Summary of Material accounting policy
information

1.2 Basis of preparation of standalone
financial statements

The standalone financial statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015 (as
amended from time to time). These standalone
financial statements have been approved for issue
by the Board of Directors of the Company on May 28,
2025.

These standalone financial statements have been
prepared on a historical cost basis, except for
certain financial instruments such as derivative
financial instruments and other financial assets held
for trading, which have been measured at fair value.
The standalone financial statements are presented
in Indian Rupees (Rs.) and all values are rounded
off to the nearest million, except when otherwise
indicated.

1.3 Presentation of standalone financial
statements

The Company presents its standalone balance sheet
in order of liquidity in compliance with the Division
III of the Schedule III to the Companies Act, 2013.
An analysis regarding recovery or settlement within
12 months after the reporting date (current) and
more than 12 months after the reporting date (non¬
current) is presented in note 2.35.

Financial assets and financial liabilities are generally
reported gross in the standalone balance sheet. They
are only offset and reported net when, in addition
to having an unconditional legally enforceable right
to offset the recognised amounts without being
contingent on a future event, the parties also
intend to settle on a net basis in all of the following
circumstances:

1. The normal course of business

2. The event of default

3. The event of insolvency or bankruptcy of the
Company and/or its counterparties

1.4 Revenue from contract with customer

Revenue is measured at transaction price i.e. the
amount of consideration to which the Company
expects to be entitled in exchange for transferring
promised goods or services to the customer,
excluding amounts collected on behalf of third
parties. The Company consider the terms of the
contracts and its customary business practices
to determine the transaction price. Where the
consideration promised is variable, the Company
excludes the estimates of variable consideration
that are constrained. The Company applies the five-
step approach for recognition of revenue:

i) Identification of contract(s) with customers;

ii) Identification of the separate performance
obligations in the contract;

iii) Determination of transaction price;

i v) Allocation of transaction price to the separate
performance obligations; and

v) Recognition of revenue when (or as) each
performance obligation is satisfied

The Company recognises revenue from the following

sources:

• Brokerage income is recognised as per contracted
rates at the point in time when transaction's
performance obligation is satisfied on behalf of the
customers on the trade date.

• Fee income including merchant banking and advisory
fees is accounted on an accrual basis as per Ind
AS 115 in accordance with the terms and contracts
entered with the client.

• Research services fee income is accounted when
there is reasonable certainty as to its receipts.

• Interest income is recognized on accrual basis.

• Rental income is accounted on a straight-line basis
over the lease terms on operating leases.

• Dividend income is recognised when the right to
receive payment is established, it is probable that
the economic benefits associated with the dividend
will flow to the entity and the amount of the dividend
can be measured reliably.

1.5 Financial Instruments

Date of recognition

Financial assets and financial liabilities with exception
of borrowings are initially recognised on the trade
date, i.e., the date that the Company becomes a party
to the contractual provisions of the instrument. This
includes regular way trades; purchases or sales of
financial assets that require delivery of assets within
the time frame generally established by regulation
or convention in the market place. The Company
recognises borrowings when funds are received by
the Company.

Initial measurement of financial instruments

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing them. With
the exception of trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient, the
Company initially measures a financial asset at its
fair value plus, in the case of a financial asset not at

fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant
financing component or for which the Company has
applied the practical expedient are measured at the
transaction price determined under Ind AS 115. Refer
to the accounting policies note no 1.4.

Day 1 profit or loss

When the transaction price of the financial
instrument differs from the fair value at origination
and the fair value is based on a valuation technique
using only inputs observable in market transactions,
the Company recognises the difference between
the transaction price and fair value in net gain on
fair value changes. In those cases where fair value
is based on models for which some of the inputs
are not observable, the difference between the
transaction price and the fair value is deferred and
is only recognised in statement of profit and loss
when the inputs become observable, or when the
instrument is derecognised.

Classification of financial instruments

The Company classifies all of its financial assets
based on the business model for managing the
assets and the asset's contractual terms, measured
at either:

Financial assets carried at amortised cost
(AC)

A financial asset is measured at amortised cost if
it is held within a business model whose objective
is to hold the asset 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. The changes in
carrying value of financial assets is recognised in
profit and loss account.

