2. Material Accounting Policies

This note provides a list of the material
accounting policies adopted in the preparation
of these Standalone Financial Statements.

2.01 Basis of preparation of Standalone
Financial Statements:

These Standalone Financial Statements have
been prepared in accordance with the Indian
Accounting Standards (referred to as “Ind
AS”) as prescribed under Section 133 of the
Act read with Companies (Indian Accounting
Standards) Rules 2015, as amended and
presentation requirements of Division II of
Schedule III to the Companies Act, 2013, (Ind
AS compliant Schedule III), as amended from
time to time, as applicable to the Standalone
Financial Statements.

The accounting policies applied by the
Company in preparation of the Standalone
Financial Statements are consistent with those
adopted in the preparation of Standalone
Financial statements for the year ended March
31, 2024. These standalone financial statements
have been prepared for the Company as a going

(All amounts in Rupees Crores, unless otherwise stated)
concern on the basis of relevant Ind AS that are
effective as at March 31, 2025.

The Standalone Financial Statements have been
prepared on the historical cost basis, except for
the following assets and liabilities which have
been measured at fair value:

• Certain financial assets and liabilities
measured at fair value (refer accounting
policy regarding financial instruments);

• Defined benefits plan - plan assets measured
at fair value;

• Equity settled ESOP at grant date fair value;

The Standalone Financial Statements are
presented in Indian Rupees “INR” or “H ” and all
values are rounded to the nearest crores except
when otherwise indicated.

2.02 Current versus non-current classification:

The Company segregates assets and liabilities
into current and non-current categories
for presentation in the balance sheet after
considering its normal operating cycle and
other criteria set out in Ind AS 1, “Presentation of
Financial Statements”. For this purpose, current
assets and liabilities include the current portion
of non-current assets and liabilities respectively.

An asset is treated as current when it is:

• Expected to be realized or intended to be
sold or consumed in normal operating cycle

• Held primarily for purpose of trading

• Expected to be realized within twelve months
after the reporting period, or

• cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal
operating cycle

• It is held primarily for purpose of trading

• It is due to be settled within twelve months
after the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

All other liabilities are classified as non-current.

Deferred tax assets and deferred tax liabilities a
re classified as non-current assets and liabilities.
The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents, the
Company has identified twelve months as its
operating cycle.

2.03 Property, plant and equipment:

Recognition and initial measurement:

All items of property, plant and equipment
are stated at deemed cost (fair value as at
transition date) less accumulated depreciation,
impairment loss, if any. Deemed cost includes
expenditure that is directly attributable to the
acquisition of the items.

Subsequent costs are included in the asset's
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the Company and the cost of
the item can be measured reliably. The carrying
amount of any component accounted for as a
separate asset is derecognised when replaced.
All other repairs and maintenance are charged
to the statement of profit and loss during the
reporting period in which they are incurred.

Capital work-in-progress comprises the cost of
property, plant and equipment that are not yet
ready for their intended use on the reporting
date and materials at site.

Subsequent measurement (Depreciation
methods, estimated useful lives and residual
value):

Property, plant and equipment are subsequently
measured at cost less accumulated depreciation
and impairment losses. Depreciation on
property, plant and equipment is provided on
a straight-line basis, computed on the basis
of useful lives (as set out below) prescribed in
Schedule II to the Companies Act, 2013:

The Company, based on technical assessment
made by technical expert and management
estimate, depreciates certain property,
plant and equipment, overestimated useful
lives which are different from the useful life
prescribed in Schedule II to the Companies
Act, 2013. The management believes that these
estimated useful lives are realistic and reflect
fair approximation of the period over which the
assets are likely to be used.

Depreciation on deemed cost of other property,
plant and equipment (except land) is provided
on pro rata basis on straight line method based
on useful lives specified in Schedule II to the
Companies Act, 2013.

The useful lives, residual values and method of
depreciation of property plant and equipment
are reviewed and adjusted prospectively, if
appropriate at the end of each reporting period.

Derecognition:

An item of property, plant and equipment
and any significant part initially recognised
is derecognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the
asset is derecognised.

2.04 Business combination and goodwill:

Business combinations other than those
under common control transactions 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. In respect
to the business combination for acquisition of
subsidiary, the Company has opted to measure
the non-controlling interests in the acquiree
at the proportionate share of the acquiree's
identifiable net assets. Acquisition-related costs
are expensed as incurred.

