Provisions, contingent liabilities and contingent assets and commitments

The company recognizes the provisions when
a present obligation (legal or constructive) as
a result of past event exists and it is probable
that an outflow of resources embodying
economic benefits will be required to settle
such obligation and the amount of such
obligation can be reliably estimated.

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

A disclosure for a contingent liability is made
when there is possible obligation or a present
obligation that may, but probably will not
require an outflow of resources embodying
the economic benefits or the amount of such
obligation cannot be measured reliably.
When there is possible obligation or a present
obligation in respect of which likelihood of
outflow of resources embodying the economic
benefits is remote, no provision or disclosure
is made.

Contingent assets are not recognised.
However, when the realisation of income is
virtually certain, then the related asset is no
longer a contingent asset, and is recognised
as an asset.

Commitments are future liabilities for
contractual expenditure, classified and
disclosed as estimated amount of contracts
remaining to be extracted on capital account
and not provided for.

s) Employee benefits

Short-term employee benefits

All employee benefits falling due wholly within
twelve months of rendering the services are
classified as short-term employee benefits,
which include benefits like salaries, wages,
short-term compensated absences and
performance incentives and are recognised as
expenses in the period in which the employee
renders the related service.

Post-employment benefits

Contributions to defined contribution schemes
such as Provident Fund, Employees State
Insurance., are recognised as expenses in
the period in which the employee renders
the related service. The Company has no
further obligations beyond its monthly
contributions. The Company also provides
for post-employment defined benefit in
the form of gratuity. The cost of providing
benefit is determined using the projected
unit credit method, with actuarial valuation
being carried out at each balance sheet date.
Re measurement of the net benefit liability,
which comprise actuarial gains and losses,
the return on plan assets (excluding interests)
and the effect of the assets ceiling (if any,
excluding interest) are recognised in other
comprehensive income. The effect of any plan
amendments are recognised in net profit in
the Statement of Profit and Loss.

Other long-term employee benefits

All employee benefits (other than post¬
employment benefits and termination benefits)
which do not fall due wholly within twelve
months after the end of the period in which
the employees render the related services are
determined based on actuarial valuation or
discounted present value method carried out
at each balance sheet date. The expected cost

of accumulating compensated absences is
determined by actuarial valuation performed
by an independent actuary as at every year
end using projected unit credit method on
the additional amount expected to be paid /
availed as a result of the unused entitlement
that has accumulated at the balance
sheet date. Expense on non-accumulating
compensated absences is recognised in the
period in which the absences occur.

t) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by
dividing:

- The profit/loss attributable to owners
of the company

- By the weighted average number
of equity shares outstanding during
the financial year, adjusted for bonus
elements in equity shares issued
during the year and excluding treasury
shares

(ii) Diluted earnings per share:

Diluted earnings per share adjusts the
figures used in the determination of basic
earnings shares to take into account:

- The after income tax effect of interest
and other financing costs associated
with dilutive potential equity shares,
and

- The weighted average number of
additional equity shares that would
have been outstanding assuming
the conversion of all dilutive potential
equity shares.

u) Cash flow statement

Cash flows are reported using indirect method,
whereby net profits before tax is adjusted for
the effects of transactions of a non-cash
nature and any deferrals or accruals of past or
future cash receipts or payments and items of
income or expenses associated with investing
or financing cash flows. The cash flows from
regular revenue generating (operating
activities), investing and financing activities of
the Company are segregated.

v) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker (CODM)
of the company. The CODM is responsible
for allocating resources and assessing
performance of the operating segments of the
company.

w) Recent Accounting Developments

Ministry of Corporate Affairs ('MCA') on March
31, 2023 notified amendments to the existing
standards under the Companies (Indian
Accounting Standards) Rules, 2015 by the
Companies (Indian Accounting Standards)
Amendment Rules, 2023 which are effective
from April 1, 2023, are as under:

Ind AS 1, Presentation of Financial Statements:

The amendments aim to help entities provide
accounting policy disclosures that are more
useful by replacing the requirement for entities
to disclose their 'significant' accounting
policies with a requirement to disclose their
'material' accounting policies and adding
guidance on how entities apply the concept
of materiality in making decisions about
accounting policy disclosures.

The amendments to Ind AS 1 are applicable
for annual periods beginning on or after
April 1, 2023. Consequential amendments have
been made in Ind AS 107.

The amendments are not expected to have a
material impact on the Company's financial
statements.

Ind AS 8, Accounting Policies, Changes in
Accounting Estimates and Errors:

The amendments clarify the distinction
between changes in accounting estimates
and changes in accounting policies and the
correction of erro f It has also been clarified
how entities use measurement techniques
and inputs to develop accounting estimates.

The amendments are effective for annual
reporting periods beginning on or after April
1, 2023 and apply to changes in accounting
policies and changes in accounting estimates
that occur on or after the start of that period.

The amendments are not expected to have a
material impact on the Company's financial
statements.

Ind AS 12, Income Taxes:

The amendments narrow the scope of the
initial recognition exception under Ind AS 12,
so that it no longer applies to transactions
that give rise to equal taxable and deductible
temporary differences.

The amendments should be applied to
transactions that occur on or after the
beginning of the earliest comparative period
presented. In addition, at the beginning of
the earliest comparative period presented,
a deferred tax asset (provided that sufficient
taxable profit is available) and a deferred
tax liability should also be recognised for all
deductible and taxable temporary differences
associated with leases and decommissioning
obligations. Consequential amendments have
been made in Ind AS 101.

The amendments to Ind AS 12 are applicable
for annual periods beginning on or after
April 1, 2023.

The Company has evaluated these
amendments and there are no impacts on its
financial statements.