1.8 Provisions (Other than Employee Benefits), Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present legal 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 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 recognized but are disclosed in the notes to the Financial
Statements. A contingent asset is neither recognized nor disclosed if inflow of economic
benefit is probable.
1.9 Revenue Recognition
1.10 Sale of Services
Revenue is measured at fair value of the consideration received or receivable. The
Company recognizes revenue when the amount of revenue can be reliably measured, it is
l.llRecognition of Dividend Income and Interest Income
Dividend on Financial Instruments is recognized as and when realized.
Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the interest rate applicable.
1.12 Income tax
Income tax comprises current and deferred tax. It is recognized in profit or loss except to
the extent that it relates to a business combination or to an item recognized directly in
equity or in other comprehensive income.
i. Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or
loss for the year and any adjustment to the tax payable or receivable in respect of
previous years. The amount of current tax reflects the best estimate of the tax amount
expected to be paid or received after considering the uncertainty, if any, related to
income taxes. It is measured using tax rates (and tax laws) enacted or substantively
enacted by the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally
enforceable right to set off the recognized amounts, and it is intended to realize the
asset and settle the liability on a net basis or simultaneously.
ii. Deferred Tax
Deferred tax is recognized in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the corresponding
amounts used for taxation purposes. Deferred tax is also recognized in respect of
carried forward tax losses and tax credits.
Deferred tax assets are recognized to the extent that it is probable that future taxable
profits will be available, against which they can be used. The existence of unused tax
losses is strong evidence that future taxable profit may not be available. Therefore, in
case of a history of recent losses, the Company recognizes a deferred tax asset only to
the extent that it has sufficient taxable temporary differences or there is convincing
other evidence that sufficient taxable profit will be available against which such
deferred tax asset can be realized. Deferred tax assets - unrecognized or recognized, are
reviewed at each reporting date and are recognized/ reduced to the extent that it is
probable/ no longer probable respectively that the related tax benefit will be realized.
Deferred tax is measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled, based on the laws that have been enacted
or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from
the manner in which the Company expects, at the reporting date to recover or settle
the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income taxes levied by the
same tax authority on the same taxable entity, or on different taxable entities, but they
intend to settle current tax liabilities and assets on net basis or their tax assets and
liabilities will be realized simultaneously.
1.13 Cash and Cash Equivalents
Cash and Cash equivalents include cash and cheques in hand, bank balances, demand
deposits with banks and other short term highly liquid investments that are readily
convertible to know amounts of cash and which are subject to an insignificant risk of
changes in value where original maturity is three months or less.
1.14 Borrowing Cost
Borrowing cost are interest and other costs (including exchange differences relating to
foreign currency borrowings to the extent that they are regarded as an adjustment to
interest cost) incurred in connection with the borrowing of funds. Borrowing costs directly
attributable to acquisition or construction of asset which necessarily take a substantial
period of time to get ready for their intended use are capitalized as part of cost of asset
until such time the assets are substantially ready for their intended use. Other borrowing
costs are recognized as an expense in the period in which they are incurred
1.15 Earning Per Share
Basic earning per share is calculated by dividing the net profit after tax for the year
attributable to Equity Shareholders of the Company by the weighted average number of
Equity Shares outstanding during the year. Diluted earning per Share is calculated by
dividing net profit attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding during the year plus
potential equity shares
1.16 Cash Flow Statement
Cash flows are reported using the indirect method whereby the profit before tax is adjusted
for the effect of the transactions of a non cash nature, any deferrals or accruals of past and
future operating cash receipts or payments and items of income or expenses associated
with investing or financing cash flows. The cash flows from operating, investing and
financing activities of the company are segregated.
(b) Particulars relating to Corporate Social Responsibility Not Applicable
(c) Particulars of transaction with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 Not
Applicable
(d) Details of Benami Property held :• Not Applicable
(e) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(f) The Company has not revalued its Properties, Plant and Equipment during the year under consideration.
(g) The Company has not granted any Loan or advance in nature of loan to Promoter, Director, KMPs and related parties
(h) Title deeds of immovable property not held in the name of company :* There are no property which is not held in the name of the Company.
(i) The company doesn't have any undisclosed income.
(j) Compliance with number of layers of companies :• There are no investment held by the company
(k) Compliance with approved scheme of arrangement :• Not Applicable
(l) Utilization of Borrowed funds and Share Premium :•
|a) During the year, no funds have been advanced or loaned or Invested by the company to or In any other persons or entitles, Including foreign entities,
with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of Company or provide any guarantee, security or the like on behalf of the
Ultimate Beneficences.
(b) During the year, no funds have been received by the company, from any persons or entities, including foreign entities, with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(m) (a)The Company do not have any charges or satisfaction which is yet to be registered with ROC,
(b) The Company has not been declared wilful defaulter by any Bank or any financial institution.
(n) The Company doesn’t have any Capital Work in Progress and hence details are not applicable.
(o) The The Company doesn’t have any Intangible Assets under development and hence details are not applicable.
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