2. Material accounting policies and
other explanatory information
a. Statement of compliance
These standalone financial statements comply in all
material aspects with Indian Accounting Standards
(hereinafter referred to as the ‘Ind AS') as notified by
Ministry of Corporate Affairs (hereinafter referred to
as the ‘MCA') under Section 133 of the Companies
Act, 2013 (‘the Act') read with the Companies (Indian
Accounting Standards) Rules 2015, as amended
from time to time, other relevant provisions of the Act,
presentation requirements of Division II of Schedule III
to the Act, (Ind AS compliant Schedule III), as applicable
and other recognised accounting practices and policies,
to the extent possible.
The standalone financial statements are presented
in Indian T which is the functional and presentation
currency of the Company and the currency of the primary
economic environment in which the Company operates.
All amounts disclosed in the standalone financial
statements and notes thereof have been rounded-off
to the nearest lakh, upto two decimal places, as per the
requirement of Division II of Schedule III of the Act, unless
otherwise stated.
b. Basis of preparation
The standalone financial statements have been
prepared and presented on the going concern basis
and at historical cost convention, except for the following
assets and liabilities, as explained in relevant accounting
policies and notes which have been measured as
indicated below:
• Equity settled Employee Stock Option Plan (‘ESOP')
at grant date fair value at each reporting date;
• Employees' defined benefit plans
The accounting policies followed in preparation of the
standalone financial statements are consistent with those
followed in the most recent annual financial statements
of the Company.
c. Significant management judgements in
applying accounting policies and estimation
uncertainty
In the application of the Company's accounting policies,
the management of the Company is required to make
judgements, estimates and assumptions about the
reported amounts of assets, liabilities, income and
expenses. The estimates and associated assumptions
are based on historical experience and other factors that
are considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in
the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision
and future periods if revision affects both current and
future periods.
I nformation about significant management judgements
made in applying accounting policies that have the most
significant effects on the amounts recognized in the
standalone financial statements are mentioned below:
i) Contingent liabilities and claims
The Company is subject to various lawsuits and
claims arising in the ordinary course of business
from time to time. The Company reviews any such
legal proceedings and claims on an ongoing basis
and follows appropriate accounting guidance
when making accrual and disclosure decisions.
The Company establishes accruals for those
contingencies where the incurrence of a loss is
probable and can be reasonably estimated, and it
discloses the amount accrued and the amount of
a reasonably possible loss in excess of the amount
accrued, if such disclosure is necessary for the
Company’s standalone financial statements to
not be misleading. To estimate whether a loss
contingency should be accrued by a charge to
income, the Company evaluates, among other
factors, the degree of probability of an unfavourable
outcome and the ability to make a reasonable
estimate of the amount of the loss. The Company
does not record liabilities when the likelihood that
the liability has been incurred is probable, but the
amount cannot be reasonably estimated. Based
upon present information, the Company determined
that there were no matters that required an accrual
as of March 31, 2026 other than the accruals
already recognized, nor were there any asserted
or unasserted claims for which material losses are
reasonably possible.
ii) Leases
The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses significant
judgement in assessing the lease term (including
anticipated renewals) and the applicable discount
rate. The Company determines the lease term as
the non-cancellable period of a lease, together
with both periods covered by an option to extend
the lease if the Company is reasonably certain to
exercise that option; and periods covered by an
option to terminate the lease if the Company is
reasonably certain not to exercise that option. In
assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or
not to exercise an option to terminate a lease, it
considers all relevant facts and circumstances that
create an economic incentive for the Company
to exercise the option to extend the lease, or not
to exercise the option to terminate the lease. The
Company revises the lease term if there is a change
in the non-cancellable period of a lease.
iii) Control assessment - Refer note 2(z).
I nformation about assumptions and estimation
uncertainties at the reporting date that have a
significant risk of resulting in a material adjustment
to the carrying amounts of assets and liabilities are
mentioned below:
i) Impairment of financial assets - At each
balance sheet date, based on historical
default rates observed over expected life,
existing market conditions as well as forward
looking estimates, the management assesses
the expected credit losses on outstanding
receivables. Further, management also
considers the factors that may influence the
credit risk of its customer base, including
the default risk associated with industry and
country in which the customer operates.
ii) Defined benefit obligation (DBO) -
Management’s estimate of the DBO is based
on a number of underlying assumptions such
as standard rates of inflation, mortality, discount
rate and anticipation of future salary increases.
