Provisions and Contingent liabilities

Provisions for legal claims, service warranties, volume discounts
and returns are recognised when the Company has a present
legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management's
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount
rate used to determine the present value is a pre-tax rate
that reflects current market assessments of the time value of
money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as interest
expense.

A contingent liability is possible obligation that arises from past
events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events
beyond the control of the Company or a present obligation
that is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation.
A contingent liability also arises in extremely rare cases, where
there is a liability that cannot be recognised because it cannot
be measured reliably. The Company does not recognise a
contingent liability but disclose its existence in the financial
statements unless the probability of outflow of resource is
remote.

Q) Other Operating Revenues

i) Government Grant

Grants from the government are recognised at their fair
value where there is a reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions.

Government grants relating to income are deferred and
recognised in the profit or loss over the period necessary
to match them with the costs that they are intended to
compensate and presented within other income.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to profit or loss on a
straight-line basis over the expected lives of the related
assets and presented within other income.

ii) Export Benefit

Revenue from export benefits arising from Duty
entitlement pass book (DEPB scheme), duty drawback
scheme, merchandise export incentive scheme are
recognised on export of goods in accordance with their
respective underlying scheme at fair value of consideration
received or receivable.

R) Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief operating
decision maker (CODM). CODM monitors the operating results
of all strategic business units separately for the purpose of
making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit
and loss and is measured consistently with profit and loss in the
financial statements.

S) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of
tax, from the proceeds.

T) Dividends

Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but

not distributed at the end of the reporting period.

U) Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash flows,
Cash and Cash equivalents includes cash on hand, deposits held
at call, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an
insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in
the Balance Sheet.

V) Offsetting financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and there is
an intention to settle on a net basis or realise the asset and settle
the liability simultaneously. The legally enforceable right must
not be contingent on future events and must be enforceable
in the normal course of business and in the event of default,
insolvency or bankruptcy of the Company or the counterparty.

W) Rounding of amounts

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

X) Changes in significant accounting policies

The Company has not been required to apply any new standard,
interpretation or amendment that has been issued and
therefore there were no significant changes in the accounting
policies.

Y) Recent accounting pronouncements

New and amended standards adopted by the Company

The Ministry of Corporate Affairs had vide notification dated
March 23, 2022 notified Companies (Indian Accounting
Standards) Amendment Rules, 2022 which amended certain
accounting standards, and are effective April 1, 2022. These
amendments did not have any impact on the amounts
recognised in prior periods and are not expected to significantly
affect the current or future periods.

New and amended standards issued but not effective

The Ministry of Corporate Affairs has vide notification dated
March 31, 2023 notified Companies (Indian Accounting
Standards) Amendment Rules, 2023 (the 'Rules') which amends
certain accounting standards, and are effective April 1 2023.

The Rules predominantly amend Ind AS 12, Income taxes,
and Ind AS 1, Presentation of financial statements. The other
amendments to Ind AS notified by these rules are primarily in
the nature of clarifications.

These amendments are not expected to have a material impact
on the company in the current or future reporting periods and
on foreseeable future transactions. Specifically, no changes
would be necessary as a consequence of amendments made to

Ind AS 12 as the companies accounting policy already complies
with the now mandatory treatment.

Z) Significant accounting judgements, estimates and assumptions

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

Judgements, 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. The Company based its
assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances
and assumptions about future developments, however, may
change due to market changes or circumstances arising beyond
the control of the Company. Such changes are reflected in the
assumptions when they occur.

a) Defined benefit plan-Gratuity

The cost of defined benefit plans (i.e. Gratuity benefit)
is determined using actuarial valuations. An actuarial
valuation involves making various assumptions which
may differ from actual developments in the future. These
include the determination of the discount rate, future
salary increases, mortality rates and future pension
increases. Due to the complexity of the valuation, the
underlying assumptions 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. In determining the appropriate
discount rate, management considers the interest rates of
long term government bonds with extrapolated maturity
corresponding to the expected duration of the defined
benefit obligation. The mortality rate is based on publicly
available mortality tables for the specific countries. Future
salary increases and pension increases are based on
expected future inflation rates for the respective countries.
Further details about the assumptions used, including a
sensitivity analysis, are given in Note 37.

b) Impairment of Financial assets

The impairment provisions of 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.

c) Warranty provision

Warranty Provisions are measured at discounted present
value using pre-tax discount rate that reflects the current
market assessments of the time value of money and the risks
specific to the liability. Warranty provisions is determined
based on the historical percentage of warranty expense to

sales for the same types of goods for which the warranty
is currently being determined. The same percentage to the
sales is applied for the current accounting period to derive
the warranty expense to be accrued. It is adjusted to
account for unusual factors related to the goods that were
sold, such as defective inventory lying at the depots. It is
very unlikely that actual warranty claims will exactly match
the historical warranty percentage, so such estimates are
reviewed annually for any material changes in assumptions
and likelihood of occurrence.

d) Depreciation/amortisation and useful lives of property
plant and equipment/intangible assets

Property, plant and equipment / Intangible assets are
depreciated /amortised over their estimated useful
lives, after taking into account estimated residual values.
Management reviews the estimated useful lives and
residual values of the assets annually in order to determine
the amount of depreciation / amortisation to be recorded
during any reporting period. The useful lives and residual
values are based on the Company's historical experience
with similar assets and take into account anticipated
technological changes. The depreciation/amortisation for
future period is revised if there are significant changes
from previous estimates.

e) Provisions

Provisions and liabilities are recognised in the period when
it becomes probable that there will be a future outflow of
funds resulting from past operations or events and the
amount of cash outflow can be reliably estimated. The
timing of recognition and quantification of the liability
requires the application of judgment 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.