Provisions (other than for employee benefits)

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. The expense relating to a provision is
presented in the statement of profit and loss net of
any reimbursement. 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 recognised
as a finance cost. Expected future losses are not
provided for.

Onerous contracts

A provision for onerous contract is recognised
when the expected benefits to be derived by
the company from a contract are lower than
the unavoidable cost of meeting its obligation
under the contract. The provision is measured
at the present value of the lower of the expected
cost of terminating the contract and the expected
net cost of continuing with the contract. Before a
provision is established, the company recognises
any impairment loss on assets associated.

m) Contingent liabilities and contingent assets

A contingent liability exists when there is a possible
but not probable obligation, or a present obligation
that may, but probably will not, require an outflow
of resources, or a present obligation whose amount
cannot be estimated reliably. Contingent liabilities
do not warrant provisions, but are disclosed unless
the possibility of outflow of resources is remote.

Contingent assets usually arise from unplanned
or other unexpected events that give rise to the
possibility of an inflow of economic benefits to
the entity. Contingent assets are recognized when
the realisation of income is virtually certain, then
the related asset is not a contingent asset and its
recognition is appropriate.

A contingent asset is disclosed where an inflow of
economic benefits is probable.

n) Commitments

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 reporting date.

o) Revenue from contract with customers

Under Ind AS 115, the Company recognized
revenue when (or as) a performance obligation
was satisfied, i.e. when 'control' of the goods
underlying the particular performance obligation
were transferred to the customer.

Further, revenue from sale of goods is recognized
based on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in
contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the
performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity
satisfies a performance obligation

Deferred revenue is recognised when there is
a billing in excess of revenues. The Company
disaggregates revenue from contracts with
customers by geography.

Use of significant judgements in revenue
recognition

- The Company's contracts with customers
could include promises to transfer multiple
products and services to a customer.
The Company assesses the products
/ services promised in a contract and

identifies distinct performance obligations
in the contract. Identification of distinct
performance obligation involves judgement
to determine the deliverables and the ability
of the customer to benefit independently
from such deliverables.

- Judgement is also required to determine
the transaction price for the contract.
The transaction price could be either a
fixed amount of customer consideration
or variable consideration with elements
such as cash discount, trade discount, and
rebate. The transaction price is also adjusted
for the effects of the time value of money if
the contract includes a significant financing
component. Any consideration payable to the
customer is adjusted to the transaction price,
unless it is a payment for a distinct product
or service from the customer. The estimated
amount of variable consideration is adjusted
in the transaction price only to the extent that
it is highly probable that a significant reversal in
the amount of cumulative revenue recognised
will not occur and is reassessed at the end of
each reporting period. The Company allocates
the elements of variable considerations to all
the performance obligations of the contract
unless there is observable evidence that they
pertain to one or more distinct performance
obligations.

- The Company uses judgement to determine
an appropriate standalone selling price for
a performance obligation. The Company
allocates the transaction price to each
performance obligation on the basis of the
relative standalone selling price of each
distinct product or service promised in the
contract.

- The Company exercises judgement in
determining whether the performance
obligation is satisfied at a point in time or over
a period of time. The Company considers
indicators such as how customer consumes
benefits as services are rendered or who
controls the asset as it is being created or
existence of enforceable right to payment for
performance to date and alternate use of such
product or service, transfer of significant risks

and rewards to the customer, acceptance of
delivery by the customer, etc.

- Revenue for fixed-price contract is recognised
using percentage-of-completion method.
The Company uses judgement to estimate
the future cost-to-completion of the contracts
which is used to determine the degree of
completion of the performance obligation.

- Contract fulfilment costs are generally
expensed as incurred except for certain
expenses which meet the criteria for
capitalisation. Such costs are amortised over
the contractual period. The assessment of
these criteria requires the application of
judgement, in particular when considering if
costs generate or enhance resources to be
used to satisfy future performance obligations
and whether costs are expected to be
recovered.

Export Incentives

Export incentives under various schemes notified
by the government are recognised on accrual
basis when no significant uncertainties as to the
amount of consideration that would be derived
and as to its ultimate collection exist.

Insurance and Other Claims

Revenue in respect of claims is recognized when
no significant uncertainty exists with regard to the
amount to be realized and the ultimate collection
thereof.

p) Government grant

Government grants related to capital assets are
recognized initially as deferred income at fair value
or deducted from the carrying value of the asset
when there is reasonable assurance that they will
be received and the Company will comply with the
conditions associated with the grant; they are then
recognised in profit or loss as other income on a
systematic basis or depreciated over the remaining
useful life of the asset, respectively.

