Accounting Policies of GTT Data Solutions Ltd. Company

Mar 31, 2025

2. Material accounting policies

a) Basis of accounting

Prepared on the historical cost basis, except for fair values or at amortized cost at the end of each
reporting period, as explained in the accounting policies.

Fair value is the price that would be received on sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. Fair value measurements
are categorized as below, based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at measurement date;

• Level 2: inputs other than quoted prices included in level 1, that are observable for the asset or
liability, either directly or indirectly; and

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).

Above levels of fair value hierarchy are applied consistently and generally, there are no transfers
between the levels of the fair value hierarchy unless the circumstances change.

Accounting policies have been consistently applied except where a new accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting
policy.

An asset is classified as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realized within twelve months after the reporting period; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

A liability is classified as current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement
by the issue of equity instruments do not affect its classification.

The operating cycle is the time between the acquisition of assets for processing and their realization in
cash and cash equivalents.

b) Statement of compliance and basis of preparation

Prepared in accordance with the provisions of the Companies Act, 2013 ("the Act") and the Indian
Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards)
Rules, 2015 and amendments thereof issued by Ministry of Corporate Affairs. Accounting policies,
methods and principles adopted are consistent with those followed in the previous financial year. All
accounting pronouncements issued by the Institute of Chartered Accountants of India (ICAI) are
also applied except where compliance with other statutory promulgations require different treatment.
The financial statements have been approved for issue by the Board of Directors.

The standalone statement of profit and loss are prepared in the format prescribed in schedule III to
the Act. The cash flow statement has been prepared under indirect method and presented as per the
requirements of Ind AS 7.

The disclosure requirements with respect to items in the balance sheet and statement of profit and
loss, as prescribed in schedule III to the Act, are presented by way of notes forming part of accounts
along with the other notes required to be disclosed under the notified Ind AS and the SEBI
regulations. All amounts in the financial statements are presented in Indian Rupees in million [1
million = 10 lacs] except per share data and as otherwise stated.

c) Use of estimates and judgements

The preparation of these standalone financial statements in conformity with the recognition and
measurement principles of Ind AS requires the management of the Company to make estimates and
assumptions that affect the reported balances of assets and liabilities, disclosures relating to
contingent liabilities as at the date of the financial statements and the reported amounts of income
and expense for the periods presented. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and future periods are
affected.

Key sources of estimation of uncertainty at the date of the financial statements, which may cause a
material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
in respect of useful lives of property, plant and equipment, valuation of deferred tax assets, provisions
and contingent liabilities, impairment testing, revenue recognition and employee benefits.

The areas involving critical judgments are as follows:

i) Revenue recognition: The Company applies judgement to determine whether each service
promised to a customer is capable of being distinct, and is distinct in the context of the
contract, if not, the promised services are combined and accounted as one performance
obligation. The Company uses the percentage of completion method using the input (cost
expended) method to measure progress towards completion in respect of fixed price
contracts. Percentage of completion method accounting relies on estimates of total expected
contract revenue and costs. This method is followed when reasonably dependable estimates
of the revenues and costs applicable to various elements of the contract can be made. Key
factors that are reviewed in estimating the future costs to complete include estimates of
future labor costs and productivity efficiencies. Because the financial reporting of these
contracts depends on estimates that are assessed continually during the term of these
contracts, revenue recognized, profit and timing of revenue for remaining performance
obligations are subject to revisions as the contract progresses to completion. When estimates
indicate that a loss will be incurred, the loss is provided for in the period in which the loss
becomes probable. Volume discounts are recorded as a reduction of revenue. When the
amount of discount varies with the levels of revenue, volume discount is recorded based on
estimate of future revenue from the customer.

ii) Income taxes: The major tax jurisdictions for the Company are India and the United States
of America. Significant judgments are involved in determining the provision for income
taxes including judgment on whether tax positions are probable of being sustained in tax
assessments. A tax assessment can involve complex issues, which can only be resolved over
extended time periods.

