Mar 31, 2023
FAIRVALUE MEASUREMENT HIERARCHY:
Valuation techniques with sigificant unobservable inputs:
This level of hierachy includes financial assets and liabilities measured using inputs that are not based on. The following table provide the fair value measurement hierachy of the company''s assets and laibilities.
The Company''s activities expose it to market risk, credit risk and liquidity risk. Company''s overall risk management focus on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.
Market risk is the risk oflossofthe future earnings, fair values or future cash flows that may result from a change in the price of a financial instruments. The value of a financial instrument may change as a result of changes in the interest rates. Foreign currency exchange rates, commodity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sentive financial instruments including instruments and deposits, foreign currency receivables, payable and borrowing.
Commodity price risk arises due to fluctuation in raw material (fifer prices) linked to various external factors, which can affect the production cost of the Company. The Company actively manages inventory and un may cases sale prices are linked to major raw material prices. These risks are reviewed and managed by senior management on continuous basis.
Credit risk arises when a customer or counter party does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk its operating activities (primarily trade receivables) and from its financing / investing activities including deposits with banks. The company has aprudent and conservative process for managing its credit risk arising in the course of its business activities. The company is receiving payments regularly from its customers and hence the Company has no significant credit risk.
Liquidity risk is defined as the risk that the company will not be able to settle or meet obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts based on expected cash flows.
The Company operates in a highly technical field with constant innovation and continuous evolution in technologies used. The company mitigates this risk through regular contact with customers, regular reviews of new technological trends, continuous improvement and investment in its manufacturing practices, along with investments in research, design, and development.
CAPITAL MANAGEMENT:The Company''s objectives when managing capital are to
1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and the benefits for other stakeholders
2. Maintain an optimal capital structure to reduce the cost of Capital Consistent with others in industry, the company monitors capital on the basis of the following gearing ratio:
NOTE NO 35
Disclosure relating to Gratuity Liability as per Ind AS 19 "Employee Benefits (revised 2005) As per actuarial valuation as on 31-03-2023 given by LIC of India and recognized in to the financial statement in respect to employee Gratuity Benefit scheme.
TITLE DEEDS OFIMMOVABLE PROPERTIES:
The title deeds of all the immovable properties, as disclosed in note no.2 to the financial statements, are held in the name of the Company.
NoteNo.39Valuation of Property Plant & Equipment, intangible asset:
The Company has not revalued its property, plant and equipment or intangible assets or both during the current year. NoteNo.40
Loans or advances to specified persons:
No loans or advances in the nature of loans are granted to Promoters, Directors, Key Management Personnels and the related parties(as defined under Companies Act,1913) either severally or jointly with any other person, that are repayable on demand or without specfying any terms or period of repayment.
NoteNo.41Details of benami property held:
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act,1988(45of1988) and rules made thereunder.
Borrowing secured against current assets:
The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.
Wilful defaulter:
The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
Relatonship with struck off Companies:
The Company has no transactions with the Companies struck off under Section 248 of the Companies Act, 2013 or Section560 ofthe CompaniesAct, 1956
NoteNo.45Registration of charges or satisfacton wth Registrar of Companies (ROC):
The Company do not have any charges to be registered as at March31, 2023 with the Registrar of Companies (ROC). However, as per the records available on the ROC portal, the below charges which were created by the Company in earlier years for borrowings availed are still appearing as unsatisfied. The Company is in the process of obtaining no-dues certificates/ other relevant documents from the respective lenders for taking the required action.
Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Section 2 (87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.
Compliance with approved scheme(s) of arrangements:
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
Utilisation of borrowed funds and share premium:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income TaxAct, 1961, that has not been recorded previously in the books of account.
Details of crypto currency orvirtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year. NoteNo.51
Utilisation of borrowings availed from banks and financial institutions:
The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
BALANCES OFTRADE RECEIVABLE/PAYABLE ARE SUBJECTTO CONFIRMATION:
Previous Year''s figures have been regrouped wherever necessary to correspond with the current year''s figures, except when otherwise stated, the figures are presented in Rupees.
The Board of Directors in their meeting held on 30th May 2023 have proposed a final dividend of Rs. 13/- per equity share for the year ended 31 March 2023 which is subject to the approval of shareholders at the ensuing Annual General Meeting and if approved, would result in a cash outflow of approximately Rs.292.50 Lakhs.
Mar 31, 2018
Note No. 1
Notes to Financial Statements for the year ended 31st March, 2018.