Variation in these assumptions may significantly
impact the DBO amount and the annual defined
benefit expenses.
iii) Useful lives of depreciable/amortisable
assets - Management reviews its estimate of the
useful lives of depreciable/amortisable assets at
each reporting date, based on the expected utility
of the assets. Uncertainties in these estimates relate
to technical and economic obsolescence that may
change the utilisation of assets.
iv) Evaluation of indicators for impairment of
assets - The evaluation of applicability of indicators
of impairment of assets requires assessment of
several external and internal factors which could
result in deterioration of recoverable amount of
the assets.
v) Discounts/rebate to customers - The Company
provides discount and rebates on sales to certain
customers. Revenue from these sales is recognised
based on the price charged to the customer, net
of the estimated pricing allowances, discounts,
rebates, and other incentives. In certain cases,
the amount of these discount and rebates are not
determined until claims with appropriate evidence
is presented by the customer, which may be
some time after the date of sale. Accordingly, the
Company estimates the amount of such incentive
basis the terms of contract, incentive schemes,
historical experience adjusted with the forward
looking and the business forecast. Such estimates
are subject to the estimation uncertainty.
vi) Fair value measurements - Management applies
valuation techniques to determine fair value of
equity or preference shares (where active market
quotes are not available). This involves developing
estimates and assumptions around volatility,
dividend yield which may affect the value of equity
shares or stock options.
Judgements and estimates are continuously evaluated.
They are based on historical experience and other
factors including expectation of future events that may
have a financial impact on the Company and that are
believed to be reasonable under the circumstances.
d. Current versus non-current classification
The Company presents assets and liabilities in the
standalone balance sheet based on current / non¬
current classification.
An asset is classified as current when it satisfies any of
the following criteria:
- i t is expected to be realised in, or is intended for
sale or consumption in, the Company’s normal
operating cycle.
- it is held primarily for the purpose of being traded;
- It is expected to be realised within 12 months after
the reporting date; or
- It is cash or cash equivalent unless it is restricted
from being exchanged or used to settle a liability for
at least 12 months after the reporting date.
All other assets are classified as non-current.
A liability is classified as current when it satisfies any of
the following criteria:
- I t is expected to be settled in Company ‘s normal
operating cycle;
- It is held primarily for the purpose of being trading;
- I t is due to be settled within 12 months after the
reporting period; or
- There is no unconditional right to defer the
settlement of the liability for at least 12 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 respectively.
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.
e. Revenue recognition
Revenue from sale of goods
The Company derives revenue from manufacture and
sale of Indian Made Indian Liquor (‘IMIL’), Indian Made
Foreign Liquor (‘IMFL’) and Bulk Alcohol. Revenue from
sale of goods is recognised when the Company satisfies
a performance obligation upon transfer of control of
goods to customers at the time of shipment to or receipt
of goods by the customers as per the terms of the
underlying contracts.
The Company exercises judgment in determining
whether the performance obligation is satisfied at a point
in time or over a period of time. The Company considers
indicators such as how customer consumes benefits or
who controls the asset as it is being created or existence
of enforceable right to payment for performance to date
and alternate use of such goods or service, transfer
of significant risks and rewards to the customer,
acceptance of delivery by the customer, etc. Invoices
are issued as per the general business terms and are
payable immediately or in accordance with the agreed
credit period as disclosed in Note 12 of the standalone
financial statements of the Company.
Revenues are measured based on the transaction
price allocated to the performance obligation, which is
the consideration, net of taxes or duties collected on
behalf of the government and applicable discounts and
allowances. Revenue includes excise duty but excludes
Goods and Services tax. Revenue in excess of billing is
classified as ‘Unbilled revenue’.
