2.1 Material accounting policy information

This note provides a list of the material accounting policies
adopted in the preparation of these Indian Accounting
Standards (Ind-AS) financial statements. These policies have
been consistently applied to all the years except where newly
issued accounting standard is initially adopted.

a) Property, plant and equipment (PPE)

Capital work in progress and property, plant and equipment
is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Cost comprises
the purchase price (net of input tax credit) and any directly
attributable cost to bring assets to present location and
condition. When significant parts of property, plant and
equipment are required to be replaced at intervals, Company
depreciates them separately based on their specific useful
lives. Likewise, when a major inspection is performed, its cost
is recognized in the carrying amount of the property, plant
and equipment as a replacement if the recognition criteria
are satisfied. All other repair and maintenance costs are
recognized in profit or loss as incurred.

• Gains or losses arising from de-recognition of tangible
assets are measured as the difference between the net
disposable proceeds and the carrying amount of the
asset and are recognized in the Standalone Statement
of Profit and Loss when the asset is derecognized.

• The Company identifies any particular component
embedded in the main asset as a separate asset having
significant value to total cost of asset and also applies a
different life as compared to the main asset.

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

• Machinery spares which are specific to a particular
item of property, plant and equipment and whose use
is expected to be irregular are capitalized when they
meet the definition of property, plant and equipment,
i.e. when the Company intends to use these during
more than a period of 12 months.

Depreciation on property, plant and equipment

Cost of leasehold improvements on property, plant and
equipment are amortized on a straight-line basis over the
period of lease or their useful lives, whichever is shorter.

Depreciation on other property, plant and equipment is
calculated on a straight-line basis using rates arrived at
based on the useful lives estimated by the management.
The Company identifies and determines cost of each

component/part of the asset separately, if the Component/
part has a cost which is significant to the total cost of the
asset and has useful life that is materially different from that of
the remaining components of the asset. These components
are depreciated separately over their useful lives and the
remaining components are depreciated over the useful life
of the principal assets. The Company has used following
estimated useful life to provide depreciation on its property,
plant and equipment:

The management has estimated, supported by independent
assessment, the useful life of certain plant and machinery as
20 years, which is higher than those indicated in Schedule II
to the Companies Act 2013.

²The management has estimated, based on its internal
assessment and past experience, the useful life of these
blocks of assets as lower than the life indicated for respective
block of assets in Schedule II to the Companies Act 2013.

Residual value of plant and machinery is considered at 5%.

b) Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period
of time in exchange for consideration.

Company as a lessee

The Company's lease asset classes primarily comprise of
lease for land and building. The Company assesses whether
a contract contains a lease, at inception of a contract. 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. To assess whether a
contract conveys the right to control the use of an identified
asset, the Company assesses whether: (i) the contract
involves the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of the

asset through the period of the lease and (iii) the Company

has the right to direct the use of the asset.

(i) Right-of-use assets

The Company recognizes right-of-use assets at the
commencement date of the lease (i.e. the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognized, initial direct costs incurred, and lease
payments made at or before the commencement date
less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter
of the lease term and the estimated useful lives of the
underlying assets.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation
is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment.
Refer Note 50 (f) 'Impairment of non- financial assets' in
the summary of other accounting policies.

(ii) Lease liabilities

At the commencement date of the lease, the Company
recognizes lease liabilities measured at the present
value of lease payments to be made over the lease
term. The lease payments include fixed payments
(including in substance fixed payments) less any lease
incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase
option reasonably certain to be exercised by the
Company and payments of penalties for terminating
the lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease
payments that do not depend on an index or a rate are
recognized as expenses (unless they are incurred to
produce inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the

commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the
lease payments (e.g., changes to future payments resulting
from a change in an index or rate used to determine such
lease payments) or a change in the assessment of an
option to purchase the underlying asset.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases that are considered to
be low value. Lease payments on short-term leases and
leases of low-value assets are recognized as expense
on a straight-line basis over the lease term.

"Lease liabilities” and "Right of use assets” have been
separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.

c) Investments

Investments, which are readily realizable and intended to be
held for not more than one year from the date on which such
investments are made, are classified as current investments.
All other investments are classified as long-term investments.

