Annexure VII: Notes to restated consolidated financial information
(All amounts are in INR Millions unless otherwise stated)

29 Provisions (Current)
As at December As at March 31 As at March 31 As at March 31

Particulars 31.2020 2020 2019 2018

Provision for employee benefits

Gratuity 8.00 “ 29.09 28.31

Other Provisions

Provision for Warranty Cost 11.27 12.31 9.72 4.78

Provision for Rejection 9.45 6.02 12.72 7.78
28.72 18.33 51.53 40.87

Note:

Movement in Provision for product warranties is as follows :

Opening 12.31 9.72 4.78 3.04

Expired during the period / year (12.31) (9.72) (4.78) (3.04)

Warranty provided for current period / year 11.27 12.31 9.72 4.78

Closing 11.27 12.31 9.72 4.78

‘This provision is recognised once the products are sold. The estimated provision takes into account historical information, frequency and average
cost of warranty claims and the estimate regarding possible future incidence of claims. The provision for warranty claims represents the present
value of management's best estimate of the future economic benefits. The outstanding provision for product warranties as at the reporting date is
for the balance unexpired period of the respective warranties on the various products which ranges upto one year.

is as follows :

 

Movement in Provision for reje

Opening 6.02 12.72 7.78 3.91
Expired during the period / year (6.02) (12.72) (7.78) (3.91)
Warranty provided for current period / year 9.45, 6.02 12.72 7.78
Closing 9.45 6.02 12.72 7.78

This provision is recognised once the products are sold. Materials are rejected due to various reasons and either get re processed and replaced to
the customers depending on the type of rejections. These rejections gets fulfilled within a period of 3 months and the provisions represents the
PV of management's best estimate of possible rejections within the next one quarter.

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