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.

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.

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

(All amounts in Rupees Crores, unless otherwise stated)
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 it 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.

2.05 Investment in equity instruments of
subsidiaries:

A subsidiary is an entity that is controlled by the
Company. The Company controls its subsidiary
when the company is exposed, or has rights, to
variable returns from its involvement with the
subsidiary and has the ability to affect those
returns through its power over the subsidiary.

The consideration made in determining whether
significant influence or joint control are similar
to those necessary to determine control over
the subsidiaries.

Investment in equity instruments of subsidiaries
are stated at cost as per Ind AS 27 'Separate
Financial Statements'. Where the carrying
amount of an investment is greater than its
estimated recoverable amount, it is assessed
for recoverability and in case of permanent
diminution provision for impairment is recorded
in Statement of Profit and Loss. On disposal
of investment, the difference between the net
disposal proceeds and the carrying amount is
charged or credited to the Statement of Profit
and Loss.

2.06 Investment Properties

Property that is held for long term rental
yields or for capital appreciation or for both,
and that is not occupied by the Company, is
classified as investment property. Investment
property is measured initially at its cost,
including related transaction cost and where
applicable borrowing costs. Subsequent to
initial recognition, investment properties are
stated at cost less accumulated depreciation
and accumulated impairment loss, if any.

Subsequent expenditure is capitalized to assets
carrying amount only when it is probable that
future economic benefits associated with the
expenditure will flow to the Company and
the cost of the item can be measured reliably.
When significant parts of investment property
are required to be replaced at intervals, the
Company depreciates them separately based on
their respective useful lives. All other repair and
maintenance cost are expensed when incurred.

Though the Company measures investment
property using cost-based measurement, the
fair value of investment property is disclosed in
the notes. Fair values are determined based on
an annual evaluation performed by an external
independent valuer applying a valuation model
as per Ind AS 113 “ Fair value measurement”.

I nvestment properties are derecognised either
when they have been disposed of or when
they are permanently withdrawn from use and
no future economic benefit is expected from
their disposal. The difference between the net
disposal proceeds and the carrying amount
of the asset is recognised in the statement of
profit and loss in the period of derecognition.

Investment properties are depreciated using
straight line method over their estimated useful
life i.e. 30 years.

Transfers are made to (or from) investment
properties only when there is a change in
use. Transfers between investment property,
owner-occupied property and inventories
do not change the carrying amount of the
property transferred and they do not change
the cost of that property for measurement or
disclosure purposes.

2.07 Intangible Assets

Intangible assets including brand acquired
separately are measured on initial recognition
at cost. The cost of intangible assets acquired in
a business combination is their fair value at the
date of acquisition. Following initial recognition,
intangible assets are carried at cost less any
accumulated amortisation and accumulated
impairment losses.

The useful lives of intangible assets are assessed
as either finite or indefinite.

Computer Software for internal use, which is
primarily acquired from third party vendors, is
capitalised. Subsequent costs associated with
maintaining such software are recognised as
expense as incurred. Cost of software includes
license fees and cost of implementation/system
integration services, where applicable.

(All amounts in Rupees Crores, unless otherwise stated)
I ntangible assets with finite lives are amortised
over the useful economic life (Computer software
5 years) and assessed for impairment whenever
there is an indication that the intangible asset
may be impaired. The amortisation period and
the amortisation method for an intangible asset
with a finite useful life are reviewed at least
at the end of each reporting period. Changes
in the expected useful life or the expected
pattern of consumption of future economic
benefits embodied in the asset are considered
to modify the amortisation period or method,
as appropriate, and are treated as changes
in accounting estimates. The amortisation
expense on intangible assets with finite lives is
recognised in the statement of profit and loss
unless such expenditure forms part of carrying
value of another asset.

The Brand under the head 'Intangible assets' is
being amortised based on the useful life of 20
years as assessed by the management based on
technical assessment made by technical expert.

Intangible assets with indefinite useful lives are
not amortized, but are tested for impairment
annually, either individually or at the cash¬
generating unit level. The assessment of
indefinite life is reviewed annually to determine
whether the indefinite life continues to be
supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised
in the statement of profit or loss when the asset
is derecognised.

Amortisation method

Computer software are amortized on a straight
line basis over estimated useful life of five years
from the date of capitalisation.

Brand are amortized on a straight line basis
over estimated useful life of Twenty years from
the date of capitalisation.

2.08 Impairment of non-financial assets

The Company assesses at each reporting date,
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset's
recoverable amount. An asset's recoverable
amount is the higher of an assets or cash¬
generating unit's (CGU) fair value less costs of
disposal and its value in use. The recoverable

amount is determined for an individual asset,
unless the asset does not generate cash
inflows that are largely independent of those
from other assets or Company's assets. When
the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to its
recoverable amount.

I n assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs of disposal, recent market
transactions are taken into account. If no such
transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted
share prices for publicly traded companies or
other available fair value indicators.

The Company bases its impairment calculation
on detailed budgets and forecast calculations,
which are prepared separately for each of the
Company's CGUs to which the individual assets
are allocated. These budgets and forecast
calculations generally cover a period of five
to eight years. For longer periods, a long-term
growth rate is calculated and applied to project
future cash flows after the 8^th year. To estimate
cash flow projections beyond periods covered
by the most recent budgets/forecasts, the
Company extrapolates cash flow projections in
the budget using a steady or declining growth
rate for subsequent years, unless an increasing
rate can be justified. In any case, this growth rate
does not exceed the long-term average growth
rate for the products, industries, or country or
countries in which the Company operates, or for
the market in which the asset is used.

Impairment losses of continuing operations,
including impairment on inventories, are
recognised in the statement of profit and loss,
except for properties previously revalued
with the revaluation surplus taken to OCI. For
such properties, the impairment is recognised
in OCI up to the amount of any previous
revaluation surplus.

An assessment is made at each reporting date
to determine whether there is an indication that
previously recognised impairment losses no
longer exist or have decreased. If such indication
exists, the Company estimates the assets
or CGU's recoverable amount. A previously
recognised impairment loss is reversed only
if there has been a change in the assumptions
used to determine the asset's recoverable

amount since the last impairment loss was
recognised. The reversal is limited so that the
carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying
amount that would have been determined, net
of depreciation, had no impairment loss been
recognised for the asset in prior years. Such
reversal is recognised in the statement of profit
and loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as
a revaluation increase.

Goodwill is tested for impairment annually at
each reporting date and when circumstances
indicate that the carrying value may be
impaired. Impairment is determined for
goodwill by assessing the recoverable amount
of each CGU (or group of CGUs) to which the
goodwill relates. When the recoverable amount
of the CGU is less than it's carrying amount,
an impairment loss is recognised. Impairment
losses relating to goodwill cannot be reversed in
future periods. Intangible assets with indefinite
useful lives are tested for impairment annually
at each reporting date at the CGU level, as
appropriate, and when circumstances indicate
that the carrying value may be impaired.

2.09 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.

(i) Financial Assets

The Company classifies its financial assets in
the following measurement categories:

• Those to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss)

• Those measured at amortized cost

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.

Initial recognition and measurement

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 and 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
following 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:

(a) Business model test: The objective

is to hold the financial asset to collect
the contractual cash flows (rather

than to sell the instrument prior to its
contractual maturity to realize its fair
value changes) and;

(b) Cash flow characteristics test: The

contractual terms of the financial

asset give rise on specific dates to
cash flows that are solely payments
of principal and interest on principal
amount outstanding.

This category is most relevant to the
Company. After initial measurement,
such financial assets are subsequently
measured at amortized 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 EIR. EIR is the rate
that exactly discounts the estimated
future cash receipts over the expected
life of the financial instrument or a
shorter period, where appropriate,
to the gross carrying amount of the
financial asset. When calculating the
effective interest rate, the Company
estimates the expected cash flows by
considering all the contractual terms of
the financial instrument but does not
consider the expected credit losses. The
EIR amortization is included in other
income in statement of profit and loss.
The losses arising from impairment are
recognized in the profit or loss. This
category generally applies to trade and
other receivables.

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:

(a) Business model test: The objective of
financial instrument is achieved by both
collecting contractual cash flows and
selling the financial assets; and

(b) Cash flow characteristics test:

The contractual terms of the Debt
instrument give rise on specific dates
to cash flows that are solely payments
of principal and interest on principal
amount outstanding.

Debt instrument 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), except for the recognition
of interest income, impairment gains or
losses and foreign exchange gains or
losses which are recognized in statement
of profit and loss and computed in
the same manner as for financial
assets measured at amortised cost.
The remaining fair value changes are
recognised in OCI. Upon derecognition,
the cumulative fair value changes
recognised in OCI is reclassified from
the equity to profit or loss.

Financial assets at fair value through profit
or loss

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. This category includes derivative
instruments and listed equity investments
which the Company had not irrevocably
elected to classify at fair value through
OCI. Dividends on listed equity investments
are recognised in the statement of profit
and loss when the right of payment has
been established.

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.

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's statement
of financial position) 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

In accordance with IND AS 109, the Company
applies expected credit losses(ECL) model

for measurement and recognition of
impairment loss on the following financial
asset and credit risk exposure

• Financial assets measured at
amortized cost;

• Financial assets measured at fair value
through other comprehensive income
(FVTOCI);

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).

The Company follows “simplified approach”
for recognition of impairment loss
allowance on:

• Trade receivables or contract
revenue receivables.

• All lease receivables resulting from the
transactions within the scope of Ind AS
116 -Leases”.

Under the simplified approach, the Company
does not track changes in credit risk. Rather,
it recognizes impairment loss allowance
based on lifetime ECLs at each reporting
date, right from its initial recognition.
The Company uses a provision matrix to
determine impairment loss allowance on the
portfolio of trade receivables. The provision
matrix is based on its historically observed
default rates over the expected life of trade
receivable and is adjusted for forward
looking estimates. At every reporting date,
the historical observed default rates are
updated and changes in the forward-looking
estimates are analysed.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized
as income/ expense in the Standalone
statement of profit and loss. This amount is
reflected under the head 'other expenses' in
the statement of Standalone statement of
profit and loss. The Standalone statement of
assets and liabilities presentation for various
financial instruments is described below:”

(a) Financial assets measured as at
amortised cost: ECL is presented as
an allowance, i.e., as an integral part
of the measurement of those assets in
the statement of assets and liabilities.
The allowance reduces the net carrying
amount. Until the asset meets write-off
criteria, the Company does not reduce
impairment allowance from the gross
carrying amount.

(b) Loan commitments and financial
guarantee contracts: ECL is presented
as a provision in the statement of assets
and liabilities, i.e., as a liability.

(c) Debt instruments measured at FVTOCI:
For debt instruments measured at
FVTOCI, the expected credit losses
do not reduce the carrying amount in
the statement of assets and liabilities,
which remains at fair value. Instead,
an amount equal to the allowance that
would arise if the asset was measured
at amortised cost is recognised in
other comprehensive income as the
accumulated impairment amount.”

(ii) 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,
and payables, net of directly attributable
transaction costs. 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 financial liabilities include
loans and borrowings, trade payables, trade
deposits, retention money, liabilities towards
services and other payables.

Subsequent measurement

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

(i) Financial liabilities at fair value through
profit or loss

(ii) Financial liabilities at amortised cost
(loans and borrowings)”

Financial liabilities at fair value through
profit or loss

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. This category also includes
derivative financial instruments entered into
by the Company that are not designated as
hedging instruments in hedge relationship
as defined by Ind AS 109. The separated
embedded derivate are also classified as
held for trading unless they are designated
as effective hedging instruments.

Gains or losses on liabilities held for trading
are recognized in the statement of profit
and 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 profit and
loss. However, the Company may transfer
the cumulative gain or loss within equity. All
other changes in fair value of such liability
are recognized 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)

After initial recognition, interest-bearing
borrowings are subsequently measured
at amortized cost using the Effective
interest rate method. Gains and losses
are recognized in profit or loss when the
liabilities are derecognised as well as through
the Effective interest rate amortization
process. Amortized cost is calculated by
taking into account any discount or premium
on acquisition and fees or costs that are an
integral part of the Effective interest rate.
The Effective interest rate amortization is
included as finance costs in the statement of
profit and loss.

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 cumulative amortisation.

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 recognized
in the statement of profit and loss.

Offsetting of financial instruments

Financials assets and financial liabilities are
offset, and the net amount is reported in the
statement of assets and liabilities if there is a
currently enforceable legal right to offset the
recognized amounts and there is an intention
to settle on a net basis, to realize the assets
and settle the liabilities simultaneously.

Reclassification of financial assets/
financial liabilities

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.

2.10 Inventories:

I nventories are valued at lower of cost or net
realisable value.

Cost includes the cost of purchase and other
costs incurred in bringing the inventories (other
than finished goods) to their present location
and condition. Cost of finished goods includes
cost of direct materials and labour and a
proportion of manufacturing overheads based
on the normal operating capacity but excluding
borrowing costs. Cost is determined on a first in
first out basis.

Net realisable value is the estimated selling
price in the ordinary course of business less
estimated costs necessary to make sale.

2.11 Income Tax:

The income tax expense or credit for the period
is the tax payable on the current period's taxable
income based on the applicable income tax rate
for each jurisdiction adjusted by changes in
deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

Current income tax

The current income tax charge is calculated on
the basis of the tax laws enacted or substantively
enacted at the end of the reporting period.
Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulation is subject
to interpretation and considers whether it is
probable that a taxation authority will accept
an uncertain tax treatment. The Company
measures its tax balances either based on the
most likely amount or the expected value,
depending on which method provides a better
prediction of the resolution of the uncertainty.
Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised in
correlation to the underlying transaction either
in OCI or directly in equity.

Deferred tax

Deferred income tax is provided in full,
using the liability method, on temporary
differences arising between the tax bases
of assets and liabilities and their carrying
amounts in the Standalone Financial
Statements. However, deferred tax liabilities
are not recognised if they arise from the
initial recognition of goodwill. Deferred
income tax is also not accounted for if it
arises from initial recognition of an asset
or liability in a transaction other than a
business combination that at the time of the
transaction affects neither accounting profit
nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws)
that have been enacted or substantially
enacted by the end of the reporting period
and are expected to apply when the related
deferred income tax asset is realised, or the
deferred income tax liability is settled.

Deferred tax assets are recognised for
all deductible temporary differences and
unused tax losses only if it is probable that
future taxable amounts will be available
to utilise those temporary differences
and losses.

Deferred tax liabilities are not recognised for
temporary differences between the carrying
amount and tax bases of investments in
subsidiaries, joint ventures and associates
and interest in joint arrangements where the
Company is able to control the timing of the
reversal of the temporary differences and
it is probable that the differences will not
reverse in the foreseeable future.

Deferred tax assets are not recognised for
temporary differences between the carrying
amount and tax bases of investments in
subsidiaries, joint ventures and associates
and interest in joint arrangements where
it is not probable that the differences will
reverse in the foreseeable future and taxable
profit will not be available against which the
temporary difference can be utilised.

Deferred tax assets and liabilities are offset
where there is a legally enforceable right
to offset current tax assets and liabilities
and where the deferred tax balances relate
to the same taxation authority. Current tax
assets and tax liabilities are offset where
the entity has a legally enforceable right to
offset and intends either to settle on a net
basis, or to realise the asset and settle the
liability simultaneously.

Current and deferred tax is recognised in
statement of profit and loss, except to the
extent that it relates to items recognised in
other comprehensive income or directly in
equity. In this case, the tax is also recognised
in other comprehensive income or directly in
equity, respectively.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable
that sufficient taxable profit will be available
to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting
date and are recognised to the extent that
it has become probable that future taxable
profits will allow the deferred tax asset to
be recovered.

Deferred tax relating to items recognised
outside profit or loss is recognised outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in equity.

2.12 Revenue from contract with customers:

Revenue is recognised at an amount that reflects
the consideration to which the Company expects
to be entitled in exchange for transferring the
promised goods or services to a customer i.e.,
on transfer of control of the goods or service
to the customer. Revenue from sales of goods
or rendering of services is net of Indirect taxes,
returns and variable consideration on account
of discounts and schemes offered by the
Company as part of the contract. The Company
applies the revenue recognition criteria to
each separately identifiable component of the
revenue transaction as set out below:

(i) Revenue from sale of services (Rooms, Food
and Beverage & Banquets):

• Revenue is recognised at the transaction
price that is allocated to the performance
obligation. Revenue includes room revenue,
food and beverage sale and banquet
services which is recognised once the rooms
are occupied, food and beverages are sold,
and banquet services have been provided as
per the contract with the customer.

