Provisions & CONTIGENT LIABILTY

a) Provisions Provisions (excluding employee benefits) 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. If the effect of the time value of money
is material, provisions are discounted using equivalent
period government securities interest rate. Unwinding
of the discount is recognised in the Statement of Profit
and Loss as a finance cost. Provisions are reviewed at
each balance sheet date and are adjusted to reflect the
current best estimate.

b) Contingencies Contingent liabilities are disclosed 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 or a reliable
estimate of the amount cannot be made. Information
on contingent liability is disclosed in the Notes to
the Financial Statements. Contingent assets are not
recognised. However, when the realisation of income
is virtually certain, then the related asset is no longer a
contingent asset, but it is recognised as an asset.

3.23 Research and development costs

Research costs are expensed as incurred. Development
expenditures on an individual project are recognised as an
intangible asset when the Company can demonstrate:

a) The technical feasibility of completing the intangible
asset so that the asset will be available for use or sale

b) Its intention to complete and its ability and intention to
use or sell the asset

c) How the asset will generate future economic benefits

d) The availability of resources to complete the asset

e) The ability to measure reliably the expenditure during
development

Following initial recognition of the development
expenditure as an asset, the asset is carried at cost
less any accumulated amortisation and accumulated
impairment losses. Amortisation of the asset begins
when development is complete and the asset is available
for use. It is amortised over the period of expected future
benefit. Amortisation expense is recognised in the
statement of profit and loss unless such expenditure
forms part of carrying value of another asset.

4. Recent Accounting development

The Ministry of Corporate Affairs ("MCA") notified new
standard or amendments to the existing standards under
Companies (Indian Accounting Standard) Rules as issued
from time to time. On March 23, 2022, MCA notified the
Companies (Indian Accounting Standards) Amendment
Rules, 2022, applicable from April 1, 2022 to the Company as
below:

Ind AS 16 Property Plant and equipment - The amendment
clarifies that excess of net sale proceeds of items produced
over the cost of testing, if any, shall not be recognised in the
profit or loss but deducted from the directly attributable

costs considered as part of cost of an item of property
plant, and equipment. The effective date for adoption of this
amendment is annual periods beginning on or after April 1,
2022. The Company has evaluated the amendment and there
is no impact on its financial statements.

Ind AS 37 Provisions, Contingent Liabilities and Contingent
Assets - The amendment specifies that the 'cost of fulfilling'
a contract comprises the 'costs that relate directly to the
contract'. Costs that relate directly to a contract can either
be incremental costs of fulfilling that contract (examples
would be direct labour, materials) or an allocation of other
costs that relate directly to fulfilling contracts (an example
would be the allocation of the depreciation charge for an
item of property plant and equipment used in fulfilling the
contract). The effective date for adoption of this amendment
is annual periods beginning on or after April 1, 2022, although
early adoption is permitted. The Company has evaluated the
amendment and the impact is not expected to be material.

Ind As 103 The amendments specify that to qualify for
recognition as part of applying the acquisition method, the
identifiable assets acquired and liabilities assumed must
meet the definitions of assets and liabilities in the Conceptual
Framework for Financial Reporting under Indian Accounting
Standards (Conceptual Framework) issued by the Institute
of Chartered Accountants of India at the acquisition date.
These changes do not significantly change the requirements
of Ind AS 103. The Company does not expect the amendment
to have any significant impact in its financial statements

Ind As 109 The amendment clarifies which fees an entity
includes when it applies the '10 percent' test of Ind AS 109
in assessing whether to derecognise a financial liability.
The Company does not expect the amendment to have any
significant impact in its financial statements.

Ind As 116 The amendments remove the illustration of the
reimbursement of leasehold improvements by the lessor
in order to resolve any potential confusion regarding the
treatment of lease incentives that might arise because of
how lease incentives were described in that illustration.
The Company does not expect the amendment to have any
significant impact in its financial statements.

5. critical accounting estimates, assumptions and judgements

The preparation of the Company's 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 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
financial statements. Changes in estimates are accounted
for prospectively.

a) 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 recognized in the financial statements:

i) 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.

ii) Recognition of Deferred tax Assets

The extent to which deferred tax assets can be
recognized 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
utilized. In addition, significant judgement is
required in assessing the impact of any legal or
economic limits or uncertainties in various tax
jurisdictions.

b) 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 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.

i) Useful lives of property .plant & equipment :

The Company reviews its estimate of the useful
lives of property ,plant & equipment at each
reporting date, based on the expected utility of the
assets.

ii) 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.

iii) Inventories :

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

iv) Fair Value measurement of Financial Instruments:

When the fair values of financial assets and
financial liabilities recorded in the 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.