Equity securities (unlisted) which are not held for trading,
and for which the Company has irrevocably elected at initial
recognition to present changes in fair value through OCI
rather than profit or loss. These are strategic investments
and the Company considers this classification to be more
relevant. Equity investments for which the entity has not
elected to recognise fair value gains and losses through OCI,
are carried at fair value through profit and loss.

On initial recognition, all investments are measured at cost.
The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties. If an
investment is acquired, or partly acquired, by the issue of shares
or other securities, the acquisition cost is the fair value of the
securities issued. If an investment is acquired in exchange for
another asset, the acquisition is determined by reference to the
fair value of the asset given up or by reference to the fair value of
the investment acquired, whichever is more clearly evident.

d) Inventories

Raw materials, components and stores and spares are valued
at lower of cost and net realizable value. However, materials
and other items held for use in the production of inventories
are not written down below cost if the finished products in
which they will be incorporated are expected to be sold at
or above cost. Cost of raw materials, components and stores
and spares is determined on moving weighted average basis.

Stores and spares which do not meet the definition of
property, plant and equipment are accounted as inventories.

Work-in-progress and finished goods are valued at lower of
cost and net realizable value. Cost includes direct materials
and labor and a proportion of manufacturing overheads
based on normal operating capacity. Cost is determined on
moving weighted average basis.

Traded goods are valued at cost or net realizable value,
whichever is lower.

Scrap is valued at net realizable value.

Net realizable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.
Obsolete and non-moving inventory are determined on the
basis of regular review and are valued at net realizable value
or cost whichever is lower.

e) Revenue from contract with customers

The Company manufactures and sells a range of automobile
suspension products. Revenue from contracts with
customers is recognized when control of the goods or
services are transferred to the customer at an amount that
reflects the consideration to which the Company expects
to be entitled in exchange for those goods or services. The
Company has generally concluded that it is the principal in
its revenue arrangements because it typically controls the
goods before transferring them to the customer.

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

1) Sale of products

Revenue from sale of products is recognized at the
point in time when control of the inventory is transferred
to the customer, generally on delivery of the products.
The normal credit term is 30 to 90 days upon delivery.

The Company considers whether there are other
promises in the contract that are separate performance
obligations to which a portion of the transaction price
needs to be allocated. In determining the transaction
price for the sale of products, the Company allocated
a portion of the transaction price to products
based on its relative standalone prices and also
considers the following:

(i) Schemes

The Company operates several sales incentive
programs wherein the customers are eligible for several
benefits on achievement of underlying conditions
as prescribed in the scheme program such as credit
notes, tours, reimbursement etc. Revenue from
contract with customer is presented deducting cost of
all these schemes.

(ii) Provision for price difference

The Company recognizes the price difference payable
to parties, where settlement is pending for final
negotiation. It is provided on the basis of best estimates
and management's assessment, considering the past
trend and various other factors. These provisions are
reviewed on a regular basis and adjusted with respective
element with Standalone Statement of Profit and Loss
from the adequacy and reasonability point of view.

Contract balances

(iii) Trade receivables

Trade receivables are amounts due from customers
for products sold in the ordinary course of business
and reflect the Company's unconditional right
to consideration (i.e. payment is due only on the
passage of time).

Trade receivables are recognized initially at the
transaction price as they do not contain significant
financing components. The Company holds the
trade receivables with the objective of collecting the
contractual cash flows and therefore measures them
subsequently at amortized cost using the effective
interest method, less loss allowance.

For trade receivables, the Company applies the
simplified approach required by Ind AS 109, which
requires expected lifetime losses to be recognized from
initial recognition of the receivables.

f) Retirement and other employee benefits

Retirement benefit in the form of provident fund and
employee's state insurance is a defined contribution
scheme. The Company has no obligation, other than the
contribution payable to the provident fund and employee's
state insurance. The Company recognizes contribution
payable to the provident fund and employee's state
insurance scheme as expenditure when an employee
renders the related service. If the contribution payable to the
scheme for service received before the balance sheet date
exceeds the contribution already paid, the deficit payable
to the scheme is recognized as a liability after deducting the
contribution already

paid. If the contribution already paid exceeds the contribution
due for services received before the balance sheet date,
then excess is recognized as an asset to the extent that the
pre-payment will lead to, for example, a reduction in future
payment or a cash refund.

