Provisions, Contingent Liabilities and Contingent Assets

(a) Provisions are recognized only when:

(i) The Company has a present obligation (legal or constructive) as a result of a past event; and

(ii) It is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; and

(iii) A reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect
of time value of money is material, the carrying amount of the provision is the present value of those cash
flows.

(b) Contingent Liability is disclosed in case of:

(i) A present obligation arising from past events, when it is not probable that an outflow of resources
will be required to settle the obligation; or

(ii) A present obligation arising from past events, when no reliable estimate is possible.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received under such contract, the present obligation under the contract is recognized and
measured as a provision.

(c) Contingent Assets:

(i) Contingent assets are not recognized in the financial statements.

(ii) Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

2.5.21 Commitments

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for;

b) Uncalled liability on shares and other investments partly paid;

c) Funding related commitment; and

d) Other non-cancellable commitments, if any, to the extent they are considered material and relevant
in the opinion of management.

Other commitments related to sales/procurements made in the normal course of business are not disclosed
to avoid excessive details.

2.5.22 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported using indirect method adjusting the net profit for
the effects of:

i. changes during the period in operating receivables and payables transactions of a non-cash nature;

ii. non-cash items such as depreciation, provisions, deferred taxes, unrealized foreign currency gains
and losses; and

iii. All other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items
which are not available for general use as on the date of Balance Sheet.

3. Recent Accounting Developments3.1 Law enacted but not effective

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post¬
employment benefits received Indian Parliament's approval and Presidential assent in September 2020. The
Code has been published in the Gazette of India and subsequently, on November 13, 2020, draft rules were
published and stakeholders' suggestions were invited. However, the date on which the Code will come into effect
has not been notified. The Company will assess the impact of the Code when it comes into effect and will record
any related impact in the period the Code becomes effective.

3.2 Amendments in Ind AS

The Ministry of Corporate Affairs (MCA) notifies new standards 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) Amendment Rules, 2023, as below:

1. Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material
accounting policies rather than their significant accounting policies. The effective date for adoption of this
amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment
and the impact of the amendment is expected to be insignificant on the financial statements.

2. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a
definition of 'accounting estimates' and distinguishes changes in accounting policies from changes in accounting
estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1,
2023. The Company has evaluated the amendment and there is no impact on its financial statements.

3. Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so
that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective
date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has
evaluated the amendment and there is no impact on its financial statements.