2. Basis of preparation and presentation

2.1 Statement of compliance

These financial statements comprising of standalone
balance sheet as at 31 March 2026, standalone statement
of profit and loss account (including other comprehensive
income), standalone statement of cash flows and
standalone statement of changes in equity for the year
ended 31 March 2026 and notes to financial statements
including material accounting policy information and
also explanatory information (collectively referred to as
standalone financial statements) have been prepared in
accordance with the Indian Accounting Standards ('Ind
AS') prescribed under Section 133 of the Companies Act,
2013 ("the Act”) read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 (as amended).These
standalone financial statements have been prepared
on going concern basis using the material accounting
policies and measurement bases summarized below.
These accounting policies have been used consistently
throughout all periods presented in the Standalone Financial
Statements, unless otherwise stated.

2.2 Basis of preparation

(i) Historical cost convention

These financial statements have been prepared accrual
basis and giving certain assumptions and also on the
historical cost basis except for certain financial instruments
and defined benefit plans that are measured at fair values
at the end of each reporting period, as explained in the
accounting policies below. Historical cost is generally based

on the fair value of the consideration given in exchange for
goods and services.

[ii) Fair value measurement

Fair value is the price that would be received to sell an asset
or paid to transfer liability in an orderly transaction between
market participants at the measurement date, regardless
of whether that price is directly observable or estimated
using another valuation technique. In measuring fair value
of an asset or liability, the Company takes into account
those characteristics of the assets or liability that market
participants would take into account when pricing the asset
or liability at the measurement date.

In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3
based on the degree to which the inputs to the fair value
measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which
are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity
can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the
asset or liability.

(iii) Functional and presentational currency

These financial statements are presented in Indian Rupee
(INR) which is also the functional currency.

(iv) Rounding off amounts

All amounts disclosed in the financial statements have
been rounded off to the nearest rupees in crore, as
per the requirements of Schedule III of the Act, unless
otherwise stated.

(v) Use of estimates and judgements

The preparation of financial statements in conformity with
Ind AS requires the management to make judgements,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may
differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which
the estimates are revised and in any future period affected.

In particular, following are the significant areas of
estimation, uncertainty and critical judgements in applying
accounting policies that have the most significant effect on
the amounts recognised in standalone financial statements:

Estimates:

a) Assessment of useful life of property, plant and
equipment and intangible asset - refer note 2.5

b) Estimation of obligations relating to employee benefits:
key actuarial assumptions - refer note 43

c) Fair value measurement -refer note 2.2 (ii) & 41

d) Estimated impairment of financial assets and non¬
financial assets- refer note 2.12

Judgements:

a) Recognition and estimation of tax expense including
deferred tax- refer note 42

b) Recognition and measurement of provision and
contingency-refer note 2.18 & 39

c) Measurement of Lease liabilities and Right of Use
Asset - refer notes 2.14, 3(c) and 50

2.3 Current versus non-current classification

The Company presents assets and liabilities in the balance
sheet based on current/non-current classification. An asset
is treated as current when it is:

• Expected to be realised or intended to be sold or
consumed in the normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised 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 the normal operating cycle;

• It is held primarily for the 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.

The Company has deemed its operating cycle as twelve

months for the purpose of current/non-current classification.

2.4 Revenue recognition

a) The Company recognizes revenue from sale of
goods when it satisfies a performance obligation in
accordance with the provisions of contract with the
customers measured at the amount of transaction price
(net of variable consideration) on the price specified
in the contract with the customers allocated to that
performance obligation. The transaction price of goods
sold is net of variable consideration on account of
various discounts and rebates offered by the Company
as part of contract customers. This is achieved when
it no longer retains control over the goods sold, the
amount of revenue can be measured reliably, it is
probable that the economic benefits associated with
the transaction will flow to the Company and the costs
incurred or to be incurred in respect of the transaction
can be measured reliably. Sale of goods is recognised
net of taxes collected on behalf of third parties.

