18 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is
probable that an

outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be
made. Provisions

(excluding retirement benefits) are not discounted to their present value and are determined based on the
best estimate

required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

19 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment.

If any indication

of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the
carrying amount

of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price
and their value

in use. Value in use is arrived at by discounting the future cash flows to their present value based on an
appropriate discount

factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no
longer exists or

may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.

20 Provision for warranty

The estimated liability for product warranties is recorded when products are sold. These estimates are
established using

historical information on the nature, frequency and average cost of warranty claims and management
estimates regarding

possible future incidence based on corrective actions on product failures. The timing of outflows will vary as
and when warranty claim will arise - being typically upto three years.

21 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent
that there is no uncertainty in receiving the claims.

22 GST input credit

GST input credit is accounted for in the books in the period in which the underlying service received is
accounted and when there is no uncertainty in availing / utilising the credits.

(b) Rights, preferences and restrictions attached to Shares

Equity Shares: The Company has one class of equity shares having a par value of Rs. 10 per share. Each
shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.