Accounting Policies of SBC Exports Ltd. Company

Mar 31, 2025

A. Basis of Accounting

The Standalone Financial statements of the Company have been prepared in accordance with the Indian Accounting
Standards (hereinafter referred to as the ''Ind AS’] as notified by the Ministry of Corporate Affairs pursuant to Section
133 of the Companies Act, 2013 (''the Act] read with the Companies (Indian Accounting Standards] Rules, 2015 (as
amended from time to time].

The accounting policies are applied consistently to all the periods presented in the standalone financial statement
except where a newly issued accounting standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use .

The standalone financial statements provide comparative information in respect of the previous period . In addition,
the Company presents an additional balance sheet at the beginning of the preceding period when there is a
retrospective application of an accounting policy, a retrospective restatement, or a reclassification of items in
standalone financial statements .

All figures are reported in Rs . In Thousands (’000] unless otherwise specifically indicated .

B. Use of estimates

The preparation of the financial statements, requires management to make estimates, judgments and assumptions .
These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts
of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the year . Actual results could differ from those estimates .
Appropriate changes in estimates are made as management becomes aware of changes in circumstances
surrounding the estimates . Changes in estimates are reflected in the financial statements in the year in which
changes are made and, if material, their effects are disclosed in the notes to the financial statements .

Areas involving critical estimates and Judgements are:

Estimation of useful lives of property, plant and equipment
Estimation of current tax expenses

Estimation of allowance for impairment of financial assets
Estimation of employee defined benefit obligations

C. Summary of Material Accounting Policies-
a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification . An
asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period

All other assets are classified as non-current

A liability is current when:

- It is expected to be settled in normal operating cycle

- it is nem primarily tor me purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to deter the settlement of the liability tor at least twelve months after the
reporting period .

The Company classifies all other liabilities as non-current

Deterred tax assets and liabilities are classified as non-current assets and liabilities and advance against current
tax are classified as non-current assets.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and
cash equivalents . The Company has identified twelve months as its operating cycle .

D. Revenue Recognition fIND AS 1151

a) Manufacturing and Trading Revenue: Revenue is recognized upon transfer of control of goods to the
customer, generally upon delivery, and when significant risks and rewards have been transferred.
Revenue is measured at the fair value of the consideration received or receivable, net of returns,
discounts, and taxes .

b) Manpower Supply Services: Revenue from manpower supply is recognized over time as the services
are rendered to the customer. The Company assesses performance obligations and recognizes revenue
as per the stage of completion (time-based or milestone-based depending on contract terms].

c) O ther Income:

• Interest income is recognized using the effective interest method .

• Dividend income is recognized when the Company’s right to receive payment is established .

E. Expenses Recognition: An expense is recognized when:

• It is probable that an outflow of economic benefits has occurred or will occur as a result of a past event, and

• The amount of the expense can be measured reliably.

Expenses are recorded in the accounting period in which they are incurred, regardless of the timing of the
related cash payments . This ensures that expenses are matched with the revenues they help to generate, in
line with the matching principle .

F. Property Plant & Equipment and Intangible Assets

fi) Property, plant and equipment

Recognition and measurement

All items of property, plant and equipment are initially measured at cost and subsequently it is measured at
costless accumulated depreciation and impairment losses, if any. Cost comprises of purchase price and all costs
incurred to bring the assets to their current location and condition for its intended use . When significant parts
of property, plant and equipment are required to be replaced at intervals, the Company recognizes such parts
as individual assets with specific useful lives and depreciates them accordingly. Any subsequent cost incurred
is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are
satisfied . All other repair and maintenance costs are recognized in statement of profit and loss as incurred .

Capital work in progress comprises cost of property, plant and equipment (including related expenses], That
are not yet ready for their intended use at the reporting date .

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference
between the net disposal proceeds and carrying amount of the assets and are recognized in the statement of
profit and loss when the asset is derecognized .

On transition to IND AS, the Company has elected to continue with the carrying value of all its property, plant

and equipment measured as per the previous GAAP and use that carrying value as the deemed cost of the
property, plant and equipment.

Depreciation on Property, plant and equipment

Depreciation is calculated using the written down method to allocate their cost, net of their residual values, over
their useful lives .

The company depreciates property, plant and

equipment over their estimated useful lives on written down value method . The estimated useful lives of assets
are as follows:

Office building - 60 years

Computer Equipments - 3-6 years

Office Equipments - 5 years

Furniture and fixtures - 10 years

Vehicles - 8-10 years

The useful lives for these assets is in compliance with the useful lives as indicated under Part C of Schedule II of
the Companies Act, 2013.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting year

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting year

(ii) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost The cost of intangible assets
acquired in a business combination is their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses .
Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related
expenditure is reflected in profit or loss in the period in which the expenditure is incurred .

The useful lives of intangible assets are assessed as either finite or indefinite .

On transition to IND AS, the Company has elected to continue with the carrying value of all its Intangible Assets
measured as per the previous GAAP and use that carrying value as the deemed cost of the Intangible Assets .

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired . The amortization period and the
amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period . Changes in the expected .

Useful life or the expected pattern of consumption of future economic benefits embodied in the asset are
considered to modify the amortization period or method, as appropriate, and are treated as changes in
accounting estimates . The amortization expense on intangible assets with finite lives is recognized in the
statement of profit and loss unless such expenditure forms part of carrying value of another asset

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either
individually or at the cash-generating unit level . The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable . If not, the change in useful life from indefinite
to finite is made on a prospective basis.

An intangible asset is derecognized upon disposal (i.e ., at the date the recipient obtains control] or when no
future economic benefits are expected from its use or disposal . Gains or losses arising from de-recognition of
an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount
of the asset and are recognized in the statement of profit or loss when the asset is derecognized .

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit or loss
when the asset is derecognized

G. Investment in subsidiaries-

Investment in subsidiaries are measured at cost less accumulated impairment, if any. The Company assesses
at the end of each reporting period if there are any indications of impairment on such investments . If so, the
Company estimates the recoverable amount of the investment and provides for impairment

H. Inventories

• Raw materials, stores, and spares are valued at lower of cost and net realizable value .

• Work-in-progress and finished goods are valued at cost or net realizable value, whichever is lower .

• Cost is determined on a weighted average basis and includes all costs incurred in bringing the inventory to its
present location and condition.

I. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity

• Financial assets include cash and cash equivalents, trade receivables, employee advances, investments in
equity and debt securities etc .

• Financial liabilities include long-term and short-term loans and borrowings, derivative financial liabilities,
bank overdrafts and trade payables

Financial Assets:

Initial measurement

Initially, a financial instrument is recognized at its fair value . Transaction costs directly attributable to the
acquisition or issue of financial instruments are recognized in determining the carrying amount, if it is not
classified as at fair value through profit or loss . Transactions costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss . Subsequently, financial instruments are measured
according to the category in which they are classified .

Subsequent measurement

The subsequent measurement of financial assets depends on their classification as follows:

i) Financial assets at amortized cost:

A financial asset is classified as "financial asset at amortized cost" (amortized cost] under Ind AS 109
Financial Instruments if it meets both the following criteria:

(1] The asset is held within a business model whose objective is to hold the financial asset in order to
collect contractual cash flows, and

(2] The contractual terms of the financial asset give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding on specified date (the ‘SPPI’ contractual
cash flow characteristics test].

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortized cost using the effective interest rate (EIR] method . Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included in interest income in the profit or loss . The losses
arising from impairment are recognized in the profit or loss . This category generally applies to trade and
other receivables .

ii) Financial assets at fair value through other comprehensive income (FVT O CI):

All equity investment in scope of IND AS 109 Financial Instruments are measured at fair value . Equity
instruments which are held for trading and contingent consideration recognized by an acquirer in a
business combination to which IND AS 103 Business Combinations applies are classified as fair value
through profit or loss . For all other equity instruments, the Company may make irrevocable election to
present in other comprehensive income subsequent changes in the fair value. The Company makes

such election on an instrument-to-instrument basis . The classification is made on initial recognition
and is irrevocable .

If the Company decides to classify an equity instrument through fair value through other
comprehensive income (FVTOCL], then all fair value changes in the instruments excluding dividends,
are recognized in OCI and is never recycled to statement of profit and loss, even on sale of the
instrument The Company measures financial instruments, such as, derivatives at fair value at each
balance sheet date .

iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued
through profit or loss

De-recognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the
asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset to another entity. If the Company retains substantially all the risks and rewards of ownership of a
transferred financial asset, the Company continues to recognize the financial asset and also recognizes a
collateralized borrowing for the proceeds received .

Financial liabilities and equity instruments:

a) Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definitions of a financial
liability and an equity instrument

b) Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities . Equity instruments issued by the Company are recognised at the proceeds
received, net of direct issue costs .

c) Financial Liabilities

Financial liabilities are classified as either financial liabilities ''at FVTPL'' or ‘other financial liabilities'' .
Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings or payables, as appropriate . All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs .

Subsequent measurement

The subsequent measurement of financial liabilities depends on their classification as follows:
Impairment of financial assets

The Company recognizes an allowance for expected credit losses (ECLs] for all debt instruments not held
at fair value through profit or loss . ECLs are based on the difference between the contractual cash flows due
in accordance with the contract and all the cash flows that the Company expects to receive, discounted at
an approximation of the original effective interest rate . The expected cash flows will include cash flows
from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs .
Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based
on lifetime ECLs at each reporting date . The Company has established a provision matrix that is based on
its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment

i] Financial liabilities measured at amortized cost

After initial recognition, financial liabilities are subsequently measured at amortized cost using the
effective interest method . Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process .

ii] Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial
recognition as at fair value through profit or loss .

