Notes to Accounts of Bhadora Industries Ltd.

Mar 31, 2025

J. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is
a present obligation as a result of past events and it is probable that there will be an outflow of
resources. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the
financial statements.

K. Taxation

Provision for current tax is made after taking into consideration benefits admissible under the
provisions of the Income-tax Act, 1961. Deferred tax resulting from “timing difference” between
taxable and accounting income is accounted for using the tax rates and laws that are enacted or
substantively enacted as on the balance sheet date.

L. Impairment of assets

The company assesses at each reporting date whether there is any indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required,
the company makes an estimate of the asset''s recoverable amount.

M. Earning per share

The Company reports Earnings per share (EPS) in accordance with Accounting Standard 20 on
Earning per share. Basic EPS is computed by dividing the net profit for the year by the Weighted
average number of Equity Shares outstanding during the year.

Where there has been a bonus issue, the earnings per share (basic and diluted) for all periods
presented are restated as if the bonus shares had been issued at the beginning of the earliest period
reported, as required by Accounting Standard (AS) 20 - Earnings Per Share.

N. Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.

O. Related Party Disclosures

Disclosures of transactions with related parties are made in accordance with AS 18 "Related Party
Disclosures." The related parties are identified based on criteria mentioned in the standard, and
detailed disclosures of transactions with related

P. Government Grant

The company recognises government grants at their fair value only when there is reasonable
assurance that the conditions attached to them will be complied with, and the grant will be received.

Capital subsidies received from the government or other authorities are recognized as income in the
Profit and Loss Account on a systematic basis over the periods.

Q. Cash and Cash Equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations.