2.b Material accounting policy information
The accounting policies set out below have been applied consistently to the periods presented in these standalone financial
statements except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy.
(i) Foreign currency transactions and translations
Functional and presentation currency
The management has determined the currency of the primary economic environment in which the Company operates i.e., functional
currency, to be Indian Rupees (Rs.). The standalone financial statements are presented in Indian Rupees, which is the Company's
functional and presentation currency. All amounts have been rounded to the nearest millions, unless otherwise stated.
Transactions and balances
Monetary and non-monetary transactions in foreign currencies are initially recorded in the functional currency of the Company at
the exchange rates on the date of the transactions or at an average rate if the average rate approximates the actual rate at the
date of the transaction.
Monetary foreign currency assets and liabilities remaining unsettled on reporting date are translated at the rates of exchange
prevailing on reporting date and resulting gains / losses arising on such translation or on realisation / settlement of foreign
currency assets and liabilities are recognised in the Standalone Statement of Profit and Loss. Non-monetary items are translated
at the rates of exchange prevailing on the date of initial recognition (in case they are measured at historical cost) or on the
date when the fair value is determined (in case they are measured at fair value) - the resulting foreign exchange difference on
subsequent re-statement / settlement recognised in the Standalone Statement of Profit and Loss, except to the extent that it
relates to items recognised in the Other Comprehensive Income (OCI) or directly in equity.
However, gains / losses arising on translation of certain lease liabilities which represents long-term foreign currency monetary
loans taken before 31 March 2016 and used for acquisition of depreciable right of use assets, are adjusted in the cost of respective
item of right of use assets. The treatment will continue till the repayment of the long-term foreign currency monetary loans.
Foreign exchange gains / losses arising on translation of foreign currency monetary loans are presented in the Standalone
Statement of Profit and Loss on net basis. However, foreign exchange differences arising from foreign currency monetary loans
to the extent regarded as an adjustment to borrowing costs are presented in the Standalone Statement of Profit and Loss,
within finance costs.
(ii) Fair value measurement
The Company measures financial instruments, such as, investments in mutual funds, bonds (other than those measured at
amortised cost) and derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to / by the Company.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Ail assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
• Level 1 — Quoted (unadjusted) 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 standalone financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by reassessing 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.
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.
Fair value of financial instruments measured at amortised cost is disclosed in Note 31.
(iii) 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
Initial recognition and measurement
All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument.
All financial assets, except trade receivables that do not contain a significant financing component, are initially measured at fair
value plus, in the case of financial assets not recorded 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 financing component are measured
at transaction price. Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the date the Company commits to purchase
or sell the financial assets.
Classification and subsequent measurement
Classification
For the purpose of subsequent measurement, the Company classifies financial assets 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 at fair value through profit or loss (FVTPL)
The classification depends on the Company's business model for managing the financial assets and the contractual terms of
the cash flows.
A financial asset is measured at amortised cost if both of the following conditions are met:
• The financial asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are Solely Payments of Principal
and Interest (SPPI) on the principal amount outstanding.
A financial asset is measured at FVTOCI if both of the following criteria are met:
• The financial asset is held within the business model, whose objective is achieved both by collecting contractual cash flows
and selling the financial assets, and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI on the principal
amount outstanding.
A financial asset being equity instrument is measured at FVTPL, unless the Company irrevocably designates such equity investment
(that are not held for trading purposes) at FVTOCI on initial recognition.
All financial assets, not classified as measured at amortised cost or FVTOCI as described above, are measured at FVTPL.
Subsequent measurement
Financial assets at amortised cost (debt instruments)
These 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 amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the Standalone
Statement of Profit and Loss.
Financial assets at FVTPL
These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognised in the
Standalone Statement of Profit and Loss.
Financial assets at FVTOCI
Debt instruments
Debt instruments included within the FVTOCI category are measured at fair value. The Company recognises interest income and
impairment losses and reversals in the Standalone Statement of Profit and Loss. The 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
reclassified from the equity to profit or loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income
using the EIR method.
Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it
transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred. Where the Company neither transfers the financial asset nor retains substantially
all of the risks and rewards of ownership, the financial asset is derecognized if the Company does not retain control of the
financial asset. Any gain or loss on derecognition is recognised in the Standalone Statement of Profit and Loss.
