12. Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of resources embodying economic benefits will be

required to settle the obligation. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows.

13. Employee benefits

i. Provident Fund: Employees of the Company receive benefits under the provident fund, a defined benefit plan.
The employee and employer each make monthly contributions to the plan. A portion of the contribution is
made to the provident fund trust managed by the Company or Government administered provident fund; while
the balance contribution is made to the Government administered pension fund. For the contribution made by
the Company to the provident fund trust managed by the Company, the Company has an obligation to fund
any shortfall on the yield of the Trust’s investments over the administered interest rates. The liability is
actuarially determined (using the projected unit credit method) at the end of the year. The funds contributed to
the Trust are invested in specific securities as mandated by law and generally consist of federal and state
government bonds, debt instruments of government-owned corporations and other eligible market securities.

ii. State Plan: The contribution to State Plans in India, a defined contribution plan namely Employee State
Insurance Fund is charged to the statement of profit and loss as and when employees render related services.

14. Earnings per share (EPS)

Basic EPS amounts are computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at
fair value(i.e. the average market value of the outstanding shares). Dilutive potential equity shares are deemed
converted as at the beginning of the year, unless issued at a later date. Dilutive potential equity shares are determined
independently foreach year presented.

15. Fair Value measurement

The Company records certain financial assets and liabilities at fair value on a recurring basis. The Company
determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal or most advantageous market for
that asset or liability.

The Company holds certain fixed income securities, equity securities and derivatives, which must be measured
using the guidance for fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy
of valuation techniques based on whether the inputs to each measurement are observable or unobservable.
Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the
Company’s assumptions about current market conditions. The fair value hierarchy also requires an entity to
maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The
prescribed fair value hierarchy and related valuation methodologies are as follows:

Level 1 - Quoted inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments
in markets that are not active and model-derived valuations, in which all significant inputs are directly or indirectly
observable in active markets.

Level 3 - Valuations derived from valuation techniques, in which one or more significant inputs are unobservable
inputswhich are supported by little or no market activity.

In accordance with Ind AS 113, assets and liabilities are to be measured based on the following valuation techniques:

a) Market approach - Prices and other relevant information generated by market transactions involving identical
or comparable assets or liabilities.

b) Income approach - Converting the future amounts based on market expectations to its present value using the
discounting method.

c) Cost approach - Replacement cost method.

16. Recent accounting pronouncements

Ind AS 116, Leases: On March 30, 2019, the Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind
AS 116 will replace the existing leases standard, Ind AS 17, Leases, and related interpretations. The Company does
not have any impact on account of this amendment.

Ind AS 12, Appendix C, Uncertainty over Income Tax Treatments: On March 30, 2019, the Ministry of Corporate
Affairs has notified Ind AS 12, Appendix C, Uncertainty over Income Tax Treatments which is to be applied while
performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax
rates, when there is uncertainty over income tax treatments under Ind AS 12. The effect on adoption of Ind AS 12
Appendix C would be insignificant in the standalone financial statements.

Amendment to Ind AS 19, plan amendment, curtailment or settlement: On March 30, 2019, the Ministry of
Corporate Affairs issued amendments to Ind AS 19, Employee Benefits, in connection with accounting for plan
amendments, curtailments and settlements. The Company does not have any impact on account of this amendment.