Provisions and contigent liabilty

A provision is recognised when the Company has a
present obligation (legal or constructive) as a result of
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made
of the amount of the obligation. These estimates are
reviewed at each reporting date and adjusted to reflect
the current best estimates. If the effect of the time
value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due
to the passage of time is recognised as a finance cost.

p. Contingent liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognized
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognized because
it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the financial statements.

q. Dividend Distributions

The Company recognizes a liability to make payment
of dividend to owners of equity when the distribution
is authorized and is no longer at the discretion of the
Company and is declared by the shareholders. A
corresponding amount is recognized directly in equity.

r. Fair value measurement

The Company measures financial instruments at fair
value at each balance sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

• In the principal market for 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 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
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.

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.

s. Employee Benefits

• Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the

period in which the employees render the related
service are recognized in respect of employee
service upto the end of the reporting period and
are measured at the amount expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the balance sheet.

• Post-employment benefit obligations
Gratuity

The Employee's Gratuity Fund Scheme, which
is defined benefit plan, is managed by Trust
maintained with SBI Life Insurance Company
Limited. The liabilities with respect to Gratuity Plan
are determined by actuarial valuation on projected
unit credit method on the balance sheet date,
based upon which the Company contributes to
the Company Gratuity Scheme. The difference, if
any, between the actuarial valuation of the gratuity
of employees at the year end and the balance of
funds with SBI Life Insurance Company Limited
is provided for as assets/ (liability) in the books.
Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset.
Future salary increases and pension increases
are based on expected future inflation rates for
the respective countries. Further details about the
assumptions used, including a sensitivity analysis,
are given in Note 34.

The Company recognises the following changes in
the net defined benefit obligation under Employee
benefit expense in statement of profit or loss:

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

• Net interest expense or income

Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognised immediately in the Balance Sheet
with a corresponding debit or credit to retained
earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to
profit or loss in subsequent periods.

Superannuation

Certain employees of the Company are also
participants in the superannuation plan ('the
Plan'), a defined contribution plan. Contribution
made by the Company to the plan during the year
is charged to Statement of Profit and Loss.

Provident Fund

The Company contributes to the provident
fund scheme for its eligible employees. During
the financial year ended 31st March 2023, the
Company has transferred its Provident Fund
obligations and fund balance from recognised
provident fund - "JUBILANT FOODWORKS
EMPLOYEES PROVIDENT FUND TRUST", to the
Employee Provident Fund Organization (EPFO).
The transition did not impact the profit or loss as
the Company had sufficient provision to fulfil its
obligations.

The Provident Fund scheme is a defined
contribution plan. The Company recognises
contribution payable to the provident fund scheme
as an expense, when an employee renders the
related service.

• Other long-term employee benefit obligation
Compensated Absences/Leave Encashment

Accumulated leaves which is expected to be
utilized within next 12 months is treated as short
term employee benefit. The Company measures
the expected cost of such absences as the
additional amount that it expects to pay as a result
of the unused entitlement and discharge at the
year end.

Liabilities recognised in respect of other 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 employees up to the
reporting date.

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.

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 best

estimate of the number of equity instruments that
will ultimately vest. The statement of profit and
loss expense or credit 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 best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within
the grant date fair value. Any other conditions
attached to an award, but without an associated
service requirement, are considered to be non¬
vesting conditions. Non-vesting conditions are
reflected in the fair value of an award and lead to
an immediate expensing of an award unless there
are also service and/or performance conditions.

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

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

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

t. Exceptional Items

Exceptional items are transactions which due to
their size or incidence are separately disclosed to
enable a full understanding of the Company financial
performance.

u. Earnings Per Share

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

during the period and all periods presented is adjusted
for events such as bonus issue, bonus element in
a rights issue, share split, and reverse share split
(consolidation of shares), etc that have changed
the number of equity shares outstanding, without a
corresponding change in resources.

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

v. 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.