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

A financial asset is measured at FVTOCI if it is held
within a business model whose objective is achieved
by both collecting contractual cash flows and selling
financial assets 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. The
changes in fair value of financial assets is recognised
in Other Comprehensive Income.

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

A financial asset which is not classified in any of
the above categories are measured at FVTPL. The
Company measures all financial assets classified
as FVTPL at fair value at each reporting date. The
changes in fair value of financial assets is recognised
in Profit and loss account.

The Company measures financial assets that meet
the following conditions at amortised cost:

• the financial asset is held within a business
model whose objective is to hold financial
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.

Debt instruments that meet the following conditions
are subsequently measured at fair value through
other comprehensive income (except for debt
instruments that are designated as at fair value
through profit or loss on initial recognition):

• the financial asset is held within a 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
solely payments of principal and interest on the
principal amount outstanding

1.6 Financial assets and liabilities

Amortized cost and effective interest rate
(EIR)

The effective interest rate is a method of calculating
the amortised cost of a debt instrument and of
allocating interest income over the relevant period.

For financial instruments other than purchased
or originated credit-impaired financial assets,
the effective interest rate is the rate that exactly
discounts estimated future cash receipts (including
all fees and points paid or received that form an
integral part of the effective interest rate, transaction
costs and other premiums or discounts) excluding

expected credit losses, through the expected life
of the debt instrument, or, where appropriate, a
shorter period, to the gross carrying amount of the
debt instrument on initial recognition. For purchased
or originated credit impaired financial assets, a
credit-adjusted effective interest rate is calculated
by discounting the estimated future cash flows,
including expected credit losses, to the amortised
cost of the debt instrument on initial recognition.

The amortised cost of a financial asset is the amount
at which the financial asset is measured at initial
recognition minus the principal repayments, plus
the cumulative amortisation using the effective
interest method of any difference between that
initial amount and the maturity amount, adjusted
for any loss allowance. On the other hand, the gross
carrying amount of a financial asset is the amortised
cost of a financial asset before adjusting for any loss
allowance.

Financial assets held for trading

The Company classifies financial assets as held for
trading when they have been purchased or issued
primarily for short-term profit making through
trading activities or form part of a portfolio of
financial instruments that are managed together, for
which there evidence of a recent pattern of short¬
term profit is taking. Held-for-trading assets and
liabilities are recorded and measured in the balance
sheet at fair value.

Financial assets at fair value through profit
or loss

Financial assets and financial liabilities in this
category are those that are not held for trading and
have been either designated by management upon
initial recognition or are mandatorily required to be
measured at fair value under Ind AS 109. Management
only designates an instrument at FVTPL upon initial
recognition when one of the following criteria are met.
Such designation is determined on an instrument-
by-instrument basis.

• The designation eliminates, or significantly
reduces, the inconsistent treatment that would
otherwise arise from measuring the assets or
liabilities or recognizing gains or losses on them
on a different basis; Or

• The liabilities are part of a group of financial
liabilities, which are managed and their

performance evaluated on a fair value basis,
in accordance with a documented risk
management or investment strategy; Or

• The liabilities containing one or more embedded
derivatives, unless they do not significantly
modify the cash flows that would otherwise be
required by the contract, or it is clear with little
or no analysis when a similar instrument is first
considered that separation of the embedded
derivative(s) is prohibited.

Financial assets and financial liabilities at FVTPL are
recorded in the standalone balance sheet at fair
value. Changes in fair value are recorded in profit and
loss with the exception of movements in fair value of
liabilities designated at FVTPL due to changes in the
Company's own credit risk. Such changes in fair value
are recorded in the own credit reserve through OCI
and do not get recycled to the profit or loss. Interest
earned or incurred on instruments designated at
FVTPL is accrued in interest income or finance cost,
respectively, using the EIR, taking into account any
discount/ premium and qualifying transaction costs
being an integral part of instrument. Interest earned
on assets mandatorily required to be measured at
FVTPL is recorded using contractual interest rate.

