అకౌంట్స్ గమనికలుPoojaa Precision Engg. Ltd.

38.12 Provisions, Contingent Liabilities

A provision is recognized when an enterprise has a present obligation as a result of past event; if 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. Provi¬
sions 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 esti¬
mates.

38.13 Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount
of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual result and estimates are recognized in the period in which
the results are known or materialized.