The performance obligation in case of sale of goods
is satisfied at a point in time i.e., when the material is
shipped to the customer or on delivery to the customer,
as may be specified in the contract.

b) Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can
be measured reliably. Interest income is accrued on
a time proportion basis, by reference to the principal
outstanding and the effective interest rate ('EIR')
applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected

life of the financial assets to that asset's net carrying
amount on initial recognition.

c) Dividend income from investments in equity shares
and mutual funds is recognised when the right to
receive the dividend is established.

d) Export Incentives are recognised as per schemes
specified in Foreign Trade Policy, as amended from
time to time, on accrual basis in the year when right
to receive as per terms of the scheme is established
and are accounted to the extent there in no uncertainty
about its ultimate collection.

e) Other income is recognized when no significant
uncertainty as to the determination and
realization exists.

2.5 Property, plant and equipment and capital work-in¬
progress

An item of property, plant and equipment (PPE) that
qualifies as an asset is measured on initial recognition
at cost. Following initial recognition, items of PPE are
carried at their cost less accumulated depreciation and
accumulated impairment losses, if any. Item of PPE
which reflects significant cost and has different useful
life from the remaining part of PPE is recognised as a
separate component.

The cost of an item of PPE comprises of its purchase price
net of discounts, if any including import duties and other
non-refundable taxes or levies and directly attributable cost
of bringing the asset to its working condition for its intended
use and the initial estimate of decommissioning, restoration
and similar liabilities, if any. Cost includes cost of replacing
a part of a plant and equipment if the recognition criteria are
met. Expenses like plans, designs, and drawings of buildings
or plant and machinery, borrowing cost on qualifying assets,
directly attributable to new manufacturing facility during its
construction period are capitalised under the relevant head
of PPE if the recognition criteria are met.

For transition to Ind AS, the Company had elected to continue
with the carrying value of all of its property, plant and equipment
recognised as at 1 April, 2015 ('transition date'), measured
as per the previously applicable Indian GAAP and used that
carrying value as its deemed cost as at the transition date.

Depreciation is recognised under straight-line method so as
to write off the cost of assets (other than freehold land and
properties under construction) less their residual values,
over their useful lives. The estimated useful lives, residual
value and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.

Cost of assets not ready for intended use, as on the Balance
Sheet date, is shown as capital work in progress. Capital

work-in-progress includes cost of property, plant and
equipment under installation / under development as at the
balance sheet date.

Advances given towards acquisition of fixed assets
outstanding at each Balance Sheet date are disclosed as
other non-current assets.

The Company has adopted the useful life as specified in
Schedule II to the Act, except for certain assets for which
the useful life has been estimated based on the Company's
past experiences in this regard, duly supported by technical
advice. Accordingly, the useful lives of tangible assets of
the Company which are different from the useful lives as
specified by Schedule II are given below:

Freehold land is not depreciated. An item of property, plant and
equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued
use of the asset. Any gain or loss arising on the disposal or
retirement of an item of property, plant and equipment is
determined as the difference between the net disposal proceeds
and carrying amount of the property, plant and equipment and
is recognised in the Statement of Profit and Loss.

Mining assets are amortised over the useful life of the mine
or lease period whichever is lower.

Development expenditure for mineral reserves:

Development is the establishment of access to mineral
reserves and other preparations for commercial
production. Development activities often continue during
production and include:

• sinking shafts and underground drifts (often called
mine development)

• making permanent excavations

• developing passageways and rooms or galleries

• building roads and tunnels and

• advance removal of overburden and waste rock.

Development (or construction) also includes the installation
of infrastructure (e.g., roads, utilities and housing),
machinery, equipment and facilities. Development
expenditure is capitalised and presented as part of mining
assets. The expenditure on development of phases shall be
capitalized and amortized in units of production method.
No depreciation is charged on the development expenditure
before the start of commercial production.

Stripping costs:

The Company separates two different types of stripping
costs that are incurred in surface mining activity:

• developmental stripping costs and

• production stripping costs

Developmental stripping costs which are incurred in order
to obtain access to quantities of mineral reserves that
will be mined in future periods are capitalised as part
of mining assets.