Investment in equity instruments

The Company subsequently measures all equity
investments at fair value through profit or loss, unless
the management has elected to classify irrevocably
some of its strategic equity investments to be
measured at FVOCI, when such instruments meet
the definition of Equity under Ind AS and are not
held for trading. Such classification is determined on
an instrument-by-instrument basis. Investments in
subsidiaries and associate companies are carried at
cost.

Financial liabilities

All financial liabilities are measured at amortised
cost except loan commitments, financial guarantees,
and derivative financial liabilities.

Debt securities and other borrowed funds

After initial measurement, debt securities and
other borrowed funds are subsequently measured
at amortised cost. Amortised cost is calculated by
taking into account any discount or premium on
issue funds, and costs that are an integral part of the
EIR.

Financial guarantee

Financial guarantees are contracts that require the
Company to make specified payments to reimburse
to holder for loss that it incurs because a specified
debtor fails to make payment when it is due in
accordance with the terms of a debt instrument.

Financial guarantee issued or commitments to
provide a loan at below market interest rates are
initially measured at fair value and the initial fair value
is amortised over the life of the guarantee or the
commitment. Subsequently, they are measured at
higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and
the amount recognised less cumulative amortisation.

Financial liabilities and equity instruments

Financial instruments issued by the Company are
classified as either financial liabilities or as equity in
accordance with the substance of the contractual
arrangements and the definitions of a financial
liability and an equity instrument.

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the
proceeds received, net of direct issue costs.

Repurchase of the Company's own equity
instruments is recognised and deducted directly in
equity. No gain or loss is recognised in profit or loss
on the purchase, sale, issue or cancellation of the
Company's own equity instruments.

1.7 Reclassification of financial assets
and liabilities

The Company does not reclassify its financial assets
subsequent to their initial recognition, apart from the
exceptional circumstances in which the Company
acquires, disposes of, or terminates a business line.

1.8 Derecognition of financial instruments

Derecognition of financial asset

A financial asset (or, where applicable a part of a
financial asset or a part of a group of similar financial
assets) is derecognised when the rights to receive
cash flows from the financial asset have expired.
The Company also derecognises the financial asset
if it has both transferred the financial asset and the
transfer qualifies for derecognition.

The Company has transferred the financial asset if,
and only if, either

• The Company has transferred the rights to
receive cash flows from the financial asset or

• It retains the contractual rights to receive the
cash flows of the financial asset, but assumed a
contractual obligation to pay the cash flows in
full without material delay to third party under
pass through arrangement.

Pass-through arrangements are transactions whereby
the Company retains the contractual rights to
receive the cash flows of a financial asset (the
'original asset'), but assumes a contractual obligation
to pay those cash flows to one or more entities
(the 'eventual recipients'), when all of the following
conditions are met:

• The Company has no obligation to pay amounts
to the eventual recipients unless it has collected
equivalent amounts from the original asset,
excluding short-term advances with the right
to full recovery of the amount lent plus accrued
interest at market rates.

• The Company cannot sell or pledge the original
asset other than as security to the eventual
recipients.

• The Company has to remit any cash flows it
collects on behalf of the eventual recipients
without material delay. In addition, the
Company is not entitled to reinvest such cash
flows, except for investments in cash or cash
equivalents including interest earned, during
the period between the collection date and
the date of required remittance to the eventual
recipients.

A transfer only qualifies for derecognition if either:

• The Company has transferred substantially all
the risks and rewards of the asset; or

• The Company has neither transferred nor
retained substantially all the risks and rewards
of the asset, but has transferred control of the
asset.

The Company considers control to be transferred
if and only if, the transferee has the practical ability
to sell the asset in its entirety to an unrelated third
party and is able to exercise that ability unilaterally

and without imposing additional restrictions on the
transfer.

Derecognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged, cancelled
or expires. Where an existing financial liability is
replaced by another from the same lender on
substantially different terms, or the terms of an
existing liability are substantially modified, such an
exchange or modification is treated as a derecognition
of the original liability and the recognition of a new
liability. The difference between the carrying value of
the original financial liability and the consideration
paid is recognised in the statement of profit or loss.

