2. Material accounting policies

a) Basis of accounting

These standalone financial statements have been
prepared on the historical cost basis, except for certain
financial instruments which are measured at fair values
or at amortized cost at the end of each reporting period,
as explained in the accounting policies below.

Fair value is the price that would be received on sale of an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Fair value measurements are categorised as below,
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:

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

(ii) Level 2 inputs are inputs, other than quoted prices
included in level 1, that are observable for the asset
or liability, either directly or indirectly; and

(iii) Level 3 inputs are unobservable inputs for the
valuation of assets or liabilities.

Above levels of fair value hierarchy are applied
consistently and generally, there are no transfers
between the levels of the fair value hierarchy unless the
circumstances change warranting such transfer.

Accounting policies have been consistently applied
except where a new accounting standard is/ initially
adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use.

The Company classifies an asset as current asset when:

• it expects to realise the asset, or intends to sell or
consume it, in its normal operating cycle;

• it is held primarily for trading;

• it expects to realise the asset within twelve months
after the reporting period; or

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

A liability is classified as current when -

• it expects to settle the liability, in its normal
operating cycle;

• it is held primarily for the purpose of trading;

• the liability is due to be settled within twelve months
after the reporting period; or

• it does not have an unconditional right to defer
settlement of the liability for at least twelve months
after the reporting period. Terms of a liability that
could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not
affect its classification.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash or
cash equivalents. The Company's normal operating cycle
is twelve months for Time & Material Project and Contract
life for a Fixed Price Project.

Statement of compliance and basis of preparation

These standalone financial statements have been
prepared in accordance with the provisions of the
Companies Act, 2013 (“the Act") and the Indian
Accounting Standards (“Ind AS") notified under the
Companies (Indian Accounting Standards) Rules, 2015
and amendments thereof issued by Ministry of Corporate
Affairs under section 133 of the Companies Act, 2013.
In addition, the guidance notes/announcements issued
by the Institute of Chartered Accountants of India (ICAI)
are also applied except where compliance with other
statutory promulgations require a different treatment.
These financials statements have been approved for
issue by the Board of Directors at their meeting held on
April 22, 2026.

b) Presentation of standalone financial
statements

The balance sheet and the statement of profit and
loss are prepared in the format prescribed in schedule
III to the Act. The statement of cash flows has been
prepared under indirect method and presented as per
the requirements of Ind AS 7 “Statement of cash flows".
The disclosure requirements with respect to items
in balance sheet and statement of profit and loss, as
prescribed in schedule III to the Act, are presented by
way of notes forming part of accounts along with the
other notes required to be disclosed under the notified
Ind AS and the SEBI (Listing Obligation and Disclosure
Requirements) Regulations, 2015, as amended.

Amounts in the standalone financial statements are
presented in Indian Rupees in million [1 million = 10
lakhs] as permitted by schedule III to the Companies Act,
2013. Per share data are presented in Indian Rupees to
two decimals places.

c) Use of estimates and judgements

The preparation of these standalone financial statements
in conformity with the recognition and measurement
principles of Ind AS requires the management of
the Company to make judgements, estimates and
assumptions that affect the reported balances of
assets and liabilities, disclosures relating to contingent
liabilities as at the date of the standalone financial
statements. Uncertainty about these assumptions
and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or
liabilities affected in future years. The Company based
its assumptions and estimates on parameters available
when the financial statements were prepared.

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 future periods, if the change affects
both. Information about material areas of estimation,
uncertainty and critical judgments in applying
accounting policies that have the material effect on
the amounts recognised in the standalone financial
statements are included in the following notes:

i. Revenue recognition: The Company applies
judgement to determine whether each service
promised to a customer is capable of being distinct,
and is distinct in the context of the contract, if not,
the promised service is combined and accounted
as a single performance obligation. The Company
uses the percentage of completion method using
the input (cost expended) method to measure
progress towards completion in respect of fixed-
price contracts. Percentage of completion method
accounting relies on estimates of total expected

contract cost. This method is followed when
reasonably dependable estimates of the revenues
and costs applicable to various elements of the
contract can be made. Key factors that are reviewed
in estimating the future costs to complete include
estimates of future labour costs and productivity
efficiencies. Because the financial reporting of
these contracts depends on estimates that are
assessed continually during the term of these
contracts, revenue recognised, profit and timing
of revenue for remaining performance obligations
are subject to revisions as the contract progresses
to completion. When estimates indicate that a loss
will be incurred, the loss is provided for in the period
in which the loss becomes probable.

