Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future taxable profits will be available against which they can be
used.

Measurement of fair values
Our accounting policies and disclosures require the measurement of fair values for financial instruments.

We have an established control framework with respect to the measurement of fair values. Our management
regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as.
broker quotes or pricing services, is used to measure fair values, then our management assesses the evidence
obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS,
including the level in the fair value hierarchy in which such valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows.

e Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

e Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices).

e Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).

When measuring the fair value of an asset or a liability, we use observable market data as far as possible. If the
inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement. We recognize transfers between levels of the fair
value hierarchy at the end of the reporting period during which the change has occurred.

We have recognized certain assets at fair value and further information is included in the relevant notes.
Basis of consolidation

The Restated Consolidated Financial Information has been prepared in accordance with the requirements of Ind
AS 110 — ‘Consolidated Financial Statements’.

Subsidiaries

Subsidiaries are all entities over which we have control. We control an entity when we are exposed to, or have
rights to, variable returns from our involvement with the entity and have the ability to affect those returns
through our power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date
on which control is transferred to us. They are deconsolidated from the date when the control ceases.

We combine the financial statements of our parent and our subsidiaries line by line adding together like items of
assets, liabilities, equity, income and expenses. Intra-group transactions, balances and unrealised gains on
transactions between group companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have
been changed wherever necessary to ensure consistency with the policies adopted by us.

The excess of cost to us of our investment in subsidiaries, on the acquisition dates over and above our share of
equity in our subsidiaries, is recognized as ‘Goodwill on Consolidation’ being an asset in the Restated
Consolidated Financial Information. The said goodwill is not amortized, however, it is tested for impairment at
each balance sheet date and the impairment loss, if any, is provided for. On the other hand, where the share of
equity in subsidiaries as on the date of investment is in excess of cost of our investments, it is recognized as
“Capital Reserve’ and shown under the head ‘Reserves and Surplus’ in the Restated Consolidated Statement of
Assets and Liabilities. In case of acquisition of additional stake in the existing subsidiary, the excess of purchase
consideration over our portion of equity of the subsidiary on the date on which the additional investment is
made, is adjusted in equity.

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