Measurement of defined benefit obligations

Gratuity actuarial valuation considers various assumptions which are based on the past experience and general
economic conditions.

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 or repair cost.

Recognition of deferred tax asset

We estimate the possible utilization of unabsorbed losses while recognizing deferred tax asset considering our
future business plans and economic environment.

Leases

We evaluate if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a
lease requires significant judgment. We use significant judgement in assessing the lease term (including
anticipated renewals) and the applicable discount rate.

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any
option to extend or terminate the lease, if the use of such option is reasonably certain. We make an assessment on
the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any
options to extend or terminate the contract will be exercised. In evaluating the lease term, we consider factors
such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination
of the lease and the importance of the underlying asset to our operations taking into account the location of the
underlying asset and the availability of suitable alternatives. We revise the lease term if there is a change in the
non-cancellable period of a lease. The discount rate is generally based on the incremental borrowing rate.

Principles of Consolidation
The Consolidated Financial Statements relate to our Company, our subsidiaries and joint venture. Subsidiaries are

all entities over which our Company exercises control. Our Company exercises control if and only if it has the
following:

. power over the entity;
° exposure, or rights, to variable returns from its involvement with the entity; and
. the ability to use its power over the entity to affect the amount of its returns.

The Consolidated Financial Statements have been prepared on the following basis:

. Our financial statements have been combined on a line-by-line basis by adding together the book values
of like items of assets, liabilities, income and expenses, after fully eliminating intragroup balances and
intra-group transactions and resulting unrealized profits, unrealized losses from intra-group transactions
are eliminated unless cost cannot be recovered.

. We treat transactions with non-controlling interests that do not result in a loss of control as transactions
with our equity owners. A change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary.
Any difference between the amount of the adjustment to non-controlling interests and any consideration
paid or received is recognized within equity.

. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the arrangement. Investments in associates and joint ventures are accounted for
using the equity method.

. Under the equity method, on initial recognition the investment in an associate or a joint venture is

recognized at cost. The carrying amount of the investment in associates and joint ventures is increased
or decreased to recognize our share of the profit or loss after the date of acquisition.

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