Provisions and Contingencies

Provisions :

Provisions are recognised when the Companny 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. When the Company expects some
or all of a provision to be reimbursed, for example, under
an insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement
is virtually certain. 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.

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non occurrence
of one or more uncertain future events not wholly within
the control of the company or a present obligation that
arises from past events where it is either not probable

that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

Contingent asset:

Contingent Assets is a possible asset that arises from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity.
Contingent assets are disclosed in the Financial Statements
by way of notes to accounts when an inflow of economic
benefit is probable."

4.23 Empolyees Benefit

(a) Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled wholly
within12 months after the end of the period in which the
employees render the related service are recognized
in respect of employees' services upto the end of the
reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit
obligations in the Balance Sheet.

b) Defined Contribution Plan: Monthly contribution to the
provident fund which is under defined contribution
schemes are charged to Statement of Profit & Loss
and deposited with the provident fund authorities on
monthly basis.

c) Defined Benefit Plans: Gratuities to employees are
covered under the employees' group gratuity schemes
and the premium is paid on the basis of their actuarial
valuation using the projected unit credit method.
Actuarial gain and losses net of deferred taxes arising
from experience adjustments and changes in acturial
assumtions are reccognized in other comprehensive
income in the period in which they arise. Any short falls
in case of premature resignation or termination to the
extent not reimbursed by LIC is being absorbed inthe
year of payment.

d) Termination benefits are charged to the Statement of
Profit and Loss in the year of accrual when the Company
is committed without any possibility of withdrawal of an
offer made to either terminate employment before the
normal retirement date or as a result of an offer made to
encourage volutary retirement.

4.24 Taxes on income

Income tax expense comprises current and deferred tax
expense. Income tax expenses are recognized in statement of
profit and loss, except when they relate to items recognized
in other comprehensive income or directly in equity, in which
case, income tax expenses are also recognized in other
comprehensive income or directly in equity respectively.
Current tax is the tax payable on the taxable profit for the
year, using tax rates enacted or substantively enacted by the

end of reporting period by the governing taxation laws, and
any adjustment to tax payable in respect of previous periods.
Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation authorities. Management periodically evaluates
positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate. Current year's
Income Tax Provision is netted off against current year's
advance tax paid, tax deducted at source receivable and tax
collected at source receivable.

Deferred taxes arising from deductible and taxable temporary
differences between the tax base of assets and liabilities
and their carrying amount in the financial statements are
recognized using substantively enacted tax rates and laws
expected to apply to taxable income in the years in which
the temporary differences are expected to be received or
settled. The deferred tax arising from the initial recognition
of goodwill or an asset or liability in a transaction that is not
a business combination and affects neither accounting nor
taxable profit or loss at the time of the transaction are not
recognized. Deferred tax asset are recognized only to the
extent that it is probable that future taxable profit will be
available against which the deductible temporary differences
can be utilized. The carrying amount of deferred tax assets
is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred income tax
assets to be utilized.

Deferred tax assets and liabilities are offset when the
Company has a legally enforceable right to do the same."

4.25 Earning Per Share

(i) Basic earnings per share is computed and disclosed using
the weighted average number of common sharesoutstanding
during the year. Dilutive earning per share is computed and
disclosed using the weighted averagenumber of common
and dilutive common equivalent shares outstanding during
the year, except when the resultswould be anti-dilutive.

(ii) On 19 September 2022, the company allotted 80,00,000
equity shares of face value of H 10 each as bonus shares in
the proportion of two bonus equity share of face value of H 10
for every one equity share of face value of H 10 held as on the
record date, by capitalising an amount of H 8 crores from the
free reserves. The bonus shares were listed on BSE Limited
w.e.f. 22 September 2022.

(iii) The above changes are reflected in the Earnings Per Share
for current year as well as previous year.

4.26 Recent accounting pronouncements

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.

Ind AS 107 - Financial Instruments - Disclosures

Information about the measurement basis for financial
instruments shall be disclosed as a part of material
accounting policy information. The Company does not
expect this amendment to have any significant impact in
its financial statements. The Company does not expect this
amendment to have any significant impact in its financial
statements"

4.27 Assets held for sale

Sale of business is classified as held for sale, if their carrying
amount is intended to be recovered principally through
sale rather than through continuing use. The condition
for classification as held for sale is met when disposal
business is available for immediate sale and the same is
highly probable of being completed within one year from
the date of classification as held for sale.