3.9 Provisions & contingent liabilities
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. When the Company expects some or all of a
provision to be reimbursed, the reimbursement is recognized as a separate asset, but only
when the reimbursement is virtually certain. The expense relating to a provision is presented
in the statement of profit and loss net of any reimbursement.
Contingent liability arises when the Company has:
a) a possible obligation 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; or
b) a present obligation that arises from past events but is not recognized because:
i) it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation; or
ii) the amount of the obligation cannot be measured with sufficient reliability."
Contingent liabilities are not recorded in the financial statement but, rather, are disclosed in
the note to the financial statements.
22 Previous period's figures have been regrouped / reclassified wherever necessary to correspond with the
2 current year's classification / disclosure.
As per our report on even date
For, Hiren D Shah & Associates For and on behalf of the Board
Chartered Accountants Devang Jhaveri Amam Shah
Firm Registration number: 135212W DIN: 02372402 DIN: 01617245
Yash N Desai (Partner) Director Director
Membership No. 179659
UDIN: 24179659BKGXAF4141 Place: Ahmedabad
Date: 29/04/2024
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