B.14 GOVERNMENT GRANT

Government grants (including export incentives like Duty Drawback, Merchandise Exports from India Scheme(MEIS))
are recognised only when there is reasonable assurance that the Group will comply with the conditions attaching to
them and the grants will be received.

Government grants are recognised in Statement of Profit and Loss on a systematic basis over the periods in which the
Group recognises as expenses the related costs for which the grants are intended to compensate.

Import duty waivers for capital assets purchased under Export Promotion Capital Goods (EPCG) schemes are
recorded as deferred revenue and recognized in Statement of Profit and Loss on a systematic basis over the periods in
which the related performance obligations are fulfilled.

B.15 EMPLOYEE BENEFITS
Defined contribution plans

Provident fund (PF

Contribution towards PF is determined under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
and charged to the Statement of Profit and Loss during the period of incurrence when the services are rendered by the
employees.

The Union Ministry of Labour issued draft rules under section 67 of the Code on Wages Act on 7 July 2020 in the
Gazette and the Act is yet to be effective

The three labour codes, the Occupational Health, Safety and Working Conditions Code 2020, the Industrial Relations
Code 2020 and the Code on Social Security 2020 have been passed by the parliament and have also received the assent
of the President of India on 28 September 2020. However, the date on which these Codes will come into effect has not
been notified. The Group will assess the impact of these Codes and will record any related impact in the period these
Codes become effective.

Defined benefit plans

Gratuity

Accounting for defined benefit plans is based on actuarial assumptions and different valuation methods to measure
the balance sheet obligation and the expense.

Where defined benefit plans are funded, the plan assets are measured at fair value. At each Balance Sheet date, the
plan assets and the defined benefit obligations are remeasured. The Statement of Profit & Loss reflects the change in
the surplus or deficit, except for contributions made to the plan and benefits paid by the plan, along with business
combinations and Re-measurement gains and losses.

Re-measurement gains and losses comprise actuarial gains and losses, return on plan assets (comprise amounts
included in net interest on the net defined benefit liability or asset) and any change in the effect of the asset ceiling
(excluding amounts included in net interest on the net defined benefit liability or asset). Re-measurements are
recognized in other comprehensive income.

The defined benefit costs are comprised of the following individual components:

. Service costs (including current and past service costs as well as gains/losses on curtailments and settlements)
. Net interest costs or income

. Re-measurement
The Group presents the first two components of defined benefit costs in Statement of Profit and Loss in the line item
‘Employee benefits expense’. Curtailment gains and losses are accounted for as past service costs.

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