On de-recognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the
consideration received and receivable and the cumulative gain or loss that had been recognised in OCI and accumulated in equity
is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that
financial asset.
Impairment of financial assets (other than at fair value)
The Company recognises loss allowances 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, expected credit losses are 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 financial assets are measured at lifetime ECL.
The incremental loss or reversal in loss allowance computed using ECL model, are recognised as an impairment loss or reversal in
the Standalone Statement of Profit and Loss.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic
prospect of recovery. This is generally the case when the Company determines that the counterparty does not have assets or
sources of income that could generate sufficient cash flows to repay the amounts subject to write-off. However, financial assets
that are written off could still be subject to enforcement activities in order to comply with the Company's procedures for recovery
of amounts due.
Financial liabilities
Initial Recognition and measurement
All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.
All financial liabilities are initially measured at fair value minus, in the case of financial liabilities not recorded at fair value through
profit or loss, transaction costs that are attributable to the liability. The Company's financial liabilities include supplemental
rental and aircraft maintenance, trade and other payables, loans and borrowings including bank overdrafts and derivative
financial instruments.
Classification and subsequent measurement
Financial liabilities are classified as measured at amortised cost or FVTPL.
A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such
on initial recognition. Financial liabilities are classified as held for trading if they are incurred principally for the purpose of
repurchasing in the near term or on initial recognition it is part of a portfolio of identified financial instruments that the Company
manages together and has a recent actual pattern of short-term profit-taking. Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any interest expense, are recognised in the Standalone Statement of Profit and Loss.
Financial liabilities other than classified as FVTPL, are subsequently measured at amortised cost using the effective interest
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. Interest expense are recognised in Standalone Statement of Profit and Loss. Any gain or loss on
derecognition is also recognised in the Standalone Statement of Profit and Loss.
Derecognition
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expired.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are
substantially different. In this case, a new financial liability based on modified terms is recognised at fair value. The difference
between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised
in the Standalone Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount presented in the Standalone Balance Sheet when, and only
when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net
basis or to realise the assets and settle the liabilities simultaneously.
Derivatives not designated as hedging instruments
The Company enters into derivative financial instruments (forward contracts) to manage its exposure to foreign exchange rate risks.
Derivatives are only used for economic hedging purposes and not as a speculative investment. The Company enters into foreign
exchange forward contracts with maturities generally ranging from one to twelve months to hedge foreign currency exposures.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting date. The resulting gain or loss is recognized in the Standalone
Statement of Profit and Loss.
(iv) Cash and cash equivalents
Cash and cash equivalents comprises of cash on hand, amount at banks and short-term deposits with an original maturity of
three months or less that are readily convertible to a known amount of cash and which are subject to an insignificant risk of
changes in value.
(v) Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment
losses, if any.
The cost of an item of property, plant and equipment comprises: (a) its purchase price, including import duties and non-refundable
purchase taxes, after deducting trade discounts and rebates; (b) any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by management.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate
component of property, plant and equipment. The Company has recognised major inspection costs relating to engine and airframe
overhauls and other heavy maintenance as separate components for owned aircraft and owned engines.
The cost of improvements to aircraft taken on lease, if recognition criteria are met, have been capitalised and disclosed separately
as leasehold improvement - aircraft.
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 property, plant
and equipment (calculated as the difference between the net disposal proceeds and the carrying amount of property, plant and
equipment) is included in the Standalone Statement of Profit and Loss when property, plant and equipment is derecognised. The
carrying amount of any component accounted as a separate component is derecognised, when replaced or when the property,
plant and equipment to which the component relates gets derecognised.
Subsequent costs
Subsequent costs are included in the asset's carrying amount or recognised as separate assets, as appropriate, only when it
is probable that the future economic benefits associated with expenditure will flow to the Company and the cost of the item
can be measured reliably. All other repairs and maintenance are charged to Standalone Statement of Profit and Loss at the
time of incurrence.
Depreciation
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values and is charged
to Standalone Statement of Profit and Loss. Depreciation on property, plant and equipment, except owned aircraft and spare
engines, rotables and non-aircraft equipment, buildings, leasehold improvements and leasehold improvements - aircraft, is
provided on written down value method at the rates and in the manner provided in Schedule II of the Companies Act, 2013.
