Accounting Policies of V B Desai Financial Services Ltd. Company

Mar 31, 2024

A. Basis of Preparation of Financial Statements

The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been
measured at fair value amount:

i) Certain Financial Assets and Liabilities i.e. Inventories and Investments.

ii) Defined benefit plans

B. Property, Plant & Equipment and Depreciation

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses if any. Depreciation on
property, plant and equipment is provided on straight line method based on useful life of assets as prescribed in Schedule II to the
Companies Act, 2013.

C. Leases

Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of ownership
to the lessee. All other leases are classified as operating leases. Assets held under finance leases are initially recognised as assets of
the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The
corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Operating lease payments are
recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term except where another
systematic basis is more representative of time pattern in which economic benefits from the leased assets are consumed.

D. Inventories (Securities)

Items of inventories (securities) are measured at lower of cost and net realisable value.

E. Impairment of Non-Financial Assets - Property, Plant and Equipment

Property, plant and equipment with finite life are evaluated for recoverability whenever there is any indication that their carrying
amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and
the value-in- use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent
of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset
belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the
asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the Statement of Profit and Loss. The
impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Foreign Currency Transactions

The functional currency is Indian rupee (Rs.) Transactions denominated in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.
Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of
Profit and Loss except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted
to the carrying cost of such assets.

G. Investments

The Company has accounted its investments in unquoted equities at cost or at fair market value.

H. Revenue Recognition

Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed. Interest
income from a financial asset is recognised using effective interest rate method. Dividend income is accounted for when the right to
receive it is established.

I. Employee Benefits

The Company''s contribution to Provident fund is charged to the Statement of Profit and Loss. The Gratuity liability, which is a defined
benefit plan, there is an adequate provision for the same in the Books of Accounts as per the Management view as on balance sheet
date, hence no actuarial valuation has been carried out and no provision has been made accordingly. Re-measurement of defined
benefit plans in respect of post-employment if any are charged to the Other Comprehensive Income. Employees are entitled to avail
leave instead of leave encashment.

J. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any)
by the weighted average number of equity shares outstanding during the year.

K. Accounting for Taxes on Income

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based
on tax rates and laws that are enacted or substantively enacted at the Balance sheet date. Deferred tax is recognised on temporary
differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each
reporting period.

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Mar 31, 2015

A Basis of Preparation of Financial Statements

The accounts have been prepared on the accrual basis of accounting, under historical cost convention and in accordance with the generally accepted accounting principles to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013 ("the Act"), read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of "the Act", except where otherwise stated. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

B Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

C Fixed Assets and Depreciation

Fixed Assets are carried on at cost of acquisition less accumulated depreciation and impairment loss, if any. Cost comprise purchase price, all direct expenses relating to the acquisition and installation and any attributable cost of bringing the asset to its working condition for the intended use. Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation has been provided on straight line method as per the useful life prescribed in Schedule II to the Companies Act, 2013. Assets costing less than Rs. 5,000/- each are fully depreciated in the year of capitalization.

D Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

E Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

F Investments

Non-Current Investments (unquoted), are carried individually at cost. Non-Current Investments (quoted), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value.

G Inventories (Securities)

Quoted securities are valued at lower of the cost or last available market price. However, in case of securities where Market Price is not available through out the year, the same are valued at the rate at which they were valued in the previous year. Unquoted securities are valued at cost. Units of Mutual Funds are valued at cost or market value whichever in lower. Net asset value of units declared by mutual funds is considered as market value for non-exchange traded Mutual Funds.

H Revenue Recognition

Revenue from sale of services are recognized when services are rendered and related costs are incurred. Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

Employee Benefits

The Company's contribution to Provident fund is charged to the Statement of Profit and Loss. The Gratuity liability, which is a defend benefit plan, is provided on the basis of actuarial valuation as on balance sheet date and same is unfunded. Employees are entitled to avail leave instead of leave encashment.

J Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

K Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

L Provision for Taxation

Provision for taxation is made for the income tax liability as per the provisions of the Income Tax Act, 1961. Deferred Tax is recognized on timing differences being the differences between the taxable incomes and accounting incomes that originate in one period and are capable of reversal in one or more subsequent period, at the current rate of tax.

M Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an out flow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

A Basis of Preparation of Financial Statements

The accounts have been prepared on the accrual basis of accounting, under historical cost convention and in accordance with the generally accepted accounting principles, Companies Accounting Standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006 and the provisions of Companies Act, 1956, except where otherwise stated. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

B Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

C Fixed Assets and Depreciation

Fixed Assets are carried on at cost of acquisition less accumulated depreciation and impairment loss, if any. Cost comprise purchase price, all direct expenses relating to the acquisition and installation and any attributable cost of bringing the asset to its working condition for the intended use. Depreciation has been provided on straight line method of depreciation at the rates prescribed under Schedule XIV to the Companies Act, 1956. Assets costing less than Rs. 5,000/- each are fully depreciated in the year of capitalisation.

D Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

E Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

F Investments

Non-Current Investments (unquoted), are carried individually at cost. Non-Current Investments (quoted), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value.

G Inventories (Securities)

Quoted securities are valued at lower of the cost or last available market price. However, in case of securities where Market Price is not available through out the year, the same are valued at the rate at which they were valued in the previous year. Unquoted securities are valued at cost. Units of Mutual Funds are valued at cost or market value whichever in lower. Net asset value of units declared by mutual funds is considered as market value for non-exchange traded Mutual Funds.

H Revenue Recognisition

Revenue from sale of services are recognised when services are rendered and related costs are incurred. Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

I Employee Benefits

The Company''s contribution to Provident fund is charged to the Statement of Profit and Loss. The Gratuity liability, which is a defined benefit plan, is provided on the basis of actuarial valuation as on balance sheet date and same is unfunded. Employees are entitled to avail leave instead of leave encashment.

J Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

K Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

L Provision for Taxation

Provision for taxation is made for the income tax liability as per the provisions of the Income Tax Act, 1961. Deferred Tax is recognized on timing differences being the differences between the taxable incomes and accounting incomes that originate in one period and are capable of reversal in one or more subsequent period, at the current rate of tax.

M Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

A Basis of Preparation of Financial Statements

The accounts have been prepared on the accrual basis of accounting, under historical cost convention and in accordance with the generally accepted accounting principles, Companies Accounting Standards notified by the Gentral Government of India under the Companies (Accounting Standards) Rules, 2006 and the provisions of Companies Act, 1956, except where otherwise stated.

B Use of Estimates

The preparation 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 results and estimates are recognised in the period in which the results are known/ materialised.

C Fixed Assets

Fixed Assets are carried on at cost of acquisition less accumulated depreciation. Depreciation has been provided on straight line method of depreciation at the rates prescribed under Schedule XIV to the Companies Act, 1956.

D impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment toss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment toss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

E Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

F Inventories (Securities)

Investments in securities are shown as inventories. Quoted securities are valued at lower of the cost or last available market price. However, in case of securities where Market Price is not available through out the year, the same are valued at the rate at which they were valued in the previous year. Unquoted securities are valued at cost. Units of Mutual Funds are valued at cost or market value whichever in lower. Net asset value of units declared by mutual funds is considered as market value for non-exchange traded Mutual Funds.

G Revenue Recognisition

Revenue from sale of services are recognised when services are rendered or related costs are incurred. Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

H Employee Benefits

Short-term employee benefits are recognised as an expense in the Statement of Profit and Loss of the year in which the related service is rendered. Post employment and other long term employee benefits other than gratuity are recognised as an expense in the Statement of Profit and Loss as and when paid. Increamental gratuity liability calculated on the basis of 15 days last drawn salary for each completed year of service is recognised as an expense in the Statement of Profit and Loss.

I Provision for Taxation

Provision for taxation is made for the income tax liability as per the provisions of the Income Tax Act, 1961. Deferred Tax is recognized on timing differences being the differences between the taxable incomes and accounting incomes that originate in one period and are capable of reversal in one or more subsequent period, at the current rate of tax.

J Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

A Basis of Preparation of Financial Statements

The accounts have been prepared on the accrual basis of accounting, under historical cost convention and in accordance with the generally accepted accounting principles, Companies Accounting Standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006 and the provisions of Companies Act, 1956, except where otherwise stated.

B Use of Estimates

The preparation 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 results and estimates are recognized in the period in which the results are known/ materialized.

C Fixed Assets

Fixed Assets are carried on at cost of acquisition less accumulated depreciation. Depreciation has been provided on straight line method of depreciation at the rates prescribed under Schedule XIV to the Companies Act, 1956.

D Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

E Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the yearend are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

F Inventories (Securities)

Investments in securities are shown as inventories. Quoted securities are valued at lower of the cost or last available market price. However, in case of securities where Market Price is not available throughout the year, the same are valued at the rate at which they were valued in the previous year. Unquoted securities are valued at cost. Units of Mutual Funds are valued at cost or market value whichever in lower. Net asset value of units declared by mutual funds is considered as market value for non-exchange traded Mutual Funds.

G Revenue Recognisition

Revenue from sale of services are recognized when services are rendered or related costs are incurred. Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

H Employee Benefits

Short-term employee benefits are recognized as an expense in the Profit and Loss Account of the year in which the related service is rendered. Post employment and other long term employee benefits other than gratuity are recognized as an expense in the Profit and Loss Account as and when paid. Incremental gratuity liability calculated on the basis of 15 days last drawn salary for each completed year of service is recognized as an expense in the Profit and Loss Account.

I Provision for Taxation

Provision for taxation is made for the income tax liability as per the provisions of the Income Tax Act, 1961. Deferred Tax is recognized on timing differences being the differences between the taxable incomes and accounting incomes that originate in one period and are capable of reversal in one or more subsequent period, at the current rate of tax.

J Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2011

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared as a going concern on historical cost convention and on accrual method of ac- counting in accordance with the generally accepted accounting principles, Companies Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the provisions of the Companies Act, 1956 as adopted consistently by the company.

(b) FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation.

(c) DEPRECIATION

Depreciation on fixed assets is charged on straight line method as per the rates prescribed in schedule XIV to the Com- panies Act, 1956.

(d) INVESTMENTS

Investments in shares are shown as stock-in-trade. Quoted Shares are valued at Cost or Market Price whichever is lower. Un-quoted, un-traded shares are valued at cost as certified by the Board of Directors of the Company.

(e) 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 financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

(f) RETIREMENT BENEFITS

Provident Fund and Employees Pension Scheme Contributions are accounted for on accrual basis. Incremental Gratuity Liability on the basis of 15 days salary for each completed year service is charged to revenue. As per the terms of appointment the employees are not entitled to en cash the unutilized leave.

(g) REVENUE RECOGNITION

i. Refunds from government department are accounted for on receipt basis.

ii. Sale of shares are booked on the basis of broker's note / debit note raised

iii. Professional fees are accounted on the basis of bills raised

(h) TAXES ON INCOME

The provision for current taxation is computed in accordance with the relevant tax regulations taking into account avail- able deductions and exemptions.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

(i) CONTINGENT LIABILITIES

These are disclosed by way of notes on Account. Provision is made in the accounts in respect of liabilities which are likely to materialize after the year till the finalization of accounts and have material effect on the position stated in the Balance Sheet.

j) PROVISIONS AND CONTINGENT LIABILITIES:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably re- quires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2010

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements are prepared as a going concern on historical cost convention and on accrual method of ac- counting in accordance with the generally accepted accounting principles, Companies Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the provisions of the Companies Act, 1956 as adopted consistently by the company.

(b) FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation.

(c) DEPRECIATION

Depreciation on fixed assets is charged on straight line method as per the rates prescribed in schedule XIV to the Com- panies Act, 1956.

(d) INVESTMENTS

Investments in shares are shown as stock-in-trade. Quoted Shares are valued at Cost or Market Price whichever is lower. Un-quoted, un-traded shares are valued at cost as certified by the Board of Directors of the Company.

(e) 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 financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognized in the period in which the results are known/materialized.

(f) RETIREMENT BENEFITS

Provident Fund and Employees Pension Scheme Contributions are accounted for on accrual basis. Incremental Gratu- ity Liability on the basis of 15 days salary for each completed year service is charged to revenue. As per the terms of appointment the employees are not entitled to encash the unutilized leave.

(g) REVENUE RECOGNITION

i. Refunds from government department are accounted for on receipt basis. ii. Sale of shares are booked on the basis of brokers note / debit note raised iii. Professional fees are accounted on the basis of bills raised (h) TAXES ON INCOME

The provision for current taxation is computed in accordance with the relevant tax regulations taking into account avail- able deductions and exemptions.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one qr more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

(i) CONTINGENT LIABILITIES

These are disclosed by way of notes on Account. Provision is made in the accounts in respect of liabilities which are likely to materialize after the year till the finalisation of accounts and have material effect on the position stated in the Balance Sheet. 0) PROVISIONS AND CONTINGENT LIABILITIES:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.