2.18 Provisions and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not
discounted to their present value and are determined based on the 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.
A contingent liability is disclosed where, as a result of past events, there is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made
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2.19 Leases
a) Finance lease
i) Assets taken on finance lease are capitalised at fair value or net present value of the minimum lease payments, whichever is less,
ii) Lease payments are apportioned between the finance charges. and outstanding liability in respect of assets taken on lease.
b) Operating lease
i) Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating
lease. Lease rent are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease term.
2.20 Earning per share
2.21 Employee benefits
has adopted the Accounting Standard 15- Employee Benefits prescribed under the Companies (Accounting Standards) Rules
2006, Employee benefits include provident found, bonus and gratuity benefits the Company towards various
Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are short-term employee benefits Benefits such as
service ’ wages etc are recognized in the profit and Loss statement in the period in which the employee renders the related
.
Defined contribution plans
The Company's Contribution to provident found are considered as defined contribution plans and are charged as an expense as they fall due
based on. the amount of contribution required to be made. 1 •
Defined benefits plans
(i) For defined- benefit plans., the amount recognised in the Balance Sheet is the present value of the defined- benefit obligation less the fair
value of any plan assets and any past service costs not yet recognised. The present value of the defined- benefit obligation is the present value
expected future payments required to settle the obligation resulting from employee service in the current and prior periods The discount
rate used is the market yields on government bonds at the Balance Sheet date with Remaining terms to maturity approximating those of the company's obligations.
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(ii> Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Statement of Profit and I oss
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