Accounting Policies of Cemantic Infra-Tech Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES:

a. Property, Plant and Equipment:

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. Cost comprises of purchase price inclusive of tastes, commissioning expenses, etc., up to the date the
asset is ready for its intended use. Fixed assets which were revalued are carried at revalued values. Expenditure
directly related to expansion projects has been capitalized.

Cost includes non refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the
acquisition and installation of the respective assets.

Assets under installation or under construction as at the Balance Sheet date are shown in Capital work-in —progress.
Advances paid towards acquisition of assets are shown in Capital Advances.

Fixed assets which are found to be not usable or retired from active use of when no further benefits are expected
from their use are removed from the books of account and the difference if any, between die cost of such assets and
the accumulated depreciation there on is charged to Statement of Profit & Loss.

Depreciation on tangible assets is provided under Straight Line Method over the useful lives of assets estimated by
the management. Depreciation on additions/ deletions during a period is charged on pro rata basis from the date
of addition or deletion, as the case may be.

b. Impairment of Assets:

In accordance with Ind -AS 36, the company assesses at each Balance Sheet date whether there is any indication that
an asset may be impaired. .An asset is treated as impaired when the carrying cost exceeds its recoverable value. -An
impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.
The impairment loss recognized in a poor accounting penod is reversed if there has been a change in the estimate
of recoverable amount.

c. Employee Benefits:

Retirement benefits to employees comprise of payments under Defined Contribution Plans like Provident Fund
and payments under Defined Benefit Schemes like Gratuity and Leave encashment.

Payments under defined contribution plans are charged to revenue on accrual. The liability in respect of defined
benefit scheme is arrived based on actuarial valuation made at the end of the year by using projected unit credit
method.

Short-tenn employee benefits such as wages, salaries and short-term compensated absences like bonus and other
non-monetary benefits are provided for as per Company’s Rules on best estimate basis.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on die net defined benefit liability and die return on plan assets (excluding amounts include
in net interest on die net defined benefit liability), are recognized immediately in die Balance Sheetwidi a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not
reclassified to profit or loss in subsequent periods.

d. Valuation of Inventories:

Inventories are valued at die lower of cost and net realizable value. Cost is arrived at by using weighted average
method and includes all costs of purchases, conversion and odier costs incurred in bringing the inventories to their
present location and condition.

e. Investments:

Investments intended to be held for more dian one year are treated as long term and others as short term. Short¬
term investments are carried at the lower of cost or quoted / fair value, computed category wise and long term
investments are stated at cost. Provision for diminution in the value of long—term investments is made only if
such a decline is other than temporary. -As there are no investments made by the Company in any subsidiary or
equity instruments, provisions of IND-.AS 27 are not applied.

f. Prior period expenses / Income:

The Company follows the practice of making adjustments through “expenses/income under/over provided”

in previous years in respect of material transactions pertaining to that period prior to the current accounting year.

g. Government Grants:

Government grants available to the company are recognized when there is a reasonable assurance that the conditions
attached to the grantwill be complied with and reasonably certain that grants will be received.

h. Tax Expenses

Tax expense tor die period comprises current tax and deferred tax. Tax is recognised in Statement of Profit and Loss
except to die extent that it relates to items recognised in the comprehensive income or in equity, hi which case, die
tax is also recognised in other comprehensive income or equity.

V Current tax

Current tax assets and liabilities are measured at the amounts expected to be recovered from or paid to the
taxation authorities, based on the tax rates and laws that are enacted or substantively enacted at the Balance
sheet date.

''r Deferred tax

Deferred rax is recognised on temporary differences between the carrying amount of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at die tax rates diat are expected to apply in die period in which
die liability is setded or the asset realized, based on rax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred rax liabilities and
assets are reviewed at the end of each reporting period.

i. Foreign Exchange TransacUons:

Transactions denominated in foreign currency are accounted for initially at the exchange rate prevailing on the date
of transaction. Foreign Currency monetary Assets and liabilities arc translated at year end exchange rates. Fluctuations,
if any due to change in exchange rates Between die dates of transactions and the dates of crystallization are debited
/ credited to Statement of Profit & Loss.

j. Revenue Recognition:

Revenues from Projects under long term contracts is recognized by reference to the completion of the contract
activity at die reporting date, where die contract activity extend beyond die reporting date, on die basis of percentage
of completion method.

