Impairment of non-financial assets

Our non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash-
generating units (“CGUs”). Each CGU represents the smallest group of assets that generates cash inflows that
are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses are recognized in the Restated Consolidated Statement of Profit and Loss.
Impairment loss recognized in respect of a CGU is allocated to the carrying amounts of the other assets of the
CGU ona pro rata basis.

In respect of assets for which impairment loss has been recognized in prior periods, we review at each reporting
date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is
made only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortization, if no impairment loss had been recognized.

Goodwill on business combinations is included in intangible assets. Goodwill is not amortized but it is tested for
impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired.

Inventories

Raw materials, finished goods, stores, spares (other than those capitalized in property, plant and equipment),
traded items and consumables are carried at the lower of cost and net realizable value. However, materials and
other items held for use in the production of inventories are not written down below cost if the finished products.
in which they will be incorporated are sold at or above cost. The comparison of cost and net realizable value is
made on an item-by-item basis.

In determining cost of raw materials, finished goods, traded items, stores, spares and consumables, weighted
average cost method is used. Cost of inventory comprises all costs of purchase, duties, taxes (other than those
subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their
present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.

Cost of finished goods includes the cost of raw materials and other costs incurred in bringing the inventories to
their present location and condition.

Revenue

Sale of goods

Revenue from contracts with customers is measured at fair value of the consideration received or receivable, is
net of returns, service level credits, non-current warranties, trade discounts, goods and service tax and volume
rebates, where applicable.

Revenue is recognized when we satisfy performance obligation by transferring the goods to the customers. We
‘transfer' goods to the customers when the customers obtains control of the goods. Control may be transferred

either at a point in time or over time. The amount of revenue recognized is adjusted for expected returns, which
are estimated based on historical data.

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