TO THE MEMBERS OF TARAI FOODS LIMITED Report on the Standalone Financial StatementsOpinion
We have audited the accompanying standalone financial statements of TARAI FOODS LIMITED("the Company") which comprise the Balance Sheet as at 31 March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information which we have signedunder reference to this report.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards ("Ind AS")prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 the profit totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.
|Serial no ||Key Audit Matter ||Auditor's Response |
| ||None ||None |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Responsibilities of Management and those Charged with Governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess. Auditor's Responsibility
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe
are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by section 143 (3) of the Act we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014.
e. On the basis of written representations received from the directors as on 31 March2020 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2020 from being appointed as a director in terms of section 164(2) of theAct.
f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A" Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial.
g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
h. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according the explanations given to us:
1. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements in accordance with the Indian Accounting Standards(IndAS).
2. The Company did not have any long term contracts including derivative contracts forwhich there are any material foreseeable losses.
3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
M/s Sunil Vashisht & Co.
CA. Varun Vashisht Partner M.No. 512252 Place: Rudrapur Date: 31.07.2020
"Annexure A" to the Independent Auditor's Report of even date on theStandalone Financial Statements of TARAI FOODS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of TARAI FOODSLIMITED ("the Company") as of 31 March 2020 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
M/s Sunil Vashisht & Co.
CA. Varun Vashisht Partner M.No. 512252 Place: Rudrapur Date: 31.07.2020
ANNEXURE- B TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the
standalone financial statements for the year ended 31 March 2020 we report that:
(i) . In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the Management during the year inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. And which in ouropinion is reasonable having regard to the size of the company and nature of its assets.No material discrepancies were noticed on such physical verification and the same havebeen properly dealt with in the books of account;
c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company.
(ii) In respect of its inventory:
a) As explained to us inventories have been physically verified by the Management atregular intervals during the year.
b) There were no material discrepancies noticed on such physical verification ofinventory as compared to the book records and the same have been properly dealt with inthe books of account;
(iii) The company has not granted any loans secured or unsecured to companies firmsLimited
Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Hence (iii) (a) (b) and (c) are not applicable inthe case of the Company.
(iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of section 185 and186 of the Companies Act 2013 have been complied with.
(v) . According to the information and explanations given to us the Company has notaccepted
any deposits during the year and accordingly the question of complying with thedirectives issued by the Reserve Bank of India and the provisions of section 73 and 76 orany other relevant provisions of the Companies Act 2013 and the rules framed thereunderdoes not arise. According to the information and explanations given to us no Order hasbeen passed by the Company Law Board or the National Company Law Tribunal or the ReserveBank of India or any Court or any other Tribunal on the Company.
(vi) . The maintenance of cost records has not been specified by the Central Governmentunder
sub-section (1) of section 148 of the Companies Act 2013.
(vii) . According to the information and explanations given to us and according to thebooks and
records as produced and examined by us in our opinion:
a) in the year under review the Company is regular in depositing undisputed statutorydues including employees' state insurance income-tax Goods and Service Tax duty ofcustoms cess and any other statutory dues to the appropriate authorities.
Undisputed statutory dues of provident fund of current year under review and of earlieryears and sales tax of earlier years have been deposited and Provident Fund amounting toRs. 1.81 lacs including of earlier years) and sales tax of earlier years amounting to Rs.0.13 lacs has not been deposited with the Authorities after they have become due. Howeverprovision for provident Fund has been made in Books of Accounts in the earlier years.
