2. Material accounting policies

(a) Basis of preparation of standalone financial statements

The standalone financial statements of the Company
have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended from time
to time) and presentation requirements of Division II of
Schedule III to the Companies Act, 2013, (Ind AS compliant
Schedule III), as applicable to the standalone financials
statements.

The standalone financial statements have been prepared
on a historical cost basis, except for certain assets and
liabilities which have been measured at fair value at the
end of the reporting period, as explained further in the
accounting policies below. The standalone financial
statements are presented in Indian Rupees (“INR/ T”) and
all values are rounded to the nearest Million (INR 000,000),
except when otherwise indicated.

(b) Use of estimates, assumptions and judgments

The preparation of the standalone financial statements in
conformity with Ind AS requires the management to make
estimates, judgments and assumptions that affect the
reported amounts of assets and liabilities, the disclosure
of contingent assets and liabilities on the date of the
standalone financial statements and the reported amounts
of revenues and expenses for the year reported. Actual
results could differ from those estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the
year in which the estimates are revised and future periods
are affected.

Impairment of financial assets

In accordance with Ind AS 109, the Company assesses
impairment of financial assets (‘Financial instruments’) and
recognises expected credit losses, which are measured through
a loss allowance.

The Company provides for impairment of investment in
subsidiaries. Impairment exists when there is a diminution
in value of the investment and the recoverable value of such
investment is lower than the carrying value of such investment.

The Company provides for impairment of trade receivables
based on assumptions about risk of default and expected
timing of collection. The Company uses judgement in making
these assumptions and selecting inputs to the impairment
calculation, based on the Company’s past history, customer’s
creditworthiness, existing market conditions as well as forward
looking estimates at the end of each reporting period.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash
generating unit (“CGU”) 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 discounted cash flow (“DCF”) model.
The cash flows are derived from the budget for future 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.

Defined benefit plans

The cost of the defined benefit gratuity plan and other post¬
employment benefits and the present value of the gratuity
obligation is determined using actuarial valuation. 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 (refer note 38(b)).

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. These 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.

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 internal valuation techniques. 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. Also refer note 2(e).

Share-based payments (Employee Stock Appreciation Plan)

Estimating fair value for share-based payment transactions
requires determination of the most appropriate valuation
model, which is dependent on the terms and conditions of the
grant. This estimate also requires determination of the most
appropriate inputs to the valuation model including the expected
life of the share option, volatility and dividend yield and making
assumptions about them. The assumptions and models used
for estimating fair value for share-based payment transactions
are disclosed in note 45.

Taxes

The Company’s major tax jurisdictions is in India. Significant
judgments are involved in determining the provision for income
taxes and tax credits, including the amount expected to be paid
or refunded (refer note 33).

Deferred tax assets are recognized for unused tax losses to
the extent that it is probable that future taxable profit will be
available against which the losses can be utilized. Significant
management judgement is required to determine the amount
of deferred tax assets that can be recognized, based upon the
likely timing and the level of future taxable profits together with
future tax planning strategies.

Leases

Ind AS 116 requires lessees to determine the lease term as the
non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is
reasonably certain. The Company makes an assessment on
the expected lease term on a lease-by-lease basis and thereby
assesses whether it is reasonably certain that any options to
extend or terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the lease
term, costs relating to the termination of the lease and the
importance of the underlying asset to Company’s operations
taking into account the location of the underlying asset and

the availability of suitable alternatives. The lease term in future
periods is reassessed to ensure that the lease term reflects the
current economic circumstances. After considering current and
future economic conditions, the Company has concluded that
no changes are required to lease period relating to the existing
lease contracts [Refer to note 2(I)].

(c) Current versus non-current classification

The Company presents assets and liabilities in the balance
sheet based on current / non-current classification.

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 the 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:

• expected to be settled in normal operating cycle;

• held primarily for the purpose of trading;

• 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.

The terms of the liability that could, at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification

The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current
assets and liabilities.

The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its
operating cycle.

(d) Foreign currencies

The standalone financial statements are presented in
Indian Rupee (?), which is also the Company’s functional
currency. Transactions in foreign currencies are initially
recorded by the Company at their respective functional

currency spot rates at the date, the transaction first
qualifies for recognition. However, for practical reasons, the
Company uses an average rate, if the average approximates
the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency
spot rates of exchange at the reporting date. Exchange
differences arising on settlement or translation of monetary
items are recognized in the standalone 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. The gain or loss arising on
translation of non-monetary items measured at fair value 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 other
comprehensive income (“OCI”) or the statement of profit
or loss are also recognized in OCI or the statement of profit
or loss, respectively).

(e) Fair value measurement

The Company measures financial instruments, such as,
derivatives 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 principal
or the most advantageous market must be accessible by
the Company.