Depreciation on owned aircraft and spare engines, rotables and non-aircraft equipment is provided on the straight line method
at the rates and in the manner prescribed (to the extent prescribed) in Schedule II of the Companies Act, 2013.
Major inspection costs relating to engine and airframe overhauls and other heavy maintenance are identified as separate
components for owned aircraft and owned engines and are depreciated over the expected lives of major overhauls and remaining
useful life of the aircraft/engines, whichever is lower. The carrying amount of any component accounted as a separate component
is derecognised, when replaced or when the property, plant and equipment to which the component relates gets derecognised.
* The life of the rotables is reassessed, the moment these are installed to the aircraft and are expected to be redelivered
along with the aircraft. Accordingly, the net carrying value of rotables are depreciated in the same period in which such aircraft
is redelivered.
Leasehold improvements and leasehold improvements - aircraft are depreciated on a straight line basis over the period of the
initial lease term or their estimated useful life, whichever is lower.
Buildings are depreciated on a straight line basis over the remaining period of the lease of land on which building is constructed
or 60 years, whichever is lower.
The useful lives have been determined based on internal evaluation done by management and are in line with the estimated useful
lives, to the extent prescribed by the Schedule II of the Companies Act, 2013, in order to reflect the technological obsolescence
and actual usage of the asset. The residual values are not more than 5% of the original cost of the asset.
Depreciation is calculated on a pro-rata basis for assets purchased/sold during the period.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed by management at
each reporting date and adjusted prospectively, as appropriate.
Capital work-in-progress
Property, plant and equipment not ready for use as at the reporting date are disclosed as capital work-in-progress. It is stated
at cost, net of accumulated impairment loss, if any.
(vi) Intangible assets
Recognition and measurement
Intangible assets that are acquired are recognised only if it is probable that the expected future economic benefits that are
attributable to the asset will flow to the Company and the cost of assets can be measured reliably. Intangible assets are recorded
at cost of acquisition including incidental costs related to acquisition and installation and are carried at cost less accumulated
amortisation and accumulated impairment losses, if any.
Gain or loss arising from derecognition of an intangible asset is measured as the difference between the net disposal proceeds
and the carrying amount of the intangible asset and is recognised in the Standalone Statement of Profit and Loss when the asset
is derecognised.
Subsequent costs
Subsequent costs are capitalised only when it increases the future economic benefits embodied in the specific asset to which it
relates. All other expenditure on intangible assets is recognised in the Standalone Statement of Profit and Loss, as incurred.
Amortisation
The cost of intangible assets is amortised over their estimated useful lives of 3 years using the straight-line method. Amortisation
is calculated on a pro-rata basis for assets purchased/ disposed during the period.
Amortisation method and useful life are reviewed at each reporting date and adjusted prospectively, if appropriate.
Intangible assets under development
Cost of intangible assets under development as at the reporting date are disclosed as intangible assets under development. It
is stated at cost, net of accumulated impairment loss, if any.
(vii) Leases
The Company's lease asset classes primarily consist of leases for aircraft and engines, equipment, leasehold land and buildings.
The Company assesses at the inception date whether a contract is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
i) Lease liabilities
At the commencement date, the Company measures the lease liabilities at the present value of the lease payments that are
not paid at that date. The lease liabilities include lease payments comprising of fixed payments (including in-substance fixed
payments), variable lease payments that depend on an index or a rate, payment of penalties for terminating the lease (if the
lease term reflects the Company exercising the option to terminate), and the exercise price of a purchase option (if the Company
is reasonably certain to exercise that option at the commencement date).
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that
rate cannot be readily determined, the Company uses incremental borrowing rate (IBR). The IBR is the rate of interest that the
Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of
a similar value to the right of use assets in a similar economic environment.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced by
the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a lease modification,
including modification in the lease term, lease payments or assessment of an option to purchase the underlying asset. The lease
liabilities are re-measured by discounting the revised lease payments using a revised discount rate at the effective date of
the modification.
