Provisions, contingent liabilities and contingent assets

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. The
expense relating to any provision is presented in the statement
of profit and loss net of any reimbursement. If the effect of the
time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to
the passage of time is recognised as other finance expense.

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 measures reliably. The Company does not recognise a
contingent liability but discloses its existence in the standalone
financial statements.

A contingent asset is not recognised unless it becomes virtually

certain that an inflow of economic benefits will arise. When an
inflow of economic benefits is probable, contingent assets are
disclosed in the standalone financial statements.

Provisions, Contingent liabilities and contingent assets are
reviewed at each balance sheet date.

2.16 Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which
the employees render the related service are recognised
in respect of employees' services up to the end of the
reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to
be settled wholly within 12 months after the end of
the period in which the employees render the related
service. They are therefore measured as the present
value of expected future payments to be made in respect
of services provided by employees up to the end of the
reporting period using the projected unit credit method.
The benefits are discounted using the appropriate market
yields at the end of the reporting period that have terms
approximating to the terms of the related obligation.
Remeasurements as a result of experience adjustments
and changes in actuarial assumptions are recognised in
profit or loss.

The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after
the reporting period, regardless of when the actual
settlement is expected to occur.

(iii) Post-employment obligations

The company operates the following post-employment
schemes

(a) Defined benefit plans such as gratuity

(b) Defined contribution plans such as provident fund

(c) State plans

(d) Voluntary retirement scheme

(a) Defined benefit plans - Gratuity obligations

The liability or assets recognised in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligations at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using
the projected unit credit method.

The present value of the defined benefit obligation
denominated in INR is determined by discounting
the estimated future cash outflows by reference to
market yields at the end of the reporting period on
government bonds that have terms approximating
to the terms of the related obligation. The benefits
which are denominated in currency other than INR,
the cash flows are discounted using market yields
determined by reference to high-quality corporate
bonds that are denominated in the currency in
which the benefits will be paid, and that have
terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense
in the statement of profit and loss.

Remeasurement gains and losses arising from
experience adjustments and change in actuarial
assumptions are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in retained earnings
in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit
or loss as past service cost.

(b) Defined contribution plans

The Company pays provident fund contributions
to publicly administered funds as per applicable
regulations. The Company has no further payment
obligations once the contributions have been paid.
The contributions are accounted for as defined
contribution plans and the contributions are
recognised as employee benefit expense when
they are due.

(c) State plans

Employer's contribution to Employees' State
Insurance is charged to statement of profit and
loss.

(d) Voluntary retirement scheme

Compensation payable under the voluntary
retirement scheme is being charged to the
Statement of Profit and Loss in the year of
settlement.

2.17 Dividends

Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but
not distributed at the end of the reporting period. Dividend
is recognised as a liability in the period in which the interim

dividends are approved by the Board of Directors, or in respect
of the final dividend when approved by shareholders.

2.18 Research and development expenditure

Revenue expenditure pertaining to research is charged to the
statement of profit and loss. Product development costs are
charged to the statement of profit and loss unless a product's
technological and commercial feasibility has been established,
in which case such expenditure is capitalised.

2.19 Earnings per share

Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the year.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

2.20 Investment property

Property that is held for long-term rental yields or for capital
appreciation or both, and that is not used in the production
of goods and services or for the administrative purposes, is
classified as Investment property and is measured initially
at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less
accumulated depreciation and accumulated impairment loss, if
any.

2.21 Government grants

Government grants relating to income are deferred and
recognised in the profit or loss over the period necessary
to match them with the costs that they are intended to
compensate and presented within other income.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities as
deferred income and are credited to profit or loss on a straight¬
line basis over the expected lives of the related assets and
presented within other income.

Export entitlements from government authorities are
recognised in the statement of profit and loss as a reduction
from "Cost of materials consumed" when the right to receive
credit as per the terms of the scheme is established in respect
of the exports made by the group, and where there is no
significant uncertainty regarding the ultimate realisation of the
entitlement

2.22 Rounding of amounts

All amounts disclosed in the standalone financial statements
and notes have been rounded off to the nearest lakhs as per
the requirement of Schedule III, unless otherwise stated.

2.23 Recent accounting pronouncements (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.