The Company operates three defined benefit plans for its
employees i.e. gratuity, long service award and benevolent
fund. The costs of providing benefits under these plans are
determined on the basis of actuarial valuation at each year-
end. Actuarial valuation is carried out for these plans using
the projected unit credit method.

Re-measurements, comprising of actuarial gains and losses,
the effect of the asset ceiling, excluding amounts included in
net interest on the net defined benefit liability and the return
on plan assets (excluding amounts included in net interest on
the net defined benefit liability), are 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 profit or loss
in subsequent periods.

Past service costs are recognised in Standalone Statement of
Profit and Loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related
restructuring costs.

Net interest is calculated by applying the discount rate to the
net defined benefit liability or asset. The Company recognizes
the following changes in the net defined benefit obligation as
an expense in the Standalone Statement of Profit and Loss:

• Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and
non-routine settlements; and

• Net interest expense or income.

Accumulated leave, which is expected to be utilized within
the next 12 months, is treated as short-term employee
benefit. The Company measures the expected cost of such
absences as the additional amount that it expects to pay as a
result of the unused entitlement that has accumulated at the
reporting date.

The Company treats accumulated leave expected to
be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long¬
term compensated absences are provided for based on the
actuarial valuation using the projected unit credit method at
the year-end. Actuarial gains/losses are immediately taken
to the Standalone Statement of Profit and Loss and are
not deferred. The Company presents the entire leaves as a
current liability in the balance sheet since it does not have an
unconditional right to defer its settlement for 12 months after
the reporting date.

g) Suppliers' credit / vendor bill discounting

The Company enters into deferred payment arrangements
(acceptances) whereby banks/financial institutions initially
make payment to Company's suppliers for raw materials,
goods and services directly, while the Company continues
to recognize the liability till settlement with the bank/financial
institution at a later date, which is normally effected within
a period of 90 days. The arrangement provides working
capital timing benefits and the economic substance of the
transaction is determined to be financing in nature. These
arrangements are in the nature of credit extended in normal
operating cycle and these arrangements are recognized
as 'Supplier's acceptances' as a separate line item in
the Balance Sheet.

50. Summary of other accounting policies:

a) Current versus non-current classification

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

- Expected to be realized or intended to be sold or
consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realized within twelve months after the
reporting period, or

- Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in 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 right at the end of reporting period to defer
the settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current
assets and liabilities.

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

b) Foreign currencies

Items included in the standalone financial statements of the
Company are measured using the currency of the primary
economic environment in which the Company operates ('the
functional currency'). The standalone financial statements
are presented in Indian Rupee (INR), which is the Company's
functional and presentation currency.

Transactions and balances

Foreign currency transactions are recorded, on initial
recognition in the functional currency, by applying to the
foreign currency amount the spot exchange rate between
the functional currency and the foreign currency at the date
of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot rates
of exchange at the reporting date.

Exchange differences arising on settlement or translation of
monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined.
The gain or loss arising on translation of non- monetary items
measured at fair value is treated in line with the recognition of
the gain or loss on the change in fair value of the item.

c) Investment property

Investment property is measured initially at its cost,
including related transaction costs and where applicable
borrowing costs. Subsequent expenditure is capitalised to
the asset's carrying amount only when it is probable that
future economic benefits associated with the expenditure
will flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance costs
are expensed when incurred. When part of an investment
property is replaced, the carrying amount of the replaced
part is derecognised. The investment property is depreciated
on a straight-line basis over its useful life.

d) Intangible assets

Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible
assets are carried at cost less accumulated amortization.
Internally generated intangible assets, excluding capitalized
development costs, are not capitalized and expenditure is
reflected in the Standalone Statement of Profit and Loss in
the year in which the expenditure is incurred.

The useful lives of the intangible assets are assessed as either
finite or infinite.

Intangible assets with finite lives are amortized over the
useful life and assessed for impairment whenever there is an
indication that the intangible assets may be impaired. The
amortization period and amortization method of the intangible
asset with a useful finite life are reviewed at least at the end
of each reporting period. Changes in the expected useful life
or the expected pattern of consumption of future economic
benefits embodied in the assets are considered to modify
the amortization period or method, as appropriate, and are
treated as changes in accounting estimates. The amortization
expense on intangible assets with finite lives is recognized
in the Standalone Statement of Profit and Loss unless such
expenditure forms part of carrying value of another assets.

Software is amortized on a straight-line basis over the
period of five years.

An intangible asset is derecognized upon disposal (i.e., at
the date the recipient obtains control) 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 recognized in the Standalone Statement of Profit and
Loss when the asset is derecognized.

e) Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the respective asset.
All other borrowing costs are expensed in the period they
occur. Borrowing cost includes interest and other costs that
an entity incurs in connection with the borrowing of funds
and charged to Standalone Statement of Profit and Loss.
Borrowing costs also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs.

f) Impairment of non-financial assets

The Company assesses at each reporting date whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is the
higher of an asset's or cash-generating units' (CGU) net
selling price and its value in use. The recoverable amount is
determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those
from other assets or groups of assets. Where the carrying
amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its
recoverable amount.

In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. In
determining net selling price, recent market transactions are
taken into account, if available. If no such transactions can
be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted
share prices for publicly traded companies or other available
fair value indicators.

The Company bases its impairment calculation on detailed
budgets and forecast calculations, which are prepared
separately for each of the Company's CGUs to which the
individual assets are allocated. These budgets and forecast
calculations generally cover a period of four to five years.
For longer periods, a long-term growth rate is calculated
and applied to project future cash flows after the forecast
period. To estimate cash flow projections beyond periods
covered by the most recent budgets/forecasts, the Company
extrapolates cash flow projections in the budget using
a steady or declining growth rate for subsequent years,
unless an increasing rate can be justified. In any case, this
growth rate does not exceed the long-term average growth
rate for the products, industries, or country or countries in
which the Company operates, or for the market in which
the asset is used.

A previously recognized impairment loss is reversed only
if there has been a change in the assumptions used to
determine the asset's recoverable amount since the last
impairment loss was recognized. The reversal is limited
so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation,
had no impairment loss been recognized for the asset in
prior years. Such reversal is recognized in the Standalone
Statement of Profit and Loss unless the asset is carried at a
revalued amount, in which case, the reversal is treated as a
revaluation increase.

Impairment losses on non-financial asset, including
impairment on inventories, are recognized in the Standalone
Statement of Profit and Loss.

g) Warranty obligations

The Company generally provides for warranties for general
repair of defects. These warranties are assurance-type
warranties under Ind AS 115, which are accounted for under
Ind AS 37 (Provisions, Contingent Liabilities and Contingent
Assets), consistent with its current practice. The Company
adjust the transaction price for the time value of money
where the period between the transfer of the promised
goods or services to the customer and payment by customer
exceed one year.

h) Significant financing components

In respect of short-term advances from its customers, using
the practical expedient in Ind AS 115, the Company does
not adjust the promised amount of consideration for the
effects of a significant financing component if it expects, at
contract inception, that the period between the transfer of
the promised good or service to the customer and when the
customer pays for that good or service will be within normal
operating cycle.

i) Interest income

For all debt instruments measured at amortized cost or at fair
value through other comprehensive income, interest income
is recorded using the effective interest rate (EIR). EIR is the rate
that exactly discounts the estimated future cash payments or
receipts over the expected life of the financial instruments
or a shorter period, where appropriate, to the gross carrying
amount of the financial asset or to the amortized cost of
a financial liability. When calculating the effective interest
rate, the Company estimates the expected estimated cash
flows by considering all the contractual terms of the financial
instrument but does not consider the expected credit loss.
Interest income is included under the head "other income” in
the Standalone Statement of Profit and Loss.

Interest income on bank deposits and advances to vendors
is recognized on a time proportion basis taking into account
the amount outstanding and the applicable interest rate.
Interest income is included under the head "Other income”
in the Standalone Statement of Profit and Loss.

j) Export incentives

Export incentives are accrued in the underlying period of
export sales in accordance with the terms of the export
benefit scheme, provided that there is no significant
uncertainty regarding the entitlement to the credit and the
amount thereof.

k) Contract liabilities

A contract liability is recognised if a payment is received
or a payment is due (whichever is earlier) from a customer
before the Company transfers the related goods or services.
Contract liabilities are recognised as revenue when the
Company performs under the contract (i.e., transfers control
of the related goods or services to the customer).

l) Taxes

Tax expense for the year comprises of current tax
and deferred tax.