CORPORATE INFORMATION:
Veljan Denison Limited (the âCompanyâ) has been Incorporated on 17th December, 1973. The Company is engaged in the business of Manufacturing of Hydraulic Pumps, Motors, Valves and custom build Power Packs. The Company is listed on Bombay Stock Exchange.
The financial statements of the company for the year ended March 31st, 2018 are approved for issue by the Companyâs Board of Directors on May 30th, 2018.
Note - 2
FIRST TIME ADOPTION OF IND AS
These financial statements for the year ended 31st March 2018 are the companyâs first annual Ind As complied financial statements. For all period up to and including the year ended 31st March 2017, the company prepared its financial statements in accordance with Accounting standards notified under Section 133 of the Companies Act 2013, read together with Rule 7of the Companies (accounts) Rules, 2014 (previous GAAP). Detailed explanation on how the transition from previous GAAP to Ind AS has effected the Companyâs Balance Sheet, financial performance and cash flows given as under.
In preparing these Ind AS financial Statements, the company has availed certain exemptions and exceptions in accordance with Ind AS 101 as explained below.
1. Mandatory exceptions from retrospective application Estimates
a. Estimates:
The estimates at 1st April,2016 and at 31st march, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items under Indian GAAP did not require estimation.
The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at 1st April, 2016 and 31st March, 2017
1. Fair Values of Financial assets & Financial Liabilities.
2. Impairment of financial assets based on expected credit loss modal
3. Discount rates
b. Classification and measurement of financial asset:
The classification of financial assets to be measured at amortized cost or fair value through profit and loss or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date oftransition to Ind AS.
2. Optional Exemptions from retrospective application
Ind-AS 101 allows first -time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has accordingly, applied following exemption.
a. Deemed Cost
The Company has elected to consider carrying amount of all items ofproperty, plant and equipments measured as per Indian GAAP as recognized in the financial statements as at the date of transition as deemed cost at the date of transition. The effect of consequential changes arising on the application of other Ind AS has been adjusted to the deemed cost of property, Plant & Equipment.
Transition to Ind AS Reconciliations
The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101.
3. Notes to reconcillation of balance sheet and profit as previously reported under IGAAP to Ind-AS
1. Property, Plant & Equipment, Non-current Asset:
Under the previous GAAP the transctions costs relating to orgination of term loans raised specifically for acquisition of items of property, Plant & Equipment were capitalized. Ind As 109 requires transaction costs incurred towards origination of borrowings to be deducted from the proceeds of borrowings on initial recognition. The Cost are treated as part of the interest expense by applying the effective interest method. Hence upfront fees under previous GAAP is reversed and reduced from term loan.
2. Deferred Tax
under previous GAAP, deferred taxes were recognized for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. under Ind AS, deferred taxes are recognized using the balance sheet approach for future tax consequences of temporary differences between the carring value of assets and liabilities and their respective tax bases.
3. Provisions:
Under Previous GAAP, proposed dividends and related the dividend distribution taxes are recognised as provision in the year to which they relate, irrespective of when they are declared. Under Ind-AS, dividends and related dividend distribution tax are recognized as a liability in the year in which it is approved by the shareholders in the Annual General Meeting ofthe Company.
4. Other income:
b. As stated earlier on Security Deposit to Building owners are measured at fair value. Notional interest on such deposits is included under other income .
b. As stated earlier on Deposit to Building owners are measured at amortized cost. Notional interest on such deposits is included under other expenditure
Note- 3 Fair Value Measurement Hierachy: Valuation techniques with sigificant unobservable inputs:
This level of hierachy includes financial assets and liabilities measured using inputs that are not based on abservable market date (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transctions in the same instrument nor are they based on available market data.
The following table provide the fair value measurement hierachy ofthe companyâs assets and laibilities.
Note: 4
Financial Risk Management:
The Companyâs activities expose it to market risk, credit risk and liquidity risk. Companyâs overall risk management focus on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.
ii Market Risk
Market risk is the risk of loss of the future earnings, fair values or future cash flows that may result from a change in the price of a financial instruments. The value of a financial instrument may change as a result of changes in the interest rates. Foreign currency exchange rates, commodity prices and other market changes that affect market risk sensitive instruments.
Market risk is attributable to all market risk sentive financial instruments including innstruments and deposits, foreign currency receivables, payable and broowings.
