Sun Ltd. is sued by a customer for ₹10 lakh in damages on 1 Jan 20X2 (alleged faulty product supplied 30 Sept 20X1). By 31 March 20X2 (reporting date), the company estimates a 75% probability of paying ₹10 lakh. The case settles 15 May 20X2 for ₹12 lakh damages (financials authorised 18 May 20X2). Under Ind AS 37 + Ind AS 10:

Para 8 of Ind AS 10 — events after the reporting period that provide evidence of conditions existing at the reporting date are ADJUSTING events. The settlement on 15 May 20X2 (before financials authorised 18 May 20X2) confirms the company's obligation at year-end. Adjust the provision to the actual settlement amount of ₹12 lakh. Ind AS 37 requires the provision (>50% probability + reliable estimate).