PROVISIONS & CONTIGENT LIABILTY
A provision is recognized when an enterprise has apresent legal or constructive
obligation as a result of past event; 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 not discounted to its present value and are determined
based on 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
P. TAXES ON INCOME
The Tax expense for the period comprises of current and deferred Income tax. Tax is
recognized instatement of Profit & Loss, except to the extent it relates to its items
recognized in the Other Comprehensive Income or in equity. In which case, the tax is
also recognized in other Comprehensive Income or Equity.
Current Tax : Current Tax is asset and liabilities are measured at the amount expected
to be recovered from or paid to the Income tax Authorities, based on tax rates and laws
that are enacted or substantively enacted at the Balance Sheet date.
Deferred Tax : Deferred Tax is recognized on temporary differences between the
carrying amounts of the assets and liabilities in which the liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.
Deferred Tax liabilities and assets are measured at the tax rates that are expected to
apply in the period in which the liability is settled or the asset is realized, based on the
tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period. The carrying amount of Deferred tax liabilities and assets are
reviewed at the end of each reporting period.
Q. CONTINGENT LIABILITIES
A contingent liability is a possible obligation that arises from 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 or a reliable estimate of the amount cannotbe made.
R. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit after tax by the weighted
average number of equity shares outstanding during the year adjusted for bonus
element in equity share. Diluted earnings per share adjusts the figures used in
determination of basic earnings per share to take into account the conversion of all
dilutive potential equity shares. Dilutive potential equity shares are deemed converted
as at the beginning of the period unless issued at a later date.
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