Notes to Accounts of Richa Info Systems Ltd.

Mar 31, 2025

o) Provisions Contingent liabilities and contingent assets:-

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to
settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as
Contingent Liability.

A disclosure for a Contingent Liability is also made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a
present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.

Possible obligation that arises from the past events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation is reported as Contingent Liability. In the rare cases, when a liability cannot be measures
reliable, it is classified as Contingent Liability. The Company does not recognize a Contingent Liability but
disclosed its existence in the standalone financial statements.

p) Event after Reporting Date:-

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the end of
reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise,
events after the Balance Sheet date of material size or nature are only disclosed.

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Mar 31, 2024

o) Provisions Contingent liabilities and contingent assets:-

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to
settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as
Contingent Liability.

A disclosure for a Contingent Liability is also made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a
present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.

Possible obligation that arises from the past events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation is reported as Contingent Liability. In the rare cases, when a liability cannot be measures
reliable, it is classified as Contingent Liability. The Company does not recognize a Contingent Liability but
disclosed its existence in the standalone financial statements.

p) Event after Reporting Date:-

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the end of
reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise,
events after the Balance Sheet date of material size or nature are only disclosed.