Provisions, contingent liabilities, contingent assets and commitments

A provision is recognised when the Company has a present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be
made.

Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on
the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance cost.

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation;

- a present obligation arising from past events, when no reliable estimate is possible;

- a possible obligation arising from past events, when the probability of outflow of resources is remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each Balance Sheet date.
Onerous contracts

A provision for onerous contracts is measured at the present value of the lower of expected costs of terminating the
contract and the expected cost of continuing with the contract. Before a provision is established, the Company
recognizes impairment on the assets with the contract.

Q. Exceptional items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities
of the Company is such that its disclosure improves the understanding of the performance of the Company, such
income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the
standalone financial statements.

R. Earnings per share

Basic earnings per share are computed by dividing the profit after tax by the weighted average number of equity
shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax as
adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued
at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented.

S. Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the
conditions attaching to it, and that the grant will be received. Government grants are recognised in the Statement
of Profit and Loss on a systematic basis over the periods in which the Company recognises as expenses the related
costs for which the grants are intended to compensate. Government grants relating to tangible fixed assets are
treated as deferred income and released to the Statement of Profit and loss over the expected useful lives of the
assets concerned.

T. Dividend

The Company recognises a liability to pay dividend to equity holders of the Company when the distribution is
authorised. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders.
A corresponding amount is recognised directly in equity.

U. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the
requirement of Schedule III, unless otherwise stated.

V. Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the
Balance Sheet date of material size or nature are only disclosed.

1.3 Key accounting estimates and Judgments

The preparation of the Company's financial statements requires the management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.

Critical accounting estimates and assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below:

Income taxes

The Company's tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the
purpose of paying advance tax, determining the provision for income taxes, including amount expected to be
paid/recovered for uncertain tax positions.

Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation / amortization is derived after determining an estimate of an asset's expected
useful lives and the expected residual value at the end of its life. The useful lives and residual values of company's
assets are determined by the management at the time the asset is acquired and reviewed at each financial year end.
The lives are based on historical experience with similar assets as well as anticipation of future events, which may
impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements
in production or from a change in market demand of the product or service output of the asset.

Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary
increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date.

Fair value measurement of financial instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques which involve
various judgements and assumptions.

Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss
rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment
calculation, based on Company's past history, existing market conditions as well as forward looking estimates at the
end of each reporting period.

Provisions

The timing of recognition and quantification of the liability (including litigations) requires the application of
judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions
and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

1.4 Recent accounting pronouncements which are not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31,2023, MCA amended the
Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:

(i) Ind AS 1 - Disclosure of material accounting policies:

The amendments related to shifting of disclosure of erstwhile "significant accounting policies" to "material
accounting policies" in the notes to the financial statements requiring Companies to reframe their accounting
policies to make them more "entity specific. This amendment aligns with the "material" concept already required
under International Financial Reporting Standards (IFRS). The Company does not expect this amendment to have
any significant impact in standalone financial statements.

(ii) Ind AS 8 - Definition of accounting estimates:

The amendments will help entities to distinguish between accounting policies and accounting estimates. The
definition of a "change in accounting estimates" has been replaced with a definition of "accounting estimates."
Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to
measurement uncertainty." Entities develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty. The Company does not expect this
amendment to have any significant impact in standalone financial statements.

(iii) Ind AS 12 - Income Taxes

The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12. At the
date of transition to Ind ASs, a first-time adopter shall recognize a deferred tax asset to the extent that it is probable
that taxable profit will be available against which the deductible temporary difference can be utilized. Similarly, a
deferred tax liability for all deductible and taxable temporary differences associated with:

a) right-of-use assets and lease liabilities

b) decommissioning, restoration and similar liabilities and the corresponding amounts recognized as part of the
cost of the related asset.

Therefore, if a Company has not yet recognised deferred tax on right-of-use assets and lease liabilities or has
recognised deferred tax on net basis, the same need to recognize on gross basis based on the carrying amount of
right-of-use assets and lease liabilities.

(iv) Ind AS 103 - Common control Business Combination

The amendments modify the disclosure requirement for business combination under common control in the first
financial statement following the business combination. It requires to disclose the date on which the transferee
obtains control of the transferor is required to be disclosed.