iii) Defined benefit plans: The cost of the defined benefit plans and the present value of the
defined benefit obligation are based on actuarial valuation using the projected unit credit
method. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate,
future salary increases, attrition rate and mortality rates. Due to the complexities involved in
the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.

iv) Expected credit losses on financial assets:

The impairment provisions of financial assets are based on assumptions about risk of default
and expected timing of collection. The Company uses judgment in making these
assumptions and selecting the inputs to the expected credit loss calculation based on the
Company''s history of collections, customer''s creditworthiness, existing market conditions as
well as forward looking estimates at the end of each reporting period.

d) Functional and presentation currency

Items included in the financial statements of the entity are measured using the currency of the primary
economic environment in which the entity operates (''the functional currency''). The financial
statements are presented in Indian rupees, which is the functional currency of the Company.

e) Revenue recognition

Revenue is recognized upon transfer of control of promised services to customers in an amount that
reflects the consideration which the Company expects to receive in exchange for those services.

Revenues from customer contracts are considered for recognition and measurement when the
contract has been approved by the parties to the contract, the parties to the contract are committed
to perform their respective obligations, each party''s rights and payment terms regarding the services
to be transferred are identified, the contract has commercial substance and it is probable that the
entity will collect the consideration to which it is entitled to in exchange for the services that will be
rendered.

The company assesses the services promised in a contract and identifies distinct performance
obligations in the contract.

Revenue is measured based on the consideration specified in a contract with a customer and excludes
amounts collected on behalf of third parties.

The company''s contracts may include variable consideration including rebates, volume discounts and
penalties. The Company includes variable consideration as part of transaction price when there is a
basis to reasonably estimate the amount of the variable consideration and when it is probable that a
significant reversal of cumulative revenue recognized will not occur when the uncertainty associated
with the variable consideration is resolved.

The Company allocates the transaction price to each distinct performance obligation based on the
relative standalone selling price.

Revenue from contracts which are on time and material basis are recognized when services are
rendered, and related costs are incurred.

Revenue from fixed price contracts where the performance obligations are satisfied over time and
where there is no uncertainty as to measurement or collectability of consideration, is recognized as
per the percentage of completion method. The percentage of completion method requires the
company to estimate the services performed to date as a proportion of the total services to be
performed. Efforts or costs expended (input method) has been used to measure progress towards
completion as there is a direct relationship between input and productivity.

Contract assets are recognized when there is excess of revenue earned over billings on contracts.

Contract assets are classified as unbilled receivables (only act of invoicing is pending) when there is
unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Unearned revenue ("contract liability") arises when there are billing in excess of revenue.

f) other income

Interest income is accrued on a time basis by reference to the principal outstanding and the effective
interest rate applicable.

Dividend income is accounted for when the right to receive is established and it is probable that the
economic benefits associated with the dividend will flow to the Company and the amount of dividend
can be measured reliably.

g) Employee benefits

(i) Short term employee benefits: All employee benefits falling due wholly within twelve months
of rendering the service are classified as short-term employee benefits. The benefits like
salaries, wages, and short term compensated absences and performance incentives are
recognized in the period in which the employee renders the related service.

(ii) Post-employment benefits:

• The Company''s contribution to state governed provident fund scheme, employee state
insurance scheme and employee pension scheme are classified as defined contribution plans.
The contribution paid/payable under the schemes is recognized during the period in which
the employee renders the related service.

• The employee provident fund schemes are managed by board of trustees established by the
Company. The employee''s gratuity fund scheme and the Company''s pension schemes are
managed by Life Insurance Corporation of India (LIC). These are classified as defined
benefit plans. The present value of the obligation under such defined benefit plans is
determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.

• The obligation is measured at the present value of the estimated future cash flows using a
discount rate based on the market yield on government bonds, having maturity periods
approximating to the terms of related obligations.

• Remeasurements, 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 included 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 other comprehensive income in the period in which they occur.

• The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in employee
benefit expense in the statement of profit and loss.

• In case of funded plans, the fair value of the plan assets is reduced from the gross obligation
under the defined benefit plans to recognize the obligation on a net basis.

