Provision and contingent liabilities

The Company sets up a provision when there is a
present legal or constructive obligation as a result of a
past event and it will probably requires an outflow of
resources to settle the obligation and a reliable estimate
can be made. 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 the risks specific to the liability. When
discounting is used, the increase in the provision due to
the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at reporting date, taking into account
the risks and uncertainties surrounding the obligation.

A disclosure for a contingent liability is made where
there is 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 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 where reliable estimate of the obligation
cannot be made. Contingent liabilities are disclosed on
the basis of judgment of the management/independent
experts. These are reviewed at each balance sheet date
and are adjusted to reflect the current management
estimate.

In case of Onerous Contracts the Company is
recognizing impairment loss is any, occurred on assets
used in fulfilling the contract.

P. Contingent Assets

Contingent Assets are not recognized in the financial
statements. However, these are disclosed in the
Director's report.

Q. Revenue recognition

(i) Revenue from operations

Revenue from contracts with customers is
recognized when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration the Company is entitled
in exchange for those goods or services.

(ii) Other income

A. Interest income is accrued on a time basis
by reference to the principal outstanding and
the effective interest rate.

B. Dividend income is accounted in the period
in which the right to receive the same is
established.

C. Other items of income are accounted as and
when the right to receive such income arises
and it is probable that the economic benefits
will flow to the Company and the amount of
income can be measured reliably

R. Exceptional items

An item of income or expense which by its size, type
or incidence requires disclosure in order to improve
an understanding of the performance of the Company
is treated as an exceptional item and the same is
disclosed in the notes to accounts.

S. Government grants

Grants from government are recognized at their fair
value where there is reasonable assurance that the
grant will be received and the Company will comply
with all attached conditions.

Government grants relating to income are deferred and
recognized in the statement of profit and loss account
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.

T. Segment reporting

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of the
Company’s other components, and for which discrete
financial information is available. Operating segments
are reported in a manner consistent with the internal
reporting provided to the chief operating decision
maker ('CODM’).

The Company’s Board has identified the CODM who is
responsible for financial decision making and assessing
performance. The Company has a single operating
segment as the operating results of the Company are
reviewed on an overall basis by the CODM.

U. Leases
As lessee

The Company, as a lessee, recognizes a right-of-use
asset and a lease liability for its leasing arrangements,
if the contract conveys the right to control the use of
an identified asset. The determination of whether
an agreement is, or contains, a lease is based on the
substance of the agreement at the date of inception.

The contract conveys the right to control the use of an
identified asset, if it involves the use of an identified
asset and the Company has substantially all of the
economic benefits from use of the asset and has right
to direct the use of the identified asset.

Initial measurement

Lease Liability: At the commencement date, a Company
measure the lease liability at the present value of the
lease payments that are not paid at that date. The
lease payments shall be discounted using incremental
borrowing rate. Right-of-use assets: initially recognized
at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus any
initial direct costs less any lease incentives.

Subsequent measurement

Lease Liability: Company measure the lease liability by
(a) increasing the carrying amount to reflect interest on
the lease liability; (b) reducing the carrying amount to
reflect the lease payments made; and (c) remeasuring
the carrying amount to reflect any reassessment or
lease modifications. Right-of-use assets: subsequently
measured at cost less accumulated depreciation and
impairment losses. Right-of-use assets are depreciated
from the commencement date on a straight line basis
over the shorter of the lease term and useful life of the
under lying asset.

Impairment:

Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell
and the value in-use) is determined on an individual
asset basis unless the asset does not generate cash
flows that are largely independent of those from
other assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit (CGU) to
which the asset belongs.

Short term Lease or Low Value Lease

Short term lease is that, at the commencement date,

has a lease term of 12 months or less. A lease that
contains a purchase option is not a short-term lease.
Low value lease is for which the underlying asset is of
low value. If the Company elected to apply short term
lease/Low Value Lease, the lessee shall recognize the
lease payments associated with those leases as an
expense on either a straight-line basis over the lease
term or another systematic basis. The lessee shall
apply another systematic basis if that basis is more
representative of the pattern of the lessee’s benefit.

V. Share based payment / arrangements

The stock options granted to employees in terms of
the Company’s Stock Options Schemes, are measured
at the fair value of the options at the grant date. The
fair value of the options is treated as discount and
accounted as employee compensation cost over the
vesting period on a straight-line basis. The amount
recognized as expense in each year is arrived at based
on the number of grants expected to vest. If a grant
lapses after the vesting period, the cumulative discount
recognized as expense in respect of such grant is
transferred to the general reserve within equity. The
fair value of the stock options granted to employees
of the Company by the Company’s subsidiaries is
accounted as employee compensation cost over
the vesting period and where such fair value is not
recovered by the subsidiaries, the same is treated as
dividend declared by them. The share-based payment
equivalent to the fair value as on the date of grant of
employee stock options granted to key managerial
personnel is disclosed as a related party transaction
in the year of grant. The dilutive effect of outstanding
options is reflected as additional share dilution in the
computation of diluted earnings per share.

The stock option scheme for employees is yet to be
implemented by the Company.

W. Earnings per share

Basic earnings per equity share is computed by dividing
the net profit or loss attributable to equity shareholders
of the Company by the weighted average number of
equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by
dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted average
number of equity shares considered for deriving basic
earnings per equity share and also the weighted
average number of equity shares that could have been
issued upon conversion of all dilutive potential equity
shares.

X. Standards issued but not effective

The Ministry of Corporate Affairs (MCA) has
notified Companies (Indian Accounting Standards)
Amendment Rules, 2023. This notification has resulted
into amendments in the following existing accounting
standards which are applicable to company from April
01,2023.

I. Ind AS 107 - Financial Instrument Disclosures.

II. Ind AS 109 - Financial Instrument

III. Ind AS 115 - Revenue from contracts with
customers

IV. Ind AS 1 - Presentation of Financial Statements

V. Ind AS 34 - Interim Financial Reporting

Application of above standards are not expected to
have any significant impact on the Company’s financial
statements.