Capitalisation of developmental stripping costs ends when
the commercial production of the mineral reserves begins.
A mine can operate several open pits that are regarded as
separate operations for the purpose of mine planning and
production. In this case, stripping costs are accounted for
separately, by reference to the ore extracted from each
separate pit. If, however, the pits are highly integrated for the
purpose of mine planning and production, stripping costs
are aggregated too.

The determination of whether multiple pit mines are
considered separate or integrated operations depends on
each mine's specific circumstances. The following factors
normally point towards the stripping costs for the individual
pits being accounted for separately:

• mining of the second and subsequent pits is
conducted consecutively with that of the first pit,
rather than concurrently

• separate investment decisions are made to develop
each pit, rather than a single investment decision
being made at the outset

• the pits are operated as separate units in terms of
mine planning and the sequencing of overburden and
ore mining, rather than as an integrated unit

• expenditures for additional infrastructure to support
the second and subsequent pits are relatively large

• the pits extract ore from separate and distinct ore
bodies, rather than from a single ore body

The relative importance of each factor is considered by
the management to determine whether the stripping costs
should be attributed to the individual pit or to the combined
output from the several pits.

Production stripping costs are incurred to extract the ore
in the form of inventories and/or to improve access to an
additional component of an ore body or deeper levels of
material. Production stripping costs are accounted for
as inventories to the extent the benefit from production
stripping activity is realised in the form of inventories.

The Company recognises a stripping activity asset in the
production phase if, and only if, all of the following are met:

• it is probable that the future economic benefit
(improved access to the ore body) associated with the
stripping activity will flow to the Company

• the Company can identify the component of the ore
body for which access has been improved and

• the costs relating to the improved access to that
component can be measured reliably

Such costs are presented within mining assets. After
initial recognition, stripping activity assets are carried at
cost/deemed cost, less accumulated amortisation and
impairment. The expected useful life of the identified
component of the ore body is used to depreciate or amortise
the stripping asset.

2.6 Investment property

Investment properties are properties held to earn rentals or
for capital appreciation or both (including property under
construction for such purposes). Investment properties
are measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment properties are
measured in accordance with the requirements of Ind AS
16 - Property, Plant and Equipment, for cost model.

For transition to Ind AS, the Company had elected to
continue with the carrying value of its investment property
recognised as at the transition date, measured as per the
previously applicable Indian GAAP and used that carrying
value as its deemed cost as at the transition date.

An investment property is derecognised upon disposal or
when the investment property is permanently withdrawn
from use and no future economic benefits are expected
from disposal. Any gain or loss arising on derecognition
of the property (calculated as difference between the net
disposal proceeds and the carrying amount of the asset) is
included in the Statement of Profit and Loss in the period in
which the property is derecognised.

The Company amortises/depreciates the leasehold land /
building components of Investment property over their
separate useful lives under SLM. The useful life of the
leasehold land is taken as the lease period specified in
the lease agreement and the useful life of the building
constructed on the said leasehold land is based on
Schedule II of the Act.

Investment property is amortised on a straight line basis
over a period of 99 years.

2.7 Intangible assets

Intangible assets are recognised when the asset is
identifiable, is within the control of the Company, it is

probable that the future economic benefits that are
attributable to the asset will flow to the Company and cost
of the asset can be reliably measured.

Intangible assets with finite useful lives are carried at
cost less accumulated amortisation and accumulated
impairment losses. Amortisation is recognised on a straight
line basis over their estimated useful lives, if any other
method which reflects the pattern in which the asset's
future economic benefits are expected to be consumed
by the entity cannot be determined reliably. The estimated
useful life and amortisation method are reviewed at the end
of each reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis.

For transition to Ind AS, the Company had elected to
continue with the carrying value of all its intangible assets
recognised as at the transition date, measured as per the
previously applicable Indian GAAP and used that carrying
value as its deemed cost as at the transition date.

Computer software is amortised on a straight line basis
over a period of 6 years.

