3 Material Accounting Policies

The material accounting polities applied in the preparation of the financial statements are set oat below These policies have been
consistently applied to all the years presented unless otherwise stated

a) Current versus non-current classification

The Company presents assets and liabilities in ihe balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

i} Expected to be realised or intended to be sold or consumed in normal operating cycle
lii Held primarily for Ihe purpose of lradlng

hi) Expected to be realised within twelve months after the reporting period or

iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for a I least twelve months after the
reporting period

All oiher assets are classified as non-current.

A liability is current when

i) It js expected to be settled in normal operating cycle

ii) It is held primarily lor the purpose of trading

m] It is due lo be settled within twelve months after the reporting period, or

fy) There is no unconditional right lo defer the settlement of Ihe liability for at least twelve months after the reporting period
All other liabilities are classified as nomcurrent

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

The operating cycle Is the lime between the acquisition of assets for processing and their realisation in cash and cash equivalents The
Company has identified 12 month® as its operating cycle for me purpose of classification of its assets and liabilities as current and non-current.

b) Fair value measurement

The Company has applied the fair value measure meet wherever necessitated at each reporting period

Fair value is the price that would ha received to seil an asset or paid lo Iransfer a liability in an orderly transaction between market
participants at the measurement dare The fair value measurement is based on the presumption that the transaction to self the asset or
transfer the liability lakes place either

i] In the principal market for the asset or liability:

II] In the absence of a principal market, in the most advantageous market for the asset or liability
"Fhe principal or the most advantageous market must be accessible by Ihe Company.

The fair value of an asset or liability is measured using the assumptions lhai market participants would use when pricing Ihe asset oi
liability, assuming that market participants act In their economic best interest.

A fair value measurement of a non - financial asset takes into accouni a market participant's ability to generate economic benefits by
using the asset in its highest and ihe bas: 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 availaole lo measure
fair value, maximizing the use of relevant observahle inputs and minimising the use ol unobservable inputs.

AH assets and liabilities for whji.h fair value is measured or disclosed in the financial statements are caiegerized within the farr value
hierarchy., described as follows, based on the lowesl level input lhai is material to ihe fair value measurement as a whole-
level 1 Quoted {unadjusted) market prices in active market for identical assets or liabilities

Level 2 : Valuation techniques for which the lowesl level input that is material to the fair value measurement is directly or indirectly
observable: and

level 3 Ý Valuation techniques for which the lowest level input rhai is material to the fair value measurement is unobservable

For assets and liabilities that are recognized 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 fs material to the fa-r
value measurement as a whole) at the end of each reporting period

The Company has designated the respective learn leads to determine the policies and procedures for both recurring and non Ý recurring
fair value measurement Externa* valuers are involved, wherever necessary with the approval or Company's board of directors. Selection
criteria include market knowledge, reputation, independence and whether professional standards are maintained

For the purpose of fair value disclosure, the Company h3s determined classes of assels and liabilities on the basis of the nature,
characteristics end risk of the asset or liability and the level of the fair value hierarchy as explained above. The component wise lair value
measurement is disclosed in the relevant notes.

c) Revenue Recognition
Sate of goods

Revenue as recognised when ihe company satisfies a performance ooligalion by transferring a promised good¹ or service (i,e. an asset) to
a customer An asset Is transferred when Ihe customer obtains control of that asset. which generally coincides with the despatch of the
goods or as per the mco-terms agreed with the customers.

