Provisions

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. 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 Standalone 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. Provisions are reviewed at each reporting date and are adjusted to reflect the current best
estimate.

3.22 Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration
or is due from the customer. If a customer pays consideration before the Company transfers goods or services to the customer,
a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are
recognised as revenue when the Company performs under the contract.

3.23 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is
not recognised because it is not probable that an outflow of resources will be required to settle the obligation. 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 standalone financial statements.
Contingent assets are only disclosed when it is probable that the economic benefits will flow to the entity.

4 Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company’s standalone financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities at the date of the standalone financial statements. Estimates and assumptions are
continuously evaluated and are based on management’s experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances.

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.

In particular, the Company has identified the following areas where significant judgements, estimates and assumptions are
required. Further information on each of these areas and how they impact the various accounting policies are described below
and also in the relevant notes to the standalone financial statements. Changes in estimates are accounted for prospectively.

i) Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the standalone financial statements:

a) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company,
including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only when
one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum,
of contingencies inherently involves the exercise of significant judgments and the use of estimates regarding the
outcome of future events.

b) Provisions

At each balance sheet date basis the management judgement, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future
outcome may be different from this judgement.

c) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future
taxable income will be available against which the deductible temporary differences and tax loss carry-forward can be
utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or
uncertainties in various tax jurisdictions.

ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the standalone
financial statements were prepared. Existing circumstances and assumptions about future developments, however, may
change due to market change or circumstances arising beyond the control of the Company. Such changes are reflected
in the assumptions when they occur.

a) Useful lives of tangible/intangible assets

The Company reviews its estimate of the useful lives of tangible/intangible assets at each reporting date, based on
the expected utility of the assets.

b) Defined benefit obligation

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate, future salary increases,
mortality rates and future pension increases. In view of the complexities involved in the valuation and its long-term

nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed
at each reporting date.

c) Inventories

The Company estimates the net realisable values of inventories, taking into account the most reliable evidence
available at each reporting date. The future realisation of these inventories may be affected by future technology or
other market-driven changes that may reduce future selling prices.

d) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Standalone Balance Sheet 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 considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported
fair value of financial instruments.

e) Allowance for expected credit loss

The Company applies Expected Credit Losses (“ECL”) model for measurement and recognition of loss allowance on
trade receivables. In accordance with In accordance with Ind AS 109 - Financial Instruments, the Company applies
ECL model for measurement and recognition of impairment loss on the trade receivables or any contractual right to
receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115 - ‘Revenue
from Contracts with Customers’.

For this purpose, the Company follows ‘simplified approach’ for recognition of impairment loss allowance on the trade
receivable balances. The application of simplified approach does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition. As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance
on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the
expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the
historical observed default rates are updated and changes in the forward-looking estimates are analysed.

f) Application of new and revised Indian Accounting Standard (Ind AS)

All the Ind AS issued and notified by the Ministry of Corporate Affairs (‘MCA’) under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) till the financial statements are authorised have been considered in preparing
these standalone financial statements

Standards issued but not effective

The Ministry of Corporate Affairs ("MCA") vide its notification dated March 31, 2023 has notified Companies (Indian
Accounting Standards) Amendment Rules, 2023 to further amend the Companies (Indian Accounting Standards) Rules,
2015. Amendments have been made to the following standards

Amendment to Ind AS 12 and Ind AS 101

Now the Initial Recognition Exemption (IRE) does not apply to transactions that give rise to equal and offsetting temporary
differences. Narrowed the scope of IRE (with regard to leases and decommissioning obligations). Accordingly, companies
will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on transactions
such as initial recognition of a lease and a decommissioning provision. The amendments apply to transactions that occur
on or after the beginning of the earliest comparative period presented.

The application of this amendment is not expected to have a material impact on the Company's’s standalone financial
statements

Amendment to Ind AS 1 and Ind AS 34 and Ind AS 107

Companies should now disclose material accounting policies rather than their significant accounting policies. The application
of this amendment is not expected to have a material impact on the Company’s standalone financial statements.

Amendment to Ind AS 8

Definition of ‘change in account estimate’ has been replaced by revised definition of ‘accounting estimate’. As per revised
definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement
uncertainty. The amendments listed above will be effective on or after April 1, 2023 and are not expected to significantly
affect the current or future periods.