Page 176 - BCML AR 2019-20

FINANCIAL STATEMENTS

Notes forming part of the Standalone Financial Statements

Note No. : 3 Use of critical estimates, judgments and assumptions (contd.)

(v) Provisions, contingent liabilities and contingent assets
The timing of recognition and quantification of the provisions, contingent liabilities and contingent assets require the application
of judgment to existing facts and circumstances which are subject to change on the actual occurrence or happening. Judgment is
required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigations against the Company
and possible inflow of resources in respect of the claims made by the Company which has been considered to be contingent in nature.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

174 | Balrampur Chini Mills Limited