Amal Ltd 2017-18

69 Note 1 Significant Accounting Policies (continued) iii) Estimation of Deferred tax assets: Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the same can be utilised. Significant Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. The Company has ` 109.05 lakhs (March 31, 2017: ` 1,080.36 lakhs) of unused tax losses. According to the Management estimate, these balances will expire and may not be used to offset taxable income. On this basis, the Company has determined that it cannot recognise deferred tax assets on these balances. Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Notes to the Financial Statements