N Provisions, contingent liabilities and
contingent assets

Provisions

A provision is recognised when the Company has a
present obligation (legal or constructive) as a result of
past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of
which a reliable estimate can be made. Provisions are
determined based on the best estimate required to settle
the obligation at the balance sheet date and measured
using the present value of cash flows estimated to
settle the present obligations (when the effect of time
value of money is material). These are reviewed at each
balance sheet date and adjusted to reflect the current
best estimates.

Onerous contracts

I f the Company has a contract that is onerous, the
present obligation under the contract is recognised and
measured as a provision. However, before a separate
provision for an onerous contract is established, the
Company recognises any impairment loss that has
occurred on assets dedicated to that contract.

An onerous contract is a contract under which the
unavoidable costs (i.e., the costs that the Company
cannot avoid because it has the contract) of meeting
the obligations under the contract exceed the economic
benefits expected to be received under it. The
unavoidable costs under a contract reflect the least net
cost of exiting from the contract, which is the lower of
the cost of fulfilling it and any compensation or penalties
arising from failure to fulfil it.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within
the control of the enterprise. Contingent liabilities
are disclosed by way of note to the standalone Ind AS
financial statements.

Contingent Assets

A contingent asset is a possible asset that arises from
past events the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the enterprise.

Contingent assets are neither recognised nor disclosed
in the standalone Ind AS financial statements.

O Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

(a) Financial assets

Initial recognition and measurement

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.

I n order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are
'solely payments of principal and interest (SPPI)' on
the principal amount outstanding. This assessment
is referred to as the SPPI test and is performed
at an instrument level. Financial assets with cash
flows that are not SPPI are classified and measured
at fair value through profit or loss, irrespective of
the business model.

All financial assets are recognised initially at fair
value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction
costs that are attributable to the acquisition of
the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss
are expensed in the Statement of Profit and Loss.
Purchases or sales of financial assets that require
delivery of assets within a time frame established
by regulation or convention in the marketplace
(regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to
purchase or sell the asset. Trade receivables that
do not contain a significant financing component
are measured transaction price.

Subsequent measurement

Subsequent measurement of financial assets
depends on the Company's business model
for managing the asset and the cash flow
characteristics of the asset. For the purposes of

subsequent measurement, financial assets are
classified in four categories:

• Financial assets at amortised cost (debt
instruments)

• Financial assets at fair value through other
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses (debt
instruments)

• Financial assets designated at fair value
through OCI with no recycling of cumulative
gains and losses upon derecognition (equity
instruments); and

• Financial assets at fair value through profit
or loss

Financial assets at amortised cost (debt
instruments)

A 'financial asset' is measured at the amortised
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR
amortisation is included in finance income in the
Statement of Profit and Loss. The losses arising
from impairment are recognised in the Statement
of Profit and Loss.

Interest Income

For all debt instruments measured either at
amortised cost or at fair value through other
comprehensive income, interest income is
recorded using the effective interest rate (EIR).
EIR is the rate that exactly discounts the estimated
future cash payments or receipts over the expected
life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount
of the financial asset or to the amortised cost of
a financial liability. When calculating the effective
interest rate, the Company estimates the expected
cash flows by considering all the contractual
terms of the financial instrument (for example,

prepayment, extension, call and similar options)
but does not consider the expected credit losses.
Interest income is included in finance income in the
Statement of Profit and Loss.

Financial assets at FVTOCI (debt instrument)

A 'financial asset' is classified as at the FVTOCI if
both of the following criteria are met:

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

b) The asset's contractual cash flows
represent SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the other comprehensive income
(OCI). However, the Company recognises interest
income, impairment losses and reversals and
foreign exchange gain or loss in the Statement
of Profit and Loss. On derecognition of the asset,
cumulative gain or loss previously recognised in
OCI is reclassified from the equity to the Statement
of Profit and Loss. Interest earned whilst holding
FVTOCI debt instrument is reported as interest
income using the EIR method.