Current income tax

Current income-tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income-
tax Act, 1961 enacted in India. The tax rates and tax laws
used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Current income tax relating to item recognized outside
the Standalone Statement of Profit and Loss is recognized
outside profit or loss (either in other comprehensive income
or equity). Current tax items are recognized in correlation to
the underlying transactions either in other comprehensive
income or directly in equity. 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.

Deferred tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

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

The carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are re-assessed at each
reporting date and are recognized to the extent that it has
become probable that future taxable profits will allow the
deferred tax asset to be recovered.

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

Deferred tax relating to items recognized outside profit
or loss is recognized outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are
recognized in correlation to the underlying transaction either
in OCI or directly in equity.

Deferred tax assets and liabilities shall be offset if, and only if:

(a) the same taxable entity, or

(b) different taxable entities which intend to settle current
tax liabilities and assets on a net basis, or to realise
the assets and settle the liabilities simultaneously, in
each future period in which significant amounts of
deferred tax liabilities or assets are expected to be
settled or recovered.

m) Share based payments

Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments,
whereby employees render services as consideration
for equity instruments which are classified as equity-
settled transactions.

Equity-settled transactions

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an
appropriate valuation model. That cost is recognised as an
employee benefits expense with a corresponding increase
in 'Share Based Payment Reserve' in other equity, over the
period in which the performance and/or service conditions
are fulfilled. The cumulative expense recognised for equity-
settled transactions at each reporting date until the vesting
date reflects the extent to which the vesting period has
expired and the Company best estimate of the number of
equity instruments that will ultimately vest.

Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company's best estimate of the
number of equity instruments that will ultimately vest. Market
performance conditions are reflected within the grant date
fair value. Any other conditions attached to an award, but
without an associated service requirement, are considered
to be non-vesting conditions.

Non-vesting conditions are reflected in the fair value of an
award and lead to an immediate expensing of an award
unless there are also service and/or performance conditions.

No expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are treated

as vested irrespective of whether the market or non-vesting
condition is satisfied, provided that all other performance
and/or service conditions are satisfied.

When the terms of an equity-settled award are modified, the
minimum expense recognised is the expense had the terms
not been modified, if the original terms of the award are met.
An additional expense is recognised for any modification
that increases the total fair value of the share-based payment
transaction, or is otherwise beneficial to the employee as
measured at the date of modification. Where an award is
cancelled by the entity or by the counterparty, any remaining
element of the fair value of the award is expensed immediately
through the Standalone Statement of Profit and Loss.

n) Segment reporting

Identification of segments - The Company's operating
businesses are organized and managed separately
according to the nature of products and services provided,
with each segment representing a strategic business unit
that offers different products and serves different markets.
The analysis of geographical segments is based on the
geographical location of the customers.

Segment accounting policies - The Company prepares its
segment information in conformity with the accounting
policies adopted for preparing and presenting the standalone
financial statements of the Company as a whole.

o) Government grants

Government grants are recognized where there is
reasonable assurance that the grant will be received, and all
attached conditions will be complied with. When the grant
relates to an expense item, it is recognized as income on a
systematic basis over the periods that the related costs, for
which it is intended to compensate, are expensed. When the
grant relates to an asset, it is recognized as income in equal
amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets,
the asset and the grant are recorded at fair value amounts
and released to profit or loss over the expected useful life in a
pattern of consumption of the benefit of the underlying asset
i.e. by equal annual instalments.

When loans or similar assistance are provided by
governments or related institutions, with an interest rate
below the current applicable market rate, the effect of this
favorable interest is regarded as a government grant. The
loan or assistance is initially recognized and measured at

fair value and the government grant is measured as the
difference between the initial carrying value of the loan and
the proceeds received. The loan is subsequently measured
as per the accounting policy applicable to financial liabilities.

p) Earnings per share

Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the period.

Partly paid equity shares are treated as a fraction of an equity
share to the extent that they are entitled to participate in
dividends relative to a fully paid equity share during the
reporting period. The weighted average number of equity
shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share
split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.