• Gains or losses on the curtailment or settlement of any defined benefit plan are recognized
when the curtailment or settlement occurs. Past service cost is recognized as expense on a
straight-line basis over the average period until the benefits become vested.

(iii) Compensated absences: The Company treats accumulated leave expected to be carried
forward beyond twelve months, as long-term employee benefit for measurement purposes.
Compensated absences are provided based on the actuarial valuation using the projected
unit credit method at the reporting date. Actuarial gains/losses are immediately taken to the
statement of profit and loss. The Company presents the entire leave as a current liability in
the balance sheet if the entity does not have an unconditional right to defer the settlement
for at least twelve months after the reporting period.

h) Property, plant and equipment

a) Recognition & Measurement: Property, plant and equipment are recognized when it is
probable that future economic benefits associated with the item will flow to the company
and the cost of the item can be measured reliably.

Property, plant and equipment are stated at cost net of tax/duty credits availed, if any, less
accumulated depreciation and cumulative impairment, if any.

Property, plant and equipment not ready for intended use on the date of balance sheet are
disclosed under capital work-in-progress.

b) Depreciation: Depreciation is provided for property, plant and equipment so as to expense
the cost over their estimated useful lives, based on evaluation, using straight-line method.
The estimated useful lives and residual value are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.
Depreciation is charged on pro-rata basis for property, plant and equipment purchased/sold
during the year.

Based on technical evaluation, the management believes that the useful lives as given above best represents
the period over which the management expects to use these assets.

PPE is derecognized upon disposal or when no future economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition is recognized in the Statement of Profit and Loss.

i) Intangible assets and amortization

Intangible assets are recognized when it is probable that the future economic benefits that are
attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.
Intangible assets are measured at cost (net of tax/duty credits availed, if any) or fair value as of the
date of acquisition, as applicable, less accumulated amortization and cumulative impairment.

The estimated useful life of intangible assets (software) is are amortized on a straight-line basis as per
the table below:

Asset class Useful life (years)

Specialized software 3 - 6

Technical knowhow 4

Customer contracts and relationships 4

Tradename 1

j) Goodwill

Goodwill represents the cost of acquired business as established at the date of acquisition of the
business in excess of the acquirer''s interest in the net fair value of the identifiable assets, liabilities
and contingent liabilities less accumulated impairment losses, if any. Goodwill is tested for
impairment annually or when events or circumstances indicate that the implied fair value of goodwill
is less than it carrying amount.

k) Impairment of assets

i) Trade receivables: The Company uses an expected credit loss Model to assess the impairment
loss. The Company uses a provision matrix to compute the expected credit loss allowance for
trade receivables. The provision matrix takes into account available external and internal credit
risk factors and the Company''s historical experience with customers.

ii) Tangible and intangible assets: Property, plant and equipment and intangible assets (other
than goodwill) are evaluated for recoverability whenever there is any indication that their
carrying amounts may not be recoverable. If any such indication exists, the recoverable amount
(i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is determined for the cash generating
unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than it carrying
amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount.
An impairment loss is recognized in the statement of profit and loss.

Impairment is determined for goodwill by assessing the recoverable amount of each CGU
(or group of CGUs) to which the goodwill relates. When the recoverable amount of the
CGU is less than it''s carrying amount, an impairment loss is recognized. Impairment losses
relating to goodwill cannot be reversed in future periods.

l) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration.

Company as a lessee: The Company applies a single recognition and measurement approach for all
leases, except for short-term leases and leases of low-value assets. The Company recognizes lease
liabilities to make lease payments and right-of-use assets representing its right to use the underlying
assets.

Right-of-use assets: The Company recognizes right-of-use assets at the commencement date of the
lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost,
less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized,
initial direct costs incurred, and lease payments made at or before the commencement date less any
lease incentives received. Right-of-use assets are depreciated on a straight-line method from the
commencement date over the lease term.

Lease Liabilities: At the commencement date of the lease, the Company recognizes lease liabilities
measured at the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments also include the exercise price of a purchase option
reasonably certain to be exercised by the Company and payments of penalties for terminating the
lease, if the lease term reflects the Company exercising the option to terminate.

