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, 2025.
These standalone financial statements have been

prepared for the Company as a going concern on
the basis of relevant Ind AS that are effective as at
March 31, 2026.

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 “Rs.” and all
values are rounded to the nearest crores except
when otherwise indicated.

!.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 are
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 building constructed on leasehold land is
restricted to lower of useful life of balance period of leasehold
land or useful life calculated based on 100 years.

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.

!.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
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".

Investment 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.

I nvestment 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.

Intangible 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.

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 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.

I mpairment 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
g oods 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).

2.13Retirement 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.

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
'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 33)

• Investment in unq u oted equ ity share
(refer note 7)

• Financial instruments (including those carried
at amortised cost) (refer note 33)

• Disclosures for valuation methods, significant
estimates and assumptions (refer note 33)