Revenue is measured at the transaction price received or receivable, taking into account contractually defined terms of payment It
comprises of invoice value of goods after deducting discounts, volume rebates and applicable taxes on sale. It also excludes value of self'
consumption,

Material financing component

Generally, the Company receives short-term advances from Its customers Using the practical expedient In Ind AS 1t5 the Company
does not adjust the promised amount of consideration for the effects of a material financing component if It exoects, ai contract inception,
that the period between the transfer of the promised goods or services to the customer and when the customer pays for that goods or
services wit! be one year or less

Export entitlement

hi respect of the exports made by the Company, the related export entitlements from Government authorities are recognised in the
Statement of profit and loss when the right to receive the incentives/ enticements as per the terms of the schema is established and where
lliere is no significant uncertainty regarding the ultimate collection of the re levant export proceeds

Interest Income

Interest income is recorded using the effective interest rate- (EIR) method. EIR is the rale that exactly discounts ihe estimated future cash
payments or receipts over the expected life of the financial msirumen! or a shorter period, where appropriate lo Ihe gross carrying
amount of the financial assel or to Ihe amortised cosi of a financial liability When calculating ihe effective interest rate, the Company
estimates Ihe expected cash flows by considering all the contractual lerms of Ihe financial instrumenl (for example, prepayment
extension call and similar options) but does not consider the expected credit losses.

Dividend income

Dividend income is recognized when Ihe company's; right lo receive dividend is established by the reporting date which is generally when
shareholders approve the dividend,

d) Proparty, plant and equipment and capital work in progress
Presentation

Property, plant and equipment and capital work In progress are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such cost indudes the cost of replacing pari of ihe plant and equipment and borrowing costs of a qualifying
as>et, if the recognition criteria are met. When material pads of plant and equipment are required lo be replaced al intervals, the
Company depreciates them separately based on their specific useful lives All other repair and maintenance costs are recognised in profit
or loss as incurred.

Advances paid towards the acquisition of tangible assets outstanding at each balance sheet date, are disclosed as capital advances
under long term loans and advances and ihe cost of the tangible assets nol ready for their intended use before such date are disclosed
as capital work in progress.

Component Cost

All material/ significant component have been identified and have been accounted separately. The useful life of such componenl are
analysed undependsnlly and wherever components are having different useful life other than plant they am part of. useful life of
components are considered for calculation of depreciation

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that
the future economic benefits embodied wil.hin the part will flow to the Company and its cost can be measured reliably The costs ot repairs
and maintenance are recognised In the statement of profit and loss as Incurred

Machinery spares/ insurance spares that can be issued only In connection with an .ism of fixed assels and their issue is expected to ae
irregular are capitalised Replacement of such spares is charged to revenue. Other spares are charged as revenue expenditure as and
when consumed

Derecognition

Gams or losses arising from derecognition of property plans and equipment are measured as Ihe difference between the net disposal
proceeds and the carrying amounl of the asset and are recognized in the slatement of profit and loss 'when the asset is derecognized

e) Depreciation on property, plant and equipment

Depreciation is. Ihe systematic allocation of (he depreciable amount of an asset over its useful life on a straight line method. The
depreciable amount for assets is the cost of an asset, or other amount substituted for cost less 5% being its residual value

Depreciation is provided on straight line method, over the useful lives specified in Schedule II to the Companies Act, 2013, except in
respect of certain assets, where useful life eslimated based on inlernal assessment and/or independent technical evaluation carried oui
by external valuer, past trends and differs from the useful lives as prescribed undei Part C of Schedule II of the Companies Act 2013.

Depreciation for PPF_ on additions is calculated on probata basts from the date of such additions. For deletion, disposals, Ihe depreciation
is calculated on pro-rata basis up to the dale on which such assets have been discarded/ sold. Additions to flHed assets, costing Rs.SGQO
each or less are fully depreciated retaining its residual value

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

Righl to use assets [tease hold buildings] is amortised on sira-gli! tine method over a period ol lease

f) Intangible assets

intangible assets acquired separately are measured on initial recognition at cost. The cost of a separately acquired Intangible asset
comprises ta) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates;
and fb) any directly attnbulable cos I of preparing the asset for its intended use.

Following initial recognition intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.

