2.13 Provisions.
Provisions' are recdgfitsed when ine company has a present legal nr constructive obligation as a result of past events, it is
jjmbaOlG that an outflow cf resources will be roouiretl tD settle the obligation and the amount can be reliably estimated.
These are reviewed at each balance sheet date and adjusted tc reflect the current best estimates.
Provisions in the nature of tong ierm are messy red ni the present value of management's best estimate of the expenditure
required to settle the present obligation aL the end of the reporting period The discount rate used 10 determine the
present value is a pre-tax race that reflects currer-t .market assessments of the time value of money and the risks specific to
the lisb lity The increase in the provision due wnp passage r.r rime is recognised as interest expense.
1.14 Employee Benefits
All employee benefits payable within twelve mwfhs of pandering the serVfct are classified as short term employee benefits,
benefits such as salaries, wages etc. anc rhe expected tost of bonus, cxgratia, incentives are recognized in the period during
which the employee renders the related service
1.15 Revenue Recognition
Revenue h? measured a' the fair value of :hc -consideration received or receivable.
Sale of Stock
Ttis Company reccgn :es revenue from sare of stock when Ihe amount of revenue esn be reliably measured. t is ? rod a tie
IllHi future econurr, t: benefits will flow to the entily and S-gnifleant r sks and rewards of OWne-rsh.p have hf-eri transferred to
the customer
Further revenue from Sales is based on the price specified in the sales contracts. Accumulated experience is Used to
estimate and provide for tbs discounts snd returns.
1.16 Finance Income
Finance income comprises interest receivable on turds nvested. dividend income, foreign exchange gams cmd losses
interest nconm is recognized in the Income ststem-en! as it accrues, taki-ng nto arcounr the effective yield on the asset
DMdendl Income Is recognized In Lhe Income sta temon r o 111 he d a te the en idly1 s right to receive payments Is esiebh shed
1.17 ClatmsandBeneflts
Claims receivable is accounts? on accrual basis to the extent considered receive tie.
1,IB Incamp lanes
rrvs lltiajme tan expense is the ten payable an the current period's taxable Incame based on Hit- applicable income tax rate
ad]cited by changes in deferred tax assets and hEb lities attr butgfcleto temporary cifferei ccsar d to unused t,?x losses,
1.19 borrowing Costs
General and specific borrowing costs that are directly BtS.nbu cable to the acquisition, construction or production of a
qualifying asset are capitalised during the perotf of time that is required to complete ^nd prepare the asset for its intended
j it Or sal e, Cuafi Fyl ng asse ts a re assets that -necassa -i y lake S SiJ bsta r-tlal pt; rlod O? tl rne iC get re ady fo r L hair in Ie n ded use
or salo, Invest moat income earned on the temporary Investment of specific borrowngs pending choir expand Cure on
qualifying assets is deducted from, the borrowing costs e, giblefcr capitalisation,
Other borrowng costs are expensed In Lhe period in wblcii they are -ncurrec?
1.20 Contingent Liability
Contingent Liabilities., il motorist, arc disclosed by way of notes.
1.21 Previous Year Figures
Previous ye3r figures have been regrouped and reclassified to make them comparable with the Cttftfent year figures.
L12 Mai Adjustment
FxtE-ss StM T Credit a s pa r tan ta iculal urs has been recon »n iss? as (VIA r Cred It Assets and aten rdi ngly ad] usted i n t he fi n a htia I
statement.
All the Financial Assets held as Inventory or Investment are in Quoted Equity Shares. The Carrying amount
indicates the cost incurred for purchasing the Financial Assets entered in the Books of Accounts, The Fair Value
indicates the amount that is easily realisable if sold in the open market as on date, based on the market value
of the shares available.
Nn Estimates are made in Valuation of Financial Assets on Fa ir Value, There are no financial Liabilities to be
recognised in the Financial Statements
Note 27 Financial Risk Management
In the ordinary course of business, ihe Company is exposed to a different extent to a variety of financial risks: Market
Fluctuations, Interest rate risk, Government Policies, liquidity risk, and price risk , In order to minimize any adverse
effects on the financial performance of the group, Short Term & Long Term Deposits, Short erm & Long Term
Advances are Kept with the Bank and other parties with fixed rate of Interest.
Note 28 Capital Management
The Company manages its capital to ensure that the Company entities will be able to continue as a gorng concern
while maximizing the return to the equity holders through optimization of the debt to equity balance ‘I he
imanagement of the Company reviews the capital structure on a regular basis. Based on the results of this review, the
Company takes steps to balance its overall capital structure through repayments of existing debt liabilities.
Consistent with others in the industry, the group monitors capita) on the basis of the optimum gearing ratio of Net
debt (comprising total borrowings net of cash R cash equivalents and current investment) m proportion to 1otal
Equity.
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