Accounting Policies of Grovy India Ltd. Company

Mar 31, 2012

A. Deferred tax assets and liabilities arc recognized for the future tax consequences of timing differences subject to consideration of prudence and are measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

B. Earnings per share

In determining earnings per share (EPS the Company considers the net profit after tax and includes the post-tax effect of any extra-ordinary / exceptional item, In absence of any dilutive effect of equity shares the basic and diluted EPS are calculated on the same basis. The number of shares used in computing basic and diluted earnings per share is the weighted average number of shares outs Landing during the period.

C. Provisions, Contingent: Liabilities and Contingent Assets

Provisions arc recognized for liabilities when the Company has a present obligation as a result of past events, a probable outflow of resources is expected to settle the obligation and the amount can be reliably estimated.