ii. Income taxes: The major tax jurisdictions for
the Company are India and the United States
of America. Significant judgments are involved
in determining the provision for income taxes
including judgment on whether tax positions are
probable of being sustained in tax assessments. A
tax assessment can involve complex issues, which
can only be resolved over extended time periods.

iii. Defined benefit plans and compensated absences:

The cost of the defined benefit plans, compensated
absences and the present value of the defined
benefit obligations are based on actuarial valuation
using the projected unit credit method. An actuarial
valuation involves making various assumptions that
may differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases and mortality rates. Due
to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting
date.

iv. Expected credit losses on financial assets: The

impairment provisions of financial assets are based
on assumptions about risk of default and expected
timing of collection. The Company uses judgment
in making these assumptions and selecting the
inputs to the expected credit loss calculation based
on the Company's history of collections, customer's
creditworthiness, existing market conditions as
well as forward looking estimates at the end of each
reporting period.

v. Useful lives of property, plant and equipment:

The Company depreciates property, plant and
equipment on a straightline basis over estimated
useful lives of the assets. The charge in respect
of periodic depreciation is derived based on an
estimate of an asset's expected useful life and the
expected residual value at the end of its life. The

lives are based on historical experience with similar
assets as well as anticipation of future events,
which may impact their life, such as changes in
technology. The estimated useful life is reviewed
at least annually.

d) Functional and presentation currency

These standalone financial statements are presented in
Indian rupees, which is the functional currency of the
Company.

e) Revenue recognition

Revenue is recognised upon transfer of control of
promised services to customers in an amount that
reflects the consideration which the company expects
to receive in exchange for those services. Revenues from
customer contracts are considered for recognition and
measurement when the contract has been approved by
the parties to the contract, the parties to the contract
are committed to perform their respective obligations,
each party's rights and obligations and the payment
terms can be identified, the contract has commercial
substance and it is probable that the entity will collect
the consideration to which it is entitled to in exchange
for the services that will be transferred to the customer.

The company assesses the services promised in a
contract and identifies distinct performance obligations
in the contract.

Revenue is measured based on the consideration
specified in a contract with a customer and excludes
amounts collected on behalf of third parties. The
company's contracts may include variable consideration
including rebates, volume discounts and penalties. The
Company includes variable consideration as part of
transaction price when there is a basis to reasonably
estimate the amount of the variable consideration
and when it is probable that a significant reversal of
cumulative revenue recognized will not occur when the
uncertainty associated with the variable consideration
is resolved.

The Company allocates the transaction price to each
distinct performance obligation based on the relative
standalone selling price.

Any change in scope or price is considered as a contract
modification. The Company accounts for modifications
to existing contracts by assessing whether the services
added are distinct and whether the pricing is at the
stand-alone selling price. Services added that are
not distinct are accounted for on a cumulative catch¬
up basis, while those that are distinct are accounted
for prospectively, either as a separate contract if the
additional services are priced at the stand-alone selling
price, or as a termination of the existing contract and

creation of a new contract if not priced at the stand¬
alone selling price.

Revenue from contracts which are on time and material
basis are recognized when services are rendered, and
related costs are incurred.

Revenue from fixed-price contracts where the
performance obligations are satisfied over time and
where there is no uncertainty as to measurement or
collectability of consideration, is recognized as per
the percentage-of-completion method. Use of the
percentage of completion method requires the Company
to estimate the efforts or cost expended to date (input
method) as a proportion of the total efforts or costs to
be expended. The cost & efforts expended (or input)
method has been used to measure progress towards
completion as there is a direct relationship between input
and productivity. Estimates of total costs or efforts are
continuously monitored over the term of the contracts
and are recognized in the net profit prospectively in
the period when these estimates change or when the
estimates are revised. Provisions for estimated losses, if
any, on incomplete contracts are recorded in the period
in which such losses become probable based on the
estimated efforts or costs to complete the contract.

