Mar 31, 2015
1.01 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956
Act"), as applicable. The financial statements have been prepared on
accrual basis under the historical cost convention. The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year.
1.02 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and
expenses during the year. The Management believes that the estimates
used in preparation of the financial statements are prudent and
reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates are
recognised in the periods in which the results are known /
materialise.
1.03 Inventories
As the company is involved in trading and investing in shares, stocks,
bonds and other funds, it does not carry stock in trade. Securities
held for trading is considered as a current Investment.
1.04 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand. Cash equivalents are balance in current
accounts with bank(s) and demand deposits with banks (with an original
maturity of three months or less).
1.05 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and 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. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.06 Depreciation and amortisation
Depreciation on Fixed Assets is provided on Written Down Value method
at the rates prescribed in Schedule II to the Companies Act, 2013.
Depreciation on additions to fixed assets and assets disposed off /
discarded is charged on pro-rata basis. Assets costing less than '
5,000 each are fully depreciated in the year of capitalisation.
1.07 Revenue recognition
a. Income from services
Brokerage income is recognised on the trade date of transaction upon
confirmation of the transaction by recognised Stock Exchange and the
client.
The Company has trading activities in Derivative segment in Shares and
Commodities.
Derivative contracts are market-to-market and loss, if any, is
recognised in the Statement of Profit and Loss as at the Balance Sheet
date. Gains arising on the same are not recognised, until realised, on
grounds of prudence.
b. Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive is established.
1.08 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use, net of CENVAT (where claimed), excluding government
grant, borrowing cost for qualifying assets.
1.09 Investments
Investments are classified as long term and Current based on their
nature and intended holding period. Long-term investments are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. The
diminution in value, if any, of investment in funds is taken as per
the published annual audited results of relevant fund.
1.10 Employee benefits
As the number of employees of the company is below the prescribed
limit for Registration under the Payment of Gratuity Act, 1972;
Employees Provident Funds and Miscellaneous Provisions Act, 1952 or
any other Act pertaining to employee benefits, the company has not
provided for such employee benefits. Bonus is paid to employees as
decided by the Management.
1.11 Segment reporting
Considering the nature of Company's business and operations, there is
no reportable segment (business and / or geographical) in accordance
with the requirement of Accounting Standard - 17 ÂSegment
Reporting', prescribed under the Companies (Accounts) Rules, 2014.
1.12 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) as adjusted for dividend, by the number of equity shares
considered for deriving basic earnings per share.
1.13 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.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws,
which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when
it is probable that future economic benefit associated with it will
flow to the Company.
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. Deferred tax assets in respect of unabsorbed depreciation
and carry forward of losses are 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 realisability. Current and
deferred tax relating to items directly recognised in equity are
recognised in equity and not in the Statement of Profit and Loss.
1.14 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 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. Contingent liabilities are
disclosed in the Notes. Contingent Assets are not recognised in
financial statements.
1.15 Derivative contracts
The Company has trading activities in Derivative segment in Shares and
Commodities.
Derivative contracts are marked-to-market and losses are recognised in
the Statement of Profit and Loss. Gains arising on the same are not
recognised, until realised, on grounds of prudence.
1.16 Impairment of Assets
The carrying values of assets / cash generating units at each balance
sheet date are reviewed for impairment. If any indication of
impairment exists, the recoverable amount of such assets is estimated
and impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the
greater of the net selling price and their value in use. Value in use
is arrived at by discounting the future cash flows to their present
value based on an appropriate discount factor. When there is
indication that an impairment loss recognised for an asset in earlier
accounting periods no longer exists or may have decreased, such
reversal of impairment loss is recognised in the Statement of Profit
and Loss, except in case of revalued assets.
1.17 Service Tax Input Credit
Service tax input credit is accounted for in the books in the period
in which the underlying service received is accounted and when there
is reasonable certainty in availing / utilising the credits.
For the period of five years immediately preceding the date as which
the Balance Sheet is prepared:
(A) No shares were allotted as fully paid-up pursuant to contracts
without payment being received in cash.
(B) No shares were allotted as fully paid-up by way of bonus shares.
(C) No shares were bought back.
Mar 31, 2014
1.01 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the Accounting Standards notified
by the Companies (Accounting Standards) Rules, 2006, (which continue to
be applicable in respect of Section 133 ofthe Companies Act, 2013 in
terms of General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs) and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared under
the historical cost convention on an accrual basis. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
1.02 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.03 Inventories
As the company is involved in trading and investing in shares, stocks,
bonds and other funds, it does not carry stock in trade. Securities
held for trading is considered as a current Investment.
1.04 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand. Cash equivalents are balance in current
accounts with bank(s) and demand deposits with banks (with an original
maturity of three months or less).
1.05 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and 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. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.06 Depreciation and amortisation
Depreciation has been provided on the Written down Value Method as per
the rates and manner prescribed in Schedule XIV to the Companies Act,
1956 .