Revenues from services are recognized as per the terms of contractwidi customers when the related services are
performed or the agreed milestones are achieved.

Interest income on general deposits with Bank and others is recognized on time proportion basis.

k. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended
use. .\11 other borrowing costs are charged to revenue.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES:

a. Property, Plant and Equipment:

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. Cost comprises of purchase price inclusive of taxes, commissioning expenses, etc., up to the date the
asset is ready for its intended use. Fixed assets which were revalued are carried at revalued values. Expenditure
directly related to expansion projects has been capitalized.

Cost includes non refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the
acquisition and installation of the respective assets.

Assets under installation or under construction as at the Balance Sheet date are shown in Capital work-in —progress.
Advances paid towards acquisition of assets are shown in Capital Advances.

Fixed assets which are found to be not usable or retired from active use of when no further benefits are expected
from their use are removed from the books of account and the difference if any, between the cost of such assets and
the accumulated depreciation there on is charged to Statement of Profit & Loss.

Depreciation on tangible assets is provided under Straight Line Method over the useful lives of assets estimated by
the management. Depreciation on additions / deletions during a period is charged on pro rata basis from the date
of addition or deletion, as the case may be.

b. Impairment of Assets:

In accordance with Ind AS 36, the company assesses at each Balance Sheet date whether there is any indication that
an asset may be impaired. An asset is treated as impaired when the carrying cost exceeds its recoverable value. An
impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.
The impairment loss recognized in a prior accounting period is reversed if there has been a change in the estimate
of recoverable amount.

c. Employee Benefits:

Retirement benefits to employees comprise of payments under Defined Contribution Plans like Provident Fund
and payments under Defined Benefit Schemes like Gratuity and Leave encashment.

Payments under defined contribution plans are charged to revenue on accrual. The liability in respect of defined
benefit scheme is arrived based on actuarial valuation made at the end of the year by using projected unit credit
method.

Short-term employee benefits such as wages, salaries and short-term compensated absences like bonus and other
non-monetary benefits are provided for as per Company’s Rules on best estimate basis.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts include
in net interest on the net defined benefit liability), are recognized immediately in the Balance Sheet with a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not
reclassified to profit or loss in subsequent periods.

d. Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value. Cost is arrived at by using weighted average
method and includes all costs of purchases, conversion and other costs incurred in bringing the inventories to their
present location and condition.

e. Investments:

Investments intended to be held for more than one year are treated as long term and others as short term. Short¬
term investments are carried at the lower of cost or quoted / fair value, computed category wise and long term
investments are stated at cost. Provision for diminution in the value of long —term investments is made only if
such a decline is other than temporary. As there are no investments made by the Company in any subsidiary or
equity instruments, provisions of IND-AS 27 are not applied.

f. Prior period expenses / Income:

The Company follows the practice of making adjustments through “expenses/income under/over provided”
in previous years in respect of material transactions pertaining to that period prior to the current accounting year.

g. Government Grants:

Government grants available to the company are recognized when there is a reasonable assurance that the conditions
attached to the grant will be complied with and reasonably certain that grants will be received.

h. Tax Expenses

Tax expense for the period comprises current tax and deferred tax. Tax is recognised in Statement of Profit and Loss
except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the
tax is also recognised in other comprehensive income or equity.

> Current tax

Current tax assets and liabilities are measured at the amounts expected to be recovered from or paid to the
taxation authorities, based on the tax rates and laws that are enacted or substantively enacted at the Balance
sheet date.