1.9 Impairment of financial assets

The Company records allowance for expected
credit loss (ECL) for all financial assets, other than
financial assets held at FVTPL together with financial
guarantee contracts.

Simplified approach

The Company follows 'simplified approach' for
recognition of impairment loss allowance on trade
receivables. The application of simplified approach
does not require the Company to track changes
in credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting
date, right from its initial recognition. The Company
uses a provision matrix to determine impairment
loss allowance on portfolio of its receivables. The
provision matrix is based on its historically observed
default rates over the expected life of the receivables
and is adjusted for forward-looking estimates.

1.10Determination of fair value

The Company measures financial instruments, such
as, 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:

• I n 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 by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest. A fair value measurement
of a non-financial asset takes into account a market
participant's ability to generate economic benefits
by using the asset in its highest and best use or by
selling it to another market participant that would use
the asset in its highest and best use. 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. In order to show how
fair values have been derived, financial instruments
are classified based on a hierarchy of valuation
techniques, as summarised below:

Level 1 financial instruments:

Those where the inputs used in the valuation are
unadjusted quoted prices from active markets for
identical assets or liabilities that the Company has
access to at the measurement date. The Company
considers markets as active only if there are sufficient
trading activities with regards to the volume and
liquidity of the identical assets or liabilities and
when there are binding and exercisable price quotes
available on the balance sheet date.

Level 2 financial instruments

Those where the inputs that are used for valuation
and are significant, are derived from directly or
indirectly observable market data available over the
entire period of the instrument's life.

Level 3 financial instruments

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 financial statements on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.
The Company periodically reviews its valuation

techniques including the adopted methodologies
and model calibrations.

Therefore, the Company applies various techniques
to estimate the credit risk associated with its
financial instruments measured at fair value, which
include a portfolio-based approach that estimates
for the expected net exposure per counterparty over
the full lifetime of the individual assets, in order to
reflect the credit risk of the individual counterparties
for non-collateralised financial instruments.

The Company evaluates the levelling at each
reporting period on an instrument-by-instrument
basis and reclassifies instruments when necessary
based on the facts at the end of the reporting period.

1.11 Write-offs

Financial assets are written off either partially or
in their entirety only when the Company has no
reasonable expectation of recovery.

1.12 Property, plant and equipment,
Right-of-use assets and Capital work
in progress

Property, plant and equipment is stated at cost
excluding the costs of day-to-day servicing, less
accumulated depreciation and accumulated

impairment in value. Changes in the expected useful
life are accounted for by changing the amortization
period or methodology, as appropriate, and treated
as changes in accounting estimates.

Depreciation is recognized so as to write off the cost
of assets less their residual values over their useful
lives. Depreciation is provided on a written down
value basis from the date the asset is ready for its
intended use. In respect of assets sold, depreciation
is provided upto the date of disposal.

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. The carrying amount
of those components which have been separately
recognised as assets is derecognised at the time of
replacement thereof. Any gain or loss arising on the
disposal or retirement of an item of property, plant
and equipment is determined as the difference
between the sales proceeds and the carrying
amount of the asset and is recognised in profit or
loss.

of the asset and depreciation based on the asset's
original cost. Each year the difference between
depreciation based on the revalued carrying amount
of the asset charged to profit or loss and depreciation
based on the asset's original cost is transferred from
the revaluation reserve to retained earnings.

1.13 Intangible assets

The Company's intangible assets mainly include the
value of software. An intangible asset is recognised
only when its cost can be measured reliably and
it is probable that the expected future economic
benefits that are attributable to it will flow to the
Company.

I ntangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their
fair value as at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and any accumulated
impairment losses. Intangible assets with finite
lives are amortized over the useful economic life
and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.

An intangible asset is derecognised upon disposal
(i.e., at the date the recipient obtains control) or
when no future economic benefits are expected
from its use or disposal. Any gain or loss arising
upon derecognition of the asset (calculated as the
difference between the net disposal proceeds and
the carrying amount of the asset) is included in the
statement of profit or loss.