Assets costing less than Rs. 5,000 each are fully depreciated in the
year of capitalisation.
1.07 Revenue recognition
a. Income from services
Brokerage income is recognised on the trade date of transaction upon
confirmation of the transaction by recognised Stock Exchange and the
client.
The Company has trading activities in Derivative segment in Shares and
Commodities.
Derivative contracts are marked-to-market and loss, if any, is
recognised in the Statement of Profit and Loss as at the Balance Sheet
date. Gains arising on the same are not recognised, until realised, on
grounds of prudence.
b. Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive is established.
1.08 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use, net of CENVAT (where claimed), excluding government
grant, borrowing cost for qualifying assets.
1.09 Investments
Investments are classified as long term and Current based on their
nature and intended holding period. Long-term investments are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. The
diminution in value, if any, of investment in funds is taken as per the
published annual audited results of relevant fund.
1.10 Employee benefits
As the number of employees of the company is below the prescribed limit
for Registration under the Payment of Gratuity Act, 1972; Employees
Provident Funds and Miscellaneous Provisions Act, 1952 or any other Act
pertaining to employee benefits, the company has not provided for such
employee benefits. Bonus is paid to employees as decided by the
Management.
1.11 Segment reporting
Considering the nature of Company''s business and operations, there is
no reportable segment (business and / or geographical) in accordance
with the requirement of Accounting Standard - 17 ''Segment Reporting'',
prescribed under Company (Accounting Standards) Rule, 2006.
1.12 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) as adjusted for dividend, by the number of equity shares
considered for deriving basic earnings per share .
1.13 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.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
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. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are 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
realisability. Current and deferred tax relating to items directly
recognised in equity are recognised in equity and not in the Statement
of Profit and Loss.
1.14 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 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. Contingent liabilities are
disclosed in the Notes. Contingent Assets are not recognised in
financial statements.
1.15 Derivative contracts
The Company has trading activities in Derivative segment in Shares and
Commodities.
Derivative contracts are marked-to-market and losses are recognised in
the Statement of Profit and Loss. Gains arising on the same are not
recognised, until realised, on grounds of prudence.
1.16 Impairment of Assets
The carrying values of assets / cash generating units at each balance
sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
1.17 Service Tax Input Credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is
reasonable certainty in availing / utilising the credits.
Mar 31, 2012
1.01 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared on accrual
basis under the historical cost convention and in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) to
comply with the Accounting Standards notified under the Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions ol the Companies Act, 1956 and guidelines issued by SEBI.
The accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year.
1.02 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
1.03 Inventories
As the company is a finance company it does not carry stock in trade.
Securities held for trading is considered as a current Investment.
1.04 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand. Cash equivalents are balance in current
accounts with bank(s) and demand deposits with banks (with an original
maturity of twelve months or less from the reporting date ).
1.05 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals of accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.06 Depreciation and amortization
Depreciation has been provided on the Written down Value Method as per
the rates and manner prescribed in Schedule XIV to the Companies Act,
1956 .
Assets costing less than' 5,000 each are fully depreciated in the year
of capitalization
1.07 Revenue recognition
a. Income from services
Revenues from Brokerage is recognized on the trade date of transaction
upon confirmation of the transaction by recognized Stock Exchange and
the client, when services are rendered and related costs are incurred.
The Company has trading activities in Derivative segment in Shares and
Commodities. Derivative contracts are marked-to-market and losses are
recognized in the Statement of Profit and Loss. Gains arising on the
same are not recognized, until realized, on grounds of prudence.
b. Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.08 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date.
1.09 Investments
Investments are classified as long term and Current based on their
nature and intended holding period. Long-term investments are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value.
1.10 Employee benefits
Employee benefits include salary, allowance and bonus.
1.11 Segment reporting
The Company doesn't have more than one reportable segment in terms of
AS-17 "Segment Reporting".
1.12 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) as adjusted for dividend, by the number of equity shares
considered for deriving basic earnings per share.
1.13 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.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognized as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognized on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal ii one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax law
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognize for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of losses
are recognized only if there is virtual certainty that there will be
sufficient future taxable income available to realize such assets.
Deferred tax assets are recognized for timing differences of other items
only to the extent that reasonable certainty exists the sufficient
future taxable income will be available against which these can be
realized. 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 reliability.
Current and deferred tax relating to items directly recognized in
equity are recognized in equity and not in the Statement of Profit and
Loss.
1.14 Provisions and contingencies
A provision is recognized when the Company has a present obligation as
a result of past' event; 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 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. Contingent liabilities are
disclose in the Notes.
1.15 Derivative contracts
The Company has trading activities in Derivative segment in Shares and
Commodities.
Derivative contracts are marked-to-market and losses are recognized in
the Statement of Profit and Loss. Gains arising on the same are not
recognized, until realized, on grounds of prudence.