> Deferred tax

Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and as sets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.

i. Foreign Exchange Transactions:

Transactions denominated in foreign currency are accounted for initially at the exchange rate prevailing on the date
of transaction. Foreign Currency monetary Assets and Liabilities are translated at year end exchange rates. Fluctuations,
if any due to change in exchange rates Between the dates of transactions and the dates of crystallization are debited
/ credited to Statement of Profit & Loss.

j. Revenue Recognition:

Revenues from Projects under long term contracts is recognized by reference to the completion of the contract
activity at the reporting date, where the contract activity extend beyond the reporting date, on the basis of percentage
of completion method.

Revenues from services are recognized as per the terms of contract with customers when the related services are
performed or the agreed milestones are achieved.

Interest income on general deposits with Bank and others is recognized on time proportion basis.

k. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended
use. All other borrowing costs are charged to revenue.

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Mar 31, 2015

1 Corporate information

Quantum Build-Tech Limited is engaged in business of Construction of Housing & Development of Infrastructure for residential segment.. The Company carrying its activities from its registered office situated at H.No,8-1-405/A/66, Dream Vlley , Near OU Colony, Shaikpet, Hyderabad - 500 008.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Inventories and Services

a) Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octopi and other levies, transit insurance and receiving charges and is net of credit under VAT and CENVAT scheme, where applicable) Work-in-progress and finished goods have-been valued at cost or net realizable value whichever is lower. Cost include all direct costs and appropriate proportion of overheads and, where applicable, c) Construction work in progress is-measured by reference to the actual cost incurred for the work performed up to the reporting date bear to the estimated total contract cost for each contract

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement) Cash comprises of cash on hand, amount in current accounts.

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortization

Depreciable amount for assets is the cost of an asset or other amount substituted for cost, less its estimated residual value. Depreciation on Tangible assets has been provided on straight line method (SLM) as per the useful life prescribed in scheduled II to the companies act, 2013 Depreciation on the additional value due to revaluation has been charged to be revaluation reserve account.

The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and amortization method is revised to affect the changed pattern.

2.7 Revenue recognition

Contract Revenue & Expenses

Revenue from projects under long term contracts is recognized by reference to the completion of the contract activity at the reporting date, where the contract activity extend beyond the reporting date, on the basis of percentage of completion method.

2.8 Tangible fixed assets

Fixed assets are stated at cost of acquision as reduced by accumulated depreciation. All roosts including financial costs up to the date of commissioning and attributable to the fixed assets are capitalized apart from taxes, freight and incidental expenses related to the acquision and installation of the respective fixed assets and excludes duties and taxes to the extent recoverable from tax authorities.

2.9 Intangible assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase / completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

2.10 Employee benefits

a) Gratuity is accounted on actuarial basis and charged to profit and loss statement on reporting date) Employer contribution towards provident fund is accounted on accrual basis and charged to profit and loss statement on reporting date. c) Bonus and leave encashment is accounted on payment basis and charged to profit loss statement on reporting date.

2.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of ail dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations Potential dilutive equity shares are deemed to be converted as at the beginning of the period' unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares).Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/ reverse share splits and bonus shares, as appropriate.

2.12 Taxes on income

Income tax liability for the year is calculated in accordance with the relevant tax laws and regulations applicable to the company. Deferred tax is recognized on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one more subsequent periods.

2.13 Impairment of assets

The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the company's assets The recoverable amount of such assets is estimated. Where the carrying amount of the asset exceeds the recoverable amount, the impairment loss is recognized in the statement of profit and loss.

2.14 Provisions and contingencies

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made Contingent liability is disclosed for

(i) Possible obligation which will be confirmed only by future events not wholly within the control of the company or

(ii) Present obligations arising from past events where it is not possible that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized

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Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories and Services

a) Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges and is net of credit under VAT and CENVAT scheme, where applicable.b) Work-in-progress and finished goods have been valued at cost or net realizable value whichever is lower. Cost include all direct costs and appropriate proportion of overheads and, where applicable. c) Construction work in progress is measured by reference to the actual cost incured for the work performed up to the reporting date bear to the estimated total contract cost for each contract

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises of cash on hand, amount in current accounts.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation on Tangible assets has been provided on straight line method (SLM) as per rates specified in schedule XIV of the companies Act,1956.

