m. Provisions, Contingent Liabilities & Contingent Assets:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, and it is probable that the Company will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognized as asset if it is virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.
o. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act,
2006:
The Company has no dealing with any party registered under the Micro, Small and Medium Enterprises
Development Act, 2006.
p. Cash and Cash Equivalent:
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with
an original maturity of three months or less and highly liquid investments that are readily convertible into
known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding
bank overdrafts as they are considered an integral part of the Company’s cash management.
a. Event occurring after the date of Balance Sheet:
Where material event occurring after the date of the balance sheet are considered up to the date of approval
of accounts by the board of director.
b. Recoverability of Trade Receivables:
Required judgments are used in assessing the recoverability of overdue trade receivables and for
determining whether a provision against those receivables is required. Factors considered include the credit
rating of the counterparty, the amount and timing of anticipated future payments and any possible actions
that can be taken to mitigate risk of non-payment.
c. The Company has reclassified/regrouped previous year figures where necessary to confirm to the current
year’s classification.
|