viii. Leases

The Group evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116 "Leases".
Identification of a lease requires significant judgment. The Group uses 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. The Group makes 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, the
Group considers 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 Group's operations taking
into account the location of the underlying asset and the availability of suitable alternatives. The Group revises
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.

B.3 Principles of Consolidation

The Consolidated Financial Statements relate to the Company, its subsidiaries and joint venture. Subsidiaries are all
entities over which the Company exercises control. The 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:

. The Financial Statements of the Group 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 intra-group balances and intra-
group transactions and resulting unrealised profits, unrealised losses from intra-group transactions are eliminated
unless cost cannot be recovered.

. The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions
with equity owners of the Group. 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 recognised 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 recognised at
cost. The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the
Group’s share of the profit or loss after the date of acquisition.

. The Financial Statements of joint venture are prepared for the same reporting period as the Group. When
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
. The Consolidated Financial Statements have been prepared using uniform accounting policies for like

transactions and other events in similar circumstances and are presented to the extent possible, in the same manner,
as the Company’s separate Financial Statements.

B.4 Estimation of uncertainties relating to the global health pandemic from COVID-19

The COVID-19 pandemic has impacted the businesses around the world, including India. There has been severe
disruption to the regular operations of the Group in the first quarter of FY 2020-21 due to Government imposed
emergency restrictions and lockdown.

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