Financial assets designated at fair value
through OCI (equity instruments)

I n the case of equity instruments which are not
held for trading and where the Company has taken
irrevocable election to present the subsequent
changes in fair value in other comprehensive
income, these elected investments are initially
measured at fair value plus transaction costs and
subsequently, they are measured at fair value with
gains and losses arising from changes in fair value
recognised in other comprehensive income and
accumulated in the 'Equity instruments through
other comprehensive income' under the head
'Other Equity'. The cumulative gain or loss is not
reclassified to profit or loss on disposal of the
investments. The Company makes such election
on an instrument -by-instrument basis.

I f the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognised in OCI. There is no recycling of the
amounts from OCI to the Statement of Profit and
Loss, even on sale of investment. However, the
Company may transfer the cumulative gain or loss
within equity.

A financial asset is held for trading if:

• it has been acquired principally for the purpose
of selling it in the near term; or

• on initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking; or

• it is a derivative that is not designated and
effective as a hedging instrument or a
financial guarantee.

Gains and losses on these financial assets are
never recycled to the Statement of Profit and
Loss. Dividends are recognised as other income
in the Statement of Profit and Loss when the right
of payment has been established, except when
the Company benefits from such proceeds as a
recovery of part of the cost of the financial asset, in
which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI
are not subject to impairment assessment.

Financial assets at FVTPL (equity
instruments)

Financial assets at fair value through profit or
loss are carried in the Balance Sheet at fair value
with net changes in fair value recognised in the
Statement of Profit and Loss.

I n case of equity instruments which are held for
trading are initially measured at fair value plus
transaction costs and subsequently, they are
measured at fair value with gains and losses
arising from changes in fair value recognised in
the Statement of Profit and Loss.

This category includes derivative instruments and
listed equity investments which the Company had
not irrevocably elected to classify at fair value
through OCI. Dividends on listed equity investments
are recognised in the Statement of Profit and Loss
when the right of payment has been established.

Investment in Subsidiaries and Associates

I nvestment in Subsidiaries is carried at deemed
cost in the standalone financial statements.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under
a 'pass-through' arrangement; and either (a)
the Company has transferred substantially all
the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

Impairment of financial assets

The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost, debt instruments at
FVTOCI and other contractual rights to receive cash
or other financial asset.

Expected credit losses are the weighted average
of credit losses with the respective risks of
default occurring as the weights. Credit loss is the
difference between all contractual cash flows that
are due to the Company in accordance with the
contract and all the cash flows that the Company
expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate
(or credit-adjusted effective interest rate for
purchased or originated credit-impaired financial
assets). The Company estimates cash flows by
considering all contractual terms of the financial
instrument (for example, prepayment, extension,
call and similar options) through the expected life
of that financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on
that financial instrument has increased significantly
since initial recognition. If the credit risk on a
financial instrument has not increased significantly
since initial recognition, the Company measures the
loss allowance for that financial instrument at an
amount equal to 12-month expected credit losses.
12-month expected credit losses are portion of the
life-time expected credit losses and represent the
lifetime cash shortfalls that will result if default
occurs within the 12 months after the reporting
date and thus, are not cash shortfalls that are
predicted over the next 12 months.

For trade receivables, the Company follows
"simplified approach for recognition of impairment
loss. The application of simplified approach does
not require the Company to track changes in
credit risk.

Further, for the purpose of measuring lifetime
expected credit loss allowance for trade
receivables, the Company has used a practical
expedient as permitted under Ind AS 109. This
expected credit loss allowance is computed based
on a provision matrix which takes into account
historical credit loss experience and adjusted for
forward-looking information.

(b) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives as hedging instruments
in an effective hedge, as appropriate. All financial
liabilities are recognised initially at fair value and,
in the case of loans and borrowings and payables,
net of directly attributable transaction costs. The
Company's financial liabilities include trade and
other payables, loans and borrowings including
derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through profit or
loss (FVTPL) include financial liabilities held for
trading and financial liabilities designated upon
initial recognition as at FVTPL. Financial liabilities
are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term.
This category also includes derivative financial
instruments entered into by the Company that are
not designated as hedging instruments in hedge
relationships as defined by Ind AS 109 'Financial
instruments'.

Gains or losses on liabilities held for trading are
recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, financial liabilities are
subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised
in the Statement of Profit and Loss when the
liabilities are derecognised as well as through
the EIR amortisation process. 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 amortisation is

included as finance costs in the Statement of Profit
and Loss.

Derecognition

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 financial liability 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 and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

P Earnings per share

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

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

Treasury shares are reduced while computing basic and
diluted earnings per share.

Q Current versus non-current classification

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

• Expected to be realised or intended to be sold or
consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after
the reporting period, or

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

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the
reporting period, or

• There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period

The terms of the liability that could, at the option of the
counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.

The Company classifies all other liabilities as non¬
current.

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

Based on the nature of products/activities of the
Company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents,
the Company has determined its operating cycle as 12
months for the purpose of classification of its assets and
liabilities as current and non-current.

R Derivative financial instruments and hedge
accounting

Derivative financial instruments and hedge
accounting

The Company uses derivative financial instruments
such as foreign currency forward contracts and option
currency contracts to hedge its foreign currency risks
arising from highly probable forecast transactions. The
counterparty for these contracts is generally a bank.

Derivatives not designated as hedging
instruments

This category has derivative assets or liabilities which
are not designated as hedges.

Although the Company believes that these derivatives
constitute hedges from an economic perspective, they
may not qualify for hedge accounting under Ind AS 109.
Any derivative that is either not designated a hedge, or is
so designated but is ineffective, is recognised on Balance
Sheet and measured initially at fair value. Subsequent to
initial recognition, derivatives are re-measured at fair
value, with changes in fair value being recognised in the
Statement of Profit and Loss. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.

Hedge Accounting

The derivatives that are designated as hedging instrument
under Ind AS 109 to mitigate risk arising out of foreign
currency transactions are accounted for as cash flow
hedges. The Company enters into hedging instruments
in accordance with policies as approved by the Board of
Directors with written principles which is 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 is assessed and
measured at inception and on an ongoing basis.

When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair
value of the derivative is recognised in OCI, e.g., cash
flow hedging reserve and accumulated in the cash flow
hedging reserve. Any ineffective portion of changes in
the fair value of the derivative is recognised immediately
in the Statement of Profit and Loss. The amount
accumulated is retained in cash flow hedge reserve and
reclassified to profit or loss in the same period or periods
during which the hedged item affects the Statement of
Profit and Loss. Under fair value hedge, the change in
the fair value of a hedging instrument is recognised in
the Statement of Profit and Loss. The change in the fair
value of the hedged item attributable to the risk hedged
is recorded as part of the carrying value of the hedged
item and is also recognised in the Statement of Profit
and Loss.

If the hedging instrument no longer meets the criteria for
hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument is terminated
or exercised prior to its maturity/ contractual term,
the cumulative gain or loss on the hedging instrument
recognised in cash flow hedging reserve till the period
the hedge was effective remains in cash flow hedging
reserve until the forecasted transaction occurs. The
cumulative gain or loss previously recognised in the cash
flow hedging reserve is reclassified to the Statement
of Profit and Loss upon the occurrence of the related
forecasted transaction. If the forecasted transaction is no
longer expected to occur, then the amount accumulated
in cash flow hedging reserve is reclassified immediately
in the Statement of Profit and Loss.

S Fair Value Measurement

The Company measures financial instruments, such as,
derivatives at fair value at each reporting date. Fair value
is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair
value measurement is based on the presumption that

the transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must be
accessible 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.

All assets and liabilities for which fair value is measured
or disclosed in the standalone Ind AS financial statements
are categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

• Level 1- Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

• Level 2-Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is directly or indirectly observable

• Level 3-Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable

For assets and liabilities that are recognised in the
standalone Ind AS financial statements on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a
whole) at the end of each reporting period.

The Company's management determines the policies and
procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial
assets measured at fair value, and for non-recurring
measurement, such as assets held for disposal in
discontinued operation.

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial
assets, and significant liabilities, such as contingent
consideration, if any.