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied .
For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk
are recognized in OCI. These gains/ losses are not subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such
liability are recognized in the statement of profit and loss .

De-recognition of financial liabilities

Financial liabilities are derecognized when these are extinguished, that is when the obligation is discharged,
cancelled or has expired .

Offsetting of financial instruments

Financial assets and financial liabilities are offset with the net amount reported in the balance sheet only if
there is a current enforceable legal right to offset the recognized amounts and intent to settle on a net basis,
or to realize the assets and settle the liabilities simultaneously.

J. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are subject to an insignificant risk of changes in value .

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company’s cash management

K. Fair value measurement

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments
by valuation technique:

Level 1: quoted (unadjusted] prices in active markets for identical assets or liabilities .

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

L. Income Tax Expense

Provision for Income tax expense is determined as the amount of tax payable in respect of taxable income for the
year and in accordance with the Income-tax Act, 1961.

M. Deferred Tax

Deferred Tax is recognized on timing difference between taxable and accounting income that originates in one
period and is capable of reversal in one or more subsequent periods . The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or
substantively enacted by the Balance Sheet date .

A deferred tax asset/(liability] on other comprehensive income has been recognized in current year with
corresponding recognition in previous year .

N. Employee Benefits:

Short Term Employee Benefits: The undiscounted amount of shortterm employee benefits expected to be paid
in exchange for the services rendered by employees are recognized as an expense during the period when the
employees render the services .

Post-Employment Benefits:

Defined Contribution Plans: The Company recognizes contribution payable to the provident fund scheme as
an expense, when an employee renders the related service . If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme
is recognized as a liability. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead
to a reduction in future payment or a cash refund

Defined Benefit Plans: The Company pays gratuity to the employees who have completed five years of service
with the Company at the time of resignation/ superannuation . The gratuity is paid @15 days basic salary for
every completed year of service as per the Payment of Gratuity Act, 1972. The liability in respect of gratuity and
other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period
during which the benefit is expected to be derived from employees’ services . Remeasurement gains and losses
arising from adjustments and changes in actuarial assumptions are recognized as Other Comprehensive Income
in the period in which they occur .

O . Leases

Lease rentals in respect of operating lease arrangements are recognized as an expense in the profit & loss account
on accrual basis .

P. Earnings per share

The earnings considered in ascertaining the Company’s earnings per equity share comprises the net profit after
tax. The number of shares used in computing basic & diluted EPS is the weighted average number of equity
shares outstanding during the year .

Q. Standard Issued but not Effective

Ministry of Corporate Affairs ("MCA"] notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards] Rules as issued from time to time . For the year ended March 31,2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the company.
The standards or amendments (wherever applicable] issued till date have been complied by the company.

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Mar 31, 2024

A. SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Accounting

The financial statements for the year ended 31.03.2024 have been prepared and presented in accordance with Indian accounting standards (Ind-AS) as notified by MCA vide notification G.S.R. 365(E) Dated 30.03.2016 with comparative for previous years ending 31.03.2023 to facilitate the comparison of current year financials previous year.

2. Revenue Recognition

Revenue is recognized on accrual basis to the extent it is probable that economic benefits shall flow to the organization.

3. Expenses Recognition

Expenses are recognized on accrual basis.

4. Property Plant & Equipment and Intangible Assets Property Plant & Equipment

Property Plant & equipment (if any) are stated at cost of acquisition less accumulated depreciation and impairment losses, if any. The cost of Property Plant & equipment comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets

Internally generated intangible asset arising from development activity are recognized only on demonstration of its feasibility, the intention and ability of the company to complete, use or sell it. The intangible assets are eroded at cost and are carried at cost less accumulated amortization.

5. Depreciation

Depreciation is provided on a written down value on the basis useful life specified in Schedule II to the Companies Act, 2013. Depreciation is charged on a pro-rata basis for assets purchased/ sold during the year. Depreciation is charged from the date the asset is ready to use or put to use, whichever is earlier. In respect of assets sold, depreciation is provided up to the date of disposal.

6. Investments

Investments are classified into current investments and non-current investments, current investments are carried at fair value and provisions are made to recognize the decline in the carrying value. Non-Current Investments are stated at fair value. Provision for diminution in the value of non-current investments is made only if such decline is other than temporary, in the opinion of the management.

On disposal of an investment, the difference between the carrying amount and the disposal proceeds, net of expenses, is recognized in the profit and loss statement. When disposing of a part of the holding of an individual investment, the carrying amount allocated to that part is determine on the basis of the average carrying amount of the holding of the investments.

