k Provisions, Contingent liabilities and Contingent assets
A provision is recognised when the Company has a present obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be
made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present
value and are determined based on best estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent
liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in
the financial statements.
l Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amount
of cash that are subject to an insignificant risk of change in value and having original maturities of three months
or less from the date of purchase, to be cash equivalents.
m Earnings per share
Basic earnings per share is computed by dividing the profit after tax by the weighted average number of equity
shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and
other charges to expense or income relating to the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all dilutive potential equity shares.
(ii) Rights, preferences and restrictions attached to shares
Equity Shares: The Company has one class of equity shares. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their
shareholding.
Current Ratio decreases due to increase in current liabilities.
Return on equity ratio increases due to increase in net profit during the year.
Trade receivable Turnover ratio increases due to increase in revenue of the company.
Trade payable turnover ratio increases due to increase in purchases during the year.
Net capital turnover ratio increases due to increase in revenue.
Net profit and return on capital employed ratio increase due to increase in profit during the year.
21 Other Statutory Disclosures as per the Companies Act, 2013
The Company does not hold any benami property. No proceedings have been initiated on the Company or are pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
Rules made thereunder
There is no income surrendered or disclosed as income during the current or prior year in the tax assessments under the
Income Tax Act, 1961, that has not been recorded in the books of accounts of the Company
The Company has not traded or invested in crypto currency or virtual currency during the current or prior year.
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