Rendering of services
Revenue from bottling contracts with brand franchisees
is recognized in the accounting period as and when
related services are rendered and related costs are
incurred in accordance with the agreement between
the parties. The Company considers the terms of
the contract and its customary business practices to
determine the transaction price. The transaction price
is the amount of consideration to which the Company
expects to be entitled in exchange for the services,
excluding amounts collected on behalf of third parties
(for example, indirect taxes).
A receivable is recognised by the Company when control
of the goods is transferred and the Company’s right to
an amount of consideration under the contract with the
customer is unconditional, as only the passage of time is
required. When either party to a contract has performed,
the Company presents the contract in the balance sheet
as a contract asset or a contract liability, depending on
the relationship between the entity’s performance and
the customer’s payment.
No element of financing is deemed present as the sales
are made with insignificant credit terms depending on
the specific terms agreed with customers.
f. Other operating revenues
Export incentives
Revenue from export benefits arising from duty
drawback scheme, Remission of duties and taxes on
exported product scheme are recognised on export of
goods in accordance with their respective underlying
scheme at fair value of consideration received or
receivable where there is reasonable assurance that the
grant will be received and all attached conditions will be
complied with.
g. Property, plant and equipment
Recognition and initial measurement
Property, plant and equipment are stated at historical
cost net of accumulated depreciation and impairment
losses, if any. Such cost includes expenditure that is
directly attributable to the acquisition, construction and
installation of the same. Freehold land is stated at original
cost of acquisition.
Subsequent expenditures are included in the asset’s
carrying amount 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. All other repairs and maintenance are generally
charged to the statement of profit and loss during the
reporting period in which they are incurred.
Property, plant and equipment which are not ready
for intended use as on the date of balance sheet are
disclosed as ‘Capital work-in-progress’. Capital work-
in-progress is stated at cost, net of accumulated
impairment loss, if any. Such items are classified to the
appropriate category of property, plant and equipment
when completed and ready for their intended use.
Advances given towards acquisition/ construction of
property, plant and equipment outstanding at each
balance sheet date are disclosed as Capital Advances
under “Other non-current assets”.
Subsequent measurement
Depreciation has been provided on the straight-line
basis as per the useful life prescribed in Schedule II to
the Act, except in respect of the certain assets where the
useful life is considered differently based on technical
evaluation. Management believe that such estimated
useful lives are realistic and reflect fair approximation of
the period over which the assets are likely to be used.
The asset’s useful lives and methods of depreciation
are reviewed at the end of each reporting period and
adjusted prospectively, if appropriate. The useful lives
of property, plant and equipment for the current and
comparative periods are as follows:
Any 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 derecognition of an item of property, plant and
equipment is measured as the difference between the
net disposal proceeds and the carrying amount of the
item and is recognized in the statement of profit and loss
when the item is derecognized.
h. Intangible assets
Recognition and initial measurement
I ntangible assets acquired separately are measured on
initial recognition at cost. Cost comprises the purchase
price and any directly attributable cost of bringing the
assets to its working condition for its intended use.
Following initial recognition, intangible assets are carried
at cost less accumulated amortization and impairment
losses, if any.
An intangible asset arising from development (or from the
development phase of an internal project) is recognised
if, and only if, all of the following have been demonstrated:
i. the technical feasibility of completing the intangible
asset so that it will be available for use;
ii. the intention to complete the intangible asset
and use;
iii. the ability to use the intangible asset;
iv. how the intangible asset will generate probable
future economic benefits;
v. the availability of adequate technical, financial and
other resources to complete the development and
to use the intangible asset; and
vi. the ability to measure reliably the expenditure
attributable to the intangible asset during
its development.
The amount initially recognised for intangible assets is the
sum of the expenditure incurred from the date when the
intangible asset first meets the recognition criteria listed
above. Where no intangible asset can be recognised,
development expenditure is recognised in the statement
profit and loss in the period in which it is incurred.
Subsequent measurement
I ntangible assets with finite lives are amortised over
the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset
may be impaired. The asset’s useful lives and methods
of amortisation are reviewed at the end of each reporting
period and adjusted prospectively, if appropriate.
