i. Provisions
Provisions arc recognized in the period when it becomes probable that there will be a future outflow of funds resulting
from past operations or events that can reasonably be estimated. The timing of recognition requires application of
judgement to existing facts and circumstances which may be subject to change.
ii. Contingencies
In the normal course of business, contingent liabilities may arise front litigation and other claims against the Company.
Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated
n3 contingent liabilities. Such liabilities ate disclosed in the notes but are not recognized. Contingent assets are neither
recognised nor disclosed in the financial statements.
iii. Provision for income tax and deferred tax assets
The Company uses estimates and judgments based on the relevant rulings in the areas of allocation of revenue, costs,
allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset
is recognized to the extent that it is probable that future taxable profit will be available against which the deductible
temporary differences and tax losses can be utilized.
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgment is required to determine the
amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies. Accordingly, the Company exercises its judgment to reassess the
carrying amount of deferred tax assets at the end of each reporting period.
iv. Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If an
indication exists, or when the annual impairment testing of the asset is required, the Company estimates the asset’s
recoverable amount. An asset's recoverable amount is the higher of an assets or Cash-gcnerating-unit*s (CGU’s) lair
value ICAi coAb ul disposal and ib value in use. Ii Is determined ibr an Individual asset, unless the asset docs not
generate cash inflows that are largely independent of those from the other assets or group of assets. When the carrying
amount of an asset or CGU exceeds it recoverable amount, the asset is considered as impaired and it’s written down to
its recoverable amount.
v. Employees Benefits
The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions.
These assumptions have been explained under employee benefits note.
h. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income
or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.
i. Figures relating to previous year have been regrouped wherever necessary to make them comparable with the current
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Terms/ rights attached to equity shares:
The company has only one class of equity shares having par value of' 10 per share. Each holder of equity shares is entitled to one vote per share.
As per records of the Company, including its register of shareholders/mcmbers and other declarations received from shareholders regarding beneficial
interest, the above shareholding represents both legal and beneficial ownerships of shares.
The Company has issued Nil shares of Rs 10/- as fully paid up pursuant to contracts) without payment being received in cash, or by way of bonus
shares out of free reserves during the period of five years immediately preceding the date as at which Balance Sheet is prepared.
The company has not bought any shares by way of buy back during the period of five years immediately preceding date as at which Balance Sheet is
prepared.
There arc no calls unpaid on issued shares.
No Shares have been forfeited by the company.
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