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.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of
unobservable inputs. All assets and liabilities for which fair
value is measured or disclosed in the standalone 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

The Company’s management determines the policies and
procedures for fair value measurement. External valuers are
involved, wherever considered necessary.

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
summarizes accounting policy for fair value and the other fair
value related disclosures are given in the relevant notes.

(f) Revenue from contract with customer

The Company earns revenue from contract with customer
primarily from sale of goods.

Revenue from contract with customers is recognized upon
transfer of control of promised products to customers in an
amount that reflects the consideration which the Company
expects to receive in exchange for those goods. The
Company has generally concluded that it is the principal in
its revenue arrangements, because it typically controls the
goods or services before transferring them to the customer,
it is the primary obligor in all the revenue arrangements as
it has pricing latitude and is also exposed to inventory and
credit risks.

Contract assets

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 recognized for the earned consideration that
is conditional.

Revenues in excess of invoicing are classified as contract assets
(which we refer to as Unbilled Revenue)

The specific recognition criteria described below must also be
met before revenue is recognized.

Sale of goods

Revenue from sale of goods is recognized at the point in time
when control of the asset is transferred to the customer,
generally on delivery of the goods.

The revenue is collected immediately upon sale of goods or
as per agreed credit terms which is within 0 to 365 days upon
delivery.

The Company considers whether there are other promises in the
contract that are separate performance obligations to which a
portion of the transaction price needs to be allocated.

Variable Consideration

Rights of return, volume discounts, or any other form of variable
consideration is estimated using either the sum of probability
weighted amounts in a range of possible consideration amounts
(expected value), or the single most likely amount in a range of
possible consideration amounts (most likely amount), depending
on which method better predicts the amount of consideration
realizable. Transaction price includes variable consideration
only to the extent it is probable that a significant reversal of
revenues recognized will not occur when the uncertainty
associated with the variable consideration is resolved. Our
estimates of variable consideration and determination of
whether to include estimated amounts in the transaction price
may involve judgment and are based largely on an assessment
of our anticipated performance and all information that is
reasonably available to us.

Sale of Services

Revenue from service contracts are recognized as per the
contractual terms as and when the services are rendered. No
further obligations remains and the collection is probable.

Royalty Income

Royalty income is recognised on accrual basis in accordance
with the substance of their relevant agreements.

Interest income

For all financial instruments measured at amortized cost,
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 net carrying amount of the financial asset or to the
amortized cost of a financial liability. When calculating EIR, 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. Interest income is included
in other income in the standalone statement of profit and loss.

Export benefits

Export entitlements in the form of Remission of Duties and
Taxes on Exported Products (RoDTEP) and Duty Entitlement
Pass Book / draw back (DEPB) are recognized in the standalone

statement of profit and loss when the right to receive credit as
per the terms of the scheme is established in respect of exports
made and when there is no significant uncertainty regarding the
ultimate collection of the relevant export proceeds.

Dividend

Revenue is recognized when the Company’s right to receive the
payment is established, which is generally when shareholders
approve the dividend.

(g) Government grants

Government grants are recognized 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 recognized 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 relates to an asset, it is recognized as
income in equal amounts over the expected useful life of
the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to the standalone statement of
profit or loss over the expected useful life in a pattern of
consumption of the benefit of the underlying asset i.e. by
equal annual instalments. When loans or similar assistance
are provided by governments or related institutions, with an
interest rate below the current applicable market rate, the
effect of this favorable interest is regarded as a government
grant. The loan or assistance is initially recognized and
measured at fair value and the government grant is
measured as the difference between the initial carrying
value of the loan and the proceeds received. The loan
is subsequently measured as per the accounting policy
applicable to financial liabilities.

Government grants related to expenditure on property,
plant and equipment are credited to the statement of profit
and loss over the useful lives of qualifying assets or other
systematic basis representative of the pattern of fulfilment
of obligations associated with the grant received. Grants
received less amounts credited to the statement of profit
and loss at the reporting date are included in the balance
sheet as other liabilities.

(h) Taxes

Current income tax

Tax Expense comprises of current tax and deferred tax
and is recognized in the standalone statement of profit
and loss.

Current income tax assets and liabilities is the amount
of income tax determined to be payable / recoverable in
respect of taxable income as computed in accordance

with the Income Tax Act, 1961 enacted in India. The tax
rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the
reporting date.

Current income tax relating to items recognized outside the
standalone statement of profit or loss is recognized outside
the standalone statement of profit or loss (either in OCI
or in equity in correlation to the underlying transaction).
Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and considers
whether it is probable that a taxation authority will accept
an uncertain tax treatment. The Company shall reflect the
effect of uncertainty for each uncertain tax treatment by
using either most likely method or expected value method,
depending on which method predicts better resolution of
the treatment.

