The cookie jar: Rs. 403 crore of expected losses simply disappeared, and turned into profit. Nobody had earned a rupee

A provision is simply management's estimate of a future cost the company can already see coming: Repairs under warranty, a lawsuit it might lose, a loan that may not be fully repaid. Recording it lowers today's profit to prepare for tomorrow's bill, which is prudent and normal. The catch is that it is an estimate, and estimates can be bent.