According to the information and explanations given to us no undisputed amountspayable in respect of income tax duty of customs Goods and Service Tax cess and othermaterial statutory dues were in arrears as at 31 March 2020 for a period of more than sixmonths from the date they became payable.
b) As at 31st March 2020 according to the records of the Company the following arethe
particulars of disputed dues on account of excise duty matters that have not beendeposited:
|Name of the Statute ||Natur e of Dues ||Amoun t (Rs. In Lacs) ||Perio d to which dues relate ||Forum where the dispute is pending |
|Central Excise ||Excise Duty ||Rs. 0.59 ||1999 2000 ||Appellate Authority - |
|Act194 4 || || || ||Upto Commissioner' s Level |
(viii) In our opinion and based on our audit procedures and according to theinformation and explanation given to us and as per the books maintained by the Companythe Company has not defaulted in repayment of dues to financial institutions and the bank.And the Company did not have any outstanding debenture during the year. However duringthe previous financial year 2018-2019 the Company had undergone into One Time Settlement(OTS) with IFCI Ltd. and IDBI Bank Ltd. The schemes have been duly approved by both thefinancial institution IFCI Ltd. and IDBI Bank Ltd. The company has successfully paid offthe OTS amount approved by IDBI Bank Limited under the said scheme and the litigationspending against the company in Debt Recovery Tribunal Delhi have been settled aswithdrawn by the said bank.
(ix) In our opinion and based on our audit procedures and according to the informationand
explanation given to us the Company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments) and term loans in the yearunder review and accordingly paragraph 3 (ix) of the Order is not applicable.
(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) The company is not a Nidhi Company and hence paragraph 3(xii) of the Order is notapplicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
(xiv) To the best of our knowledge and according to the information and explanationsgiven to us the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review..
(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
(xvi) In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.
M/s Sunil Vashisht & Co.
CA. Varun Vashisht Partner M.No. 512252 Place: Rudrapur Date: 31.07.2020
Summary of significant accounting policies and other explanatory information
1. General Information:
a) Tarai Foods Limited (the Company) is a Public Limited Company domiciled in Indiaand is incorporated under the provisions of the Companies Act applicable in India. Itsshares are listed on the Bombay Stock Exchange Limited (BSE). The Registered Office of thecompany is located at 13 Hanuman Road Connaught Place New Delhi- 110001.
b) The company is primarily engaged in the business of manufacture of frozen fruits andvegetables using the Individual Quick Frozen (IQF) freezing Technology.
2. Statement of Compliance:
a) The financial statements are prepared in accordance with the Indian AccountingStandards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015as amended by the Companies (Indian Accounting Standards) (Amendment) Rules 2016.
b) Up to the year ended 31st March 2017 the Company prepared its FinancialStatements in accordance with the requirements of previous GAAP prescribed under section133 of the Companies Act 2013 ('the Act') read with Rule 7 of the Companies (Accounts)Rules 2014.
3. Significant accounting policies:
a) Basis of preparation of Financial Statements
i) In accordance with the notification issued by the Ministry of Corporate Affairs theCompany is required to prepare its Financial Statements as per the Indian AccountingStandards ('Ind AS') prescribed under section 133 of the Companies Act 2013 read withRule 3 of the Companies (Indian Accounting Standards) Rules 2015 as amended by theCompanies (Accounting Standards) Amendment Rules 2016 with effect from 1stApril 2016. Accordingly the Company has prepared these Financial Statements whichcomprise the Balance Sheet as at 31st March 2020 the Statement of Profit andLoss the Statement of changes in Equity for the year ended 31st March 2020and a summary of Significant accounting policies and other Explanatory Information(together hereinafter referred to as "Financial Statements".
ii) The financial statements of the company are prepared in accordance with the IndianGenerally Accepted Accounting Principles (GAAP) on the accrual basis of accounting andhistorical cost convention except for certain material items that have been measured atfair value as required by the relevant Ind AS and explained in the ensuing policies below.
iii) The financial statements are presented in Indian Rupees ('INR') and all values arerounded to the nearest lakh except otherwise indicated.
b) Use of estimates and judgments
i) The preparation of the financial statements requires the management to makeestimates and assumptions that affect the reported amounts of assets and liabilitiesdisclosure of contingent liabilities as at the date of the financial statements and thereported amount of revenue and expenses during the reporting period. The recognitionmeasurement classification or disclosure of an item or information in the financialstatements is made relying on these estimates.