At each reporting date, the management analyses the
movements in the values of assets and liabilities which
are required to be re-measured or re-assessed as per
the Company's accounting policies. For this analysis,
the management verifies the major inputs applied
in the latest valuation by agreeing the information
in the valuation computation to contracts and other
relevant documents.

The management, in conjunction with the Company's
external valuers, also compares the change in the fair
value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

This note summarises accounting policy for fair value.
Other fair value related disclosures are given in the
relevant notes.

T Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise
cash at banks and on hand and short term deposits
with an original maturity of three months or less, that
are readily convertible to a known amount of cash and
subject to an insignificant risk of change in value.

U Dividend to equity holders of the Company

The Company recognises a liability to pay dividend to
equity holders of the Company when the distribution
is authorised and the distribution is no longer at the
discretion of the Company. As per the corporate laws
in India a distribution is authorised when it is approved
by the shareholders, However, Board of Directors of
a company may declare interim dividend during any
financial year out of the surplus in the Statement of Profit
and Loss and out of the profits of the financial year in
which such interim dividend is sought to be declared. A
corresponding amount is recognised directly in equity.

V Foreign exchange gains and losses

The Company's functional and reporting currency is INR.
Exchange differences are dealt with as follows:

Foreign currency transactions are recorded at the
exchange rate that approximates the actual rate at the
date of transaction. Monetary items denominated in a
foreign currency are reported at the closing rate as at

the date of balance sheet. Non-monetary items, which
are carried at fair value denominated in foreign currency,
are reported at the exchange rate that existed when
such values were determined, otherwise on historical
exchange rate that existed on the date of transaction.

The exchange difference arising on the settlement of
monetary items or on reporting these items at rates
different from the rates at which these were initially
recorded/reported in previous financial statements are
recognised as income/expense in the period in which
they arise. Further, where foreign currency liabilities
have been incurred in connection with property, plant
and equipment, the exchange differences arising
on reinstatement, settlement thereof during the
construction period are adjusted in the cost of the
concerned property, plant and equipment to the extent
of exchange differences arising from foreign currency
borrowings are regarded as an adjustment to interest
costs in accordance of para 6 (e) as per Ind AS 23.

W Treasury shares

The Company has created an Employee Benefit
Trust (EBT) for providing share-based payment to its
employees. The Company uses EBT as a vehicle for
distributing shares to employees under the Employee
Stock Purchase Scheme 2020. The EBT buys shares
of the Company from the market, for giving shares to
employees. The Company treats EBT as its extension
and shares held by EBT are treated as treasury shares.

Own equity instruments that are reacquired (treasury
shares) are recognised at cost and deducted from
other 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. Treasury shares
are reduced while computing basic and diluted earnings
per share.

The Company transfers the excess of exercise price over
the cost of acquisition of treasury shares, net of tax, by
EBT to General Reserve. In the event of sale in open
market, the company transfers the excess of sale price
over cost of acquisition of treasury shares, net of tax, to
Other Equity.

X Share-based Payments

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

Equity-settled transactions

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an

appropriate valuation model. Further details are given in
Note 42.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in
equity, over the period in which the performance and/
or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for equity-
settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting
period has expired and the Company's best estimate
of the number of equity instruments that will ultimately
vest. The expense or credit in the Statement of Profit and
Loss for a period represents the movement in cumulative
expense recognised as at the beginning and end of that
period and is recognised in employee benefits expense.

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

No expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original
vesting terms of the award are met. An additional
expense, measured as at the date of modification, is
recognised for any modification that increases the total
fair value of the share-based payment transaction,
or is otherwise beneficial to the employee. Where an
award is cancelled by the entity or by the counterparty,
any remaining element of the fair value of the award is
expensed immediately through profit or loss.

Y Climate - related matters

The Company considers climate-related matters in
estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts
on the Company due to both physical and transition

risks. Even though the Company believes its business
model and products will still be viable after the transition
to a low-carbon economy, climate-related matters
increase the uncertainty in estimates and assumptions
underpinning several items in the financial statements.
Even though climate-related risks might not currently
have a significant impact on measurement, the
Company is closely monitoring relevant changes and
developments, such as new climate-related legislation.