Short-term leases and leases of low-value assets: The company has elected not to recognize right-
of-use assets and lease liabilities for leases of low value assets and short-term leases. The Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of the
lease.

m) financial instruments

Financial assets and liabilities are recognized when the Company becomes party to a contract that
give rise to a financial asset of one entity and a financial liability or equity instrument of another
entity.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are added to or deducted from the
fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Financial assets:

a. financial assets at amortized cost: Financial assets are subsequently measured at amortized cost
if these financial assets are held within a business model whose objective is to hold these assets in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

Financial assets at amortized cost are represented by trade receivables, cash and cash equivalents,
employee and other advances and eligible current and non-current assets.

b. Financial assets at fair value through other comprehensive income: Financial assets are
measured at fair value through other comprehensive income if these financial assets are held within
a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.

c. financial assets at fair value through profit or loss: Financial assets are measured at fair value
through profit or loss unless it is measured at amortized cost or at fair value through other
comprehensive income on initial recognition.

The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair
value through profit or loss are immediately recognized in profit or loss.

Financial liabilities: Financial liabilities are initially recognized at fair value, and subsequently
carried at amortized cost using the effective interest method.

Derivative financial instruments and hedge accounting: The Company designates foreign
exchange forward contracts as hedge instruments in respect of foreign exchange risks. These hedges
are accounted for as cash flow hedges.

The Company uses hedging instruments that are governed by the policies of the Company which are
approved by the Board of Directors, which provide written principles on the use of such financial
derivatives consistent with the risk management strategy of the Company.

The hedge instruments are designated and documented as hedges at the inception of the contract.
The effectiveness of hedge instruments to reduce the risk associated with the exposure being hedged
is assessed and measured at inception and on an ongoing basis. The ineffective portion of designated
hedges is recognized immediately in the statement of profit and loss.

The effective portion of change in the fair value of the designated hedging instrument is recognized
in the other comprehensive income and accumulated under the heading cash flow hedge reserve.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or
exercised, or no longer qualifies for hedge accounting. Any gain or loss recognized in other
comprehensive income and accumulated in equity till that time it remains and is recognized in
statement of profit and loss when the forecasted transaction ultimately affects the profit or loss.
When a forecasted transaction is no longer expected to occur, the cumulative gain or loss
accumulated in equity is transferred to the statement of profit and loss.

De-recognition: Financial assets are derecognized when all the rights to receive cash flows from the
financial assets expire or transferred without receipt of consideration. Financial liabilities are
derecognized from the Company''s balance sheet when the obligation specified in the contract is
discharged or cancelled or expired.

n) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, balances with banks, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.

o) Employee stock option scheme

In respect of stock options granted pursuant to the Company''s stock options scheme, the excess of
fair value of the option over the exercise price is treated as discount and accounted as employee
compensation expense each year is arrived at based on the number of grants expected to vest. The
total expenses recorded each year is arrived at based on the number of grants that have vested during
the year. At the end of each period, the entity revises its estimates of the number of options that are
expected to vest based on the service conditions. When the share-based award vests, the cumulative
discount recognized as expense in respect of such grant is transferred to securities premium by
crediting the ESOP Outstanding Reserve.

p) foreign currencies

Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of
the transaction. Foreign currency monetary assets and liabilities are translated at the exchange rate
prevailing on the balance sheet date and exchange gains and losses arising on settlement and
restatement are recognized in the statement of profit and loss. The Company''s functional currency
is Indian Rupees. Non-monetary assets and liabilities that are measured in terms of historical cost in
foreign currencies are not retranslated.

q) Income tax

Income tax expense comprises current tax expense and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are recognized in profit or loss, except when they
relate to items that are recognized in other comprehensive income or directly in equity, in which case,
the current and deferred tax are also recognized in other comprehensive income or directly in equity,
respectively.

The current income tax expense includes income taxes payable by the Company and its branches in
India and overseas. The current income tax payable by the Company in India is Indian income tax
payable for their worldwide income after taking credit for tax relief available for export operations in
Special Economic Zones (SEZs).

