Provisions, Contingent Liabilities, Contingent Assets and Commitments

Provisions (legal and constructive) are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a
provision i s measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of
the receivable can be measured reliably.

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 estimates is possible;

• a possible obligation arising from past events, unless the probability of outflow of resources is remote.

Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither
recognised nor disclosed in the financial statements.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets and
non cancellable operating lease.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

3 Application of New Revised Ind AS

Ministry of Corporate Affairs ("MCA”) notifies new standard or amendments to the existing standards. There is no such
notification which would have been applicable from April 1,2023.

4 Critical Estimates and Judgements

In the course of applying the policies outlined in all notes under section 2 above, the Company is required to make
judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future period, if the revision affects current and future period.

4.1 Key sources of estimation uncertainty

i. Useful lives of property, plant and equipment and intangible assets

Management reviews the useful lives of property, plant and equipment and intangible assets at least once a year. Such
lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic lives based
on various internal and external factors including relative efficiency and operating costs. Accordingly depreciable lives
are reviewed annually using the best information available to the management.

ii. Provisions and liabilities

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events that can reasonably be estimated. The timing of recognition requires
application of j udgement to existing facts and circumstances, which may be subject to change. The amounts are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.

iii. Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as
contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

iv. Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
DCF model. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. Judgements include consideration of inputs such as
liquidity risk, credit risk and volatility.

v. 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. A tax assessement can involve complex issues, which can only be resolved
over extended time periods. The recognisation of taxes that are subject to certain legal or economic limits or
uncertainties is assessed j ndividually by the managment based on the specific facts and circumstances.

vi. Defined benefit obligations

The costs of providing pensions and other post-employment benefits are charged to the Statement of Profit and Loss in
accordance with Ind AS 19 ‘Employee benefits' over the period during which benefit is derived from the employees'
services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include
salary escalation rate, discount rates, expected rate of return on assets and mortality rates. The same is disclosed in
Note 40, ‘Employee benefits'.

vii. Allowance for uncollected accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not
collectible. Impairment is made on the expected credit losses, which are the present value of the cash shortfall over the
expected life of the financial assets.

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

viii. Impairment reviews

An impairment exists when the carrying value of an asset or cash generating unit (‘CGU') exceeds its recoverable
amount. Recoverable amount is the higher of its fair value less costs to sell and its value in use. The value in use calculation
is based on a discounted cash flow model. In calculating the value in use, certain assumptions are required to be made in
respect of highly uncertain matters, including management's expectations of growth in EBITDA, long term growth rates;
and the selection of discount rates to reflect the risks involved.

ix. Inventories

The Company estimates the net realisable value (NRV) of its inventories by taking into account their estimated selling
price, estimated cost of completion, estimated costs necessary to make the sale, obsolescence by applying certain
percentages over different age category of such inventories, expected loss rate considering the past trend and future
outlook.Inventories are written down to NRV where such NRV is lower than their cost.

x. Sales Return

For Information about judgements made in applying the accounting policies for sales return that have the most significant
effects on the amounts recognised in the financial statements is included in notes 2.11 above.