10. Provision and Contingent Liability:
(i) A provision is recognized when:
• The Company has a present obligation (legal or constructive) as a result of a 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 the obligation.
(ii) A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may. but probably may not. require an outflow of resources. A contingent liability
also arises in extreme cases where there is a probable liability that cannot be recognized because
it cannot be measured reliably.
(iii) Where there is a possible obligation or a present obligation such that the likelihood of
outflow of resources is remote, no provision or disclosure is made.
11. Fair Value Measurement:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the liability takes place
either in the principal market for the asset or liability or in the absence of a principal market, in the
most advantageous market for the asset or liability .
12. Cash and Cash equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, which arc subject to an
insignificant risk of changes in value.
13. Earnings per share:
Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year, for the
purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effect of all dilutive potential equity shares.
Related Party Disclosures: (As identified by the management and relied upon by Auditors)
i) Enterprises/ Individuals having direct or indirect control over the concern: N/A
ii) key Management Personnel - Mr. Ramesh chand Bafna - Managing Director
- Mr. kalpesh Bafna - Whole time Director
iii) Relatives of key Management Personnel:
• Mrs. Lalitha Bafna (Wife of Ramesh chand Bafna& Mother of Mr. Kalpesh Bafna).
• Mr. Jitesh Bafna (Son of Mr. Ramesh chand Bafna & Brother of Mr. kalpesh
Bafna)
• Mrs. Poonam Bafna (Daughter in Law of Mr. Ramesh chand Bafna & Wife of Mr.
Kalpesh Bafna)
iv) Director:
Mr. Manikandan Independent Director
Mr. Jitendra Kumar Jain - Independent Director
Mrs. Alka Kankani - Independent Director
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