Accounting Policies of Lakshmi Automatic Loom Works Ltd. Company

Mar 31, 2015

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006 (as amended) and the guidelines issued by the Securities and Exchange Board of India (SEBI) and the relevant provisions of the Companies Act, 2013 to the extent applicable.

2. Fixed Assets :

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit / value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The Investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognized.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss.

The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided in accordance with Schedule II of the Companies Act, 2013. For additions and deletions depreciation is provided on pro-rata basis.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue :

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment / credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost :

Borrowing costs, if any, attributable to acquisition / construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits :

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

a) Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessment / appeals.

b) Deferred tax is recognized on timing differences between the accounting Income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

c) Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future Income will be available against which such deferred tax assets can be realized.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of Assets :

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine (i) the provision of impairment loss, if any, required or (ii) the reversal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

---

Mar 31, 2014

1. Method of Accounting

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006(as amended) and the guidelines issued by the Securities and Exchange Board of India (SEBI) and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit/value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments

The Investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss. The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced/upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment/credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost

Borrowing costs, if any, attributable to acquisition/construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS 15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income

a. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessment/appeals.

b. Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

c. Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine

(i) the provision for impairment loss, if any, required or.

(ii) the reversal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting

Business segments are identified on the basis of the nature of products /services, the risk- return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

---

Mar 31, 2013

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with • mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets:

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit / value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss. The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue:

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment / credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost:

Borrowing costs, if any, attributable to acquisition / construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits:

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS 15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

a. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessment / appeals.

b. Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

c. Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of Assets :

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

(i) the provision for impairment loss, if any, required or

(ii) the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

---

Mar 31, 2012

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets :

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit / value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis.Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss.

The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue :

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment / credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost :

Borrowing costs, if any, attributable to acquisition /construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9 Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits :

Provision for gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

a. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessment / appeals.

b. Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

c. Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of assets :

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

(i) the provision for impairment loss, if any, required or (ii) the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

---

Mar 31, 2011

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets :

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit/value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The Investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognised as income or expense in the profit and loss account. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the profit and loss account.

The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue :

Income and Expenditure are recognised and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognised as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognised when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under duty draw back scheme are recognised when the right to receive payment/credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost :

Borrowing costs, if any, attributable to acquisition/construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits :

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessment/appeals.

Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognised but are disclosed in the notes to financial statements. Contingent assets are neither recognised nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of assets :

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine (i) the provision for impairment loss, if any, required or (ii) the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk- return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

---

Mar 31, 2010

I. The company adopts accrual basis of accounting.

II. i. Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956.

ii. Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

III. Fixed Assets are capitalised at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit, if any.

IV. The Investments are accounted at cost. Diminution in the value of Investments if any,in respect of long term Investments is recognised.

V. Provision for Gratuity and Leave encashment was made as per actuarial valuation at the end of the year as per AS 15(Revised).

VI. The value of CENVAT benefits availed have been reduced from the purchase value of Materials and Capital Items wherever applicable.The payments under Rule 6(3)(b) of Cenvat Credit Rules, 2002 are added to purchase value of materials.

VII. The foreign currency transactions are recorded at the exchange rates prevailing on the date of such transaction. Foreign currency assets and liabilities at the year end are realigned at the exchange rate prevailing at the year end and the difference on realignment is recognised in the Profit and Loss Account.

VIII. Valuation of Inventories is as per Accounting Standard 2 (AS 2) of The Institute of Chartered Accountants of India.

IX. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessment/appeals.

Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

X. As at each balance sheet date ,the carrying amount of assets is tested for impairment so as to determine (i) the provision for impairment loss, if any,required or (ii) the reversal,if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.