Provisions and contingent liabilities Provisions

A provision is recognized if, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognized at the best estimate
of the expenditure required to settle the present obligation at the reporting date. Provisions are determined by discounting the
expected future cash flows (where the effect of time value of money is material, representing the best estimate of the expenditure
required to settle the present obligation at the reporting date) at a pre-tax rate that reflects current market assessments of the time
value of money and the risk specific to the liability. The unwinding of discount is recognized as finance cost.

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 Company. Contingent
liabilities are disclosed by way of note to the standalone Ind AS financial statements.

2.14 Investment in subsidiaries

Investment in subsidiaries are shown at cost less impairment losses if any. Where the carrying amount of an investment is greater
than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to
the standalone statement of profit and loss.

On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the
standalone statement of profit and loss.

2.15 Financial Instruments

a) Initial recognition and initial measurement

The financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual
provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially
measured at fair value plus or minus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition
or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

b) Classification and subsequent measurement
i) Financial assets

On initial recognition, a financial asset is classified and measured at

• amortized cost;

• fair value through other comprehensive income (FVOCI) - debt investment;

• fair value through other comprehensive income (FVOCI) - equity investment; or

• fair value through profit and loss (FVTPL)

Financial assets are not re-classified subsequent to their initial recognition, except if and in the period the Company changes
its business model for managing financial assets.

A financial asset is measured at amortized cost if it meets both the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• the contractual terms of the financial assets give rise on a specified date to cash flows that are solely payments ofprincipal
and interest on the principal amounts outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is achieved by both collecting contractual cash flow and selling
financial assets ; and

• the contractual terms of the financial assets give rise on a specified date to cash flows that are solely payments ofprincipal
and interest on the principal amounts outstanding.

On initial recognition of an equity investment that is not held for trading, the Company irrevocably elects to present
subsequent changes in the investment's fair value in OCI (designated as FVOCI-equity investment). This election is made on
an investment-to-investment basis.

All financial assets not classified as amortized cost or FVOCI as described above are measured at FVTPL. On initial recognition,
the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized
cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise
arise.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost. The
impairment methodology applied depends on whether there has been a significant increase in credit risk.

In accordance with Ind AS 109, the Company applies expected credit loss ("ECL") model for measurement and recognition of
impairment loss. The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables. The
application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment
loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For 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 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 recognizing impairment loss allowance based on 12 month ECL.

Derecognition of financial assets

A financial asset is derecognized only when:

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

• retains the contractual rights 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 risks and rewards
of ownership of the financial asset. In such cases, the financial asset is derecognized. Where the Company has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.

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 derecognized if the Company has not retained control of the financial asset.

ii) Financial liabilitiesClassification, subsequent measurement and gains and losses

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss. 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. Separate embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on
liabilities held for trading are recognized in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable
to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred to standalone statement of
profit and loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such
liability are recognized in the standalone statement of profit or loss. The Company has not designated any financial liability as at fair
value through profit and loss.

Amortized cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the Effective
Interest Rate ("EIR") method. Gains and losses are recognized in profit or loss when the liabilities are derecognized.

Amortized 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 amortization is included as finance costs in the standalone statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the
holder for a loss it incurs because the specified party fails to make a payment when due in accordance with the terms of a debt
instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.

Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company
also derecognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially
different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between
the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in the
standalone Statement of Profit and Loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the
Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to
realize the asset and settle the liability simultaneously.

2.16 Derivative financial instruments and hedge accounting

The Company holds derivative financial instruments to hedge its foreign currency risk exposure.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes
therein are generally recognized in the standalone statement of profit and loss.

The Company designates their derivatives as hedge instruments to hedge the variability in cash flows associated with highly
probable forecast transactions arising from changes in foreign exchange rates.

At inception of designated hedging relationships, the Company documents the risk management objective and strategy for
undertaking the hedge. The Company also documents the economic relationship between the hedged item and the hedging
instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each
other.

Cash flow hedges

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivatives
is recognized in OCI and accumulated in the other equity under 'effective portion of cash flow hedges'. The effective portion of
changes in the fair value of the derivative that is recognized in OCI is limited to the cumulative change in fair value of the hedged
item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the
derivative is recognized immediately in the standalone statement of profit and loss.

When the hedged forecast transaction subsequently results in the recognition of a non-financial item such as inventory, the amount
accumulated in other equity is included directly in the initial cost of the non-financial item when it is recognized. For all other hedged
forecast transactions, the amount accumulated in other equity is reclassified to the standalone statement of profit and loss in the
same period or periods during which the hedged expected future cash flows affect the standalone statement of profit and loss.

If a hedge no longer meets the criteria for hedge accounting or the hedging instruments is sold, expires, is terminated or is exercised,
then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discontinued, the amount
that has been accumulated in other equity remains there until, for a hedge of a transaction resulting in recognition of a non-financial
item, it is included in the non-financial item's cost on its initial recognition or, for other cash flow hedges, it is reclassified to the
standalone statement of profit and loss in the same period or periods as the hedged expected future cash flows affect the standalone
statement of profit and loss.

If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in other equity are
immediately reclassified to the standalone statement of profit and loss.

Changes in fair value of foreign currency derivative instruments not designated as cash flow hedges are recognized in the standalone
statement of profit and loss and reported within foreign exchange gains, net within results from operating activities.

2.17 Earnings per share

The basic earnings per share is computed by dividing the net profit attributable to owners of the Company for the year by the
weighted average number of equity shares outstanding during the reporting period.

The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving
basic earnings per share and also the weighted average number of equity shares which could have been issued on the conversion
of all dilutive potential equity shares.

Dilutive potential equity shares are deemed converted as of the beginning of the reporting date, unless they have been issued at a
later date. In computing diluted earnings per share, only potential equity shares that is dilutive and which either reduces earnings
per share or increase loss per share are included.

2.18 Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks and other short-term highly liquid investments with
original maturities of three months or less.

For the purpose of cash flow statement, cash and cash equivalent includes cash in hand, in banks, demand deposits with banks and
other short-term highly liquid investments with original maturities of three months or less, net of outstanding bank overdrafts that
are repayable on demand and are considered part of the cash management system.

2.19 Cash flow statement

Cash flows are reported using the indirect method, whereby net profit for the period is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company
are segregated.

2.20 Cash dividend

The Company recognizes a liability to make dividend distributions to equity holders of the Company when the distribution is
authorized, and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability
on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the
Company's Board of Directors.

2.21 Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses (including revenues and expenses relating to transactions with other components of the Company), whose operating
results are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated
to the segment and assess its performance, and for which discrete financial information is available. Operating segments of the
Company are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

2.22 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. On 31 March 2023, MCA amended the Companies (Indian Accounting
Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of financial statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies.
The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated
the amendment and the impact of the amendment is insignificant in the standalone financial statements.

Ind AS 8 - Accounting policies, change in accounting estimates and errors

This amendment has introduced a definition of 'accounting estimates' and included amendments to Ind AS 8 to help entities
distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment
is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its
Standalone financial statements.

Ind AS 12 - Income tax

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise
to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or
after April 1,2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.