Drug Master Files (^J,DMF'') and Abbreviated New Drug Applications ("ANDA'i costs represent expenses incurred on development of
processes and compliance with regulatory procedures of the US FDA. in fifing DMF and ANDA. in respect of products for which
commercial value has been established by virtue of ihird party agreements/ arrangements

Useful life and amortisation of intangible assets

The useful lives of intangible assets are assessed as either finite or indefinite Intangible assets with finite lives are amortised over the
useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired The
amortisation period and Ihe amortisation method for an intangible asset with a finite useful life are reviewed ai least at the end of each
reporting period*

The amortisation expense on intangible assets with finite lives is recogmsed in the statement of profit and loss unless such expenditure
forms pari of carrying value of another asset

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually The assessment of indefinite fife is
reviewed annually to determine whelher the indefinite life continues to be supportable tf not, the change in useful life from indefinite lo
Unite is made on a prospective basis. The cost of each DMF/ ANDA (self generated intangible assets) es amortised lo !he extent cf
recovery of developmental costs applicable as per terms of the agreement or over a period of 5 years from Ihe dale on which the product
covered by DMF' ANDA is commercially marketed, whichever is earlier.

Subsequent cost and measurement incurred

Subsequent costs are capitalised only when it increases Ihe future economic benefits embodied in the specific asset to which it relates. All
Diher expenditures, including expendilure on internally-generated nlangibtes. are recognised in the statement of profil and toss as incurred.

Subsequent lo mitFal recognition intern ally-genera ted intangible asseEs are reported at cost less accumulated amortisation and
accumulated impairment losses, on the same basis as Intangible assets that are acquired separately,

The amortisation expense on intangible assets with finite lives is recognfsed In the statement of profit and loss unless such expenditure
forms part of carrying value of another asset

g) Inventories

Inventories are carried at the lower of cost or net realisable value. Cost includes cost of purchase and other coste incurred in bringing the

. - - - Ý

inventories to their present location and condition, cost being determined based on weighted average method.

In respect of work-in-progress, intermediaries and finished goods cost also includes the variable and fixed overhead incurred for bringing
ihe inventory to present location and conditions,

Net realisable value is me estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary lo make Ihe sale.

h) Financial Instruments

Financial assets and financial liabilities are recognised when an entily becomes a party lo the coniractual provisions of the instruments
Financial assets

Initial recognition and measurement

All financial assets are recognised Initially at fair value However, in the case of financial assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the acquisition of Ihe financial asset are also added to the cost of the financial assel
Purchases or sales of financial assets that require delivery of assets within a lime frame established by regulation or convention in Ihe
market place (regular way trades) are recognised on the trade date, i.e„ the date that the Company comnrts to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified on the basis of their contractual cash flow characteristics and
lhe entity's business model of managing them

Financial assets are classified into the following categories:

* Debt instruments at amortised cost

* Del l instruments at fair value through other comprehensive income (FVTOCI)

* Debt instruments, derivatives and equity Instruments at fair value through profit or toss (FVTPL)

* Equity instruments measured at fair value through other comprehensive income (FVTOClj

Debt instruments at amortised cost

The Company classifies a debt instrumenl as at amortised cost, if both Ihe following conditions are me!
a) The asset is held within a business model whose objeclive is to hold assets for collecting contractual cash flows; and
h) Contractual terms of me asset give rise on specified dates to cash flows that are Solely Payments of Principal and interest (SPPI)
on the principal amount outstanding.

Such financial assets are subsequently measured a! amortised cost using lhe ef feci we interest rate (EIR) method Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
a mortis a lion is included in finance income In me profit or loss. The losses arising from impairment are recognised In the profit or loss

Debt instrument at FVTOCt

The Company classifies a debt instrument at FVTOCt, if bolh of the following criteria are met

a) The objective of the business model is achieved both by collecting contractual cash (tows and selling the financial assets and

b) The asset's contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category are measured as at each reporting date at fair value. Fair value movements are
recognized in the other comprehensive income (OCI|. However, Lhe Company recognizes finance Income, impairment losses and
reversals and foreign exchange gam or loss in the profit and loss statement. On derecognition of the asset, cumulative gam or loss
previously recognised in OCI is reclassified from the equity to profit and loss, interest earned wbiisl holding FVTOCI debt instrumenl is
reported as interest income using the EIR method

Debtlnstrument at FVTPL

The Company classifies all debt instruments, which do not meet the criteria for categorization as at amortized cost or as FVTOCI, as at
FVTPL

Debt instruments included within Ihe FVTPL category are measured at fair value with all changes recognized if! the profit and less.

Equity investments

All equity investments irr scope Of Ind AS T09 are measured at fair value. Equity instruments which are held for Irading are classified as at
FVTPL. Where the Company makes an irrevocable election of classifying the equity instruments at FVTOCI, it recognises all subsequent
changes In the fair value in OCL without any recycling of the amounts from OCI to profit and toss oven on sale of such Investments.

Derecognition

A financial asset is primarily derecognised when

* The righls to receive cash flows from the asset have expired or

* The Company has transferred its rights to receive cash flows From the asset or nas assumed an obligation to pay (he received cash
flows in full without material delay to a third parly under a 'pass-through' arrangement; and either fa] the Company has transferred
substantially atl the risks and rewards of Lhe asset, or (b) the Company has neither transferred nor retained substantially al[ the

;jrrl rfMA/^rrtji nflhp hut has. ir^nsfprrprl r.onlml rif Ihp asspt

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of Ihe risks and rewards of Ihe asset, nor transferred control of the asset, the Company continues to recognise the
transferred asset to the extent of the Company's continuing involvement. In that case, the Company also recognises an associated
liability The transferred asset and the associated liability are measured on a basis that reflects the rights and Obligations that the
Company has retained

Continuing involvement that takes the form of a guarantee over ihe transferred asset is measured at the lower of the original carrying
amount of Ihe asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance wilh ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment
loss on the following financial assets and credit risk exposure

a) Financial assets that are debt instruments, and are measured at amortised cost eg loans, debt securities, deposits, receivables
and bank balance.

b) Financial assets that are debt instruments and are measured at f VTOC!

c) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the
scope of \nd AS 115 "Revenue from contract with Customers"

The Company follows 'simplified approach' forecognition of impairment loss allowance on:

* Trade receivables or contract revenue receivables and

* Ail lease receivables resulting from transactions within the scope of Ind AS 116 "Leases'¹

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 Expected Credit Loss (ECL) at each reporting date, right from Its Initial recognition.

Fof recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a
significant increase in the credit risk since initial recognition. If credit nsk has nol increased significantly, 12 months ECL is used to
provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used If In a subsequent period, credit
quality of the instrument improves such thai [here is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising Impairment loss allowance based on 12-monlh ECL

Lifetime ECL are the expected credil losses resulting from aft possible default events over the expected life of a financial instrument. The
12 months ECL is a portion of the lifetime ECL which results from default events, that are possible within 12 months after the reporting
date.

ECL is ihe difference between all contractual cash flows thai are due to the Company in accordance with the contract and all the cash
flows that the entity expects to receive (i.e.. all cash shortfalls}, discounted at the original EJR When estimating Ihe cash flows, the
Company considers all contractual terms of the financial instrument (including prepayment, extension, call and similar options) over the
expected life of the financial Instrument and Cash flows from the sale of collateral held or other credit enhancements that are integral io
the contractual terms.

ECL allowance (or reversal) recognized during the period is recognized 3S income;' expense in the statement ot profit and loss. This
amount is reflected under the head 'other expenses' in the profit and loss. The balance sheet presentation of ECL for various financial
instruments is described below;

* Financial assets measured as at amortised cost, contractual revenue receivables and lease receivables: ECL is presented
as an allowance, which reduces the net canying amount Until the assei meets write-off criteria, the Company does not reduce
impairment allowance from the gross carrying amount

* Debt instruments measured at FVTOCf: Since financial assets are already reflected at fair value impairment allowance is not
farther reduced from its value. Rather ECL amount is presented as 'accumulated Impairment amount' in the OCI

For assessing increase in credit risk and impairment loss Ihe company combines financial instruments on Ihe basis of shared credit risk
characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on
a timely basis.