Current income tax payable by overseas branches of the Company is computed in accordance with
the tax laws applicable in the jurisdiction in which the respective branch operates. The taxes paid are
generally available for set off against the Indian income tax liability of the Company''s worldwide
income.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off¬
setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the
relevant tax paying units intends to settle the asset and liability on a net basis.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable temporary differences arising between the tax
base of assets and liabilities and their carrying amount, except when the deferred income tax arises
from the initial recognition of an asset or liability in a transaction that is not a business combination
and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax asset is recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilized.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred income tax asset to be utilized.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply
to taxable income in the years in which the temporary differences are expected to be received or
settled.

For operations carried out in SEZs, deferred tax assets or liabilities, if any, have been established for
the tax consequences of those temporary differences between the carrying values of assets and
liabilities and their respective tax bases that reverse after the tax holiday ends.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net
basis.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in
India, which is likely to give future economic benefits in the form of availability of set off against
future income tax liability. Accordingly, MAT is recognized as deferred tax asset in the balance sheet
when the asset can be measured reliably and it is probable that the future economic benefit associated
with the asset will be realized.

The Company recognizes interest levied related to income tax assessments in interest expenses.

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Mar 31, 2024

SI. No. COMPANY OVERVIEW

CINERAD COMMUNICATIONS LIMITED was incorporated in the year 1986 vide Company Incorporation No. L92100WB1986PLC218825 & engaged in to the production of advertising and promotional films, documentaries and feature films. The Company is one of the leading & well known name into documentary, advertising and short films in the Mumbai.

Over the years a lot of changes have been seen in the advertising Industry and these changes have positively affected the players in the production of promotional feature films, Distributors and Exhibitors. Over the past couple of years the business of corporate advertisement, short film etc. making had changed due to corporate, increasing production costs, spiraling actor fees and high acquisition costs for content.

The advertising industry is under tremendous changes over the years by reason of the same that advertisement through documentary feature films has become very important in people’s life. However there are various ways of advertising in form Films, Radio, Television, mobiles etc. advertising Industry is one of the fastest growing Industry and it will perhaps never decline and will always have an upward growth.

The company has also evolved with the times and significantly corporatized itself, bringing an experienced professional team for driving the future strategic direction of the company.

BASIS OF PREPARATION OF FINANCIAL STATEMENTS.a) Basis of preparation and compliance with Ind AS

(i) The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act 2013 including the rules notified under the relevant provision of the Companies Act 2013.

These financial statement have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and financial liablities that are measured at fair values at the end of each reporting period.

b) Segment Reporting.

The Company does not have any income from revenue from operation and any geographical segments, hence there are no separate reportable segments as per Ind AS.

c) Foreign currency translation.

The Company does not have any income in foreign currency, hence injunction in regard to foreign currency translation did not reportable as per Ind AS.

d) Revenue Recognition.

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates, value added taxes, goods and service tax (GST) and amounts collected on behalf of third parties. Income & Expenditures are accounted for on accrual basis.

e) Governments Grants.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income. Moreover, during the year the company did not received any grants from the Governments.

f) Income Tax.

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax assets / liabilities on timing difference, being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods.

g) Impairment of Assets.

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment based on intemal/extemal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its receive after impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

h) Cash and cash equivalents.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

i) Basis of measurement

The Financial Statements have been prepared on a going concern basis using historical cost convention and on an accrual method of accounting, except for certain financial assets and liabilities, including derivative.

Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

i) In the principal market for the asset or liability, or

ii) In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Fair value for measurement and /or disclosure purpose in these financial statements is determined on such a basis, except for share based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

j) Property, Plant and Equipment.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Transition to Ind AS

On transition to Ind AS, the company has elected to continue with the carrying value of its property, plant and equipment recognised as at 1 April 2017 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation methods, estimated useful lives and residual value.