NOTE 2.2 KEY SOURCES OF ESTIMATION
UNCERTAINTY

In the application of the Company's accounting policies, the
management of the Company is required to make judgements,
estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions
are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if
the revision affects only that period or in the period of the
revision and future periods if the revision affects both current
and future periods.

The following are the areas of estimation uncertainty and
critical judgements that the management has made in the
process of applying the Company's accounting policies
and that have the most significant effect on the amounts
recognised in the standalone Ind AS financial statements: -

Useful lives of depreciable tangible assets and
Intangible assets

Management reviews the useful lives of depreciable assets
at each reporting date. As at March 31, 2025 management
assessed that the useful lives represent the expected utility
of the assets to the Company. Further, there is no significant
change in the useful lives as compared to previous year.

The intangible assets are amortised over the estimated
useful life. The estimated useful life and amortisation method
are reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for on a
prospective basis.

Defined benefit plans

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such obligation
are determined using actuarial valuations. 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,

mortality rates and future pension increases. 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.

Fair value measurement of Land

Fair value of the Company's land as at April 1, 2015 has
been arrived at on the basis of a valuation carried out as on
the respective date by an independent valuer not related to
the Company. The fair value was derived using the market
comparable approach based on recent market prices without
any significant adjustments being made to the market
observable data. In estimating the fair value of the properties,
the highest and best use of the properties is their current use.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash
generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in
use. The fair value less costs of disposal calculation is based
on available data from binding sales transactions, conducted
at arm's length, for similar assets or observable market
prices less incremental costs for disposing of the asset. The
value in use calculation is based on a DCF model. The cash
flows are derived from the budget for determined period and
do not include restructuring activities that the Company is not
yet committed to or significant future investments that will
enhance the asset's performance of the CGU being tested.
The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future cash-
inflows, the growth rate used for extrapolation purposes
and the impact of general economic environment (including
competitors).

Leases - Estimating the incremental borrowing
rate

The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR
is the rate of interest that the Company would have to pay
to borrow over a similar term, and with a similar security,
the funds necessary to obtain an asset of a similar value to
the right-of-use asset in a similar economic environment.
The IBR therefore reflects what the Company 'would have
to pay', which requires estimation when no observable rates
are available or when they need to be adjusted to reflect the
terms and conditions of the lease. The Company estimates the
IBR using observable inputs (such as market interest rates)
when available.

Leases - Estimating the period of lease contracts
with related parties

In case of lease contracts with related parties, there exist
economic incentive for the Company to continue using the
leased premises for a period longer than the 11 months.
The period of expected lease in these cases is a matter of
estimation by the management. The estimate of lease period
impacts the recognition of ROU asset, lease liability and its
impact in the Statement of Profit and Loss. The lease terms in
the arrangements with related parties have been determined
considering the period for which management has an
economic incentive to use the leased asset (i.e. reasonably
certain to use the asset for the said period of economic
incentive). Such assessment of incremental period is based
on management assessment of various factors including the
remaining useful life of the asset as on the date of transition.
The management has assessed period of arrangements with
related parties as higher of lease period mentioned in the
agreement or 10 years as at April 01, 2019.

Determining the lease term of contracts with
renewal and termination options - Company as
lessee

The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an option
to terminate the lease, if it is reasonably certain not to
be exercised.

The Company has several lease contracts that include
extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain
whether or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that create
an economic incentive for it to exercise either the renewal
or termination. After the commencement date, the Company
reassesses the lease term if there is a significant event or
change in circumstances that is within its control and affects
its ability to exercise or not to exercise the option to renew or
to terminate.

