(o) Provisions, Contingent Liabilities and Contingent Assets
Provisions are 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. Where there are
a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at management's best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognized as a
finance cost. The estimates of outcome and financial effect are determined by the judgment of the
management, supplemented by experience of similar transactions and, in some cases, reports from
independent experts.
Contingent liabilities are not provided for and if material, are disclosed by way of notes to Financial
Statements. A contingent asset is a possible asset that arises from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the entity.
Contingent assets are not recognized in Financial Statements. They are assessed continually and if it is
virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized
in the period in which the change occurs. A contingent asset is disclosed by way of notes to Financial
Statements, where an inflow of economic benefits is probable. Provisions, contingent liabilities and
contingent assets are reviewed at each Balance Sheet date.
(p) Rounding off
All amounts disclosed in the standalone financial statements and notes have been rounded to the nearest
Lakhs (up to two decimals) except when otherwise indicated.
(q) New and revised Indian Accounting Standards in issue but not yet effective
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March
31, 2025, MCA has not notified any new standards or amendments to the existing standards applicable to
the Company.
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