The estimated useful lives of intangible assets for the
current and comparative periods are as follows:
De-recognition
An intangible asset is derecognized on disposal or when
no future economic benefits are expected from its use
or disposal. 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 and loss when the asset is derecognised.
i. Impairment of non-financial assets
Assessment is done at each balance sheet date as to
whether there is any indication that an asset may be
impaired. For the purpose of assessing impairment, the
smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent
of the cash inflows from other assets or group of assets,
is considered as a cash generating unit. If any such
indication exists, an estimate of the recoverable amount
of the asset/cash generating unit is made. Assets whose
carrying value exceeds their recoverable amount are
written down to the recoverable amount. Recoverable
amount is higher of an asset’s or cash generating unit’s
net selling price and its value in use. Value-in-use is the
present value of estimated future cash flows expected
to arise from the continuing use of an asset and from its
disposal at the end of its useful life.
Assessment is also done at each balance sheet date as
to whether there is any indication that an impairment loss
recognised for an asset in prior accounting periods may
no longer exist or may have decreased.
j. Inventories
Inventories are valued at lower of cost or net
realisable value.
The methods of determining cost of various categories of
inventories are as follows:
Cost includes all costs of purchase, costs of conversion
and other costs including taxes that are not refundable
incurred in bringing the inventories to their present
location and condition. Excise duty, as applicable, is
included in the valuation.
The factors that the Company considers in determining
the allowance for non-moving, slow moving, obsolete
and other non-saleable inventory includes ageing,
usability etc., to the extent each of these factors impact
the business and markets. The Company considers
all these factors and adjusts the inventory provision to
reflect its actual experience on a periodic basis.
Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make
the sale. The net realisable value of work-in-progress is
determined with reference to the selling prices of related
finished goods.
Raw materials and other supplies held for use in the
production of finished goods are not written down below
cost, except in cases where material prices have declined
and it is estimated that the cost of the finished goods
will exceed their net realisable value. The comparison
of cost and net realisable value is made on an item-by¬
item basis.
k. Leases
Right-of-use assets and lease liabilities
A lease is defined as ‘a contract, or part of a contract,
that conveys the right to use of an identified asset (the
underlying asset) for a period of time in exchange for
consideration’.
Classification of leases
The Company enters into leasing arrangements for
various assets. The assessment of the lease is based on
several factors, including, but not limited to, transfer of
ownership of leased asset at end of lease term, lessee’s
option to extend/purchase etc.
Recognition and initial measurement of right-
of-use assets
At lease commencement date, the Company recognises
a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which
is made up of the initial measurement of the lease liability,
any initial direct costs incurred by the Company, an
estimate of any costs to dismantle and remove the asset
at the end of the lease (if any), and any lease payments
made in advance of the lease commencement date (net
of any incentives received).
Subsequent measurement of right-of-use assets
The Company depreciates the right-of-use assets on a
straight-line basis from the lease commencement date to
the earlier of the end of the useful life of the right-of-use
asset or the end of the lease term. The Company also
assesses the right-of-use asset for impairment when
such indicators exist.
Lease liabilities
At lease commencement date, the Company measures
the lease liability at the present value of the lease
payments unpaid at that date, discounted using the
interest rate implicit in the lease if that rate is readily
available or the Company’s incremental borrowing rate.
Lease payments included in the measurement of the
lease liability are made up of fixed payments (including in
substance fixed payments) and variable payments based
on an index or rate. Subsequent to initial measurement,
the liability will be reduced for payments made and
increased for interest. It is re-measured to reflect any
reassessment or modification, or if there are changes in
in-substance fixed payments. When the lease liability is
re-measured, the corresponding adjustment is reflected
in the right-of-use asset.
The Company has elected to account for short-term
leases using the practical expedients. Instead of
recognising a right-of-use asset and lease liability, the
payments in relation to these short-term leases are
recognised as an expense in statement of profit and loss
on a straight-line basis over the lease term.
l. Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Financial assets are recognized when the Company
becomes a party to the contractual provisions of the
instrument. The classification of financial assets at initial
recognition depends on the financial asset’s contractual
cash flow characteristics and the business model for
managing them. Financial assets are classified as:
• Subsequently measured at amortised cost;
• Fair value through other comprehensive income
(‘FVTOCI’); or
• Fair value through profit or loss (‘FVTPL’)
Recognition and initial measurement of
financial assets
The Company measures a financial asset (except trade
receivables) at its fair value plus or in the case of a financial
asset not at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition of
the financial asset are adjusted. Transaction costs of
financial assets carried at fair value through profit or
loss are expensed in statement of profit and loss. Trade
receivables are initially recognised at transaction price as
they do not contain a significant financing component.
