Provisions, Contingent Liabilities, Contingent Assets and commitments Provisions

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 has been reliably estimated.

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, unless the
possibility of outflow of resources is remote, 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 the obligation
or reliable estimate of the amount cannot be
made

Contingent Assets

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

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 balance sheet date
(Refer Note 32 & 33).

ab) Exceptional Items

Exceptional items are disclosed separately in the
financial statements where it is necessary to do so
to provide further understanding of the financial
performance of the Company. These are material
items of income or expense that have to be shown

separately due to the significance of their nature or
amount.

ac) Critical estimates and Judgements

The preparation of the financial statements in
conformity with Ind AS requires Management to
make estimates, judgements and assumptions.
These estimates, judgements and assumptions
affect the application of accounting policies and
the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at
the date of the financial statements and reported
amounts of revenues and expenses during the
period. Accounting estimates could change from
period to period. Actual results could differ from
those estimates. Appropriate changes in estimates are
made as management becomes aware of changes in
circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in
the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial
statements.

The areas involving critical estimates or judgements are:

1. Estimation of current tax expense and payable

2. Estimated Useful life of Depreciable assets /
intangible assets

3. Estimation of defined benefit obligation

4. Recognition of revenue

5. Recognition of deferred tax assets for carried
forward losses

6. Recoverability of advances/receivable

7. Evaluation of indicators for Impairment of assets

8. Valuation of inventories

9. Determination of cost for right-of-use assets and
lease term

10. Contingencies

11. Financial instruments

12. Fair value measurement of financial instruments

13. Share based payments

14. Depreciation on property, plant, equipment, and
amortization of intangible assets

Estimates and judgements 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.

New standards and interpretations not yet
adopted

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 itsfinancial 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 cognition 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
has evaluated and the amendment and there is no
impact on its financial statements.

I nd 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.