(xvi) Provisions, Contingent Liability and Contingent Assets
A provision is recognized when the Company has a present obligation as a result of past event; it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and a
reliable estimate can be made of the amount of obligation. Provisions are not discounted to its present value
and are determined based on best estimate required to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Where doubtful debt remains unrecovered till the end of the year, the same is written off and reversed from
the debtors account.
Specific provisions are created in certain cases where recovery is assessed as doubtful even before the due
date.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.
Provision for doubtful receivables / bad debts are recognised based on the detailed analysis and approval of
those charged with governance on case to case basis wherein the Company do not have enough security
coverage over the said receivables.
(xvii) The Company has registered itself into as MSME unit having Udyog Aadhar Number-MH19E0049703
dt.l6th November 2016 under the Micro, Small and Medium Enterprise Development Act, 2006
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