4. Summary of Significant Accounting Policies
a) Property Plant and Equipments:
The cost of Property Plant and Equipment comprises its purchase price net of any tradediscounts and rebates any import duties and other taxes (other than those subsequentlyrecoverable from the tax authorities) any directly attributable expenditure on making theasset ready for its intended use including relevant borrowing costs for qualifyingassets. Expenditure incurred after the property plant and equipment have been put intouse are charged to Statement of Profit and Loss in the period in which the costs areincurred.
Capital Work-In-Progress is carried at cost comprising direct cost related incidentalexpenses if any to the extent they relate to the period till assets are ready forintended use.
Depreciation on property plant and equipment is provided over the useful lives ofassets as specified in Schedule II to the Act except where the Management has estimateduseful life of an asset supported by the technical assessment external or internal i.e.higher or lower from the indicative useful life given under Schedule II. The Managementbelieves that these estimated useful lives are realistic and reflect fair approximation ofthe period over which the assets are likely to be used.
Depreciation is calculated on a straight-line basis over the estimated useful lives ofthe assets as follows:
|Description ||Useful lives(upto) |
|Building ||60 years |
|Plant and machinery ||15 years |
|Furniture and fixtures ||10 years |
|Vehicles ||8 years |
|Office equipment ||10 years |
The residual value and useful life is reviewed annually and any deviation is accountedfor as a change in estimate
c)Revenue Recognition and Sales:
Revenue from sale of products is recognized when control of products being sold istransferred to customer and when there are no longer any unfulfilled obligations. Theperformance obligations in contracts are considered as fulfilled in accordance with theterms agreed with the respective customers.
Revenue is measured at fair value of the consideration received or receivable and areaccounted for net of returns rebates and trade discount. Sales as disclosed areexclusive of goods and services tax.
Interest income is recognized using effective interest method.
a. Finished Goods are valued at the lower of cost and net realizable value. Cost forthis purpose includes direct cost and an appropriate portion of allocable overheads.
b. W.I.P. is valued at cost. Cost for this purpose includes direct cost andattributable overheads.
c. In case of stores and spares and packing material and raw material 'SpecificIdentification' method and for other inventories FIFO method is used.
e) Employee Benefits:
i) Provident Fund:
Provident Fund is a defined contribution scheme and the Company's contributions arecharged to the Profit and Loss Account during the period in which the employee renders therelated services.
ii) Gratuity and Leave Encashment entitlement:
The company's liability towards the Gratuity and Leave Encashment is accounted for onthe basis of actuarial valuation done at the year end and is charged to Statement ofProfit and Loss.
Ind AS 19 requires the exercise of judgment in relation to various assumptionsincluding future pay rises inflation and discount rates. The Company determines theassumptions in conjunction with its actuaries and believes these assumptions to be inline with best practice.
Tax expense recognized in Standalone Statement of Profit and Loss comprises the sum ofdeferred tax and current tax except the ones recognized in other comprehensive income ordirectly in equity.
Current tax is determined as the tax payable in respect of taxable income for the yearand is computed in accordance with relevant tax regulations. Current income tax relatingto items recognized outside profit or loss is recognized outside profit or loss (either inother comprehensive income or in equity).
g) Provisions Contingent Liabilities and Contingent assets:
Provision is made based on a reliable estimate when it is probable that an outflow ofresources embodying economic benefits will be required to settle an obligation. Provisionsare recognized only when there is a present obligation as a result of past events andwhen a reliable estimate of the amount of obligation can be made at the reporting date.These estimates are reviewed at each reporting date and adjusted to reflect the currentbest estimates. Provisions are discounted to their present values where the time value ofmoney is material.
Contingent liability is disclosed for:
a. Possible obligations which will be confirmed only by future events not wholly withinthe control of the Company; or
b. Present obligations arising from past events where it is not probable that anoutflow of resources will be required to settle the obligation or a reliable estimate ofthe amount of the obligation cannot be made.
Contingent assets are neither recognized nor disclosed except when realization ofincome is virtually certain related asset is recognised.