Gratuity - Defined benefit plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Gratuity is a
defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an amount based on the respective employee’s eligible
salary and the tenure of employment with us.

The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for us, the recognized asset is limited to the
present value of economic benefits available in the form of any future refunds from the plan or reductions in
future contributions to the plan (‘the asset ceiling’).

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized in
OCI. We determine the net interest expense (income) on the net defined benefit liability (asset) for the period by
applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to
the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability
(asset) during the period as a result of contributions and benefit payments. Net interest expense and other
expenses related to defined benefit plans are recognized in the Restated Consolidated Statement of Profit and
Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates
to past service (‘past service cost’ or ‘past service gain’) or the gain or loss on curtailment is recognized
immediately in the Restated Consolidated Statement of Profit and Loss. We recognize gains and losses on the
settlement of a defined benefit plan when the settlement occurs.

Compensated absences

Compensated absences which are not expected to occur within twelve months after the end of the year in which
the employee renders the related services are recognized as a liability at the present value of the estimated
liability for leave as a result of services rendered by employees, which is determined at each reporting date
based on an actuarial valuation by an independent actuary using the projected unit credit method. The discount
rates used for determining the present value of the obligation under other long term employee benefits, are based
on the market yields on Government of India securities as at the reporting date. Re-measurement gains and
losses are recognized immediately in the Restated Consolidated Statement of Profit and Loss.

We present the above liability as current in the Restated Consolidated Statement of Assets and Liabilities.
Employee stock compensation cost

The grant date fair value of equity settled share-based payment awards granted to employees is recognized as an
employee expense, with a corresponding increase in equity, over the period that the employees unconditionally
become entitled to the awards. The amount recognized as expense is based on the estimate of the number of
awards for which the related service and non-market vesting conditions are expected to be met, such that the
amount ultimately recognized as an expense is based on the number of awards that do meet the related service
and non-market vesting conditions at the vesting date.

Provisions (other than for employee benefits)

A provision is recognized if, as a result of a past event, we have a present legal or constructive 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 determined by discounting the expected future cash flows (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 risks specific to the liability. The
unwinding of the discount is recognized as finance cost.

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