It represents the Company’s right to an amount of
consideration that is unconditional.
Subsequent measurement of financial assets
Amortised cost
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (‘EIR’) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included
in finance income in the statement of profit and loss.
Fair value through other comprehensive income
(‘FVTOCI’)
Financial assets included within the FVTOCI category are
measured initially as well as at each reporting date at fair
value. Fair value movements are recognised in the other
comprehensive income (OCI). On de-recognition of the
asset, cumulative gain or loss previously recognised in
OCI is re-classified from the equity to statement of profit
and loss.
Fair value through profit or loss (‘FVTPL’)
A gain or loss on a financial asset that is subsequently
measured at fair value through profit or loss is recognised
in profit or loss and presented net in the statement of
profit and loss within other gains/(losses) in the period in
which it arises.
Derecognition of financial assets
A financial asset is de-recognised when the contractual
rights to receive cash flows from the asset have expired
or the Company has transferred its rights to receive cash
flows from the asset.
Impairment of financial assets
The Company assesses on a forward-looking basis the
expected credit losses associated with its financial assets
and the impairment methodology depends on whether
there has been a significant increase in credit risk.
Trade receivables
In respect of trade receivables, the Company applies the
simplified approach (provision matrix approach) of Ind
AS 109, which requires measurement of loss allowance
at an amount equal to lifetime expected credit losses.
Lifetime expected credit losses are the expected credit
losses that result from all possible default events over the
expected life of a financial instrument.
Other financial assets
I n respect of its other financial assets, the Company
assesses if the credit risk on those financial assets has
increased significantly since initial recognition. If the
credit risk has not increased significantly since initial
recognition, the Company measures the loss allowance
at an amount equal to 12-month expected credit
losses, else at an amount equal to the lifetime expected
credit losses.
When making this assessment, the Company uses the
change in the risk of a default occurring over the expected
life of the financial asset. To make that assessment, the
Company compares the risk of a default occurring on
the financial asset as at the balance sheet date with the
risk of a default occurring on the financial asset as at the
date of initial recognition and considers reasonable and
supportable information, that is available without undue
cost or effort, that is indicative of significant increases in
credit risk since initial recognition.
The Company assumes that the credit risk on a financial
asset has not increased significantly since initial
recognition if the financial asset is determined to have
low credit risk at the balance sheet date.
Financial liabilities
Financial liabilities are recognised when the Company
becomes a party to the contractual provisions of
the instrument.
Recognition and initial measurement of
financial liabilities
All financial liabilities are recognised initially at fair value
and, in the case of borrowings, net of directly attributable
transaction costs.
Subsequent measurement of financial liabilities
Subsequent to initial recognition, all non-derivative
financial liabilities are measured at amortised cost using
the effective interest rate method. The effective interest
rate amortization is included as finance costs in the
statement of profit and loss.
De-recognition of financial liabilities
A financial liability is de-recognised 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 de¬
recognition of the original liability and the recognition of
a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on
a net basis, to realise the assets and settle the liabilities
simultaneously. The legally enforceable right must not
be contingent on future events and must be enforceable
in the normal course of business and in the event of
default, insolvency or bankruptcy of the Company or
the counterparty.
Trade payables
These amounts represents liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. The amounts are
unsecured and are usually paid per the term of contract
with suppliers.
m. Fair value measurement
The Company measures financial instruments at
fair value at each balance sheet date. All assets and
liabilities for which fair value is measured or disclosed are
categorized 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
balance sheet on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.
