Page 191 - DJML Annual Report 24-25

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
reversal is made only to the extent that the
asset’s carrying amount does not exceed
the carrying amount that would have been
determined, net of depreciation or amortisation,
if no impairment loss had been recognised.
A provision is recognised when the Company
has a present obligation (legal or constructive)
as a result of past events and it is probable
that an outflow of resources embodying
economic benefits will be required to settle
the obligation, in respect of which a reliable
estimate can be made of the amount of
obligation. Provisions (excluding gratuity
and compensated absences) are determined
based on management’s estimate required to
settle the obligation at the Balance Sheet date.
In case the time value of money is material,
provisions are discounted using a current
pre-tax rate tha refle the r specifi to
the liability. When discounting is used, the
increase in the provision due to the passage
of time recognised a a finance cost. These
are reviewed at each balance sheet date and
adjusted to refle the curre manageme
estimates.
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 not wholly with in the control of the
Company. A contingent liability also arises,
in rare cases, where a liability cannot be
recognized because it cannot be measured
reliably. The Company does not recognise a
contingent liability but discloses its existence.
Company had received the show cause notices
/ adjudication order, for the alleged mismatch of
ITC claimed of Goods and Service Tax (GST) and
March 31, 2025
Ineligible ITC from supplier whose registration
is cancelled of Goods and Service Tax (GST)
aggregating Rs. 299.50 lacs for the period 1st
July 2017 to 31st March 2023. Based on a legal
assessment, the management is confident of a
favourable outcome of the aforesaid matter and
accordingly no adjustments have been made to
the accompanying financial statements.
Provision for current tax is made as per the
provisions of the Income Tax Act, 1961.
Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date.
Current income tax relating to items
recognised outside profi or lo recognised
outside profi or lo (either other
comprehensive income or in equity). Current
tax items are recognised in correlation to
the underlying transactio either OCI or
directly in equity. Management periodically
evaluates positions taken in the tax returns
with respect to situations in which applicable
tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred tax is provided using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amo for financia reporting
purposes at the reporting date.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred tax asset to
be utilised. Unrecognised deferred tax assets
Annual Report 2024-25 188