Grants that compensate the Company for
expenses incurred are recognised in profit or loss

on a systematic basis in the periods in which such
expenses are recognised.

q) Recognition of interest income or expense

Interest income or expense is recognised using the
effective interest method.

The 'effective interest rate' is the rate that exactly
discounts the estimated future cash payments or
receipts through the expected life of the financial
instrument to:

a) the gross carrying amount of the financial
asset; or

b) the amortised cost of the financial liability.

In calculating interest income and expense,
the effective interest rate is applied to the gross
carrying amount of the asset (when the asset is
not credit-impaired) or to the amortised cost of
the liability. However, for financial assets that
have become credit impaired subsequent to
initial recognition, interest income is calculated by
applying the effective interest rate to the amortised
cost of the financial asset. If the asset is no longer
credit-impaired, then the calculation of interest
income reverts to the gross basis.

r) Income taxes

Income tax comprises current and deferred tax.
It is recognised in Statement of Profit and Loss
except to the extent that it relates to a business
combination or an item recognised directly in
equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount
expected to be paid or received after considering
the uncertainty, if any, related to income taxes. It is
measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended

to realise the asset and settle the liability on a net
basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of the
assets and liabilities for financial reporting purposes
and the corresponding amounts used for taxation
purposes. Deferred tax is also recognised in respect
of carried forward tax losses (if any) and tax credits.

Deferred tax assets are recognised to the extent
that it is probable that future profits will be available
against which they can be used. Deferred tax
assets are reviewed at each reporting date and are
recognised to the extent that it is probable that the
related tax benefits will be realized. Deferred tax
is measured at the tax rates that are expected to
apply to the period when the asset is realized or
the liability is settled, based on the laws that have
been enacted or substantively enacted by the
reporting date. Deferred tax assets - unrecognised
or recognised, are reviewed at each reporting date
and are recognised / reduced to the extent that it
is probable / no longer probable respectively that
the related tax benefits will be realized.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner
in which the Company expects, at the reporting
date, to recover or settle the carrying amount of
its assets and liabilities.

Section 115 BAA of the Income Tax Act 1961,
introduced by Taxation Laws (Amendment)
Ordinance, 2019 gives a one-time irreversible
option to Domestic Companies for payment of
corporate tax at reduced rates. The Company has
opted the new tax regime from 1 April 2022.

s) Operating segments

An operating segment is a component of the
Company that engages in business activities from
which it may earn revenues and incur expenses,
including revenues and expenses that relate to
transactions with any of the Company's other
components, and for which discrete financial
information is available. All operating segments'
operating results are reviewed regularly by the
Company's Chief Operating Decision Maker
(CODM) to make decisions about resources to

be allocated to the segments and assess their
performance.

t) Royalty

Payment of technical know-how in the form
of royalty for providing technical assistance is
being accounted for on accrual basis as per the
agreement between the parties.

u) Corporate Social Responsibility (CSR)
expenditure

CSR expenditure incurred by the Company is
charged to the Statement of the Profit and Loss.

v) Cash and cash equivalents

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents include cash
in hand, demand deposits held with banks, 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.

w) Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the
effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating
cash receipts or payments and item of income or
expenses associated with investing or financing
cash flows. The cash flows from operating,
investing and financing activities of the Company
are segregated.

x) Earnings per share

Basic earnings/ (loss) per share are calculated by
dividing the net profit/(loss) for the year attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
year. The weighted average number of equity
shares outstanding during the period is adjusted
for events of bonus issue and share split. For the
purpose of calculating diluted earnings/ (loss)
per share, the net profit or loss for the period
attributable to equity shareholders and the
weighted average number of shares outstanding

during the year are adjusted for the effects of all
dilutive potential equity shares.

y) Recent Indian Accounting Standards (Ind AS)

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) Rules,
2015 by issuing the Companies (Indian Accounting
Standards) Amendment Rules, 2023, applicable
from April 1, 2023, as below:

- Ind AS 1 - Presentation of Financial
Statements

The amendments require companies to
disclose their material accounting policies
rather than their significant accounting
policies. Accounting policy information,
together with other information, is material
when it can reasonably be expected to
influence decisions of primary users of general
purpose financial statements. The Company
does not expect this amendment to have any
significant impact in its financial statements.

- Ind AS 12 - Income Taxes

The amendments clarify how companies
account for deferred tax on transactions such
as leases and decommissioning obligations.
The amendments narrowed the scope of
the recognition exemption in paragraphs 15
and 24 of Ind AS 12 (recognition exemption)
so that it no longer applies to transactions
that, on initial recognition, give rise to equal
taxable and deductible temporary differences.
The Company is evaluating the impact, if any,
in its financial statements.

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

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 its financial statements.