1.14 Investment properties

I nvestment Properties are properties held to earn
rentals and/or capital appreciation. Upon initial
recognition, an investment property is measured
at cost, including transaction costs. Subsequent
to the initial recognition, investment property is
reported at cost less accumulated depreciation and
accumulated impairment losses, if any.

Subsequent expenditure is capitalised only if it
is probable that the future economic benefits

associated with the expenditure will flow to the
Company and the cost of the item can be measured
reliably.

Transfers to (or from) investment property are made
only when there is a change in use. Transfers between
investment property, owner-occupied property do
not change the carrying amount of the property
transferred and they do not change the cost of that
property for measurement or disclosure purpose.

Depreciation is recognised using written down
method so as to write off the cost of the investment
property less their residual values over their useful
lives specified in schedule II to the Companies Act,
2013 or in the case of assets where the useful life was
determined by technical evaluation, over the useful
life so determined.

Depreciation method is reviewed at each financial
year end to reflect the expected pattern of
consumption of the future benefits embodied in
the investment property. The estimated useful
life and residual values are also reviewed at each
financial year end and the effect of any change in the
estimates of useful life/residual value is accounted
on prospective basis.

Investment properties are de-recognised either
when it has been disposed of or when it is
permanently withdrawn from use and no future
economic benefit is expected from its disposal. The
difference between the net disposal proceeds and
the carrying amount of the asset is recognised in
the statement of profit and loss in the period of de¬
recognition.

1.15 Impairment of non-financial assets

The Company assesses at each balance sheet date
whether there is any 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 unit's (CGU) fair value less
costs of disposal 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. When 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.

1.16 Securities held for trading

a) The securities acquired with the intention of
short term holding and trading positions are
considered as securities held for trading.

b) The securities, including from error trades,
held as securities held for trading are valued at
market value.

1.17 Cash and cash equivalents

Cash and cash equivalents include cash on hand and
on bank and other short term highly liquid investments
with original maturities of upto three months that are
readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes
in value.

1.18 Foreign currency transactions

The standalone financial statements are presented
in Indian Rupees which is also functional currency of
the Company. Transactions in currencies other than
Indian Rupees (i.e. foreign currencies) are recognised
at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period,
monetary items denominated in foreign currencies
are retranslated at the rates prevailing at that date.
Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair
value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are not retranslated.

Exchange differences on monetary items are
recognised in profit or loss in the period in which
they arise. 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 (i.e., translation
differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised
in OCI or profit or loss, respectively)

1.19 Retirement and other employee
benefits

Provident fund and national pension
scheme

The Company contributes to a recognized provident
fund and national pension scheme which is a
defined contribution scheme. The contributions are
accounted for on an accrual basis and recognized in
the standalone statement of profit and loss.

Gratuity

The Company's gratuity scheme is a defined benefit
plan. The Company's net obligation in respect of the
gratuity benefit scheme is calculated by estimating
the amount of future benefit that the employees
have earned in return for their service in the current
and prior periods. Such benefit is discounted to
determine its present value, and the fair value of any
plan assets, if any, is deducted.

The present value of the obligation under such
benefit plan is determined based on independent
actuarial valuation using the Projected Unit Credit
Method. Benefits in respect of gratuity are funded
with an Insurance Company approved by Insurance
Regulatory and Development Authority (IRDA).

Re-measurement, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability, 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.

Remeasurement are not reclassified to profit or loss
in subsequent periods.

Compensated Leave Absences

The eligible employees of the Company are
permitted to carry forward certain number of their
annual leave entitlement to subsequent years,
subject to a ceiling. The Company recognises the
charge to the standalone statement of profit and
loss and corresponding liability on account of such
accumulated leave entitlement based on a valuation
by an independent actuary. The cost of providing
annual leave benefits are determined using the
projected unit credit method.

Share-based payment arrangements

Equity-settled share-based payments to employees
by the Company and by the erstwhile ultimate parent
Group are measured by reference to the fair value of
the equity instruments at the grant date.