2.8 Borrowing costs

Borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset
(net of income earned on temporary deployment of funds)
are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised as an expense in
the period in which they are incurred.

A qualifying asset is an asset that necessarily takes
a substantial period of time to get ready for its
intended use or sale.

2.9 Inventories

Inventories consist of raw materials, work-in-progress, finished
goods and stores and spares which are valued as follows:

Raw material and stores and spares: Cost is determined on
weighted average basis which includes expenditure incurred
for acquiring inventories like purchase price, import duties,
taxes (net of tax credit) and other costs incurred in bringing
the inventories to their present location and condition.
Work-in-progress and finished goods:These are stated at
lower of cost and net realisable value. Cost of Finished goods
and work-in-progress includes cost of raw materials, cost of
conversion and other costs incurred in bringing the inventories
to their present location and condition. Net realisable value is
the estimated selling price in the ordinary course of business
less estimated cost of completion and estimated costs
necessary to make the sale.The Company considers factors
like estimated shelf life, product discontinuances and ageing
of inventory in determining the provision for slow moving,
obsolete and other non-saleable inventory and adjusts the
inventory provisions to reflect the recoverable value of inventory

2.10 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
Classification

The Company classifies financial assets as subsequently
measured at amortised cost, fair value through other
comprehensive income or fair value through profit or loss on
the basis of its business model for managing the financial
assets and the contractual cash flow characteristics of the
financial asset.

Initial recognition and measurement

All financial assets are recognised initially at fair value plus,
in the case of financial assets not recognised at fair value
through profit or loss, transaction costs that are attributable
to the acquisition of the financial asset. Trade receivables
that do not contain a significant financial component
measured at transaction price.

A trade receivable is recognized by the Company when
control is transferred as this is the point in time where
consideration is unconditional because only the passage of
time is required for the payment to be received.

Subsequent measurement of financial assets are dependent
on initial categorisation. For impairment purposes,
significant financial assets are tested on an individual
basis and other financial assets are assessed collectively in
groups that share similar credit risk characteristics.

Financial assets measured at amortised cost

Financial assets are measured at amortised cost when
asset is held within a business model, whose objective is
to hold assets for collecting contractual cash flows and
contractual terms of the asset give rise, on specified dates,
to cash flows that are solely payments of principal and
interest. Such financial assets are subsequently measured
at amortised cost using the EIR method. The losses arising
from impairment are recognised in the Statement of
Profit and Loss.

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

Financial assets under this category are measured initially
as well as at each reporting date at fair value. Fair value
movements are recognised in the other comprehensive
income. Interest income measured using the EIR method
and impairment losses, if any are recognised in the
statement of profit and loss. On derecognition, cumulative
gain or loss previously recognised in OCI is reclassified
from the equity to 'other income' in the statement of
profit and loss.

Financial assets measured at fair value through profit or
loss (FVTPL)

Financial assets under this category are measured initially
as well as at each reporting date at fair value with all
changes recognised in profit or loss.

Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash, that are subject to an insignificant risk of
change in value with a maturity within three months or less
from the date of purchase, to be cash equivalents. Cash and
cash equivalents consist of balances with banks which are
unrestricted for withdrawal and usage.

Derecognition of financial assets

A financial asset is derecognised when the right to receive
cash flows from the assets has expired, or has been
transferred, and the Company has transferred substantially
all of the risks and rewards of ownership.In cases where
Company has neither transferred nor retained substantially
all of the risks and rewards of the financial asset, but retains
control of the financial asset, the Company continues to
recognise such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the Company
also recognises an associated liability. The financial asset and
the associated liability are measured on a basis that reflects
the rights and obligations that the Company has retained. On
derecognition of a financial asset, except as mentioned in (ii)
above for financial assets measured at FVTOCI, the difference
between the carrying amount and the consideration received
is recognised in the Statement of Profit and Loss.