Commodity Risk
Commodity price risk arises due to fluctuation in raw material (fifer prices) linked to various external factors, which can affect the production cost of the Company. The Company actively manages inventory and un may cases sale prices are linked to major raw material prices. These risks are reviewed and managed by senior management on continuous basis.
II credit risk:
Credit risk arises when a customer or counter party does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk its operating activities (primarily trade receivables) and from its financing / investing activities. Including deposits with banks. The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The company is receiving paymnents regularly from its customers and hence the Company has no significant credit risk.
III Liquidity Risk
Liquidity risk is defined as the risk that the company will not be able to settle or meet obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company âs treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs liquidity position through rolling forecasts based on expected cash flows.
Note - 5
Capital Management:
The Companyâs objectives when managing capital are to
1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders.
2. Maintain an optimal capital structure to reduce the cost of capital Consistent with others in industry, the company monitors capital on the basis ofthe following gearing ratio:
Note - 6
Corporate Social Responsibility
As per section 135 of the Company Act 2013, a company has to spend 2% of its average net profits of three immediate proceeding financial year as detailed below.
Note - 7
Disclosure relating to Gratuity Liability AS-15 "Employee Benefits" (revised 2005)
As per actuation as on 31/03/2018 given by LIC of India and recognized in to the financial statement in respect to Employee Gratuity Benefit Scheme.
1. Changes in Present Value of obligations as on 31/03/2018
Note 8
Disclosure of Related party Transaction (As per Ind-AS)
Key Management Personnel (KMP)
Sri V C Janardan Rao : Chairman & Managing Director
Directors
Sri M L Motwani
Sri V Pattabhi
Sri B S Srinivasan
Smt. U Uma Devi
Sri R Venkata Rao : C.F.O
Sri B Narahari : Company Secretary
Companies/firms in which the key management and their relations are interested
1. M/s. Veljan Hydrair Ltd - Common Control
2. M//s. Veljan Investments Ltd - Common Control
3. M/s Suxus Systems Ltd
4. M/s. Ecmat Limited
Note - 9
Micro, Small and Medium Enterprises
This information with regard to Micro, Small and Medium Enterprises has been determined to the extent such parties could to identified on the basis of the information available with the company and relied upon by the Auditors accordingly, the trade payable include Rs 11,195 (Previous year Rs 1,18,810/-) due to them for a period exceeding 30 days and company has not paid any interest during the year to any enterprise registered under Micro, small and Medium enterprises development Act, 2006
Note - 10 Goods and Service Tax:
Effective July 01, 2017, sales are recorded net GST whereas earlier sales were recorded inclusive of excise duty and sales tax which formed part of expenses. Hence revenue from operations for the year ended 31st March, 2018 are not comparable with the previous year corresponding figures.
Note - 11
Balances of Trade Receivable/payable are subject to confirmation
Note - 12
The company has Installed machinery worth Rs 370.72 lakhs ( previous year Rs 370.72) in M/s. Ecmat Limited for the job works given to them Pervious Yearâs figures have been regrouped wherever necessary to correspond with the current yearâs figures, except when otherwise stated, the figures are presented in Rupees in Lakhs.
Mar 31, 2016
SIGNIFICANT ACCOUNTING POLICIES NOTE 24
The following are the significant accounting policies adopted by the company in the preparation and presentation of financial statements :
1. Financial Statements are prepared based on historical cost convention and in accordance with Generally Accepted Accounting Principles in India ("Indian GAPP") and Company with all Material respect with the Mandatory Accounting Standard ("AS") prescribed under section 133 of the Companies Act,2013 ("The Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended ), and with relevant provisions of the Act and Pronouncements of the Institute of Chartered Accounts of India (ICAI). The Financial Statements have been prepared on Accrual basis . The Accounting Policies have been consistently applied by the Company are consistent with those used in the Previous Year.
2. Fixed assets are stated at cost net of Cenvat and Vat credit less accumulated depreciation. Cost of acquisition of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not availed and cost of installation/refection expenses.
3. Depreciation is provided on Tangible assets in accordance with the useful life prescribed as per Schedule II of the Companies Act, 2013. Intangible asset software is written off over a period of 3 years.
4. Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted average method realizable value whichever less.
5. Jigs & Fixtures and Patterns are (valued after providing for) amortization at 20% and 10% respectively Under written down value method. Initial tools were capitalized and amortized at 10% on WDV value and further issue of tools are charged to revenue as and when issued.