For impairment purposes, significant financial assets are tested on individual basis at each reporting date. Other financial assets are
assessed collectively in groups that share similar credit risk characteristics. Accordingly, the impairment testing is done on the following
basis:

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL and as at amortised cost.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs ihat are an integral part of
the EIR. The EIR amortisation is included as finance costs in the statement of profil and loss

All financial (jabrtlties are recognised initially at fair value and. in the case of loans and borrowings and payables, net of directly attributable
iransaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee
contracts and derivative financial instruments.

The measurement of financial liabilities depends on their classification as describe: i below
Financial liabilities at FVTPL

Financial lobitiliss at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair
value through profit or loss. HinanciaJ liabilities are classified as held for trading, if ihey are incurred for the purpose of repurchasing Jn the
rear term. This category also includes derivative financial instruments entered into by the Company fhat are not designated as hedging
instruments in hedge relationships as defined by Ind AS 109 Separated embedded derivatives are also classified as held for trading

c-mÝ"«Ý’*“^J *Ý>>!; vi"L : Ý Ý' ^! L-y >Ý ¹ Ý Ý . "" Ý Ý Ý —Ý Ý - Ý"* ” Ý" ݹ ’ " - Ý r'.’--- - .. >Ý- Ý* Ý Ý

Unless Ihey are designated as effective hedging instruments.

Gams or losses on liabilities held for trading are recognised in (he profit or loss

For liabitifies designated as FVTPL fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/
loss are not subsequently transferred to profit and loss However, the Company may transfer the cumulative gam or loss within equity All
other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has nol designated any
financial liability as ai fair value through profit and loss.

Loans and borrowings

After initial recognition, interest-beanng loans and borrowings are subsequent measured al amortised cosi using the EIR method Gains
and losses are recognised in profit or loss when the liabilities aie derecognised as well as through the EIR amortisation process

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified paymonls to reimburse the holder for a toss it incurs
because a specified debtor fells to make payments when duo in accordance with the terms of a debt instrument,

Financial guarantee contracts issued by Ihe Company are inilially measured at therr fair values and, if not designated as at fear value
Ihrough profit or loss, are subsequently measured al higher of (i) The amount of loss allowance determined in accordance with impairment
requirements of Ind AS 109 "Financial instruments" and (ii) The amount initially recognised less, when appropriate, the cumulative amounl
of Income recognised In accordance with the principles of Ind AS 115 "Revenue from contract with Customers¹'

Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and options contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When 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 the derecognition of the original liability and the recognition of a new liability.. The
difference in the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reel as srfi cation, is
made for financial assets which are equity instruments and financial liabilities. For :mancial assets which are debt nstruments. a
reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are
expected to be infrequent. The Company's senior management determines change in the business model as a result of external or
internal changes which are significant to the Company's operations. Such changes are evident to external parties. A change in the
business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the
Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which Is the first day of the
immediately next reporting period following the change in business model. The Company does not restate any previously recognised
gams, losses (including impairment gams or tosses) or interest

i) Foreign currency transactions and translations
Transactions and balances

Transactions in foreign currencies are initially recorded by the Company at the functional currency spot rates at the date at which the
transaction first qualifies for recognition However, tor practical reasons, the Company uses an average rate, it the average approximates
the actual rate at the date of the transaction Monetary assets and liabilities denominated in foreign currencies are transtaled at the
functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary
items are recognised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are transited using the exchange rates at the
dales of the initial Iran sac lions Nonmonetary items measured at fair value in a foreign currency are iranslated using the exchange rates
at the date when the lair value is determined The gain or Foss arising on translation of non-monelary Items measured at fair value is
treated fn line with the recognition of the gam or loss on the change in fair value of the item (he,, translation differences on items whose
fair value gain or loss is recognised in QCI or profit or loss are also recognised in OCI or profit or loss, respectively.)

