t) Provisions and contingent liabilities

Provisions 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
increase in the provision due to the passage of time is recognised as Finance cost Contingent
Liabilities are disclosed in respect of possible obligations that arise from past events but their
existence will be confirmed by the occurrence or non occurrence of one or more uncertain future
events not wholly within the control of the Company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable estimate of the obligation
cannot be made 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
recognize a contingent liability but discloses its existence in the financial statements

u) Critical estimates and judgments

The preparation of financial statements in conformity with IND AS requires the management to
make estimates, judgements and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements
and the reported amounts of revenues and expenses for the year reported. Actual results could
differ from those estimates. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected
in future periods.

This note provides an overview of the areas that involved a higher degree of judgement or
complexity, and of items which are more likely to be materially adjusted due to estimates and
assumptions turning out to be different than those originally assessed Detailed information about
each of these estimates and judgements is included in relevant notes together with information
about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgments are:

• Estimation of current tax expense and payable

• Estimated Fair value of unlisted securities

• Estimated useful lives of tangible assets and the assessment as to which components of the
cost may be capitalized;

• Recognition of deferred tax assets - availability of future taxable profits against which deferred
tax assets can be used

• Probable outcome of matters included under Contingent Liabilities

• Leases - estimating the effective interest rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses
its incremental borrowing rate (IBR) to measure lease liabilities The IBR is the rate of interest
that the Company would have to pay to borrow over a similar term, and with a similar security,
the funds necessary to obtain an asset of a similar value to the right of use asset in a similar
economic environment.

Estimates and judgments are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the
Company and that are believed to be reasonable under the circumstances.

Provision for expected credit losses (ECL) of trade receivables The Company uses a provision
matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for
groupings of various customer segments that have similar loss patterns (i.e., by geography, product
type, customer type and rating, and coverage by letters of credit and other forms of credit insurance).
The provision matrix is initially based on the Company's historical observed default rates. The Company
will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At
every reporting date, the historical observed default rates are updated and changes in the forward¬
looking estimates are analysed.