BSE: 531164ISIN: INE995E01015INDUSTRY: Gems, Jewellery & Precious Metals
2.14 Provisions and contingencies
Provisionsinvolving asubstantialdegreeofestimation inmeasurementarerecognisedwhenthereisapresentobligation asaresultofpasteventsandit isprobablethattherewill beanoutflow ofresources.Provision isnotdiscountedtoitspresentvalueandisdetermined basedonthebestestimaterequired tosettleanobligation at the year end.Thesearereviewed every year end and adjusted to reflect the bestcurrent estimate.Contingent liabilities arenotrecognised but are disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.
Aprovision isrecognisedwhenthereisapresentobligation asaresultofapastevent,thatprobably requiresanoutflow ofresourcesandareliableestimatecanbemadetosettletheamountofobligation. Provisionisnotdiscountedtoitspresentvalueandisdetermined basedonthelastestimaterequired tosettletheobligation attheyearend.Thesearereviewed ateachyearendandadjustedtoreflectthebestcurrent estimate.Contingent liabilities arenot recognisedbut disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.
During thefinancial year2020-2021,thecompanyhadpaid Rs.13,10,000(10°%f1.31Crores)asDepositfor ServiceTaxDemandagainstcompany,basedon
the judgement the liability may or may not arise.The payment of Rs.13,10,000 had been accounted under Current Assets -Deposit