3.15. Provisions, Contingent Liabilities and Contingent Assets
3.15.1. Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event
and 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 the obligation. Provisions are determined by
discounting the expected future cash flows (representing the best estimate of the expenditure required to
settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is
recognized as finance cost.
3.15.2. Contingent Liabilities
Contingent liability is a possible obligation arising from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events but is not recognized because it
is not possible that an outflow of resources embodying economic benefit will be required to settle the
obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the
existence of contingent liabilities in Other Notes to Financial Statements.
3.15.3. Contingent Assets
Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of
an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of
economic benefits is probable.
3.15.4. Intangible Assets
3.15.4.1. Recognition and Measurement
Intangible assets are stated at cost on initial recognition and subsequently measured at cost less accumulated
amortization and accumulated impairment loss, if any.
3.16. Amortization
3.16.1. Software's are amortized over a period of three years.
3.16.2. The amortization period and the amortization method are reviewed at least at the end of each
financial year. If the expected useful life of the assets is significantly different from previous
estimates, the amortization period is changed accordingly.
3.17. Operating Segment
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker of the Company is responsible for allocating
resources and assessing performance of the operating segments and accordingly is identified as the chief
operating decision maker. The Company has identified one reportable segment only based on the information
reviewed by the CODM.
4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING
POLICIES
Estimates and judgments are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed
to be reasonable under the circumstances. Information about Significant judgments and Key sources of
estimation made in applying accounting policies that have the most significant effects on the amounts
recognized in the financial statements is included in the following notes:
4.1. Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is
based on an assessment of the probability of the Company's future taxable income against which the
deferred tax assets can be utilized. In addition, significant judgment is required in assessing the
impact of any legal or economic limits.
4.2. Classification of Leases: The Company enters into leasing arrangements for various assets. The
classification of the leasing arrangement as a finance lease or operating lease is based on an
assessment of several factors, including, but not limited to, transfer of ownership of leased asset at
end of lease term, lessee's option to purchase and estimated certainty of exercise of such option,
proportion of lease term to the asset's economic life, proportion of present value of minimum lease
payments to fair value of leased asset and extent of specialized nature of the leased asset.
Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This
incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a
similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the
right of-use asset in a similar economic environment. Determination of the incremental borrowing rate
requires estimation.
4.3. Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of
actuarial assumptions which include mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates, medical cost trends, anticipation of future salary
increases and the inflation rate. The Company considers that the assumptions used to measure its
obligations are appropriate. However, any changes in these assumptions may have a material impact
on the resulting calculations.
4.4. Provisions and Contingencies: The assessments undertaken in recognising provisions and
contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37,
'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the likelihood of the
contingent events is applied best judgment by management regarding the probability of exposure to
potential loss.
4.5. Impairment of Financial Assets: The Company reviews it carrying value of investments carried at
amortized cost annually, or more frequently when there is indication of impairment. If recoverable
amount is less than its carrying amount, the impairment loss is accounted for.
4.6. Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through
appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of
judgment and estimates. Where the expectation is different from the original estimate, such
difference will impact the carrying value of the trade and other receivables and doubtful debts
expenses in the period in which such estimate has been changed.
4.7. Fair value measurement of financial Instruments: When the fair values of financial assets and
financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in
active markets, their fair value is measured using valuation techniques including the Discounted Cash
Flow model. The input to these models are taken from observable markets where possible, but
where this not feasible, a degree of judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit risk and volatility.
4.8. Other Notes
• Details of Crypto / Virtual Currency
There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the Financial Year 2025-26
• There is no micro, Small and Medium Enterprises, to whom the Company owes dues which
outstanding for more than 45 days as at 31st March 2026. This information as required to be
disclosed under the micro, small and medium Development Act, 2006 has been determined to
the extent such parties have been identified on the basis of information available with company.
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