GMR Consulting Services Private Limited

GMR Consulting Services Private Limited
Schedule 14
Minimum Alternative Tax (MAT) credit is recognised as an asset only when and to the extent
there is convincing evidence that the entities in the Group will pay normal income tax during
the specified period. In the year in which the MAT credit becomes eligible to be recognised
as an asset in accordance with the recommendations contained in the Guidance Note issued
by the Institute of Chartered Accountants of India, the said asset is created by way of a
credit to the Profit and Loss account and shown as MAT credit entitlement. The entities in
the Group reviews the same at each Balance Sheet date and writes down the carrying
amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to
. the effect that entities in the Group will pay normal Income Tax during the specified period.
L. Cash and Cash equivalents:
Cash for the purposes of cash flow statement comprise cash in hand and at bank (including
deposits) and cash equivalents comprise of short term highly liquid investments that are
readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
M. Provisions
A provision is recognised when an enterprise has a present obligation as a result of past
event; 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. Provisions are not discounted to their
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 estimates.
N. Contingencies
Liabilities which are material and whose future outcome cannot be ascertained with
reasonable certainty are treated as contingent and, to the extent not provided for, are
disclosed by way of notes on the accounts