Depreciation is calculated using the W.D.V. method to allocate their cost, net of their residual values, over their estimated useful lives. Depreciation on fixed assets added / disposed off during the year, is provided on prorata basis with reference to the date of addition / disposal. In a case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

> Machinery 10 - 15 Years

> Furniture, Fitting and Equipment 03 - 05 Years

> Software 03 - 05 Years

The useful lives have been determined based on technical evaluation done by the management''s expert which are not higher than those specified by Schedule II to the Companies Act; 2013, in order to reflect the actual usage of the assets. The residual values are not more than 5% of the original cost of the asset.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other gains/(losses).

k) Functional and presentation currency

These Ind AS Financial Statements are prepared in Indian Rupee which is the Company’s functional currency.

All financial information presented in Rupees has been rounded to the nearest crores with two decimals.

l) Standards issued but not yet effective:

The amendments to standards that are issued, but not yet effective, up to date of issuance of the Company''s financial statements are disclosed below.

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’ and Ind AS 102, ‘Share-based payment''. The amendments are applicable to the Company from April 1, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. Ind AS-7 does not applicable for the company during the year.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-setded awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

m) Borrowings. I

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

n) Borrowing Cost.

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o) Provisions.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

p) Employee benefits.

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The company has complied the revised Accounting standard-15 "Employee Benefits" notified under the Companies (Accounting Standards) Rules, 2006. There is no present obligation of any post cmplymcnt benefit including gratuity during the year. Therefore no actuarial gain or loss arose at the end of the year.

(Hi) Bonus, Medical, gratuity & Other obligations.

No Provision has been made on account of gratuity as none of the employees have put in completed years of Service as required by the payment of gratuity act.

No provision has been made on account of leave salary as there are no leave to the credit of employees as at the end of the year.

Share-based compensation benefits are not provided to employees via the Value Ind AS Employee Option Plan and share-appreciation rights.

Termination benefits are payable when employment is terminated by the group before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The group recognises termination benefits at the earlier of the following dates:

(a) when the group can no longer withdraw the offer of those benefits; and

(b) when the entity recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of terminations benefits.

In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

q) Dividends.

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

r) Earnings per share.

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the company.

• by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

(it) Diluted, earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

s) Rounding of amounts.

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rs. 10/- as per the requirement of Schedule III, unless otherwise stated.

The Company will adopt these amendments from their applicability date.

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Mar 31, 2015

01. ACCOUNTING CONVENTIONS

The Financial Statements are prepared on Historical Cost Convention. Financial Statements are prepared in accordance with relevant presentational requirements of the Companies Act, 2013 and applicable mandatory Accounting Standards as prescribed under section 133 of Companies Act, 2013 read with rule 7 of the Companies (Accounts ) Rules, 2014.

02. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation and impairment if any. Cost comprises the purchase price inclusive of duties, taxes, and incidental expenses upto the date, the asset is ready for its intended use..

03. DEPRECIATION

Depreciation on Fixed Assets has been provided based on useful life assigned to each asset prescribed in accordance with Part - "C" of Schedule-II of the Companies Act, 2013.

Depreciation on fixed assets added / disposed off during the year, is provided on pro-rata basis with reference to the date of addition / disposal.

In a case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

04 INTANGIBLE ASSETS

Intangible Assets are recognized if:

It is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost/fair value of the assets can be measured reliably.

05 IMPAIRMENT OF FIXED ASSETS

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

06 EARNING PER SHARE

Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the year

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

07 INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year are classified as Current Investments. All other Investments are classified as Non Current Investments. Current Investments are stated at lower of cost and market rate on an individual investment basis. Non Current Investments are considered 'at cost' on individual investment basis, unless there is a decline other than temporary in the value, in which case adequate provision is made against such diminution in the value of investments.

08 RECOGNITION OF INCOME & EXPENDITURE

Income and expenditure are accounted for on accrual basis . Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend income is recognized when the shareholder's right to receive payment is established by the balance sheet date. Income from Mutual Fund will be accounted for at the time of Redemption.

09 CONTINGENCIES :

These are disclosed by way of notes on the Balance sheet. Provisions is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the finalization of accounts and material effect on the position stated in the Balance Sheet.