6. Contributions to Provident Fund are remitted to the Provident Fund Commissioner at prescribed rates Group Gratuity Schemes administered through Trustees for which policies are taken from Life Insurance Corporation of India. The said remittances and premiums are charged to the revenue.
7. Liability in respect of Encashment of leave salary to the Employees of the company is provided for actual basis.
8. All contingent Liabilities are indicated by way of a note and will be provided/paid on crystallization.
9. Sales are inclusive of Excise duty, Sales tax and packing charges collected.
10. Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws.
11. Foreign currency transaction:
a) Transaction in foreign currency are initially accounted at the exchange rate prevailing on the date of transaction and adjusted appropriately to Capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.
b) At each Balance Sheet date :
Foreign currency monetary items are reported using the rate of exchange on that date. Foreign currency non monetary items are reported using the exchange rate at which they are initially recognized.
12. Impairment of Assets:
At the date of each Balance Sheet, the company evaluates for indications of impairment internally if any to the carrying amounts of its fixed assets. If any indications exist, the recoverable amount is estimated at the higher of the realizable value and value in use, as considered appropriate. If the estimated realizable value is less than the caring amount, and impairment loss is recognized.
Reversal of impairment loss recognized in prior years is recorded when there is an indication that the impairment loss recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.
Mar 31, 2015
NOTE 1
The following are the significant accounting policies adopted by the
company in the preparation and presentation of financial statements :
Mar 31, 2014
1. Term Loan from Andhra Pradesh State Financial Corporation is
Secured by Way of First Charge on the Fixed Assets of the Company and
Personal Guarantees of Two of the Directors of the company.
2. Against Hypothecation of Vehicles and Guaranteed by the One of the
Director of the Company.
Working Capital Loans are secured by hypothecation of Raw Materials,
Finished Goods, Book Debts and documentary bills discounted and second
charges on the fixed Assets of the Company except the Vehicles Under
Hypothecation, further Guaranteed by One Director of the company in
their Capacities to the extent of Rs 2300 Lakhs.
Note 3
1. A) Contingent Liabilities not provided for :
a) Towards Guarantees and Letters of credit issued
by the Bankers to the extent of 475.47 240.42
b) Bill discounted with bankers to the extent of 0.00 7.14
c) Interest claimed by District Industries Centre
Sangareddy for delay in payment of instalments
of Interest Free sales tax loan, which is contested
by the Company 23.29 23.29
B) Contracts remaining to be executed on Capital
account. 117.95 35.31
4. In the opinion of the management, the current assets, loans and
advances are expected to realise the amount at which they are stated,
if realised in the ordinary course of business and provision for all
known liabilities have been adequately made in the accounts.
5. Balances in personal accounts are subject to confirmation and there
by reconciliation
6. The company has Installed machinery worth Rs. 370.72 /- ,(previous
year Rs. 370.72) in Ms Ecmat Ltd, for the job works given to them.
Mar 31, 2013
1. In the opinion of the management, the current assets, loans and
advances are expected to realise the amount at which they are stated,
if realised in the ordinary course of business and provision for all
known liabilities have been adequately made in the accounts.
2. Balances in personal accounts are subject to confirmation and there
by reconciliation
3. The company has Installed machinery worth Rs. 370.72 /- .(previous
year Rs. 370.72) in MS Ecmat Ltd, for the job works given to them.
4. Consequent to the Notification Under the Companies Act, 1956 the
financial statements for the Year ended 31st March, 2013 are prepared
under Revised Schedule VI accordingly, the Previous year''s figures also
have been reclassified to confirm to this Year''s classification.
Mar 31, 2012
1. Term Loan from Andhra Pradesh State Financial Corporation is Secured
by Way of First Charge on the Fixed Assets of the Company and Personal
Guarantees of Two of the Directors of the company.
Working Capital Loans are secured by hypothecation of Raw Materials,
Finished Goods, Book Debts and documentary bills discounted and second
charges on the fixed Assets of the Company except the Vehicles Under
Hypothecation, further Guaranteed by One Director of the company in
their Capacities to the extent of Rs 1010 Lakhs.
Current Year Previous Year
Particulars 31-03-2012 31-03-2011
Rs. Rs.