• Revenue is recognised net of discounts and
sales related taxes in the period in which
the services are rendered. The Company
collects Goods and Service Tax (GST) and
value added tax (VAT) on behalf of the

government, and therefore, these are not
economic benefits flowing to the Company.

(ii) Other Operating Revenue:

• Exports entitlements [arising out of Served
from India Scheme (SFIS)] are recognised
when the right to receive credit as per the
terms of the schemes is established in
respect of the exports made by the Company
and when there is no significant uncertainty
regarding the ultimate collection of the
relevant export proceeds.

• Loyalty Programme: The Company operates
a loyalty point's programme, which allows
customers to accumulate points when
they obtain services in the Company's
Hotels. This programme provides a
material right to customers, in the form
of award points, on eligible spends. The
promise to provide the discount through
award points to the customer is therefore
a separate performance obligation. The
points so earned by such customers are
accumulated and have a fixed redemption
price. The revenues related to award points
pertaining to the Company is deferred and
a contract liability is created at the time of
initial sales basis the points awarded to the
customer and the likelihood of redemption,
as evidenced by the Company's historical
experience. On redemption or expiry of such
award points, revenue is recognised at pre¬
determined rates.

• Space and Shop Rentals: Rentals basically
consists of rental revenue earned from
letting of spaces for retails and office at the
properties. Revenue is recognised in the
period in which services are being rendered.

• Other Allied Services: In relation to laundry
income, communication income, health
club income, airport transfers income and
other allied services, the revenue has been
recognised by reference to the time of
service rendered.

• Management and Operating Fees:
Management fees earned from hotels
managed by the Company are usually
under long-term contracts with the hotel
owner. Under Management and Operating
Agreements, the Company's performance
obligation is to provide hotel management
services and a license to use the Company's
trademark and other intellectual property.
Management and incentive fee are earned
as a percentage of revenue and profit and
are recognised when earned in accordance

with the terms of the contract based on
the underlying revenue, when collectability
is certain and when the performance
criteria are met. Both are treated as
variable consideration.

• Membership Fees: Membership fee income
majorly consists of membership fees
received from the loyalty programme and
Chamber membership fees. In respect of
performance obligations satisfied over a
period of time, revenue is recognised at
the allocated transaction price on a time-
proportion basis.

(iii) Interest Income:

Interest income is recorded on accrual
basis using the effective interest rate
(EIR) method. For all debt instruments
measured either at amortised cost or at
fair value through other comprehensive
income, interest income is recorded using
the effective interest rate (EIR). EIR is the
rate that exactly discounts the estimated
future cash payments or receipts over the
expected life of the financial instrument
or a shorter period, where appropriate, to
the gross carrying amount of the financial
asset or to the amortised cost of a financial
liability. When calculating the effective
interest rate, the Company estimates the
expected cash flows by considering all the
contractual terms of the financial instrument
(for example, prepayment, extension, call
and similar options) but does not consider
the expected credit losses.

(iv) Rental Income:

Rental income is recognised on a straight¬
line basis over the term of the lease over
the lease terms and is included in revenue
in the statement of profit or loss due to its
operating nature.

(v) Dividend Income:

Dividend income is recognised at the time
when the right to receive is established which
is generally when shareholders approve
the dividend.

(vi) Contract balances

A contract asset is the right to consideration
in exchange for goods or services transferred
to the customer. If the Company performs by
transferring goods or services to a customer
before the customer pays consideration or
before payment is due, a contract asset is

recognised for the earned consideration that
is conditional.

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods
or services to the customer, a contract
liability is recognised when the payment is
made, or the payment is due (whichever is
earlier). Contract liabilities are recognised as
revenue when the Company performs under
the contract.

A trade receivable is recognised if an amount
of consideration that is unconditional (i.e.,
only the passage of time is required before
payment of the consideration is due). Refer
to accounting policies of financial assets
in section (Financial instruments - initial
recognition and subsequent measurement).

2.13 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, a reduction in future
payment or a cash refund.

The Company operates a defined benefit gratuity
plan in India, which requires contributions to be
made to a separately administered fund.

The cost of providing benefits under the defined
benefit plan is determined 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:

• The date of the plan amendment or
curtailment, and

• 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 statement of profit and loss:

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

• Net interest expense or income

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.

2.14 Leases:

The Company assesses at contract inception
whether a contract is, or contains, a lease. That
is, if the contract conveys the right to control
the use of an identified asset for a period of time
in exchange for consideration.

