2.16 Provisions
The company recognises provisions for liabilities and probable losses that have been incurred when it has
present legal or constructive obligation as a result of past events and it is probable that the company will be
required to settle the obligation and a reliable estimate of the amount of the obligation can be made.
Company has complied w ith the requirements of RBI Act and has made necessary provisions.
Provisions are reviewed at each balance sheet date
2.17 Employee Benefits
Short Term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
w ithin 12 months after the end of the period in w hich the employees render the service are measured at
the amounts expected to be paid when the liabilities arc settled.
Retirement and other employee benefit
Company does not have any policy related to post employment benefit and company has no
obligation for the same.
J1V
2.18 Earnings per share
a. Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Group by
the weighted average number of equities shares outstanding during the year
b. Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after tax effect of interest and Financing costs attributable to dilutive potential
equity shares and weighted average number of equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity' shares.
2.19 Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lacs
as per the requirements of Schedule III unless otherwise stated.
2.20 Cash Flow Statement
Cash flows arc reported under the 'Indirect method" as set out in Ind AS 7 on 'Statement of Cash
Flows, whereby net profit after tax is adjusted for the effects of transactions of non-cash nature, tax
and any deferrals or accruals of past or future cash receipts or payments. The cash flows are
prepared for the operating, investing and financing activities of the Company
2.21 Capital management
For the purpose of the company’s capital management, capita) includes issued capital and other
equity. The primary objective of the company's capital management is to maximize shareholders
value. The company manages its capital structure and makes adjustment in the light of changes in
economic environment and requirements of the financial covenants.
The company monitors capital using adjusted net debt to equity ratio. For this purpose, adjusted net
debt is defined as total debt less cash and bank balances.
3. Critical Estimates and Judgments
The company makes estimates and assumptions that affect the amount recognized in the financial statements
and the carrying amount of assets and liabilities within the next financial year. Estimates and judgments arc
critically evaluated and are based on management's experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. Management also makes certain
judgments in the process of applying the accounting policies.
Judgments that have the most significant effect on the amount recognized in the financial statements and
estimate that can cause a significant adjustment to the carrying amount of assets and liabilities w ithin next
financial year include the following: -
i. Estimation of value of unlisted investments
The value of investments that are not traded in active market is decided on the basis of Cost as
sufficient more recent information is not available to measure its fair value. On the basis of
information so available, the investments arc carried at amortized cost.
ii. Effective interest rate method
The effective interest rate is a rate that represents the best estimate of a constant rate of return over
expected life of the loans.
•ii. Income Tax
Provision for current tax is made taking into consideration benefits admissible under the provisions
of Income Tax Act, 1961.The company has exercised option under section I 15 BAA of the Income
Tax Act, 1961. Therefore, the provisions of minimum alternate tax under section 1 15JB arc not
applicable. Hence, Mat Credit is reversed.
iv. Provisions and contingent liabilities
, . . .O netting litigation in measuring and
The company exercises Judgment and subject to settlement, government
.......... >“ * ............... °r 1
v. Impact of COV1D-19 pandemic
. *rrnss the elobe and India which has contributed to significant decline
Covid-19 contmucs to spread acroS ^ signjfican[ dccrease in overall economic activities.
and volalduym global and r.nanc . k * management believes that it has taken into
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financial statements.
4 These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) and
’ the provisions of the Companies Ac. 2013 as applicable. Ind AS are prcscetbcd under Secnon o
Act read with Rule 3 of the Companies (Indian Accounlmg Standards) Rules, -015 and Comp
(Indian Accounting Standards) Amendment Rules, 2016.
As per Our report of even date attached For and on behalf of Board of Directors
For Mehrotra and Company
Chartered Accountants
FRNo.:-000720C
VaVu
(OXAgarwa,,^^^ JSSSStr
M.No.-401863
Place: KANPUR . ..
D”,3“! '
(Arpita Sharma)
Company Secretary
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