The consolidated financial statements have been prepared on a historical cost basis, except for the following assets
and liability which have been measured at fair value

i) Derivative financial instruments
ii) Certain financial assets and liability measured at fair value (refer note. 42 to Annexure VII)
iii) Defined Benefits Obligations

Critical Accounting judgement and key sources of estimation uncertainty

The accounting policies which have the most significant effect on the figures disclosed in the Restated Consolidated
Financial Information are mentioned below and these should be read in conjunction with the disclosure of the
significant Ind AS accounting policies provided below:
i, Useful life of Property, Plant and Equipment and Intangible Assets
The assessment of the useful life of each asset by considering the historical experience and expectations
regarding future operations and expected usage, estimated technical obsolescence, residual value, physical wear
and tear and the operating environment in which the asset is located needs significant judgement by the Group. In
case of intangible assets the useful life is determined based on the period over which future economic benefit will
flow to the Group.

ii, Tools in use

The assessment of useful life of tools in use has been done considering the historical experience and estimated
refurbishment cycle and operating environment.

iii. Income Taxes

The calculation of income taxes requires judgement in interpreting tax rules and regulations. Management
judgement is used to determine the amounts of deferred tax assets and liabilities and future tax liabilities to be
recognized.

iv. Fair Value
Certain financial instruments, such as investments in equity securities, derivative financial instruments and
certain elements of borrowings, are carried in the Restated Consolidated Financial Information at fair value, with
changes in fair value reflected in the Restated Consolidated Statements of Profit and Loss. Fair values are
estimated by reference to published price quotations or by using other valuation techniques that may include
inputs that are not based on observable market data, such as discounted cash flows analysis.

v. Measurement of defined benefit obligations

Actuarial valuation of gratuity, a defined benefit obligation, considers various assumptions which are based on
the past experience and general economic conditions.

vi. Measurement and likelihood of occurrence of provisions and contingencies
The provision for warranty and rejection have been done based on past experiences, product lifecycle maturity,
reprocessing/repair cost.

vii. Recognition of deferred tax asset

The Group estimates the possible utilization of unabsorbed losses while recognizing deferred tax asset
considering the future business plans and economic environment.

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