The company presents revenue net of discounts, indirect
taxes and value-added taxes in its statement of profit
and loss

Contracts assets are recognised when there is excess
of revenue earned over billings on contracts. Contract
assets are classified as unbilled revenue when there is
unconditional right to receive cash, and only passage
of time is required, as per contractual terms. Contract
liability (“Unearned revenue") arises when there are
billing in excess of revenue.

f) Other income

i. Interest income is accrued on a time basis by
reference to the principal outstanding and the
effective interest rate.

ii. Dividend income is accounted for in the period in
which the right to receive the same is established.

iii. Exchange gain/loss consists of mark to market
gain/loss on ineffective hedges, realized gain/loss
and revaluation gain/loss on translation of foreign
currency monetary assets and liabilities.

iv. Government grants, which are revenue in nature
and are towards compensation for the qualifying
costs incurred by the company, are recognised as
other income/reduced from underlying expenses in
profit or loss in the period in which such costs are
incurred.

v. Other items of income are accounted as and when
the right to receive arises and it is probable that the
economic benefits will flow to the Company and
the amount of income can be measured reliably.

g) Employee benefits

I. Short term employee benefits

All employee benefits falling due wholly within
twelve months of rendering the service are
classified as short-term employee benefits.
The benefits like salaries, wages, and short
term compensated absences and performance
incentives are recognized in the period in which
the employee renders the related service.

II. Post-employment benefits

a. Defined contribution plan

The Company's contribution to state governed
provident fund scheme, employee state
insurance scheme and employee pension
scheme are classified as defined contribution
plans. The contribution paid / payable under
the schemes is recognised in the statement
of profit and loss in the period in which the
employee renders the related service.

b. Defined benefit plans

The employee provident fund schemes are
managed by board of trustees established
by the Larsen & Toubro Limited, employees'
gratuity fund schemes managed by LIC and
post-retirement medical benefit scheme are
the Company's defined benefit plans. The
present value of the obligation under such
defined benefit plans is determined based on
actuarial valuation using the Projected Unit
Credit Method, which recognizes each period
of service as giving rise to additional unit of
employee benefit entitlement and measures
each unit separately to build up the final
obligation, for eligible employees.

The obligation is measured at the present
value of the estimated future cash flows.
The discount rates used for determining
the present value of the obligation under
defined benefit plans, is based on the
market yields on government bonds, having
maturity periods approximating to the terms
of related obligations. In case of funded
plans, the fair value of the plan assets is
reduced from the gross obligation under
the defined benefit plans to recognize the
obligation on net basis.

Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets, are recognised immediately
in the balance sheet with a corresponding
debit or credit to retained earnings through
OCI in the period in which they occur.
Remeasurements are not reclassified to profit
or loss in subsequent periods. Other changes
in net defined benefit obligation like current
service cost, past service cost, gains and
losses on curtailment and net interest expense
or income are recognized in the statement of
profit and loss.

With respect to defined benefit plan for
overseas employees, the Company provides
for post-employment benefits payable as per
the laws applicable in respective countries and
the requirements of the standard, as explained
above.

In case of funded plans, the fair value of
the plan assets is reduced from the gross
obligation under the defined benefit plans to
recognize the obligation on a net basis.

III. Compensated absences

The Company treats accumulated leave expected
to be carried forward beyond twelve months, as
short-term employee benefit for measurement
purposes. Such long-term compensated absences
are provided based on the actuarial valuation using
the projected unit credit method at the reporting
date. Actuarial gains/losses are immediately taken
to the statement of profit and loss and are not
deferred. The obligations are presented as current
liabilities in the balance sheet if the entity does not
have an unconditional right to defer the settlement
for at least twelve months after the reporting date.

h) Property, plant and equipment

a. Recognition & Measurement:

Property, plant and equipment is recognised
when it is probable that future economic benefits
associated with the item will flow to the Company
and the cost of the item can be measured reliably.

Property, plant and equipment are stated at cost net
of tax/duty credits availed, if any, less accumulated
depreciation and cumulative impairment loss, if any.

Property, plant and equipment not ready for
intended use on the date of balance sheet are
disclosed as “capital work-in-progress".

b. Depreciation:

Depreciation is provided for property, plant and
equipment so as to expense the cost over their
estimated useful lives, based on evaluation, using
straight-line method. The estimated useful lives
and residual value are reviewed at the end of each
reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.

Project specific assets are amortized over their
estimated useful life on a straight-line basis or over
the period of the license/project period, whichever
is shorter.

Estimated useful life of following assets is different
than useful life as prescribed under part C of
schedule II of the Act.

* The useful lives for these assets are different
from the useful lives as prescribed under part C of
schedule II of the Act. Based on technical evaluation,
the management believes that the useful lives as
given above best represents the period over which
the management expects to use these assets.

PPE is derecognised upon disposal or when no future
economic benefits are expected from its use. Any
gain or loss arising on derecognition is recognised in
the Statement of Profit and Loss in the same period.

i) Intangible assets and amortisation

Intangible assets are recognised when it is probable that
the future economic benefits that are attributable to the
asset will flow to the Company and the cost of the asset
can be measured reliably.

Intangible assets purchased are measured at cost (net
of tax/duty credits availed, if any) or fair value as of
the date of acquisition, as applicable, less accumulated
amortisation and accumulated impairment, if any.

Intangible assets are amortized on straight-line basis over
their estimated useful life as given below. The method of
amortisation and useful life are reviewed at the end of
each financial year with the effect of any changes in the
estimate being accounted for on a prospective basis.

With respect to non-removable leasehold
improvements, if the lease term of the related lease
is shorter than the useful life of those leasehold
improvements, the Company considers whether it
expects to use the leasehold improvements beyond
that lease term. If the Company does not expect to
use the leasehold improvements beyond the lease
term of the related lease, then the useful life of the
non-removable leasehold improvements is the same
as the lease term. If the Company expects to use the
non-removable leasehold improvement beyond the
lease term, the company generally depreciates such
leasehold improvements over its expected useful
life.

If the useful life of the leasehold improvements is
shorter than the lease term, the group generally
depreciates such leasehold improvements over its
expected useful life.

Depreciation is not recorded on capital work-in¬
progress until construction and installation are
complete and the asset is ready for its intended use.

Research and development expenditure on new products:

(i) Expenditure on research is expensed under
respective heads of account in the period in which
it is incurred.

(ii) Development expenditure on new products is
capitalized as intangible asset, if all the following
can be demonstrated:

a. the technical feasibility of completing the
intangible asset so that it will be available for
use or sale;

b. the Company has intention to complete the
intangible asset and use or sell it;

c. the Company has ability to use or sell the
intangible asset;

d. the manner in which the probable future
economic benefits will be generated including

the existence of a market for output of the
intangible asset or intangible asset itself or
if it is to be used internally, the usefulness of
intangible assets;

e. the availability of adequate technical,
financial and other resources to complete the
development and to use or sell the intangible
asset; and

f. the Company has ability to reliably measure
the expenditure attributable to the intangible
asset during its development. Development
expenditure that does not meet the above
criteria is expensed in the period in which it is
incurred.

j) Goodwill

Goodwill that has been recognised through merger/
amalgamation transactions is not amortized however, it
is tested for impairment on an annual basis. Refer note k
(ii) for accounting policy on impairment of assets.

k) Impairment of assets

i) Trade receivables

The Company uses an expected credit loss Model
(ECL) to determine impairment loss on portfolio
of its trade receivable. The ECL Model is based
on its historically observed default rates and
timing of collection over the expected life of the
trade receivable and is adjusted for forward¬
looking estimates. In making this assessment, the
Company has considered current and anticipated
future economic conditions relating to industries/
business verticals that the company deals with and
the countries where it operates.

ii) Non-financial assets
Tangible and intangible assets

Property, plant and equipment and intangible assets
(other than goodwill) are evaluated for recoverability
whenever there is any indication that their carrying
amounts may not be recoverable. If the recoverable
amount of an asset (or CGU) is estimated to be less
than its carrying amount, the carrying amount of the
asset (or CGU) is reduced to its recoverable amount.
An impairment loss is recognised in the statement of
profit and loss. Recoverable amount is determined
at the higher of the fair value less costs of disposal
and the value-in-use.

Impairment is determined for goodwill by assessing
the recoverable amount of each CGU (or group of
CGUs) to which the goodwill relates. When the
recoverable amount of the CGU is less than it's
carrying amount, an impairment loss is recognised.

Impairment losses relating to goodwill cannot be
reversed in future periods. The recoverable amount
of a CGU is determined based on higher of value-
in-use and fair value less cost to sell.

l) Leases

Ind AS 116 “Leases" sets out the principles for the
recognition, measurement, presentation and disclosure
of leases for both lessees and lessors.

The Company recognises right-of-use asset representing
its right to use the underlying asset for the lease term at
the lease commencement date. The cost of the right-
of-use asset measured at inception comprises of the
amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before the
commencement date less any lease incentives received,
plus any initial direct costs incurred.

The right-of-use assets is subsequently measured
at cost less any accumulated depreciation and
accumulated impairment losses, if any and adjusted for
any remeasurement of the lease liability. The right-of-use
assets is depreciated using the straight-line method from
the commencement date over the lease term life of right-
of-use asset.

