Provisions, contingent liabilities and contingent assets

A. Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of past events, and 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 effect of the time value of
money is material, the Company determines the level
of provision by discounting the expected cash flows
at a pre-tax rate reflecting the current rates specific
to the liability. The expense relating to any provision
is presented in the statement of profit and loss net of
any reimbursement.

B. Contingent liability

A possible obligation that arises from past events
and 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; present obligation that arises
from past events where it is not probable that an
outflow of resources embodying economic benefits
will be required to settle the obligation; or the amount
of the obligation cannot be measured with sufficient
reliability are disclosed as contingent liability and not
provided for.

C. Contingent asset

A contingent asset 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 Company. Contingent assets
are neither recognised nor disclosed except when
realisation of income is virtually certain, related asset
is disclosed.

3.17 Taxes

A. Current tax

Current tax assets and liabilities for the current and
prior years are measured at the amount expected to
be recovered from, or paid to, the taxation authorities.
Current tax is the amount of tax payable on the taxable
income for the period as determined in accordance
with the applicable tax rates and the provisions of the
Income Tax Act, 1961.

B. Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and
liabilities in the standalone financial statements and
the corresponding tax bases used in the computation
of taxable profit.

Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period. The carrying amount of deferred tax
liabilities and assets are reviewed at the end of each
reporting period.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).

Deferred tax items are recognised in correlation to
the underlying transaction either in OCI or equity.

Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same
governing tax laws and the Company has a legally
enforceable right for such set off.

C. Goods and services tax paid on acquisition of
assets or on incurring expenses

Expenses and assets are recognised net of the goods
and services tax paid, except when the tax incurred
on a purchase of assets or availing of services is

not recoverable from the taxation authority, in which
case, the tax paid is recognised as part of the cost
of acquisition of the asset or as part of the expense
item, as applicable.

The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of
receivables or payables in the balance sheet.

3.18 Earnings per share

Basic earnings per share ("EPS”) is computed by
dividing the profit after tax (i.e. profit attributable to
ordinary equity holders) by the weighted average
number of equity shares outstanding during the year.

Diluted EPS is computed by dividing the profit after
tax (i.e. profit attributable to ordinary equity holders)
as adjusted for after-tax amount of dividends and
interest recognised in the period in respect of the
dilutive potential ordinary shares and is adjusted for
any other changes in income or expense that would
result from the conversion of the dilutive potential
ordinary shares, by the weighted average number of
equity shares considered for deriving basic earnings
per share as increased by the weighted average
number of additional ordinary shares that would
have been outstanding assuming the conversion
of all dilutive potential ordinary shares Potential
equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net
profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be
converted as at the beginning of the period, unless
they have been issued at a later date. Dilutive potential
equity shares are determined independently for each
period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for
share splits / reverse share splits, right issue and
bonus shares, as appropriate.

3.19 Dividends on ordinary shares

The Company recognises a liability to make cash
or non-cash distributions to equity holders of
the Company when the distribution is authorised
and the distribution is no longer at the discretion
of the Company. As per the Act, final dividend is
authorised when it is approved by the shareholders
and interim dividend is authorised when the it is
approved by the Board of Directors of the Company.
A corresponding amount is recognised directly in
equity. Non-cash distributions are measured at the
fair value of the assets to be distributed with fair
value re-measurement recognised directly in equity.
Upon distribution of non-cash assets, any difference

between the carrying amount of the liability and
the carrying amount of the assets distributed is
recognised in the statement of profit and loss.

4. Standards issued but not yet effective

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.