Financial liabilities
Classification

The Company classifies all financial liabilities as
subsequently measured at amortised cost, except for
financial liabilities at fair value through profit or loss. Such
liabilities, including derivatives that are liabilities, shall be
subsequently measured at fair value.

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and
in the case of loans, borrowings and payables, net of directly
attributable transaction costs. Financial liabilities include
trade and other payables, loans and borrowings including
bank overdrafts and derivative financial instruments.

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 that are not designated as hedging

instruments in hedge relationships as defined by Ind AS 109
- "Financial Instruments”. Separated embedded derivatives
are also classified as held for trading unless they are
designated as effective hedging instruments.

Financial liabilities measured at amortised cost

After initial recognition, interest bearing loans and
borrowings are subsequently measured at amortised cost
using the EIR method except for those designated in an
effective hedging relationship.

Amortised cost is calculated by taking into account any
discount or premium and fee or costs that are an integral
part of the EIR. The EIR amortisation is included in finance
costs in the Statement of Profit and Loss. Any difference
between the proceeds (net of transaction costs) and the
redemption amount is recognised in profit or loss over the
period of the borrowings using the EIR method. Fees paid
on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down.

Trade and other payables

A payable is classified as 'trade payable' if it is in respect of
the amount due on account of goods purchased or services
received in the normal course of business. These amounts
represent liabilities for goods and services provided to the
Company prior to the end of financial year, which are unpaid.
They are recognised initially at their fair value and subsequently
measured at amortised cost using the EIR method.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another
party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised in
profit or loss as other income or finance costs.

Offsetting of financial assets and financial liabilities :

Financial assets and financial liabilities are offset and the
net amount is reported in the Balance Sheet wherever there
is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis or
to realise the asset and settle the liability simultaneously.

2.11 Derivative financial instruments

The Company enters into derivative financial contracts in the
nature of forward currency contracts with external parties to
hedge its foreign currency risks relating to foreign currency
denominated financial assets measured at amortised cost.

The Company enters into a variety of derivative financial
instruments to manage its exposure to interest rate and
foreign exchange rate risks, including foreign exchange
forward contracts and seagull contracts,.

Hedging instrument is initially recognised at fair value on the
date on which a derivative contract is entered into and is
subsequently measured at fair value at each reporting date.
Gain or loss arising from changes in the fair value of hedging
instrument is recognised in the Statement of Profit and
Loss. Hedging instrument is recognised as a financial asset
in the Balance Sheet if its fair value as at reporting date is
positive as compared to carrying value and as a financial
liability if its fair value as at reporting date is negative as
compared to carrying value.

2.12 Impairment
Financial assets

The Company recognises loss allowances, if any, using
the expected credit loss ('ECL) model for the financial
assets which are not fair valued. Loss allowance for trade
receivables with no significant financing component is
measured at an amount equal to lifetime ECL. For all other
financial assets, ECL is measured at an amount equal to the
12 - month ECL, unless there has been a significant increase
in credit risk from initial recognition, in which case, those
are measured at lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the
loss allowance at the reporting date to the amount that is
required to be recognised, is recognised as an impairment
gain or loss in the Statement of Profit and Loss.

Non-financial assets

Non-financial assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e.,
the higher of the fair value less cost of disposal and its value-
in-use) is determined on an individual basis unless the asset
does not generate cash flows that are largely independent
of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU) to
which the asset belongs.

If such assets are considered to be impaired, the impairment
to be recognised in the Statement of Profit and Loss is
measured by the amount by which the carrying value of
the asset exceeds the estimated recoverable amount of the
asset. An impairment loss is reversed in the Statement of
Profit and Loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the
carrying amount that would have been determined (net
of any accumulated amortization or depreciation) had no
impairment loss been recognised for the asset in prior years.

2.13 Investment in subsidiaries and associate

A subsidiary is an entity controlled by the Company.
Control exists when the Company has power over the
entity, is exposed or has rights to variable returns from its

involvement with the entity and has the ability to affect
those returns by using its power over the entity.

Power is demonstrated through existing rights that give the
ability to direct relevant activities, those which significantly
affect the entity's returns.