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.
The lease payments include fixed payments (including
in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid
under residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised by the Company
and payments of penalties for terminating the lease,
if the lease term reflects the Company exercising the
option to terminate. Variable lease payments that do not
depend on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the
period in which the event or condition that triggers
the payment occurs. In calculating the present value
of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date
because the interest rate implicit in the lease is not
readily determinable. After the commencement date,
the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the
lease term, a change in the lease payments (e.g., changes
to future payments resulting from a change in an index
or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the
underlying asset

The company has elected not to recognize assets and
liabilities for (a) short- term leases (for a period of twelve
months or less) and (b) leases of low value assets. For
these short-term and low value leases, the Company
recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease.

The Company recognises the amount of the
remeasurement of lease liability as an adjustment to the
right-of-use asset. Where the carrying amount of the
right-of-use asset is reduced to zero and there is a further
reduction in the measurement of the lease liability, the
Company recognises any remaining amount of the re¬
measurement in statement of profit and loss.

Ind AS 116 requires lessees to determine the lease
term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the
use of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. The lease term
in future periods is reassessed to ensure that the lease
term reflects the current economic circumstances.

m) Financial instruments

Financial assets and/or financial liabilities are recognised
when the Company becomes party to a contract
embodying the related financial instruments. All financial
assets, financial liabilities and financial guarantee
contracts are initially measured at transaction price
and where such price is different from fair value, at
fair value. However, for trade receivables that do not
contain a significant financing component are initially
measured at transaction price. Transaction costs that
are attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss)
are added to or deducted from, as the case may be, the
fair value of such financial assets or liabilities on initial
recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised in profit
or loss.

i) Non-derivative financial assets

(a) Financial assets at amortized cost

Financial assets are subsequently measured at
amortized cost if these financial assets are held
within a business model whose objective is to
hold these assets in order to collect 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 on the principal amount

outstanding. Financial assets at amortized cost
are represented by trade receivables, cash
and cash equivalents, employee and other
advances and other eligible current and non¬
current financial assets.

(b) Financial assets at fair value through
other comprehensive income ("FVOCI")

Financial assets are measured at fair value
through other comprehensive income if these
financial assets are held within a business model
whose objective is achieved by both selling
financial assets and collecting contractual
cash flows that give rise on specified dates to
solely payments of principal and interest on
the principal amount outstanding. For financial
assets that are measured at FVOCI, income
by way of interest and dividend, provision for
impairment and exchange difference, if any,
(on debt instrument) are recognised in profit
or loss and changes in fair value (other than
on account of above income or expense) are
recognised in other comprehensive income
and accumulated in other equity. On disposal
of debt instruments at FVOCI, the cumulative
gain or loss previously accumulated in other
equity is reclassified to profit or loss.

(c) Financial assets at fair value through
profit or loss ("FVPL")

Financial assets are measured at fair value
through profit or loss unless it is measured at
amortized cost or at fair value through other
comprehensive income on initial recognition.
The transaction costs directly attributable
to the acquisition of financial assets and
liabilities at fair value through profit or loss are
immediately recognised in profit or loss.

ii) Non-derivative financial liabilities

Financial liabilities are initially recognised at fair
value, and subsequently carried at amortized cost
using the effective interest method. For trade and
other payables maturing within 1 year from balance
sheet date, the carrying amount approximate fair
value due to short maturity of these instruments.

iii) Derivative financial instrument

The Company uses derivative financial instruments,
such as forward contracts and options to hedge its
foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the

fair value is positive and as financial liabilities when
the fair value is negative.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or
loss, except for the effective portion of cash flow
hedges, which is recognised in other comprehensive
income and later reclassified to profit or loss when
the hedge item affects profit or loss (see below).

Cash flow hedge

The Company designates foreign exchange
forward & options contracts as hedge instruments
in respect of foreign exchange risks. These hedges
are accounted for as cash flow hedges.

The Company uses hedging instruments that are
governed by the policies of the Company which are
approved by the Board of Directors, which provide
written principles on the use of such financial
derivatives consistent with the risk management
strategy of the Company.

The hedge instruments are designated and
documented as hedges at the inception of the
contract.

The effectiveness of hedge instruments to reduce
the risk associated with the exposure being hedged
is assessed and measured at inception and on an
ongoing basis.

