(e) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a binding present obligation. This may be
either legai because it derives from a contractjegislation or other operation of law because the
Company created valid expectations on the part of the third parties by accepting certain
responsibilities. To record such an obligation it must be probable that an outflow of resources
will be required to settle the obligation and a reliable estimate can be made for the amount of
the obligation.

(f) Statement of Cash Flows

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. Cash flow for the year is classified by operating, investing and
financing activities. .

(g) Earnings per Share

Basic earning per share is computed, by dividing the profit or loss after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other
charges to expense or income (net of any attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share.

(h) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

(I) Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification
of its financial assets at initial recognition.

When financial assets are recognised initially, they are measured at fair value. However, trade
receivables that do not contain a significant financing component are measured at transaction
price.

Classification:

• Cash and Cash Equivalents — Cash comprises cash/cheques on hand and demand
deposits with banks. Cash equivalents are short-term balances with an original maturity of
three months or less from the date of acquisition, highly liquid investment that are readily
convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.

• Debt Instruments - The Company classifies its debt instruments as subsequently
measured at amortised cost, fair value through Other Comprehensive Income or fair value
through profit or loss based on its business model for managing the financial assets and
the contractual cash flow characteristics of the financial asset.

(i) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets

are held for collection of contractual cash flows where those cash flows represent

solely payments of principal and interest. Interest income from these financial assets
is included as a part of the Company's income in the Statement of Profit and Loss
using the effective interest rate method. .

/^uETTpj^s&i) Financial assets at fair value through Other Comprehensive Income.(FYOCIj

Financial assets are subsequently measured at fair value through , Other
Reg No Comprehensive Income if these financial assets are held for collection of contractual

110101W L cash hows and for selling the financial assets, where the assets' cash flows represent

V Mumbai JsJj

solely payments of principal and interest. Movements in the carrying value are taken
through Other Comprehensive income, except for the' recognition of impairment gains
or losses, interest revenue are recognised in the Statement of Profit and Loss. When
the financial asset is derecognised, the cumulative gain or loss previously recognised
in Other Comprehensive Income is reclassified from Other Comprehensive Income to
the Statement of Profit and Loss. Interest income on such financial assets is included
^; as a part of the Company's income in the Statement of Profit and loss using the
effective interest rate method.

(iii) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair
value through profit or loss. A gain or loss on such debt instrument that is
• subsequently measured at FVTPL and is not part of a hedging relationship as well as
interest income is recognised in the Statement of Profit and Loss.

(II) Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Company becomes a party to
the contractual provisions of the financial instrument. The Company determines the
classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial liabilities, which are not at fair value
through profit or loss, are adjusted to the fair value on initial recognition.

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through profit or
loss are subsequently measured'at amortised cost using the effective interest method.
Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are
:derecognised, and through the amortisation process.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a de-recognition of
the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in the Statement of Profit and Loss,

(III) Impairment of financial assets

The Company assesses, at each reporting date, whether a financial asset or a group of
financial assets is impaired. Ind AS-109 on Financial Instruments, requires expected credit
losses to be measured through a loss allowance.

Note-19 Contingent liabilities & Commitments

The Company does not have any contingent liability and commitments as on the balance sheet date.

Note-20 Deferred Tax

Since there are no material adjustments between both Accounting Income and Taxable Income, the Deferred
Tax assets or Liabilities is Nil in accordance with Ind AS 12 on "Income Taxes".

Note-21 In the opinion of management, Current Assets, Loans and Advances have a relizable value in the ordinary
course of business not less than the amount at which thay are stated in the balance sheet and provision for
alt known liabilities and doubtful assets have been made.

Note-22 The company's has only interest income. Considering the same, it has no material impact on the revenue due
to COVID-19. Company is also expecting their assets to be realized at their values reflecting in books.

Note-23 Dunng the year the company does not have any transaction with the Strike off Companies.

Note-25 Inspite of concerted efforts by the Company, the Company has not been able to find a suitable canditate and hence the position of CFO is
still not filled up and hence the provisions of Section 203 (1) (iii) of the Companies Act 2013 is not complied with. The Company is still on
the look-out and is hopeful of finding the right candidate soon. ,

Note-26 Additional information as required by General Instructions for preparation'of Financial Statement (other than already disclosed above) are
either Nil or not applicable.

As per our report of even date

For N. S. Shetty & Co. For and on behalf of the Board of Directors of

Chartered Accountants ^ TIVOLI CONSTRUCTION LTD

Firm Regn. No. : 110101W ^—v ' ik t x

j, ^£5jk.V^A-—

A .. (t^f Firm Anita Raheja Rakesh Desai

ReQ-NO* Director Director

RohifSh^ty |l*( ^0^01^ l*⁰}! DIN: 00306794 DIN: 00152982

Fartner ic\ Mombai JSjj

Mem. No. 135463

Place: Mumbai Tanuja Shanfii

Date: £ 0 MAY 2 0 2Company Secretary