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.
n. Acceptances
The Company enters into supplier finance arrangements
(acceptances) whereby various finance providers make
payments to vendor for purchases of raw materials,
packaging materials and other consumables. The
finance providers are subsequently repaid by the
Company at a later date, providing working capital
benefits. These arrangements are in the nature of
credit extended in the normal operating cycle and
are recognized as Acceptances. Interest borne by
the Company on such arrangements is accounted as
finance cost. Other financial liabilities are subsequently
measured at amortized cost using the effective interest
method. Payments made by finance providers to the
operating vendors are treated as a non-cash item, and
settlement of operational acceptances by the Company
is treated as cash flows from operating activity, reflecting
the substance of the payment.
o. Taxes
Tax expense comprises current and deferred tax. Current
and deferred tax is recognised in statement of profit and
loss except to the extent that it relates to items recognised
directly in equity or other comprehensive income.
The current income-tax charge is calculated on the
basis of the tax laws enacted at the balance sheet date.
Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred tax is provided in full, on temporary differences
arising between the tax base of assets and liabilities
and their carrying amounts in the financial statements.
Deferred 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 tax asset is realised or the deferred
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.
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. Deferred tax assets and
liabilities are offset when there is a legally enforceable
right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same
taxation authority.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
p. Employee benefits
Short-term employee benefits
Liabilities for salaries, including other monetary and non¬
monetary benefits that are expected to be settled wholly
within twelve months from the end of the year in which
the employee render the related service are recognized
upto the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are
settled. The liabilities are presented as current employee
benefit obligations in the balance sheet.
Post-employment benefits plans
The Company provides post-employment benefits
through various defined contribution and defined
benefit plans.
Defined contribution plans
Contribution towards provident fund and employee state
insurance scheme is made to the regulatory authorities,
where the Company has no further obligations. Such
benefits are classified as defined contribution plan as
the Company does not carry any further obligations,
apart from the contributions made on a monthly basis.
The Company’s contributions to these schemes are
expensed in the statement of profit and loss.
Defined benefit plan
The Company’s gratuity scheme is considered as
defined benefit plan. The present value of the obligation
under such defined benefit plan is determined based
on actuarial valuation using the Projected Unit Credit
(‘PUC’) method, which recognises each period of service
as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build
up the final obligation. The obligation is measured at the
present value of the estimated future cash flows.
Re-measurements, comprising actuarial gains and
losses, are recognized immediately in the balance sheet
with a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re¬
measurements are not reclassified to the statement of
profit and loss in subsequent periods.
Past service costs are recognized in the standalone
statement of profit and loss on the earlier of:
• The date of the plan amendment or curtailment, and
• The date that the Company recognizes the related
termination benefits.
I nterest expense is calculated by applying the discount
rate used for determining the present value of the
obligation under defined benefit plans, is based on
the market yields on Government securities as at the
reporting date. The Company recognises the following
changes in the net defined benefit obligation as an
‘employee benefits expense’ in the statement of profit
and loss:
• Service costs comprising current service costs,
past service costs; and
• Interest expense.
Other long-term employee benefits
The liabilities for compensated absences are not
expected to be settled wholly within 12 months after
the end of the period in which the employees render
the related service. They are therefore measured as the
present value of expected future payments to be made
in respect of services provided by employees upto the
end of the reporting period using the projected unit credit
method. This is as per the policy of the Company. The
benefits are discounted using the market yields at the end
of the reporting period that have terms approximating
to the terms of the related obligation. Remeasurements
as a result of experience adjustments and changes in
actuarial assumptions are recognised in statement of
profit and loss. Refer note 35 (c) for further details.
Share based payment to employees
Employees (including senior executives) of the Company
receive remuneration in the form of share-based payment
transactions, whereby employees render services as
consideration for equity instruments. In accordance with
Ind AS 102 - ‘Share Based Payments’, the fair value of
options granted under Plan recognized 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 expense
or credit recognized in the statement of profit and loss
for a period represents the movement in cumulative
expense recognized as at the beginning and end of that
period and is recognized in employee benefits expense.
The fair value of options granted under this option plan
is recognised as an employee benefit expense with
corresponding increase in equity in accordance with
recognition and measurement principles as prescribed
in Ind AS 102 - ‘Share Based Payments’ when grant is
made. The total expense is recognised over the vesting
period, which is the period over which all of the specified
vesting conditions are to be satisfied.
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