Further, lease liabilities are remeasured if there is a change in future lease payments resulting from a change in an index or a rate
used to determine those payments. The lease liabilities are re-measured by using a revised discount rate reflecting the changes
in the interest rate where the change in lease payments results from a change in floating interest rates.
ii) Right of use assets
At the commencement date, the right of use assets are measured at cost. The cost includes an amount equal to the lease
liabilities plus any lease payments made before the commencement date and any initial direct costs, less any incentives received
from equipment manufacturer in terms of the same lease. An estimate of costs to be incurred in respect of redelivery obligation,
in accordance with the terms of the lease, is also included in the right of use assets at commencement date.
After the commencement date, the right of use assets are measured in accordance with the accounting policy for property, plant
and equipment i.e. right of use assets are measured at cost, less any accumulated depreciation and accumulated impairment
losses, if any. Right of use assets are also correspondingly adjusted to reflect any re-measurement impact in the lease liabilities.
The right of use assets are also subject to impairment.
Major inspection costs relating to engine and airframe overhauls and other heavy maintenance are identified as separate
components for leased aircraft (where the Company has a right to purchase the aircraft and is reasonably certain to exercise the
right at the commencement date) and are depreciated over the lower of useful life of the component or remaining useful life of
the leased asset.
iii) Lease Term
At the commencement date, the Company determines the lease term which represents the non-cancellable period for which the
Company has the right to use the underlying asset, together with the periods covered by an option to extend the lease if the
Company is reasonably certain to exercise that option at the commencement date and the periods covered by an option to
terminate the lease if the Company is reasonably certain not to exercise that option at the commencement date.
iv) Other Leases
Lease payments associated with any other leases which falls outside the purview of Ind AS 116, short term leases and leases for
which the underlying asset is of low value are charged to Standalone Statement of Profit and Loss on straight line basis over the
lease term or another systematic basis which is more representative of the pattern of use of underlying asset.
v) Sale and leaseback transactions
The right of use arising from leaseback is measured at the proportion of previous carrying amount of the asset that relates to
right of use retained by the Company. Where sale proceeds (net of maintenance obligation, if any) received are judged to reflect
the asset's fair value, any gain or loss arising on disposal is recognised in the Standalone Statement of Profit and Loss, to the
extent that it relates to the rights that have been transferred. Gains and losses that relate to the rights that have been retained
are included in the carrying amount of the right of use assets recognised at commencement of the lease. Where sale proceeds
(net of maintenance obligation, if any) received are not at the asset's fair value, any below market terms are recognised as a
prepayment of lease payments, and above market terms are recognised as additional financing provided by the lessor.
vi) Depreciation
Depreciation on assets held as right of use assets is charged to Standalone Statement of Profit and Loss on a straight line basis
from the commencement date to the earlier of the end of the useful life of the right of use assets or the end of the lease term,
except for leased aircraft (where the Company has a right to purchase the aircraft and is reasonably certain to exercise the right
at the commencement date) where depreciation is charged on useful life of right of use assets.
Major inspection costs relating to engine and airframe overhauls and other heavy maintenance are identified as separate
components for leased aircraft and engines (where the Company has a right to purchase the aircraft) and are depreciated over
the expected lives between major overhauls and remaining useful life of the aircraft/engines, whichever is lower.
(viii) Incentive - non-refundable
Cash incentives
The Company receives non-refundable incentives in connection with the acquisition of aircraft and engines. In case of owned
aircraft and engines, incentives are recorded as a reduction to the cost of related aircraft and engines. In case of aircraft
and engines held under leases, the incentives are recorded as reduction to the carrying amount of right of use assets at the
commencement of lease of the respective aircraft and engine.
The Company also receives non-refundable milestone incentives from the engine manufacturer on achievement of certain
milestones relating to acquisition and delivery of aircraft. These milestone incentives are recorded as reduction to the carrying
value of aircraft and engines in case of owned aircraft and engines. In case of aircraft and engines held under leases, the
incentives are recorded as reduction to the carrying amount of right to use assets at the commencement of lease of the respective
aircraft and engine.
Where the aircraft is held under finance lease as per erstwhile Ind AS, the milestone incentives are deferred and recognised under
the head 'Other operating revenue' in the Standalone Statement of Profit and Loss, on a straight line basis over the remaining
initial lease period of the respective aircraft for which the aircraft is expected to be used. In case of prepayment of finance lease
obligations for aircraft taken on finance lease and consequently taking the ownership of the aircraft, before the expiry of the
lease term, the unamortised balance of such deferred incentive is recorded as a reduction to the carrying value of the aircraft.
