An impairment loss
recognised for goodwill is not reversed in subsequent periods.

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed
of the goodwill associated with the disposed operation is included in the carrying amount of the operation when
determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the
relative values of the disposed operation and the portion of the cash-generating unit retained.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Company reports provisional amounts for the items for which the accounting
is incomplete. Those provisional amounts are adjusted through goodwill during the measurement period, or
additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances
that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.
These adjustments are called as measurement period adjustments. The measurement period does not exceed
one year from the acquisition date.

v) Non-current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally
through a sale rather than through continuing use.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair
value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset,
excluding finance costs and income tax expense.

The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the
asset is available for immediate sale in its present condition. Actions required to complete the sale/ distribution
should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell
will be withdrawn. Management must be committed to the sale and the sale expected within one year from the
date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair
value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset,
excluding finance costs and income tax expense.

The criteria for held for sale classification is regarded met only when the assets is available for immediate sale
in its present condition, subject only to terms that are usual and customary for sales of such assets, its sale is
highly probable; and it will genuinely be sold, not abandoned. The Company treats sale of the asset to be highly
probable when:

a) The appropriate level of management is committed to a plan to sell the asset,

b) An active programme to locate a buyer and complete the plan has been initiated (if applicable),

c) The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

d) The sale is expected to qualify for recognition as a completed sale within one year from the date of
classification, and

e) Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be
made or that the plan will be withdrawn.

Property, plant and equipment and intangible are not depreciated, or amortised assets once classified as held
for sale.

Assets and liabilities classified as held for sale are presented separately from other items in the balance sheet.

w) Events after the reporting period

If the Company receives information after the reporting period, but prior to the date of approved for issue,
about conditions that existed at the end of the reporting period, it will assess whether the information affects
the amounts that it recognises in its separate standalone financial statements. The Company will adjust the
amounts recognised in its standalone financial statements to reflect any adjusting events after the reporting
period and update the disclosures that relate to those conditions in light of the new information. For non¬
adjusting events after the reporting period, the Company will not change the amounts recognised in its separate
standalone financial statements but will disclose the nature of the non-adjusting event and an estimate of its
financial effect, or a statement that such an estimate cannot be made, if applicable.

2.3 Significant accounting judgements, estimates and assumptions

The preparation of the Company's standalone financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
the 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.

Other disclosures relating to the Company's exposure to risks and uncertainties includes:

• Capital management note 25

• Financial risk management note 24

• Sensitivity analyses disclosures note 24.

Judgements

In the process of applying the Company's accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the standalone financial statements:

• Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered
by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company
applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to
renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for
it to exercise either the renewal or termination. After the commencement date, the Company 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 renew or to terminate (e.g., construction of significant
leasehold improvements or significant customisation to the right-of-use assets).

Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the company and that
are believed to be reasonable under the circumstances.

• Revenue from contracts with customers

The Company's contracts with customers include promises to transfer service to the customers. Judgement
is required to determine the transaction price for the contract. The transaction price could be either a fixed
amount of customer consideration or variable consideration with elements such as schemes, incentives,
cash discounts, etc. The estimated amount of variable consideration is adjusted in the transaction price
only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur and is reassessed at the end of each reporting period.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company's past
experience regarding returns and rebate entitlements may not be representative of customers' actual
returns and rebate entitlements in the future.

Costs to obtain a contract are generally expensed as incurred. The assessment of this criteria requires the
application of judgement, in particular when considering if costs generate or enhance resources to be used
to satisfy future performance obligations and whether costs are expected to be recovered.

• Provisions and contingent liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent
liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in
assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the
possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process,
actual liability may be different from the originally estimated as provision. (Refer note 26)

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 standalone 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.

• Useful lives and residual values of property, plant and equipment

The Company reviews the estimated residual values and expected useful lives of assets at least annually.
In particular, the Company considers the impact of health, safety and environmental legislation in its
assessment of expected useful lives and estimated residual values. Furthermore, the Company considers
climate-related matters, including physical and transition risks. Specifically, the Company determines
whether climate-related legislation and regulations might impact either the useful life or residual values.

• Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data from binding sales transactions, conducted at
arm's length, for similar assets or observable market prices less incremental costs for disposing of the
asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget
for the next five years and do not include restructuring activities that the Company is not yet committed to
or significant future investments that will enhance the asset's performance of the CGU being tested. The
recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation purposes.

These estimates are most relevant to goodwill recognised by the Company. The key assumptions used to
determine the recoverable amount for the different CGUs, including a sensitivity analysis.

• Provision for expected credit loss of trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk
has been managed by the Company through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. In accordance with Ind AS 109, the Company uses expected credit loss model to
assess the impairment loss or gain. The Company uses a provision matrix and forward-looking information
and an assessment of the credit risk over the expected life of the financial asset to compute the expected
credit loss allowance for trade receivables.

The provision matrix is initially based on the Company's historical observed default rates. The Company
will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At
every reporting date, the historical observed default rates are updated and changes in the forward-looking
estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of
forecast economic conditions. The Company's historical credit loss experience and forecast of economic
conditions may also not be representative of customer's actual default in the future. The information about
the ECLs on the Company's trade receivables is disclosed in note 24.

• Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value
of the gratuity obligation 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 where
remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. 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 14.

• Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible,
but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments. (Refer note 23).

• Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have
to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of
a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what
the Company 'would have to pay', which requires estimation when no observable rates are available. The
Company estimates the IBR using observable inputs (such as market interest rates) when available and is
required to make certain entity-specific estimates (such as the credit rating).

2.4 Changes in accounting policies and disclosures
New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual
periods beginning on or after 1 April 2024. The Company has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated
12 August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024, which is
effective from annual reporting periods beginning on or after 1 April 2024.

Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance contracts
covering recognition and measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS 117 is based on a general model, supplemented by:

• A specific adaptation for contracts with direct participation features (the variable fee approach)

• A simplified approach (the premium allocation approach) mainly for short-duration contracts

The application of Ind AS 117 does not have material impact on the Company's separate standalone
financial statements as the Company has not entered any contracts in the nature of insurance contracts
covered under Ind AS 117.

(ii) Amendments to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback

'The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback.

The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising
in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain
or loss that relates to the right of use it retains.

The amendment is effective for annual reporting periods beginning on or after 1 April 2024 and must be
applied retrospectively to sale and leaseback transactions entered into after the date of initial application
of Ind AS 116.

The amendments do not have a material impact on the Company's standalone financial statements.

The below two amendments are not yet notified but expected to be notified soon.

(i) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

The MCA issued amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments:
Disclosures which clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist
users of standalone financial statements in understanding the effects of supplier finance arrangements on
an entity's liabilities, cash flows and exposure to liquidity risk. The amendments have not had an impact on
the standalone financial statements of the Company.

(ii) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current

The MCA issued amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements for classifying
liabilities as current or non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of the reporting period

• That classification is unaffected by the likelihood that an entity will exercise its deferral right

• That only if an embedded derivative in a convertible liability is itself an equity instrument would the
terms of a liability not impact its classification

In addition, a requirement has been introduced to require disclosure when a liability arising from a loan
agreement is classified as non-current and the entity's right to defer settlement is contingent on compliance
with future covenants within twelve months.

The amendments have not had an impact on the classification of Company's liabilities.

2.5 Climate - related matters

The Company considers climate-related matters in estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts on the Company due to both physical and transition
risks. Even though the Company believes its business model and products will still be viable after the transition
to a low-carbon economy, climate-related matters increase the uncertainty in estimates and assumptions
underpinning several items in the standalone financial statements. Even though climate-related risks might not
currently have a significant impact on measurement, the Company is closely monitoring relevant changes and
developments, such as new climate-related legislation. The items and considerations that are most directly
impacted by climate-related matters are:

• Useful life of property, plant and equipment. When reviewing the residual values and expected useful lives of
assets, the Company considers climate-related matters, such as climate-related legislation and regulations
that may restrict the use of assets or require significant capital expenditures.

• Impairment of non-financial assets. The value-in-use may be impacted in several different ways by
transition risk in particular, such as climate-related legislation and regulations and changes in demand for
the Company's products and services.

• Fair value measurement for land and buildings, the Company considers the effect of physical and transition
risks and whether investors would consider those risks in their valuation. The Company believes it is not
currently exposed to severe physical risks, but believes that investors, to some extent, would consider
impacts of transition risks in their valuation, such as increasing requirements for energy efficiency of
buildings due to climate-related legislation and regulations as well as tenants' increasing demands for low-
emission buildings.

• Decommissioning liability the impact of climate-related legislation and regulations is considered in
estimating the timing and future costs of decommissioning liabilities, whenever applicable.