Valuation of raw materials inventories

At each reporting date, the management applies judgement
in determining the appropriate valuation of raw materials
inventories(primarily for cotton), based on the consumption
analysis of raw materials inventories, current market
trend and future expectation of consumption for these raw
materials inventories. These judgements are reviewed and
adjusted regularly in the light of market driven changes, past
experience and internally generated information.

b) Defined benefit plans
Gratuity scheme

The Company has a defined gratuity plan (funded) and the gratuity plan is governed by The Payment of Gratuity Act 1972
("Act"). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salary
for each completed year of service or part thereof in excess of six months. The amount of benefit depends on respective
employee's salary, the years of employment and retirement age of the employee and the gratuity benefit is payable on
termination/retirement of the employee. There is no maximum limit for the payment of gratuity benefit. The present value
of obligation is determined based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible
for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying
insurance policies. The Company is contributing to trust towards the payment of premium of such gratuity schemes.

The following table sets out the details of defined benefit plan and the amounts recognised in the standalone Ind AS
financial statements:

NOTE 39 - SEGMENT INFORMATION

I Segment accounting policies:

a. Product and Services from which reportable segment derive their revenues (Primary Business
Segments)

Based on the nature and class of product and services, their customers and assessment of differential risks and
returns and financial reporting results reviewed by Chief Operating Decision Maker (CODM), the Company has
identified the following business segments which comprises of.

• Yarn

• Towel

• Bedsheets

• Paper and Chemicals

b. Geographical segments (secondary business segments)

The geographical segments considered and reviewed by Chief Operating Decision Maker for disclosure are based on
markets, broadly as under:

India

USA

Rest of the world

c. Segment accounting policies

Segment accounting policies: In addition to the significant accounting policies applicable to the business segment as
set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors,
inventories, right of use assets and property, plant and equipment including capital work in progress, net of
allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include
all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment
revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

I nter segment sales are accounted for at cost plus appropriate margin (transfer price) and are eliminated
in consolidation.

iv Segment results:

Segment results represent the profit before tax earned by each segment without allocation of central administration
costs, other non operating income as well as finance costs. Operating profit amounts are evaluated regularly by
the Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance.

NOTE 42 -EMPLOYEES’ STOCK OPTION PLANS

The Board of Directors and the Shareholders of the Company had approved a Scheme called as "Trident Limited Employee Stock
Options Scheme - 2020 (" ESOS Scheme") and "Trident Limited Employee Stock Purchase Scheme - 2020" (" ESPS Scheme") in
their meeting held on July 9, 2020 and May 16, 2020 respectively. Pursuant to the ESOS Scheme, the Company has constituted
Trident Limited Employees Welfare Trust ('Trust') to acquire, hold and allocate/transfer equity shares of the Company to eligible
employees (as defined in the ESOS and ESPS scheme) from time to time on the terms and conditions specified under the ESOS
Scheme and ESPS Scheme.

The said trust had purchased, during the FY 2020-21, Company's equity shares aggregated to 100,000,000 equity shares from
the secondary open market at cost of Rs. 7.50 per share for which the Company had given loan to trust amounting to Rs. 751.0
Million. The financial statements of the Trust have been included in the standalone Ind AS financial statements of the Company
in accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in other
equity. Such number of equity shares (which are lying with trust) have been reduced while computing basic and diluted earnings
per share.

Trident Employees Stock Options Scheme, 2020

The Company had granted 66,00,000 stock options under the ESOS Scheme on November 12, 2022. Each option granted and
vested under the Scheme shall entitle to the holder to acquire 1 equity share of Re. 1 each.

In respect of options granted under the Employees' Stock Option Scheme, 2020, the details of options outstanding are as under:

NUIt 44 - FINANCIAL INbIKUMtNIb

Capital management

For the purpose of Company's capital management, capital includes issued equity capital and all reserves attributable to equity
holders of the Company.

The Company's capital management objectives are:

- to ensure the Company's ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages capital risk in order to maximise shareholders' profit by maintaining sound/optimal capital structure
through monitoring of financial ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure
improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company
compared to last year.

* Investment in note 4 (a) represents investments in equity shares of subsidiaries and associate which are carried at cost and hence are not required
to be disclosed as per Ind AS 107 "Financial Instruments Disclosures". Hence, the same have been excluded from the above table.

The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, other
current financial assets (except derivative financial assets), short term borrowings, trade payables and other current financial
liabilities (except derivative financial liabilities) approximate their carrying amounts largely due to short-term maturities of
these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair
value, grouped into Level 1 to Level 3, as described below:

Level 1: 'Quoted prices in an active market: This level of hierarchy includes financial instruments that are measured by reference
to quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: 'Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable. This level of hierarchy include Company's over-the-counter (OTC) derivative contracts and mutual funds.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Financial Risk Management Framework

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, lease liabilities, trade
and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include trade and other receivables, receivables from government authorities, security deposits
and cash and cash equivalents that derive directly from its operations. The Company also holds investments and enters
in to derivative transactions.

The Company's corporate treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the Company
through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk
(including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk
exposures. The Company does not enter into or trade financial instruments, including derivative financial instruments,
for speculative purposes.

The Chief financial officer reports quarterly to the Board of Directors of the Company for monitoring risks and reviewing
policies implemented to mitigate risk exposures.

Credit risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company has also
taken export credit insurance for mitigation of export credit risk for certain parties.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 2,995.0
Million and Rs. 4,137.2 Million as of March 31, 2025 and March 31, 2024, respectively. Trade receivables consist of a large
number of customers, spread across diverse industries and geographical areas. Credit risk has always been managed
by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness
of customers to which the Company grants credit terms in the normal course of business and by way of taking letter of
credit, credit insurance against export receivables.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected
by market risk includes loan and borrowings, lease liabilities and derivative financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising the
return. The Company uses derivatives to manage market risks. Derivatives are only used for economic hedging purposes
and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors
and Risk Management Committee.

There has been no significant changes to the Company's exposure to market risk or the methods in which they are managed
or measured.

Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company undertakes transactions denominated in foreign currencies; consequently,
exposures to exchange rate fluctuations arise. The Company's exposure to currency risk relates primarily to the Company's
operating activities when transactions are denominated in a different currency from the Company's functional currency.

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12
month period for hedges of forecasted sales.

“Represents GBP 2,23,675 and CHF 26,228 ( Previous year GBP 23,215 and CHF 9,278).

For the year ended March 31,2025, every 1 percent depreciation/appreciation in the exchange rate against
affected the Company's incremental margins (profit as a percentage to revenue) approximately by 0.46%
exposure to foreign currency changes for all other currencies is not material.

Interest rate risk

I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluc
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates
to the Company's debt obligations with floating interest rates. The borrowings as at March 31, 2025 is R
(previous year Rs. 20,608. 2 Million) which are interest bearing and interest rates are variable.

Interest rate sensitivity

For the year ended March 31, 2025, every 1 percentage increase/decrease in weighted average bank in
have affected the Company's incremental margins (profit as a percentage to revenue) approximately by
year 0.25%).

Price risk

The Company's investments in other funds are susceptible to market price risk arising from uncertain
values of the investment securities. The Company manages the price risk through diversification and by
individual and total equity instruments. Reports on the portfolio are submitted to the Company's senior
a regular basis.

At the reporting date, the exposure in other funds is Rs. 2.6 Million (previous year Rs. 487.9 Million). A deci
in NAV of 5% could have an impact of approximately of Rs. 0.12 Million (previous year Rs. 24.2 Million) on

52 Trident Limited

NUIt5U - The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trait (edit tog) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except that audit trail feature is not enabled at the database level insofar as it relates to SAP accounting software. Further
no instance of audit trail feature being tampered with was noted in respect of accounting software.Additionally, the audit trail
in respect of the FY 2023-24 has not been preserved by the company as per the statutory requirements for record retention.

NUT t 51 - The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections
of the Code came into effect on 3 May 2024. However, the final rules/interpretation have not yet been issued. The Company is
still in the process to assess impact of such notification.

NUTt 52 - Du ring the FY 2003-04 and 2004-05, the Company had granted loans to one of its overseas subsidiary company
namely Trident Global Inc ("TGI") for business purposes. Keeping in view the financial condition of TGI and as a matter of
prudence, the Company, during the FY 2005-06, had written-off these loans amounting to USD 1,83,000 (Rs. 8.1 Million) During
the previous financial year, with the improvement in performance of TGI, the Company has re-instated the earlier written-off
loan amount along with accrued interest aggregating to USD 2,38,018 (Rs. 16.5 Million). The Company has further accrued the
interest on above loans till the year end and based on agreement the Company has realised the loan amount along with interest
by June 30, 2024.

NUTt53 - I n the month of October 2023, the Income Tax Department ('the department') conducted a search under Section
132 of the Income Tax Act, 1961 at certain locations of Company including its manufacturing and Indian subsidiaries and
residence of few of its employees/key managerial personnel. During the search proceedings, the Company provided necessary
information and responses to the department. Also, the department has taken certain documents, few laptops and data backups
for further investigation. The business and operations of the Company continued without any disruptions. The department since
then continued with its post search proceedings for various assessment years and the company has now received assessment
orders for two assessment years (AY 2021-22 and AY 2022-23) whereby certain additions have been made. The company has
filed appeals against the said orders before learned Commissioner of Income Tax (Appeals) and the management is hopeful of
getting favourable orders from appellate authorities. Management is of the view that no material adjustments are required to
these Standalone Ind AS Financial Statements.

NOTE 57 - The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement
of reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company for the year
ended March 31,2025. However, the management will continue to monitor the situation from the perspective of potential impact
on the operations of the Company.

NOTE 58 - Du ring the previous year, one of the erstwhile subsidiary of the Company, Trident Global Corp Limited (TGCL), had
converted its 28,18,500 Compulsorily Convertible Debentures ('CCD') having face value of INR 60/- per CCD into equity shares
of INR 1/- at a premium of INR 59/- per equity share based on approval by the Board of Directors in the meeting held on June
6, 2023 which had resulted in change of shareholding of the Company in TGCL from 100% to 63.95%. Further, the Company
had sold its entire stake of 63.95% in TGCL on September 14, 2023. The Company had recognised gain of Rs 360.5 Million. The
Company has presented above profit or loss on the sale of said investment, as an exceptional item in the Standalone Ind AS
Financial Statements.

NOTE 59 - SUBSEQUENT EVENTS

There are no other material adjusting or non-adjusting subsequent events, except as already disclosed in these standalone
financial statements.

NOTE 60 - The Company had constituted Trident Limited Employees Welfare Trust ('Trust') to acquire, hold and allocate/
transfer equity shares of the Company to eligible employees of the employee share purchase scheme from time to time on the
terms and conditions specified under the Scheme. During the year ended March 31, 2024, the Company had obtained approval
of shareholders of the Company for implementation of (i) Trident Limited General Employee Benefits Scheme - 2023 and (ii)
utilisation of proceeds from sale of unappropriated 62,328,640 Equity Shares from Trident Limited Employee Stock Purchase
Scheme - 2020, utilisation of excess funds lying with the Trust and funds which Trust may receive from various sources in future
for Trident Limited General Employee Benefits Scheme - 2023. The Company has also obtained an expert opinion on compliance
in this regard. During current year, the trust sold 4,79,73,426 shares in the open market and recorded a profit of INR 841.6 Million
(net of tax Rs. 131.7 Million) which was recorded in other equity.

NOTE 61 - OTHER STATUTORY INFORMATION

(i) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961.

(viii) The Company has not been declared wilful defaulter by any bank or financial insitution or government or any
government authority.

As per our report of even date attached For and on behalf of the Board of Directors

For S.R. Batliboi & Co. LLP

Chartered Accountants

(ICAI Firm's Registration No. 301003E/E300005)

Rajiv Dewan Deepak Nanda

Director Managing Director

DIN:00007988 DIN:00403335

Pravin Tulsyan Avneesh Barua Samir Prabodhchandra Joshipura

Partner Chief Financial Officer Chief Executive Officer

(Membership No. 108044)

Sushil Sharma

Place: New Delhi Place: New Delhi Company Secretary

Date: May 21, 2025 Date: May 21, 2025 Membership No. F6535