Financial assetsThe Company classifies its financial assets in the
following measurement categories:

• Those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss)

• Those measured at amortized cost

Initial recognition and measurement

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.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Debt instruments at amortized cost

• Debt instruments at fair value through other
comprehensive income (FVTOCI)

• Debt instruments at fair value through profit and
loss (FVTPL)

• Equity instruments

Debt instruments at amortized cost
A debt instrument is measured at amortized cost if
both the following conditions are met:

• Business model test: The objective is to hold
the debt instrument to collect the contractual
cash flows (rather than to sell the instrument prior
to its contractual maturity to realise its fair value
changes).

• Cash flow characteristics test: The contractual
terms of the Debt instrument give rise on specific
dates to cash flows that are solely payments
of principal and interest on principal amount
outstanding.

This category is most relevant to the Company.

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 EIR. EIR is the rate that exactly
discounts the estimated future cash receipts over the
expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying
amount of the financial asset. When calculating the
effective interest rate, the Company estimates the
expected cash flows by considering all the contractual
terms of the financial instrument but does not consider
the expected credit losses. The EIR amortisation is
included in finance income in profit or loss. The losses
arising from impairment are recognised in the profit or
loss. This category generally applies to trade and other
receivables.

Debt instruments at fair value through OCI

A Debt instrument is measured at fair value through other
comprehensive income if following criteria are met:

• Business model test: The objective of financial
instrument is achieved by both collecting contractual
cash flows and for selling financial assets.

• Cash flow characteristics test: The contractual terms
of the financial asset give rise on specific dates to cash
flows that are solely payments of principal and interest
on principal amount outstanding.

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

Debt instruments at FVTPL

FVTPL is a residual category for financial instruments.
Any financial instrument, which does not meet the
criteria for amortized cost or FVTOCI, is classified as
at FVTPL. A gain or loss on a debt instrument that is
subsequently measured at FVTPL and is not a part of
a hedging relationship is recognized in profit or loss
and presented net in the statement of profit and loss
within other gains or losses in the period in which it
arises. Interest income from these Debt instruments is
included in other income.

Equity investments of other entities

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognized by an acquirer in a business combination
to which Ind AS 103 applies are classified as at
FVTPL. For all other equity instruments, the Company
may make an irrevocable election to present in other
comprehensive income all subsequent changes in the
fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized
in the OCI. There is no recycling of the amounts from
OCI to profit and loss, even on sale of investment.
However, the Company may transfer the cumulative
gain or loss within equity. Equity instruments included
within the FVTPL category are measured at fair value
with all changes recognized in the Profit and loss.

Derecognition

A financial asset (or ,where applicable, a part of a
financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e removed from the
Company statement of financial position) 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;

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

• The Company has retained the contractual right to
receive the cash flows of the financial asset, but
assumes a contractual obligation to pay the cash
flows to one or more recipients.

Where the Company has transferred an asset,
the Company evaluates whether it has transferred
substantially all the risks and rewards of the ownership
of the financial assets. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all the risks and rewards of the
ownership of the financial assets, the financial asset is
not derecognised.

Where the Company has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognised if the Company has not retained control
of the financial asset. Where the Company retains
control of the financial asset, the asset is continued to
be recognized to the extent of continuing involvement
in the financial asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit losses( ECL) model for measurement
and recognition of impairment loss on the following
financial asset and credit risk exposure

• Financial assets measured at amortised cost;

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

The Company follows "simplified approach" for
recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables;

• All lease receivables resulting from the
transactions within the scope of Ind AS 116

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

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the
credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the Company reverts to recognising impairment loss
allowance based on 12- months ECL.

Financial liabilitiesInitial recognition and measurement

Financial liabilities are classified at initial recognition as
financial liabilities at fair value through profit or loss,
loans and borrowings, and payables, net of directly
attributable transaction costs. The Company financial
liabilities include loans and borrowings including trade
payables, trade deposits, retention money and liability