Provisions, contingent liabilities and contingent assets

The Group recognizes a provision when there is a
present obligation as a result of a past event that
probably requires an outflow of resources and a
reliable estimate can be made of the amount of the
obligation.

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of
resources. Where there is a possible obligation or a
present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Contingent assets are disclosed where an inflow of
economic benefits is probable.

s) Employees stock option plan

Compensation expenses under "employee stock option
plan" representing excess of fair price of the shares on
the date of grant of option over the exercise price of
option is amortized on a straight-line basis over the
vesting period.

t) Borrowing cost

Borrowing costs directly attributable and identifiable
to the acquisition or construction of qualifying assets
are capitalized till the date such qualifying assets are
ready to be put to use. A qualifying asset is one that
necessarily takes substantial period of time to get
ready for its intended use. Other borrowing costs are
charged to consolidated statement of profit and loss
as incurred.

u) Leases

As per IND AS 116

As a lessee

The Group recognises a right-of-use asset and a
lease liability at the lease commencement date. The

right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located,
less any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
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 estimated useful lives of right-of-use
assets are determined on the same basis as those of
property and equipment. In addition, the right-of-use
asset is periodically reduced by impairment losses, if
any, and adjusted for certain re-measurements of the
lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be
readily determined, group's incremental borrowing
rate. Generally, the company uses its incremental
borrowing rate as the discount rate.

The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is a change in future lease payments arising
from a change in an index or rate, if there is a change
in the group's estimate of the amount expected
to be payable under a residual value guarantee, or
if group changes its assessment of whether it will
exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way,
a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-
of-use asset has been reduced to zero. The Group
presents right-of-use assets that do not meet the
definition of investment property in 'property, plant
and equipment' and lease liabilities in 'loans and
borrowings' in the statement of financial position.

Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of-use
assets and lease liabilities for short term leases of real
estate properties that have a lease term of 12 months.
The Group recognises the lease payments associated
with these leases as an expense on a straight-line
basis over the lease term.

v) Business combinations

Business combinations have been accounted for using
the acquisition method as per Ind AS 103.

The cost of an acquisition is measured at the fair
value of the asset transferred, equity instruments
issued and liabilities incurred or assumed at the date
of acquisition, which is the date on which control is
transferred.

Business combinations between entities under
common control are accounted for at carrying value.

Transaction costs that the Group incurs in connection
with a business combination are expensed as incurred.

w) Earning per share

The Group presents basic and diluted earnings per
share ("EPS") data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable
to ordinary shareholders of the Group by the weighted
average number of ordinary shares outstanding during
the period. Diluted EPS is determined by adjusting
the profit or loss attributable to ordinary shareholders
and the weighted average number of ordinary shares
outstanding for the effects of all dilutive potential
ordinary shares, which includes all stock options
granted to employees.

x) Preliminary and preoperative expenses

In respect of certain subsidiaries preliminary and
preoperative expenses are written off commencement
of operation.

y) Non-current assets held for sale and discontinued
operation

Non-current assets and disposal groups are classified
as held for sale if their carrying amount is intended to
be recovered principally through a sale (rather than
through continuing use) when the asset (or disposal
group) is available for immediate sale in its present
condition subject only to terms that are usual and
customary for sale of such asset (or disposal group)
and the sale is highly probable and is expected to
qualify for recognition as a completed sale within one
year from the date of classification.

Non-current assets and disposal groups classified as
held for sale are measured at lower of their carrying
amount and fair value less costs to sell.

z) Standards issued but not yet effective

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 31, 2023,

MCA amended the Companies (Indian Accounting
Standards) Rules, 2015 by issuing the Companies
(Indian Accounting Standards) Amendment Rules,
2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of financial statements

The amendments require companies to disclose
their material accounting policies rather than their
significant accounting policies. Accounting policy
information, together with other information, is
material when it can reasonably be expected to
influence decisions of primary users of general
purpose financial statements. The Group does not
expect this amendment to have any significant impact
in its financial statements.

Ind AS 12 - Income taxes

The amendments clarify how companies account
for deferred tax on transactions such as leases and
decommissioning obligations. The amendments
narrowed the scope of the recognition exemption
in paragraphs 15 and 24 of Ind AS 12 (recognition
exemption) so that it no longer applies to transactions
that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Group
is evaluating the impact, if any, in its financial
statements.

Ind AS 8 - Accounting policies, changes in
accounting estimates and errors

The amendments will help entities to distinguish
between accounting policies and accounting
estimates. The definition of a change in accounting
estimates has been replaced with a definition of
accounting estimates. Under the new definition,
accounting estimates are "monetary amounts in
financial statements that are subject to measurement
uncertainty". Entities develop accounting estimates
if accounting policies require items in financial
statements to be measured in a way that involves
measurement uncertainty. The Group does not expect
this amendment to have any significant impact in its
financial statements.