Mar 31, 2011
1. Preparation of Financial Statements:
The Financial statements are prepared under the historical cost
convention on the accrual basis and in accordance with Generally
Accepted Accounting Principles (GAAP). GAAP comprises mandatory
accounting standards issued by the Institute of Chartered Accountants
of India (ICAI), the provisions of the Companies Act, 1956 and
guidelines issued by SEBI.
2. Use of Estimates:
The preparation of financial statements in conformity with the
accounting standards requires management to make certain estimates and
assumptions that affect the amounts reported in the financial
statements and notes thereto. Differences between actual results and
estimates are recognized in the period in which they materialize.
3. Revenue Recognition:
Brokerage income is recognized on the trade date of transaction upon
confirmation of the transactions by stock exchanges and clients.
Interest income is recognized on time proportion basis. Profit on sale
of securities held as stock-in-trade is recorded on transfer of title
as per guidelines of SEBI. Dividend is recognized on receipt basis.
4. Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation. Costs
attributable to the asset till the date asset is ready to be put to use
are added to the cost of asset.
5. Depreciation:
Depreciation on Fixed Assets is provided on "Written Down Value Method"
on a pro- rata basis at the rates and in the manner specified in
Schedule XIV of the companies Act, 1956.
6. Investments:
Investments are classified as long term or Current based on their
nature and intended holding period. Long term Investments are stated at
fair value cost less provision for diminution other than temporary in
value.
7. Financial Instruments (i.e. Stock-in-Trade of) Quoted Equity
Shares:-
The financial instruments being quoted equity shares, acquired with the
intention of short term holding and trading position are considered as
Stock-in-Trade, and shown under current assets, are reported at Fair
Value Through Profit or Loss (FVTPL) as per provisions of AS 30 Ã
"Financial Instruments: Recognition and Measurement".
During the year, the company has adopted AS -30 "Financial Instruments:
Recognition and Measurement" issued by the Institute of Chartered
Accountants of India, which is made recommendatory w.e.f. 01.04.2009.
8. Taxes on Income:
Current Tax is determined on the taxable income for the year as per the
provisions of the Income Tax Act, 1961. Deferred tax expenses or
benefit is recognized, subject to consideration of prudence, on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax liabilities are measured
using the tax rate and tax law that have been enacted or subsequently
enacted.
9. Provisions:
A provision is recognized when there is a present obligation as a
result of past event i.e. it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. Provision is not discounted to its
present value and is 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 best current
estimate.
Mar 31, 2010
1. Preparation of Financial Statements:
The Financial statements are prepared under the historical cost
convention on the accrual basis and in accordance with Generally
Accepted Accounting Principles (GAAP). GAAP comprises mandatory
accounting standards issued by the Institute of Chartered Accountants
of India (ICAI), the provisions of the Companies Act, 1956 and
guidelines issued by SEBI.
2. Use of Estimates:
The preparation of financial statements in conformity with the
accounting standards requires management to make certain estimates and
assumptions that affect the amounts reported in the financial
statements and notes thereto. Differences between actual results and
estimates are recognized in the period in which they materialize.
3. Revenue Recognition:
Brokerage income is recognized on the trade date of transaction upon
confirmation of the transactions by stock exchanges and clients.
Interest income is recognized on time proportion basis. Profit on sale
of securities held as stock-in-trade is recorded on transfer of title
as per guidelines of SEBI. Dividend is recognized on receipt basis.
4. Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation. Costs
attributable to the asset till the date asset is ready to be put to use
are added to the cost of asset.
5. Depreciation:
Depreciation on Fixed Assets is provided on "Written Down Value Method"
on a pro-rata basis at the rates and in the manner specified in
Schedule XIV of the companies Act, 1956.
6. Investments:
Investments are classified as long term or Current based on their
nature and intended holding period. Long term Investments are stated
at fair value cost less provision for diminution other than temporary
in value.
7. Financial Instruments (i.e. Stock-in-Trade of) Quoted Equity
Shares:-
The financial instruments being quoted equity shares, acquired with the
intention of short term holding and trading position are considered as
Stock-in-Trade, and shown undercurrent assets, are reported at Fair
Value Through Profit or Loss (FVTPL) as per provisions of AS 30 -
"Financial Instruments: Recognition and Measurement".
During the year, the company has adopted AS -30 "Financial Instruments:
Recognition and Measurement" issued by the Institute of Chartered
Accountants of India, which is made recommendatory w.e.f. 01.04.2009.
8. Taxes on Income:
Current Tax is determined on the taxable income for the year as per the
provisions of the Income Tax Act, 1961.
Deferred tax expenses or benefit is recognized, subject to
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax liabilities are measured using the tax rate and tax law
that have been enacted or subsequently enacted.
9. Provisions:
A provision is recognized when there is a present obligation as a
result of past event i.e. it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. Provision is not discounted to its
present value and is 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 best current
estimate.
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