The fair value of Equity-settled share-based
payments determined at the grant date is expensed
over the vesting period, based on the Company's
estimate of equity instruments that will eventually
vest, with a corresponding increase in equity. In
cases where the share options granted vest in
instalments over the vesting period, the Company
treats each instalment as a separate grant, because
each instalment has a different vesting period, and
hence the fair value of each instalment differs.

1.20 Income tax expenses

I ncome tax expense represents the sum of the tax
currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for
the year. Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates
and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the
reporting date in the countries where the Company
operates and generates taxable income. Current
income tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to
the underlying transaction either in OCI or directly in
equity. The Company's current tax is calculated using
tax rates that have been enacted or substantively
enacted by the end of the reporting period.

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 recognised for all taxable
temporary differences, except:

• When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business

combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss

• In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, when
the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse
in the foreseeable future.

• Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised 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 utilised, except:

When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss.

• I n respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences 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 utilised. Unrecognised
deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that
it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

In assessing the recoverability of deferred tax
assets, the Company relies on the same forecast

assumptions used elsewhere in the financial
statements and in other management reports, which,
among other things, reflect the potential impact
of climate-related development on the business,
such as increased cost of production as a result of
measures to reduce carbon emission.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year
when the asset is realised, 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 recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Deferred tax items are recognised in correlation to
the underlying transaction either in OCI or directly in
equity.

Tax benefits acquired as part of a business
combination, but not satisfying the criteria for
separate recognition at that date, are recognised
subsequently if new information about facts and
circumstances change. Acquired deferred tax
benefits recognised within the measurement period
reduce goodwill related to that acquisition if they
result from new information obtained about facts
and circumstances existing at the acquisition date. If
the carrying amount of goodwill is zero, any remaining
deferred tax benefits are recognised in OCI/ capital
reserve depending on the principle explained for
bargain purchase gains. All other acquired tax
benefits realised are recognised in profit or loss.

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 either the same
taxable entity or different taxable entities which
intend either 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.

1.21 Leases

Company as a lessee:

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. The Company applies
a single recognition and measurement approach for
all leases, except for short-term leases and leases
of low-value assets. The Company recognises lease
liabilities to make lease payments and right-of-use
assets representing the right to use the underlying
assets.

Right of use assets

The Company recognises 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 recognised, 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 assets.

Lease Liabilities

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. 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.

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.

Short term lease and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases of
machinery and equipment (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 of office equipment
that are considered to be low value. Lease payments
on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis
over the lease term

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental
to ownership of an asset is classified as operating
leases. Rental income arising is accounted for on
a straight-line basis over the lease terms. Initial
direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount
of the leased asset and recognised over the lease
term on the same basis as rental income. Contingent
rents are recognised as revenue in the period in
which they are earned.

Leases are classified as finance leases when
substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts
due from lessees under finance leases are recorded
as receivables at the Company's net investment
in the leases. Finance lease income is allocated
to accounting periods so as to reflect a constant
periodic rate of return on the net investment
outstanding in respect of the lease.

1.22 Earnings per share

The Company reports basic and diluted earnings
per share in accordance with Indian Accounting
Standard 33 - Earnings Per Share. Basic earnings
per share is computed by dividing the net profit
or loss attributable to the equity holders of parent
company (after deducting preference dividends and
attributable taxes) by the weighted average number
of equity shares outstanding during the year.

For the purpose of EPS, the potential ordinary shares
that would be issued on conversion are included in
the weighted average number of ordinary shares
used in the calculation of basic EPS (and, therefore,
also diluted EPS) from the date of issue of the
instrument, since their issue is solely dependent on
the passage of time.

Diluted earnings per share reflect the potential
dilution that could occur if securities or other
contracts to issue equity shares were exercised
or converted during the year. Diluted earnings per
share is computed by dividing the net profit after tax
attributable to the equity shareholders for the year
by the weighted average number of equity shares
considered for deriving basic earnings per share
and weighted average number of equity shares
that could have been issued upon conversion of all
potential equity shares.