1. A) Contingent Liabilities not
provided for :
a) Towards Guarantees and Letters of
credit issued by the Bankers to the
extent of 91.80 129.22
b) Bills discounted with bankers to
the extent of 45.80 3.17
c) Interest claimed by District
Industries Centre Sangareddy for delay
in payment of instalments of Interest
Free sales tax loan, which is contested
by the Company 23.29 23.29
B) Contracts remaining to be executed
on Capital account. 23.88 66.81
2. Disclosure of Related party Transactions (As per AS-18)
Key Management Personnel (KMP)
Sri VC Janardan Rao : Chairman
Sri Srinivas VG : Managing Director
Directors
Sri GK Kabra
Sri ML Motwani
Sri V Pattabhi
Companies/Firms in which the key Management and their relations are
interested
1. M/s. Veljan Hydrair Ltd - Common Control
2. M//s. Veljan Investments Ltd - Common Control
3 In the opinion of the Management, the Current Assets, loans and
advances are expected to realise the amount at which they are stated,
if realised in the ordinary course of Business and provision for all
known liabilities have been adequately made in the accounts.
4 Balances in personal accounts are subject to confirmation and there
by reconcilation.
5 The company has Installed Machinery worth Rs. 370.72(previous year Rs
370.72) In MS Ecmat Ltd, for the job works given to them.
6. Consequent to the Notification under the Companies Act, 1956, the
financial statements for the year ended 31st March, 2012 are prepared
under Revised Schedule VI accordingly, the Previous year's figures
also have been reclassified to confirm to this year's classification.
Mar 31, 2011
Particulars Current Year Previous Year
31-03-2011 30-09-2009
Rs. Rs.
1. A) Contingent Liabilities
not provided for:
a) Towards Guarantees and 12,921,571 4,256,363
Letters of credit issued
by the Bankers to the extent
of
b) Cheques discounted with
bankers to the extent of 316,601 883,324
c) Interest claimed by Dist 2,328,929 2,328,929
rict Industries Centre Sanga
reddy for delay in payment
of instalments of Interest
Free sales tax loan, which
is contested by the
Company
B) Contracts remaining to
be executed on Capital 6,680,878 2,181,631
account.
2. Unclaimed dividends under "current Liabilities and provisions" not
due for remittance to "Investors Education and Protection fund".
Balances in current accounts with scheduled banks include
Rs.64,74,833/- towards unclaimed dividends.
3. Segment Reporting : The entire operations of the Company relates
only to one Segment i.e.'Hydraulics Products'. Hence no separate
disclosure under segment reporting (AS -17) is required.
4. In the opinion of the management, the current assets, loans and
advances are expected to realise the amount at which they are stated,
if realised in the ordinary course of business and provision for all
known liabilities have been adequately made in the accounts.
5. Balances in personal accounts are subject to confirmation and there
by reconciliation
6. Due to micro, small and Enterprises: Out standing due to Micro,
Small and Medium enterprises for a period exceeding 30 Days nil
previous year nil.
7. The Company has Installed machinery worth Rs.3,70,72,415/-,
(previous year Rs.7,23,36,741) in MS.Ecmat Ltd, for the job works
given to them.
8. Disclosure of Related party Transaction (As per AS-18)
Key Management Personnel (KMP)
Sri V C Janardan Rao : Chairman
Sri Srinivas VG : Managing Director
Sri G K Kabra : Director
Directors
Sri M L Motwani
Sri V Pattabhi
Companies/firms in which the key management and their relations are
interested
1.M/s.Veljan Hydrair Ltd - Common Controls
2. M//s.Veljan Investments Ltd - Common Controls
Sep 30, 2009
1. Investments are stated at cost
2. Contributions to Provident Fund are remitted to the Provident Fund
Commissioner at prescribed rates Group Gratuity Schemes administered
through Trustees for which policies are taken from Life Insurance
Corporation of India. The said remittances and premiums are charged to
the revenue.
3. Liability in respect of Encashment of leave salary to the Employees
of the company is provided for actual basis.
4. All contingent Liabilities are indicated by way of a note and will
be provided/paid on crystallisation.
5. Sales are inclusive of Excise duty, Sales tax and packing charges
collected.
6. Provision for tax is made for both current and deferred taxes.
Current Tax is provided on the taxable income using the applicable tax
rates and tax laws.
7 Impairment of Assets:
At the date of each Balance Sheet, the company evaluates for
indications of impairment internally if any to the carrying amounts of
its fixed assets. If any indications exist, the recoverable amount is
estimedated at the higher of the realisable value and value in use, as
considered appropriate. If the estimated realisable value is less than
the earring amount, and impairment loss is recognised.
Reversal of impairment loss recognised in prior years is recorded when
there is an indication that the impairment loss recognised for the
asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognised to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognised for the asset in prior years.
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