Non-cash incentives
Non-cash incentives are recorded as and when due to the Company by setting up a deferred asset and a corresponding deferred
incentive. These incentives are recorded as a reduction to the cost of related aircraft and engines in case of owned aircraft. In
case of aircraft and engines held under leases, the incentives are recorded as reduction to the carrying amount of right of use
assets at the commencement of lease of the respective aircraft and engine.
The deferred asset explained above is reduced on the basis of utilisation of incentives against liability towards purchase of
goods and services.
(ix) Inventories
Inventories primarily includes stores and spares and loose tools (other than those which meet the criteria of property, plant and
equipment) and in-flight inventories. Inventories are valued at lower of cost or Net Realisable Value ('NRV'). Cost of inventories
comprise all costs of purchase after deducting non refundable rebates and discounts and all other costs incurred in bringing the
inventories to their present location and condition. Cost are assigned to individual items of inventory on the weighted average
cost basis. NRV for in-flight inventory is the estimated selling price of goods sold less the estimated cost necessary to make the
sale. Where necessary, due allowance is made for all damaged, obsolete and slow moving items. The comparison of cost and net
realisable value is made on an item by item basis at each reporting date.
(x) Employee benefits
Short-term employee benefits
Employee benefit liabilities such as salaries, wages and bonus, etc. that are expected to be settled wholly within twelve months
after the end of the reporting period in which the employees render the related service are recognised in respect of employees'
services up to the end of the reporting period and are measured at an undiscounted amount expected to be paid when the
liabilities are settled.
Post-employment benefit plans
Defined contribution plans
The Company pays provident fund contributions to the appropriate government authorities. The Company has no further payment
obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the
contributions are recognised as employee benefits expense when an employee renders the related service.
Defined benefit plans
Defined benefit plans of the Company comprises gratuity.
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan
provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment,
of an amount based on the respective employee's salary and the tenure of employment. Vesting occurs upon completion of
contractual period of continuous years of service as defined in the Code on Social Security, 2020. The gratuity plan of the
Company is unfunded.
The liability recognised in the Standalone Balance Sheet in respect of defined benefit gratuity plan is the present value of the
defined benefit obligation at the end of the reporting year. The defined benefit obligation is calculated on the basis of an
actuarial valuation using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference
to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the
related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation. This cost
and other costs are included in employee benefits expense in the Standalone Statement of Profit and Loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
immediately in the Standalone Balance Sheet with a corresponding debit or credit to retained earnings through Other Comprehensive
Income (OCI) in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Changes in the present value of the defined benefit obligation for employee service in prior periods resulting from a plan
amendment or a curtailment are recognised in the Standalone Statement of Profit and Loss as past service cost unless such
changes are material and non-recurring in nature, in which case they are presented as exceptional items in the Standalone
Statement of Profit and Loss. (Refer to Note 2 (xxiii) and 30).
Other long-term employee benefits
Compensated absences
The Company's net obligation in respect of compensated absences is the amount of benefit to be settled in future, that employees
have earned in return for their service in the current and previous periods. The benefit is discounted to determine its present
value. The obligation is measured on the basis of an actuarial valuation using the projected unit credit method. Remeasurements
are recognised in Standalone Statement of Profit and Loss in the period in which they arise.
Others
The Company's net obligation in respect of long-term employee benefits other than post-employment benefits is the amount of
benefit to be settled in future, that employees have earned in return for their service in the current and previous periods. The
benefit is discounted to determine its present value. The obligation is measured on the basis of an actuarial valuation using
the projected unit credit method. Remeasurements are recognised in Standalone Statement of Profit and Loss in the period in
which they arise.
Share-based payment arrangements
The grant-date fair value of equity-settled share-based payment arrangements granted to employees under the Employee Stock
Option Scheme ('ESOS') is generally recognised as an employee stock option scheme expense, with a corresponding increase in
equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards
for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately
recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting
date. The increase in equity recognised in connection with a share based payment transaction is presented in the "Share-based
payment reserve" as separate component in equity. At the end of each period, the Company revises its estimates of the number
of options that are expected to be vested based on the non-market performance conditions at the vesting date.
The fair value of options granted is estimated using the Black Scholes Option Pricing Model.
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