An associate is an entity over which the Company has
significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the
investee but is not control or joint control over those policies.

Investments in subsidiaries and associate are carried at
cost. The cost comprises price paid to acquire investment
and directly attributable cost.

2.14 Leases

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

a) Arrangements where the Company is the lessee

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

The right-of-use asset is subsequently depreciated
using the straight-line method from the commencement
date to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. In
addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
re-measurements of the lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or company's incremental
borrowing rate. The lease liability is measured at
amortised cost using the effective interest method.
It is remeasured when there is a change in future
lease payments.

For short-term and low value leases are classified as
operating leases. Payments made under operating
leases are recognised in the Statement of Profit and
Loss on a straight-line basis over the lease term.

b) Arrangements where the Company is the lessor

Rental income from operating leases is generally recognised
on a straight-line basis over the lease term. Where the
rentals are structured solely to increase in line with expected
general inflation to compensate for the Group's expected
inflationary cost increases, such increases are recognised
in the year in which such benefits accrue.

2.15 Foreign currency transactions and translations

Transactions in foreign currencies are translated to the
functional currency of the Company (i.e. INR) at exchange
rates at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies at the reporting
date, except for those derivative balances that are within
the scope of Ind AS 109 - "Financial Instruments”, are
translated to the functional currency at the exchange rate
at that date and the related foreign currency gain or loss are
recognised in the Statement of Profit and Loss.

Foreign exchange differences regarded as an adjustment
to interest costs are recognised in the Statement of Profit
and Loss. Realised or unrealised gain in respect of the
settlement or translation of borrowing is recognised as
an adjustment to interest cost to the extent of the loss
previously recognised as an adjustment to interest cost.

2.16 Employee benefits

a) Employee benefits in the form of Provident Fund,
Pension Fund, Superannuation Fund and Employees
State Insurance are defined contribution plans. The
Company recognizes contribution payable to a defined
contribution plan as an expense, when an employee
renders the related service. If the contribution payable
to the scheme for services received before the balance
sheet date exceeds the contribution already paid, the
contribution payable to the scheme is recognised 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, the excess is recognised as an asset to the
extent that the pre-payment will lead to, for example, a
reduction in future payment or a cash refund.

b) Gratuity liability is defined benefit plans. The cost of
providing benefits under the defined benefit plans is
determined using the projected unit credit method,
with actuarial valuations being carried out at the end
of each annual reporting period. Remeasurements of
the net defined benefit liability/asset comprise:

i) actuarial gains and losses;

ii) the return on plan assets, excluding amounts
included in net interest on the net defined benefit
liability/asset; and

iii) any change in the effect of the asset ceiling,
excluding amounts included in net interest on the
net defined benefit liability/asset.

Remeasurements of net defined benefit liability/asset
are charged or credited to other comprehensive income.

c) Compensated absences is other long term employee
benefit. The expected cost of accumulating
compensated absences is determined by actuarial
valuation performed by an independent actuary at each
balance sheet date using projected unit credit method
on the additional amount expected to be paid/ availed as
a result of the unused entitlement that has accumulated
at the balance sheet date. Actuarial gains and losses
are recognised in the Statement of Profit and Loss.

d) Short Term Employee Benefits: All employee benefits
payable wholly within twelve months of rendering the
service are classified as short term employee benefits
and they are recognised in the period the employee
renders the related service.

2.17 Taxes on income

Income tax expense comprises of current tax and deferred
tax. It is recognised in the Statement of Profit and Loss,
except to the extent that it relates to items recognised
directly in equity or other comprehensive income. In such
cases, the tax is also recognised directly in equity or in other
comprehensive income.

Current tax

Current tax is the amount of tax payable on the taxable
income for the year, determined in accordance with the
provisions of the Income Tax Act, 1961.

Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities in the
balance sheet and their corresponding tax bases. Deferred
tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences and
unused tax losses being carried forward, to the extent that
it is probable that taxable profits will be available in future
against which those deductible temporary differences and
tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates