2.13 Provision 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
benefit) 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.
2.14 Cash and cash equivalents
Cash and cash equivalents comprise cash and balance with banks.
2.15 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the
Income Tax Act, 1961.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that
originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and
the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences.
Defen ed tax assets in respect of depreciation and provision on standard asset is recognised only if there is virtual certainty that there will
be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other
items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be
realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and
the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their
realizability.
Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax
liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.
In assessing the realizability of deferred income tax assets, management considers whether some portion or all of the deferred income tax assets will not be realized The
the periods in which the temporary differences become
deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this
assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are
deductible, management believes that the Group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered
realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.
2.28.1 Capital management - -
The Company s capital management objective is to maximise the total shareholder return by optimising cost of capital
through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to
maintain/enhance credit rating.
The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic
plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company
monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the
Company.
For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves.
Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents and inter-corporate deposits
with financial institutions.
The following table summarises the capital of the Company:
The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including
currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company seeks to minimise the effects of these
risks by using financial instruments such as foreign currency forward contracts, option contracts, interest and currency swaps to hedge
risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the
Company’s policies, which outlines principles on foreign exchange risk, interest rate risk, credit risk and deployment of surplus funds.
1 In case of trade receivables, cash and cash equivalents, trade payables, borrowings and other financial assets and liabilities it is assessed that the fair
values approximate their carrying amounts largely due to the short-term maturities of these instruments.
2. The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing
models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties. 1
b) The Company do not have any transactions with companies struck off in current year and previous year.
c) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period in current year and previous year.
d) The Company have not traded or invested in crypto currency or virtual currency during the current year and previous year.
e) The Company Have not advanced or loaned or invested funds to any person(s)or entity(is), including foreign entities (Intermediaries) with the understanding that the intermediary shall in current year and previous year
i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
t) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
The Company ' does not have any transaction which is not recorded in the books of accounts that has been subsequently surrendered or disclosed as income during the year part of the on going tax assessments under the income tax act, 1961 incurrent year and previous year
Pursuant to the provision of Section 135 of Companies Act, 2013, the Corporate Social Responsibility Obligation was not applicable on
the Company as all three criteria of Profit, Net worth and Turnover were not met by the Company.
2.31 Other Notes
(i) Previous year figures are regrouped and reclassified wherever necessary to conform to current year's presentation.
(ii) Some of the balances of receivables and payables remains unconfirmed till balance sheet date.
(iii) In the opinion of the management, current assets, loans and advances have a value not less than what is stated in the accounts if
realised in the ordinary course of business.
1
-
| 