I 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.
m 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.
n Borrowing Cost:
Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are capitalized as part of cost of
assets all other borrowing costs are charged to revenue.
o Employee Benefits:
(i) Defined Contribution Plan:
As regards to provident fund benefits, the company makes the stipulated contribution in respect of employees covered by the
provident funds act to provident fund authority under which company's liability is limited to the extent to contribution. The
company's contribution to the recognized provident fund, paid/payable during the year, is charged to the profit and loss account.
(b) Defined Benefits Plan:
The liability for the defined benefit plan of gratuity is determined on the basis of actuarial valuation done by an independent
actuary at the year end, which is calculated using projected unit credit method. Actuarial gains and losses which comprise
experience adjustment and the effect of change in actuarial assumptions are recognized in profit and loss account.
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