22) PROVISIONS, CONTINGENT LIABILITIES AND
CONTINGENT ASSETSProvision:

• Provision is recognized in the accounts when there
is a present obligation as a result of past event(s)
and it is probable that an outflow of resources will
be required to settle the obligation and a reliable
estimate can be made.

• The expenses relating to a provision is presented in the
Statement of Profit and Loss net of reimbursements,
if any.

• I f 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 provision due to the passage of time is recognized
as a finance cost.

Contingent Liabilities:

Wherever there is a possible obligation 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 or a present obligation that arises from past events
but is not recognized because

(a) It is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; or

(b) The amount of the obligation cannot be measured
with sufficient reliability. Show cause notices are not
considered as Contingent Liabilities unless converted
into demand.

Contingent Asset:

Contingent asset is neither recognized nor disclosed in the
financial statements.

23) EVENTS AFTER THE REPORTING PERIOD

It is the Company's Policy to take into the account the
impact of any significant event that occurs after the
reporting date but before the finalization of accounts

24) GOVERNMENT GRANTS

Grants from the government are recognized 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 receivable as compensation for
expenses or financial support are recognized in profit or
loss of the period in which it becomes available.

Government grants relating to the purchase of property,
plant and equipment are accounted for as deferred
Income by crediting the same to a specific reserve 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.

The reserve to these Grants is diminished every year by a
prorate portion of the depreciation of the assets, to amortize
the grant overdue life of the assets. Where the Grants carry
conditions of specific performance, the contingent aspect
is disclosed in due notes to the accounts.

25) I MPAIRMENT OF TANGIBLE & INTANGIBLE
ASSETS(i) Financial assets (other than at fair value)

The Company assesses at each date of balance
sheet whether a financial asset or a Company of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through a
loss allowance. In determining the allowances for
doubtful trade receivables, the Company has used
a practical expedient by computing the expected
credit loss allowance for trade receivables based
on a provision matrix. The provision matrix takes
into account historical credit loss experience and
is adjusted for forward looking information. The
expected credit loss allowance is based on the ageing
of the receivables that are due and allowance rates
used in the provision matrix. For all other financial
assets, expected credit losses are measured at
an amount equal to the 12-month expected credit
losses or at an amount equal to the lifetime expected
credit losses if the credit risk on the financial asset
has increased significantly since initial recognition.

(ii) Non-financial assets

The company assess at each reporting date,
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
company estimate the asset's recoverable amount.
An asset's recoverable amount is the higher of an
assets or cash-generating units (CGU) fair value less
costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
group of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to
its recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre -tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions
are taken into account. If no such transactions can
be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded
companies or other available fair value indicators.

For assets excluding goodwill, an assessment is
made at each reporting date to determine whether
there is an indication that previously recognized
impairment losses no longer exist or have decreased.
If such indication exists, the company estimates the
asset’s or CGU's recoverable amount. A previously
recognized impairment loss is reversed only if there
has been a change in the assumptions used to
determine the asset’s recoverable amount since the
last impairment loss was recognized. The reversal
is limited so that the carrying of the asset does not
exceed its recoverable amount, nor exceed the
carrying amount that would have been determined,
net of depreciation, had no impairment loss been
recognized for the asset in prior years. Such reversal
is recognized in the Statement of Profit or Loss
unless the asset is carried at a revalued amount, in
which case, the reversal is treated as an increase
in revaluation.

26 OPERATING CYCLE FOR CURRENT AND
NON-CURRENT CLASSIFICATIONOPERATING CYCLE:

Operating cycle for the business activities of the company
covers the duration of the specific product line/ service
including the defect liability period wherever applicable
and extends up to the realization of receivables within the
agreed credit period normally applicable to the respective
lines of business.

CURRENT VS NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities in the balance
sheet based on current/ non-current classification.

An asset is classified as current when it is:

• Expected to be realized or intended to sold or
consumed in normal operating cycle;

• held primarily for the purpose of trading;

• expected to be realized within twelve months after
the reporting period; or

• cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.