1.7 Revenue recognition Contract Revenue & Expenses

Revenue from projects under long term contracts is recognised by reference to the completion of the contract activity at the reporting date, where the contract activity extend beyond the reporting date, on the basis of percentage of completion method.

1.8 Tangible fixed assets

Fixed assets are stated at cost of acquision as reduced by accumulated depreciation. All costs including financial costs up to the date of commissioning and attributable to the fixed assets are capitalised apart from taxes, freight and incidential expenses related to the acquision and installation of the respective fixed assets and excludes duties and taxes to the extent recoverable from tax authorities.

1.9 Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase / completion is recognised as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

1.10 Employee benefits

a) Gratuity is accounted on acturial basis and charged to profit and loss statement on reporting date.b) Employer contribution towards provident fund is accounted on accrual basis and charged to profit and loss statement on reporting date.c) Bonus and leave encashment is accounted on payment basis and charged to profit loss statement on reporting date.

1.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations.

Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been acturally issued at fair value (i.e.average market value of the outstanding shares).Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/ reverse share splits and bonus shares, as appropriate.

1.12 Taxes on income

Income tax liability for the year is calculated in accordance with the relevant tax laws and regulations applicable to the company. Deferred tax is recognised on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one more subsequent periods.

1.13 Impairment of assets

The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s assets. The recoverable amount of such assets is estimated. Where the carrying amount of the asset exceeds the recoverable amount, the impairment loss is recognised in the statement of profit and loss.

1.14 Provisions and contingencies

Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made Contigent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not possible that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

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Mar 31, 2013

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Inventories and Services

a) Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges and is net of credit under VAT and CENVAT scheme, where applicable.

b) Work-in-progress and finished goods have been valued at cost or net realizable value whichever is lower. Cost include all direct costs and appropriate proportion of overheads and, where applicable.

c) Construction work in progress is measured by reference to the actual cost incured for the work performed up to the reporting date bear to the estimated total contract cost for each contract.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises of cash on hand, amount in current accounts.

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortisation

Depreciation on Tangible assets has been provided on straight line method (SLM) as per rates specified in schedule XIV of the companies Act, 1956.

2.7 Revenue recognition

Contract Revenue & Expenses

Revenue from projects under long term contracts is recognised by reference to the completion of the contract activity at the reporting date, where the contract activity extend beyond the reporting date, on the basis of percentage of completion method.

2.8 Tangible fixed assets

Fixed assets are stated at cost of acquisition as reduced by accumulated depreciation. All costs including financial costs up to the date of commissioning and attributable to the fixed assets are capitalised apart from taxes, freight and incidential expenses related to the acquision and installation of the respective fixed assets and excludes duties and taxes to the extent recoverable from tax authorities.

2.9 Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase / completion is recognised as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

2.10 Employee benefits

a) Gratuity is accounted on accrual basis and charged to profit and loss statement on reporting date.

b) Employer contribution towards provident fund is accounted on accrual basis and charged to profit and loss statement on reporting date.

c) Bonus and leave encashment is accounted on payment basis and charged to Profit and Loss statement on reporting date.

2.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e.average market value of the outstanding shares).Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/ reverse share splits and bonus shares, as appropriate.

2.12 Taxes on income

Income tax liability for the year is calculated in accordance with the relevant tax laws and regulations applicable to the company. Deferred tax is recognised on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one more subsequent periods.

2.13 Impairment of assets

The carrying amounts of assets are reviewed at each Balance Sheet date to detemine whether there is any indication of impairment of the carrying amount of the company''s assets. The recoverable amount of such assets is estimated. Where the carrying amount of the asset exceeds the recoverable amount, the impairment loss is recognised in the statement of profit and loss.

2.14 Provisions and contingencies

Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made Contigent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not possible that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.