The effective portion of change in the fair value of
the designated hedging instrument is recognised in
the other comprehensive income and accumulated
under the heading cash flow hedge reserve. The
amount accumulated in other comprehensive
income is reclassified to statement of profit or loss
as reclassification adjustment in the same period
or periods during which the hedged cash flows
affect profit or loss. The ineffective portion of
designated hedges are recognised immediately in
the statement of profit and loss.

Hedge accounting is discontinued when the
hedging instrument expires or is sold, terminated
or no longer qualifies for hedge accounting. Any
gain or loss recognised in other comprehensive
income and accumulated in equity is recognised in
statement of profit and loss when the forecasted
transaction ultimately affects the profit or loss.
When a forecasted transaction is no longer
expected to occur, the cumulative gain or loss
accumulated in equity is transferred to the
statement of profit and loss.

Non-monetary assets and liabilities that are measured
in terms of historical cost in foreign currencies are not
retranslated.

q) Income-tax

Income tax expense comprises current tax expense and
the net change in the deferred tax asset or liability during
the year. Current and deferred taxes are recognized in
statement of profit and loss, except when they relate to
items that are recognized in other comprehensive income
or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive
income or directly in equity, respectively.

Current income taxes

The current income tax expense includes income taxes
payable by the Company and its branches in India and
overseas. The current tax payable by the Company in
India is Indian income tax payable for their worldwide
income after taking credit for tax relief available for
export operations in Special Economic Zones (SEZs).

Current income tax payable by overseas branches of
the Company is computed in accordance with the tax
laws applicable in the jurisdiction in which the respective
branch operates. The taxes paid are generally available
for set off against the Indian income tax liability of the
Company's worldwide income.

Advance taxes and provisions for current income taxes
are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in the
same tax jurisdiction and where the relevant tax paying
units intends to settle the asset and liability on a net
basis.

Deferred income taxes

Deferred income tax is recognized using the balance
sheet approach. Deferred income tax assets and liabilities
are recognized for deductible and taxable temporary
differences arising between the tax base of assets and
liabilities and their carrying amount, except when the
deferred income tax arises from the initial recognition of
an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable
profit or loss at the time of the transaction.

Deferred income tax asset is 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 income 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
income tax asset to be utilized.

Deferred tax assets and liabilities are measured using
substantively enacted tax rates expected to apply to
taxable income in the years in which the temporary
differences are expected to be received or settled.

For operations carried out in SEZs, deferred tax assets
or liabilities, if any, have been established for the tax
consequences of those temporary differences between
the carrying values of assets and liabilities and their
respective tax bases that reverse after the tax holiday
ends.

The Company offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable right
to set off current tax assets and current tax liabilities and
the deferred tax assets and deferred tax liabilities relate
to income taxes levied by the same taxation authority on
the same taxable entity

Deferred tax assets include Minimum Alternative Tax
(MAT) paid in accordance with the tax laws in India, which
is likely to give future economic benefits in the form of
availability of set off against future income tax liability.
Accordingly, MAT is recognized as deferred tax asset
in the balance sheet when the asset can be measured
reliably and it is probable that the future economic
benefit associated with the asset will be realized.

The Company recognizes interest levied related to
income tax assessments in interest expenses.

r) Discontinued operations and Non-current
assets & disposal groups held for sale

Non-current assets and disposal groups are classified as
held for sale when:

I. They are available for immediate sale

II. Management is committed to a plan to sell

III. It is unlikely that significant changes to the plan will
be made or that the plan will be withdrawn

IV. An active programme to locate a buyer has been
initiated

V. The asset or disposal group is being marketed at a
reasonable price in relation to its fair value, and

VI. A sale is expected to complete within 12 months
from the date of classification.

Non-current assets and disposal groups classified as held
for sale are measured at the lower of:

i. Their carrying amount immediately prior to being
classified as held for sale in accordance with the
Group's accounting policy; and

ii. Fair value less costs of disposal.

Following their classification as held for sale, non¬
current assets (including those in a disposal group)
are not depreciated.

The results of operations disposed during the year are
included in the standalone statement of profit and loss
up to the date of disposal.

A discontinued operation is a component of the
Company's business that represents a separate major
line of business or geographical area of operations, that
has been disposed of, has been abandoned or that meets
the criteria to be classified as held for sale.

Discontinued operations are presented in the standalone
statement of profit and loss as a single line which
comprises the post-tax profit or loss of the discontinued
operation along with the post-tax gain or loss recognised
on the re-measurement to fair value less costs to sell or
on disposal of the assets or disposal groups constituting
discontinued operations.