The Company enters into lor ward exchange contract to hedge ils risk associated with foreign currency fluctuations The premium or
discount arising at the inception of a forward exchange contract is amortized as expense or income over the life of the contract in case at
monetary items which are covered by forward exchange contract the difference between the year end rate and rate on the date of ihe
contract is recognized as exchange difference Any profit or toss arising on cancellation cl a forward exchange contract is recognized as
income or expense for that year.

j) Borrowing Costs

Borrowing cost Include interest computed using Effective Interest Rate method, amortisation of ancillary costs incurred and
exchange differences arisrng <rom foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs that are directly attributable to the acquisition, construction, production of a qualifying asset are capitalised as pan of :he
cost of that asset which lakes substantial period of Lime to gel ready for its intended use The Company determines the amount at
borrowing cast eligible for capitalisation by applying capitalisation rate to the expenditure incurred on such cost. The capitalisation rate is
determined based on the weighted average rate of borrowing cost applrcable to the borrowings of Ihe Company which are outstanding
during Ihe period, other than borrowings made specifically towards purchase of Ihe qualifying asset. The amount oT borrowing cost that
the Company capitalises during the period does not exceed ihe amount of burrowing cost incurred during that period. All other borrowings
costs are expensed In the period in which they occur.

Interest income earned on Ihe temporary investment of specific borrowings pending their expenditure on qualifying assets Is deducted
from the borrowing costs eligible far capitalisation All other borrowing costs are recognised in the statement of profit and loss in the
period in which they are incurred

k) Government grants

Government grants are recognised at fair value where there is a reasonable assurance lhat the grant will be received and all
the attached conditions are complied with,

In case of revenue related grant, the income is recognised on a systematic basis aver the period for which it is Intended to compensate an
expense and is disclosed under "Other operating revenue" or netted off against corresponding expenses wherever appropriate.
Receivables of such grants are shown under "Other Financial Assets’. Export benefits are accounted for in the year of exports based on
eligibility and when Lhere is no uncertainty In receiving the same Receivables of such benefits are shown under "Other Financial Assets⁴

Government granls related lo assets including non-monetary grants at fair value, shall be presented rn the balance sheet by setting up
the grant as deferred income. The grant set up as deferred income ts recognised in profit or loss on a systematic basis Over the useful life
of the asset.

l) Taxes

Current income tax

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 Lax laws used to compute the amount are those lhat 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 equiLy) Current lax items are recognised In correlation to the underlying transaction either in OCJ or directly in equity.
Management periodically evaluates positions taken in the lax returns with respect to situations in which applicable tax regulations are
subject to interpret a lion and establishes provisions where appropriate

Minimum Alternate Tax [MATl paid in accordance with the tax laws. Which grves future economic benefits in the form of adjustment to
future tax liability, is recognised as an asset m. MAT Credit Entitlement, to the extent there is convincing evidence that the Company will
pay normal Income tax and it is highly probable that future economic benefits associated with pL will flow to the Company during Ihe
specified p error! The Company reviews the "MAT Credil Entitlement' each Balance Sheet date and writes down the carrying
amount of the same to the extent ihere is no longer convincing evidence to the effecl thatthe Company will pay normal Income tan during
the specified period

Deferred tax

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

Deferred tax liabilities are recognised for all taxable temporary differences

Deferred tax assets are recognised to the extent that n is probable tha! taxable profit will be available against which Ihe deductible
temporary differences, and the carry forward of unused tax credits ana unused tax losses can be utilised. Where there is deferred tax
assets arising from carry forward of unused tax losses and unused tax created, they are recognised lo the extent of deferred tax liability

Ihe carrying amount of deterred tax asseis is reviewed al each reporting date and reduced to the extent that It is no longer probable Ihat
sufficient taxable profit will be available to allow all or pari of the deferred tax assei to be utilised Unrecognised deferred tax assets are re¬
assessed at each reporting dale and are recognised to the extent that it has become probable that future taxable profits will allow the
deferred lax asset to be recovered

Deferred lax assets ana liabilities are measured at the lax rales lhai are expected lo apply In Ihe year when ihe asset is realised or the
liability is settled, based on tax rates [and tax laws) that nave 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 m correlation lo the underlying transaction eliherin GCI or directly in equity

Deferred lax assets and deferred tax liabilities are offset, if a legally enforceable fight exists to set off current lax assets against current
lax liabilities and ihe deferred taxes relate to the same taxable entity and the same taxation authority

m) Retirement and other employee benefits

Short-term employee benefits

A liability is recognised for short-term employee benefit In ihe period the related service is rendered ai Ihe undlscouflted amount of the
benefits expected to be paid In exchange for that service

Defined contribution plans

Retirement benefit in the form of provident fund is a defined contribution scheme The Company has no obligation, other than the
contribution payable to the provident fund. The Company recognizes contribution payable lo the provident fund scheme as an expense
when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheel
dale exceeds the contribution already paid, the deficit payable tg the scheme is recognized as a liability after deducting the contribution
already paid if the contribution already patd exceeds the contribution due for services received before the balance sheet date, then
excess Is recognized as an assel Lo the extent that the pre-payment will lead lo. for example, a reduction In future payment or a cash
refund.

Defined benefit plans

The Company operates a defined benefit gratuity plan in India, which requires contributions lo be made lo a separately administered fund
The cost of providing benefits under the defined benefit plan is determined using the prodded unit credit method

Rfcmeasurements, comprising of actuarial gains and losses the effect of the essei celling excluding amounts included in nel interest oti
Hie net defined benefit liability and the return on plan assets [excluding amounts included In net Interest on the net defined benefit
liability), are recognised Immediately In the balance sheel with a corresponding debit or credit to retained earnings through QCI in the
period in which they occur Remeasurements are not reclassified lo profit or loss in subsequent periods.

Compensated absences

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature The expected cost
of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheer
date using projected unit credit method on Ihe additional amnunl expected te be paid / availed as a result of the unused entitlement that
has accumulated a\ the balance sheet date Expense on noma ecu mutating compensated absences is recognized in the period in which
the absences occur.

Other long term employee benefits

Liabilities recognised in respect of otner long-term employee benefits are measured at the present value of the estimated future cash
outflows expected to be made by the Company in respect of services provided by the employees up to the reporting date.

n) Leases

The Company has elected not to apply the requirements of Ind AS 116 Leases to short term leases of all assets that have a lease term of
12 months nr less and leases for which the underlying asset is of low value. The lease payments associated with these leases are
recognised as an expense on a straight-line basis over the lease term.Aft other Leases are recognized as follows:

a| Initial measurement

Lease liability is initially recognised and measured at an amount equal to the present value of minimum lease payments curing the
lease term that are not yet paid Righl-oF-use assel is recognized and measured at cost, consisting of mhial measurement of lease
liability plus any lease payments made 1o the lessor at or before the commencement date Eess any lease incentives received, initial
estimate of restoration costs and ary initial direct costs incurred by the lessee.

b) Subsequent measurement

The lease liability is measured in subsequent periods using the effective Interest rate method. Righbof-use asset is depreciated in
accordance wilh requirements in Irtd AS 16, Property Pfanl and equipment The determinalion of whether an arrangement is (or
contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a
lease If fulfilment of the arrangement is dependent on the use of a specific asssel or assets and the arrangement conveys a right to
use the asset or assets, even if that right is not explicitly specified in an arrangement. However. Ind AS 116 provides the lessee
with the option to recognise a low value asset or a short term tease (12 months of lesser! as an expense In the slatement of profit
and loss on a straight-line basis or any other systematic approach as adopted by Hie entity

o) Impairment of non financial assets

The Company assesses, ar each reporting date, whether there ss 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 unit’s (CGU) fair value [ess costs of disposal and tts value in use. Recoverable
amount is determined for an individual asset, unless the asset does not generate cash .nftows 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.