2.22 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized 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 are liable
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 a current pretax rate that reflects, when
appropriate, 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.

Contingent Liabilities are not recognized but are disclosed, while Contingent Assets are neither recognized nor disclosed, in
the financial statements.

2.23 Critical accounting estimates and judgments

In the course of applying the policies outlined above, the Company is required to make judgments, estimates and assumptions
about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future period, if the revision affects current and future periods.

(i) Critical Judgments

In the process of applying the Company's accounting policies, management has made the following judgments, which have
the most significant effect on the amounts recognised in the standalone financial statements:

Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a
lease requires significant judgment. The Company uses significant judgment in assessing the lease term (including anticipated
renewals) and the applicable discount rate.

The Company determines the lease term as the noncancellable period of a lease, together with periods covered by an option
to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts
and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to
exercise the option to terminate the lease. The Company revises the lease term if there is a change in the noncancellable
period of a lease

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio
of leases with similar characteristics.

Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The
Company uses judgment in making assumption and selecting the inputs to the impairment calculation, based on Company's
past history, existing market conditions as well as forward estimate at the end of each reporting period.

Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The
Company reviews at each balance sheet date the carrying amount of deferred tax assets. The amount of tax payable in respect
of any period is dependent upon the interpretation of the relevant tax rules. The factors used in estimates may differ from
actual outcome which could lead to significant adjustment to the amounts reported in the financial statements.

Defined benefit Plan

The cost of the defined benefit plan and other postemployment benefits and the present value of such obligation are
determined using actuarial valuations. A n actuarial valuation involves making various assumptions that may differ from actual
development in the future. These include the determination of the discount rate, future salary increases, mortality rates and
attrition rate. Due to 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.

Insurance claims and other Miscellaneous Revenues

Insurance claims and other miscellaneous revenues are recognized when the Company has reasonable certainty of recovery.
Subsequently any change in recoverability is provided for.

Contingences and commitments

In the normal course of business, contingent liabilities may arise from litigations and other claims against the Company. Where
the potential liabilities have a low probability of crystallizing or are very difficult to quantify reliably, we treat them as contingent
liabilities. Such liabilities are disclosed in the notes but are not provided for in the standalone financial statements. Although
there can be no assurance regarding the final outcome of the legal proceedings, we do not expect them to have a materially
adverse impact on our financial position or profitability.

(ii) Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below:

Allowances for doubtful debts

The Company makes allowances for doubtful debts based on an assessment of the recoverability of trade and other
receivables. The identification of doubtful debts requires use of judgments and estimates. Where the expectation is different
from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts
expenses in the period in which such estimate has been changed.

Allowances for inventories

Management reviews the inventory age listing on a periodic basis. This review involves comparison of the carrying value of
the aged inventory items with the respective net realizable value. The purpose is to ascertain whether an allowance is required
to be made in the standalone financial statements for any obsolete and slow moving items. Management is satisfied that
adequate allowance for obsolete and slow moving inventories has been made in the standalone financial statements.

Liability for sales return

In making judgment for liability for sales return, the management considered the detailed criteria for the recognition of revenue
from the sale of goods set out in Ind AS 115 and in particular, whether the Company had transferred to the buyer the significant
risk and rewards of ownership of the goods. Following the detailed quantification of the Company's liability towards
sales return, the management is satisfied that significant risk and rewards have been transferred and that recognition of the
revenue in the current year is appropriate, in conjunction with the recognition of an appropriate liability for sales return.

Accruals for estimated product returns, which are based on historical experience of actual sales returns and adjustment on
account of current market scenario is considered by Company to be reliable estimate of future sales returns.

Employee benefit obligations

Employee benefit obligations are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments. These include the estimation of the appropriate discount rate, future
salary increases and mortality rates. Due to the complexities involved in the valuation and its longterm nature, the employee
benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Provisions and contingencies

From time to time, the Company is subject to legal proceedings, the ultimate outcome of each being subject to uncertainties
inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made and the
amount can be reasonably estimated. Significant judgment is required when evaluating the provision including, the probability
of an unfavorable outcome and the ability to make a reasonable estimate of the amount of potential loss. Litigation provisions
are reviewed at each accounting period and revisions made for the changes in facts and circumstances. Contingent liabilities
are disclosed in the notes forming part of the standalone financial statements. Contingent assets are not disclosed in the
standalone financial statements unless an inflow of economic benefits is probable.

Deferred income tax assets and liabilities

Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based
upon the likely timing and the level of future taxable profits.

The amount of total deferred tax assets could change if management estimates of projected future taxable income or if tax
regulations undergo a change.

Impairment of Financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized
cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. In respect
of trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which
requires expected lifetime losses to be recognised upon initial recognition of the receivables. For all other financial assets,
expected credit losses are measured at an amount equal to the 12 months expected credit losses or at an amount equal to
the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
The Company reviews its carrying value of investment in subsidiaries and goodwill carried at cost (net of impairment, if any)
annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount,
the impairment loss is accounted for in the standalone statement of profit and loss.

Impairment of PPE, CWIP and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. Value in use is usually determined on the
basis of discounted estimated future cash flows. This involves management estimates on anticipated commodity prices, market
demand and supply, economic and regulatory environment, discount rates and other factors. Any subsequent changes to cash
flow due to changes in the abovementioned factors could impact the carrying value of assets.

Impairment of Inventories

Inventories are valued at lower of cost (on weighted average basis) and net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes all charges in bringing the goods to their present location and
condition, including other levies, transit insurance and receiving charges. Work-in-progress and finished goods include
appropriate proportion of overheads and, where applicable, taxes and duties. Net realisable value is the estimated selling price
in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Impairment of investments in associate/subsidiaries

Determining whether the investment in associate/subsidiary is impaired requires an estimate in the value in use of investment.
In considering the value in use, the management has anticipated future business orders, operating margins and other factors
of the underlying businesses / operations of the investee company. Any subsequent changes to the cash flows due to changes
in the abovementioned factors could impact the carrying value of investment.

As per our report of even date attached
for Doogar &Associates
Chartered Accountants

FRNo.00561N for and on behalf of the Board

Sd/-

Sd/- Anil Modi DIN:00187078 Chairman & Managing Director

(Mukesh Goyal) Akshay Modi DIN:03341142 Jt. Managing Director

Partner Pradeep Kapoor PAN:ATEPK2474R Chief Financial Officer

M No.: 081810 Rajan Kumar Singh M.No.:A42105 Company Secretary