Company as a lessee

The Company's lease asset classes primarily
comprise of lease for land and building. The
Company applies a single recognition and
measurement approach for all leases, except
for short-term leases and leases of low-
value assets. The Company recognises lease
liabilities to make lease payments and right-
of-use assets representing the right to use the
underlying assets.

(i) Right-of-use assets

The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use). Right-of-use assets are measured
at cost, less any accumulated depreciation

and accumulated impairment losses, and
adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets
includes the amount of lease liabilities
recognised, initial direct costs incurred,
and lease payments made at or before
the commencement date less any lease
incentives received. Right-of-use assets are
depreciated on a straight-line basis over the
unexpired period of respective leases.

I f ownership of the leased asset transfers to
the Company at the end of the lease term or
the cost reflects the exercise of a purchase
option, depreciation is calculated using the
estimated useful life of the asset. The right-
of-use assets are also subject to impairment.
Refer to the accounting policies in section
'Impairment of non-financial assets.

(ii) Lease Liabilities

At the commencement date of the lease,
the Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease
term. The lease payments include fixed
payments (including in substance fixed
payments) less any lease incentives
receivable, variable lease payments
that depend on an index or a rate, and
amounts expected to be paid under
residual value guarantees. The lease
payments also include the exercise price
of a purchase option reasonably certain
to be exercised by the Company and
payments of penalties for terminating
the lease, if the lease term reflects
the Company exercising the option to
terminate. Variable lease payments that
do not depend on an index or a rate are
recognised as expenses (unless they are
incurred to produce inventories) in the
period in which the event or condition
that triggers the payment occurs.”

In calculating the present value of
lease payments, the Company uses
its incremental borrowing rate at the
lease commencement date because
the interest rate implicit in the lease
is not readily determinable. After the
commencement date, the amount of
lease liabilities is increased to reflect the
accretion of interest and reduced for
the lease payments made. In addition,
the carrying amount of lease liabilities is
remeasured if there is a modification, a
change in the lease term, a change in the

lease payments (e.g., changes to future
payments resulting from a change in an
index or rate used to determine such
lease payments) or a change in the
assessment of an option to purchase the
underlying asset.

(iii) Short-term leases and leases of low-
value assets

The Company applies the short-term
lease recognition exemption to its short¬
term leases (i.e., those leases that have a
lease term of 12 months or less from the
commencement date and do not contain
a purchase option). It also applies the
lease of low-value assets recognition
exemption to leases that are considered
to be low value. Lease payments on
short-term leases and leases of low-value
assets are recognised as expense on a
straight-line basis over the lease term.

Company as a lessor

Leases for which the Company is a lessor
is classified as finance or operating lease.
Leases in which the Company does not
transfer substantially all the risks and
rewards incidental to ownership of an
asset are classified as operating leases.
Rental income arising is accounted for
on a straight-line basis over the lease
terms. Initial direct costs incurred in
negotiating and arranging an operating
lease are added to the carrying amount
of the leased asset and recognised
over the lease term on the same basis
as rental income. Contingent rents are
recognised as revenue in the period in
which they are earned.

2.15 Earnings Per Share:

Basic earnings per share are calculated by
dividing the net profit or loss for the period
attributable to equity holders by the weighted
average number of equity shares outstanding
during the period. The weighted average
number of equity shares outstanding during
the period is adjusted for events 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 holders and the weighted

average number of shares outstanding during
the period are adjusted for the effect of all
potentially dilutive equity shares.

2.16 Borrowing Costs:

Borrowing cost includes interest and other
costs incurred in connection with the borrowing
of funds and charged to Statement of Profit
& Loss on the basis of effective interest rate
(EIR) method. Borrowing cost also includes
exchange differences to the extent regarded as
an adjustment to the borrowing cost.

Borrowing costs directly attributable to the
acquisition, construction or production of an
asset that necessarily takes a substantial period
of time to get ready for its intended use or
sale are capitalized as part of the cost of the
respective asset. All other borrowing costs are
recognized as expense in the period in which
they occur.

2.17 Share Based Payments:

Certain employees (including senior
management personnel) of the Company
receive part of their remuneration in the form
of share based payment transactions, whereby
employees render services in exchange for
shares or rights over share (equity-settled
transactions). The cost of equity-settled
transactions with employees is determined
measured at fair value at the date at which
they are granted using an appropriate valuation
model. That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which
the service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting date
reflects the extent to which the vesting period
has expired and the Company's best estimate
of the number of equity instruments that will
ultimately vest. The statement of profit and loss
expense or credit for a period represents the
movement in cumulative expense recognised
as at the beginning and end of that period
and is recognised in employee benefits
expense. Service and non-market performance
conditions are not taken into account when
determining the grant date fair value of awards,
but the likelihood of the conditions being met
is assessed as part of the Company's best
estimate of the number of equity instruments
that will ultimately vest.

When the terms of an equity-settled award are
modified, the minimum expense recognised

is the expense had the terms had not been
modified, if the original terms of the award are
met. An additional expense is recognised for
any modification that increases the total fair
value of the share-based payment transaction
or is otherwise beneficial to the employee as
measured at the date of modification. Where
an award is cancelled by the entity or by the
counterparty, any remaining element of the fair
value of the award is expensed immediately
through profit or loss.

2.18 Cash and cash equivalents:

Cash and Cash and cash equivalent in the
Standalone Statement of Assets and Liabilities
comprises of 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 Standalone 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.

2.19 Foreign currency translation:

(i) Functional and presentation currency

I tems included in the Financial Statements
are measured using the currency of the
primary economic environment in which the
entity operates ('the functional currency').
The Company's Standalone financial
statements are presented in INR, which is
the functional currency for the Company.

(ii) Transactions and balances

Foreign currency transactions are translated
into the functional currency using the
exchange rate prevailing at the date of the
transaction. Foreign exchange gains and
losses resulting from the settlement of such
transaction and from the translation of
monetary assets and liabilities denominated
in foreign currencies at year end exchange
rate are generally recognised in the
statement of profit and loss.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions. Non¬
monetary items measured at fair value in
a foreign currency are translated using the

exchange rates at the date when the fair
value is determined.

(iii) Exchange differences

Exchange differences arising on settlement
or translation of monetary items are
recognized as income or expense in the
period in which they arise with the exception
of exchange differences on gain or loss
arising on translation of non-monetary items
measured at fair value which is treated in
line with the recognition of the gain or loss
on the change in fair value of the item (i.e.,
translation differences on items whose fair
value gain or loss is recognized in OCI or
profit or loss are also recognized in OCI or
profit or loss, respectively).”

2.20 Fair value Measurement:

The Company measures its financial
instruments such as derivative instruments,
etc at fair value at each balance sheet date.
Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurement date. The
fair value measurement is based on the
presumption that the transaction to sell the
asset or transfer the liability takes place either:

• In the principal market for the asset or
liability, or

• In the absence of a principal market, in the
most advantageous market for the asset
or liability

The fair value of an asset or a liability is
measured using the assumptions that market
participants would use when pricing the asset
or liability, assuming that market participants
act in their economic best interest. A fair value
measurement of a non-financial asset takes
into account a market participant's ability to
generate economic benefits by using the asset
in its highest and best use or by selling it to
another market participant that would use the
asset in its highest and best use.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

• Level 1 - Quoted (unadjusted) market
prices in active markets for identical assets
or liabilities.

• Level 2 - Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable.

• Level 3 - Valuation techniques for which the
lowest level input that is significant to the
fair value measurement is unobservable.

For assets and liabilities that are recognised in
the financial statements on a recurring basis,
the Company determines whether transfers
have occurred between levels in the hierarchy
by re-assessing categorisation (based on the
lowest level input that is significant to the fair
value measurement as a whole) at the end of
each reporting period.

External valuers are involved for valuation
of significant assets, such as investment
properties and unquoted financial assets.
Valuers are selected based on market
knowledge, reputation, independence and
whether professional standards are maintained.
For other assets management carries out the
valuation based on its experience, market
knowledge and in line with the applicable
accounting requirements.

For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy as
explained above.

This note summarises accounting policy for fair
value. Other fair value related disclosures are
given in the relevant notes:

• Quantitative disclosures of fair value
measurement hierarchy (refer note 47)

• Investment in unquoted equity share (refer
note 6)

• Financial instruments (including those
carried at amortised cost) (refer note 47)

• Disclosures for valuation methods, significant
estimates and assumptions (refer note 47)

• Investment properties (refer note 5)