7. Inventories

Inventories are valued at the Net Realizable Value. Cost of inventories comprises all cost of purchase, and other costs incurred in acquiring the inventories. Further the inventories are valued on FIFO basis.

8. Income Tax Expense

Provision for Income tax expense is determined as the amount of tax payable in respect of taxable income for the year and in accordance with the Income-tax Act, 1961.

9. Deferred Tax

Deferred Tax is recognized on timing difference between taxable and accounting income that originates in one period and is capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

A deferred tax asset/(liability) on other comprehensive income has been recognized in current year with corresponding recognition in previous year.

10. Employee Benefits:

Short Term Employee Benefits: The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

Post-Employment Benefits:

Defined Contribution Plans: The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to a reduction in future payment or a cash refund

Defined Benefit Plans: The Company pays gratuity to the employees who have completed five years of service with the Company at the time of resignation/ superannuation. The gratuity is paid @ 15 days basic salary for every completed year of

service as per the Payment of Gratuity Act, 1972. The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees'' services. Re-measurement gains and losses arising from adjustments and changes in actuarial assumptions are recognized as Other Comprehensive Income in the period in which they occur.

11. Leases

Lease rentals in respect of operating lease arrangements are recognized as an expense in the profit & loss account on accrual basis.

12. Earnings per share

The earnings considered in ascertaining the Company''s earnings per equity share comprises the net profit after tax. The number of shares used in computing basic & diluted EPS is the weighted average number of equity shares outstanding during the year.

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Mar 31, 2023

BACKGROUND

M/s SBC Exports Limited ("The Company") is a listed Company and was incorporated in India on 18^th day of January 2011 under the Company''s Act 1956. The Company is engaged in the Trading and Manufacturing of Garments, Manpower Supply Services & Tour Operator Services.

A. SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Accounting

The financial statements for the year ended 31.03.2023 have been prepared and presented in accordance with Indian accounting standards (Ind-AS) as notified by MCA vide notification G.S.R. 365(E) Dated 30.03.2016 with comparative for previous years ending 31.03.2022 to facilitate the comparison of current year financials previous year.

Previous year figures have been regrouped/ rearranged, wherever necessary to make them comparable with figures of current year.

2. Revenue Recognition

Revenue is recognized on accrual basis to the extent it is probable that economic benefits shall flow to the organization.

3. Expenses Recognition

Expenses are recognized on accrual basis

4. Property Plant &Equipment and Intangible Assets Property Plant & Equipment

Property Plant & equipment (if any) are stated at cost of acquisition less accumulated depreciation and impairment losses, if any. The cost of Property Plant & equipment comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets

Company is not having any intangible assets during the year 2022-2023.

5. Depreciation

Depreciation is provided on a written down value on the basis useful life specified in Schedule II to the Companies Act, 2013. Depreciation is charged on a pro-rata basis for assets purchased/ sold during the year. Depreciation is charged from the date the asset is ready to use or put to use, whichever is earlier. In respect of assets sold, depreciation is provided up to the date of disposal.

6. Investments

Investments are classified into current investments and non-current investments, current investments are carried at fair value and provisions are made to recognize the decline in the carrying value. Non-Current Investments are stated at fair value. Provision for diminution in the value of non-current investments is made only if such decline is other than temporary, in the opinion of the management.

On disposal of an investment, the difference between the carrying amount and the disposal proceeds, net of expenses, is recognized in the profit and loss statement. When disposing of a part of the holding of an individual investment, the carrying amount allocated to that part is determine on the basis of the average carrying amount of the holding of the investments.

7. Inventories

Inventories are valued at the Net Realizable Value. Cost of inventories comprises all cost of purchase, and other costs incurred in acquiring the inventories. Further the inventories are valued on FIFO basis.

8. Income Tax Expense

Provision for Income tax expense is determined as the amount of tax payable in respect of taxable income for the year and in accordance with the Income-tax Act, 1961.

9. Deferred Tax

Deferred Tax is recognized on timing difference between taxable and accounting income that originates in one period and is capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

10. Employee Benefits:

Company has made Provision for liability of future payment of gratuity in the current year and has obtained actuarial valuation report. Further, no provision has been made for leave encashment benefits, as the company does not have a policy of encashing leaves of employees.

ESIC & EPF: Company has complied with the requirement of ESIC and EPF with respect to employees employed by company for working with other bodies externally under agreement with the company.

11. Leases

Lease rentals in respect of operating lease arrangements are recognized as an expense in the profit & loss account on accrual basis.

12. Earnings per share

The earnings considered in ascertaining the Company''s earnings per equity share comprises the net profit after tax. The number of shares used in computing basic & diluted EPS is the weighted average number of equity shares outstanding during the year.

13. Provisions & Contingencies

A provision is recognized when the company has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation.