Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Contingent liabilities are disclosed when there is a possible obligation arising
from past events, the existence of which will be confirmed only by the occurrence

or non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount cannot be made.

1.1.15 Financial Instruments

A) . Financial Assets

Financial assets are recognised when the Company becomes a party to the
contractual provisions of the instrument. On initial recognition, a financial asset
is recognised at fair value, in case of financial assets which are recognised at fair
value through profit and loss (FVTPL), its transaction cost are recognised in the
statement of profit and loss. In other cases, the transaction cost are attributed
to the acquisition value of the financial asset. Financial assets are subsequently
classified and measured at

• amortised cost

• Fair value through profit and loss (FVTPL).

Other equity investments

All other equity investments are measured at fair value, with value changes
recognised in Statement of Profit and Loss, except for those equity investments
for which the Company has elected to present the value changes in ‘Other
Comprehensive Income’.

Impairment of financial assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL)
model, for evaluating impairment of financial assets other than those measured
at fair value through profit and loss (FVTPL).

The Company measures the expected credit loss associated with its assets based
on historical trend, industry practices and the business environment in which
the entity operates or any other appropriate basis. The impairment methodology
applied depends on whether there has been a significant increase in credit risk.

B) . Financial Liabilities

Financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial liabilities are initially
measured at the amortised cost unless at initial recognition, they are classified
as fair value through profit and loss.

Financial liabilities are subsequently measured at amortised cost using the
Effective Interest Rate (EIR) method. Financial liabilities carried at fair value

through profit or loss are measured at fair value with all changes in fair value
recognised in the Statement of Profit and Loss.

A financial liability is derecognised when the obligation specified in the contract
is discharged, cancelled or expires.

1.1.16 Derivative financial instruments

Derivative financial instruments such as forward contracts, option contracts and
cross currency swaps, to hedge its foreign currency risks are initially recognised
at fair value on the date a derivative contract is entered into and are
subsequently re-measured at their fair value with changes in fair value
recognised in the Statement of Profit and Loss in the period when they arise.

Notes on Company Bank Account

The Company Bank Account namely BGIL Films & Technologies Limited

A/c No.: 60162573140 Bank: Bank of Maharashtra has been seized by GST

department.