Deferred income tax

Deferred income tax is recognized using the balance sheet
approach, deferred tax is recognized on temporary differences
at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes, except when the deferred income tax arises from
the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and affects
neither accounting nor taxable profit or loss at the time of the
transaction.

Deferred income tax assets are recognized for all deductible
temporary differences, carry forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and
unused tax losses can be utilized.

The carrying amount of deferred income tax assets is
reviewed at each balance sheet 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 income tax asset to
be utilized.

Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
balance sheet date.

(i) Property, plant and equipment

Property, plant and equipment and capital-work-in progress
are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes
the cost of replacing part of the plant and equipment and
borrowing costs for long-term construction projects, if the

recognition criteria are met. When significant parts of plant
and equipment are required to be replaced at intervals,
the Company depreciates them separately based on their
specific useful lives. Likewise, when a major inspection is
performed, its cost is recognized in the carrying amount
of the plant and equipment as a replacement, if the
recognition criteria are satisfied. All other repair and
maintenance costs are recognized in the standalone
statement of profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the
useful lives of the assets, as specified in Schedule II to the
Act except in case of certain assets wherein depreciation
is calculated on a straight-line basis using the rates arrived
at based on the useful lives estimated by the management.
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.

In respect of plant and machinery (excluding pipelines and
electrical fittings etc.) used at any time during the year on
double shift or triple shift basis, the depreciation for that period
is increased by 50% or 100%, respectively.

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

The residual values, useful lives and methods of depreciation
of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.

(j) Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated
amortization and accumulated impairment losses, if any.

Internally generated intangibles, excluding capitalised
development costs, are not capitalised and the related
expenditure is reflected in the standalone statement of
profit or loss in the period in which the expenditure is
incurred.

Intangible assets are amortized over the useful economic
life and assessed for impairment, whenever there is an
indication that the intangible asset may be impaired. The
amortization period and the amortization method for an
intangible asset are reviewed at least at the end of each
reporting period. The amortization expense on intangible
assets is recognized in the standalone statement of profit
and loss.

Gains or losses arising from de-recognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and are recognized in the standalone statement of profit
and loss when the asset is derecognized.

A summary of amortization policies applied to the
Company’s intangible assets, is as below:

The Company as a lessee

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.

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 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 shorter of the lease term and the
estimated useful lives of the assets, as follows:

(k) Borrowing costs

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 capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the period
in which they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the
borrowing costs.

(l) Leases

The determination of whether an arrangement is or contains
a lease is based on the substance of the arrangement at
the inception of the lease. The arrangement is or contains
a lease if fulfilment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right
is not explicitly specified in an arrangement.

If 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 (n) Impairment of non¬
financial assets.

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.

The Companies lease liabilities are included in Interest-bearing
loans and borrowings (refer note 18(b)).

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption
to its short-term leases of assets (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 of assets
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.

The Company as a lessor

Leases in which the Company does not transfer substantially all
the risks and rewards of ownership of an asset are classified as
operating leases. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying amount
of the leased asset and recognized over the lease term on the
same basis as rental income. Contingent rents are recognized
as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of
the risks and rewards of ownership transfer from the Company
to the lessee. Amounts due from lessees under finance leases
are recorded as receivables at the Company’s net investment
in the leases. Finance lease income is allocated to accounting
periods so as to reflect a constant periodic rate of return on the
net investment outstanding in respect of the lease.

(m) Inventories

Inventories are valued at the lower of cost and net
realisable value. Costs incurred in bringing each product
to its present location and condition are accounted for as
follows:

• Raw materials: Cost includes cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition. However, materials
and other items held for use in the production of
inventories are not written down below cost if the
finished products in which they will be incorporated
are expected to be sold at or above cost.

• Finished goods and work-in-progress: Cost includes
cost of direct materials and labour and a proportion

of manufacturing overheads based on the normal
operating capacity, but excluding borrowing costs.

• Traded goods: Cost includes cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition.

Cost is determined on a weighted average basis. Net
realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion
and the estimated costs necessary to make the sale.

(n) 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 asset’s or cash-generating unit’s (“CGU”)
fair value less costs of disposal and its value in use.
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 Companies of 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.

In 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 years.
For longer periods, a long-term growth rate is calculated
and applied to project future cash flows after the fifth 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 in which the
entity operates, or for the market in which the asset is used.

For assets excluding goodwill, an assessment is made
at each reporting date to determine whether there is an
indication that previously recognized impairment losses

no longer exist or have decreased. If such indication
exists, the Company estimates the asset’s or CGU’s
recoverable amount. A previously recognized 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 recognized.
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 recognized
for the asset in prior years. Such reversal is recognized in
the standalone statement of profit or loss, unless the asset
is carried at a revalued amount, in which case, the reversal
is treated as a revaluation increase.