2.14 Provisions, Contingent Liabilities and Contingent Assets
i. Provisions are recognized only when:
• The Company has a present obligation (legal or constructive) as a result of a past event; and 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.
• Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows.
ii. Contingent liability is disclosed in case of:
• A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and a present obligation arising from past events, when no reliable estimate is possible.
iii. Contingent Assets:
• Contingent assets are disclosed where an inflow of economic benefits is probable.
2.15 Offsetting of Assets and Liabilities
The financial assets and financial liabilities are offset and presented on net basis in the Balance Sheet when there is a current legally enforceable right to set-off the recognized amounts and it is intended to either settle on net basis or to realize the asset and settle the liability simultaneously.
2.16 Cash and Cash Equivalents
Cash and cash equivalents comprise of cash in hand, demand deposits and short-term highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of changes in value.
2.17 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit after tax is adjusted for the effects of transactions of a non-cash nature, any deferrals, or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing, and financing activities.
2.18 Foreign Currency Transactions
• The Standalone Financial Statements are presented in Indian Rupees (‘INR’), which is also the Company’s functional currency. All amounts have been rounded off to the lakhs. Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
• Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalized as cost of assets.
2.19 Events Occurring After the Balance Sheet Date
There were no material or significant events that occurred after the date of the balance sheet and before the date of approval of the financial statements by the board of directors. This assessment provides assurance to stakeholders that the financial position presented in the statements is reflective of the company's situation during that period, without any significant changes or events that would materially affect their understanding of the financial health of the organization.
2.A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CHANGES
The Standalone Financial Statements have been prepared using the significant accounting policies and measurement basis summarized above. These were used throughout all periods presented in the Standalone Financial Statements.
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