13.Provisions, Contingent Liabilities, Contingent Assets and Capital Commitments:

Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales
Tax, Income Tax Excise etc.) pending in appeal / court for which no reliable estimate can be made and
or involves uncertainty of the outcome of the amount of the obligation or which are remotely poised for
crystallization are not provided for in accounts but disclosed in notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when
reliable estimation can be made of the amount of obligation, is recognized in accounts in terms of
discounted value, if the time value of money is material using a current pre-tax rate that reflects the risk
specific to the liability.

No contingent asset is recognized but disclosed by way of notes to accounts.

14.Impairment of assets

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable
amount/Value in use.

Recoverable amount is determined:

a. In the case of an individual asset, a higher of the net selling price and the value in use;

b. In the case of a cash generating unit (a group of assets that generates identified, independent
cash flows), at higher of the cash generating unit's selling price and the value in use.

Value in use is determined as the present value of estimated future cash flows from the continuing use
of an asset and from its disposal at the end of its useful life.

15. Cash flow statement:

Cash flow statement has been prepared under the indirect method as set out in the Indian Accounting
Standard 7: "Statement of Cash Flows" as specified in Section 133 of the Companies Act, 2013 read with
Rule 7 of Companies (Accounts) Rules, 2014.