10 PROVISIONING FOR DEFERRED TAXES

The Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from "timings difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

11 PRELIMINARY EXPENSES

Preliminary Expense is amortised over a period of Five years.

12 TAXES ON INCOME

Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax assets / liabilities on timing difference, being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2014

01. ACCOUNTING CONVENTIONS

The Financial Statements are prepared on Historical Cost Convention. Financial Statements are prepared in accordance with relevant presentational requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards as notified by the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

02. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation and impairment if any. Cost comprises the purchase price inclusive of duties, taxes, and incidental expenses upto the date, the asset is ready for its intended use.

03. DEPRECIATION

Depreciation on Fixed Assets are provided on Straight-line Method at the rates prescribed in the Schedule-XIV of the Companies Act, 1956.

Depreciation on fixed assets added / disposed off during the year, is provided on pro-rata basis with reference to the date of addition / disposal.

In a case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

04 INTANGIBLE ASSETS Intangible Assets are recognized if:

It is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost/fair value of the assets can be measured reliably.

05 IMPAIRMENT OF FIXED ASSETS

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

06 EARNING PER SHARE

Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the year For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

07 INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year are classified as Current Investments. All other Investments are classified as Non-Current Investments. Current Investments are stated at lower of cost and market rate on an individual investment basis. Non-Current Investments are considered ''at cost'' on individual investment basis, unless there is a decline other than temporary in the value, in which case adequate provision is made against such diminution in the value of investments.

08 RECOGNITION OF INCOME & EXPENDITURE

Income and expenditure are accounted for on accrual basis. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend income is recognized when the shareholder''s right to receive payment is established by the balance sheet date. Income from Mutual Fund will be accounted for at the time of Redemption.

09 CONTINGENCIES :

These are disclosed by way of notes on the Balance sheet. Provisions is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the finalization of accounts and material effect on the position stated in the Balance Sheet.

10 PROVISIONING FOR DEFERRED TAXES

The Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from " timings difference " between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date . The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

11 PRELIMINARY EXPENSES

Preliminary Expense is amortised over a period of Five years.

12 TAXES ON INCOME

Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax assets / liabilities on timing difference, being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2012

A) System of Accounting

The Company follows the mercantile basis of accounting both as to income and expenditure except in case of items with significant uncertainties. Financial statements are based on historical costs, convention and in accordance with applicable Accounting Standards referred in section 211 (3C) of the Companies act 1956 and generally accepted accounting principles.

b) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and costs during the reporting period. Examples of such estimates include estimated costs to be incurred on contracts, provision for doubtful debt, future obligations under employee retirement benefit plan and estimated useful life of assets. Actual results could differ from those estimates. Any revision to accounting estimates shall be recognized prospectively in current and future periods.

c) Provisions and contingencies

The Company recognises a provision when there is present obligation as a result of past event and it is more likely than not that there will be an outflow of resources to settle such obligation and the amount of such obligation can be reliably estimated. Provisions are not discounted to their present value and are determined based on the management's best estimate of the amount of obligation at the year-end. These are reviewed at each balance sheet date and adjusted to reflect current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of future events not wholly within the control of the Company. Contingent liabilities are also disclosed for present obligations in respect of which it is not probable that there will be an outflow of resources or a reliable estimate of the amount of obligation cannot be made.

When there is a possible obligation or a present obligation where the likelihood of an outflow of resources is remote, no disclosure or provision is made.

d) Fixed Assets

(i) All fixed assets are valued at cost of acquisition less accumulated depreciation thereon. (ii) Depreciation: -

(a) The Company has provided for depreciation on all assets under Straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(b) Depreciation on additions to assets or sale or disposal of assets is calculated on pro-rata basis from to the date of addition/ deduction.

e) Intangible Assets Intangible assets are recognized if:

It is probable that the future economic benefits that are attributable to the assets will flow to the company, and the cost /fair value of the assets can be measured reliably.

f) Impairment of assets

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of the future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net selling price and present value as determined above. An impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount. An impairment loss is recorded only to the extent that assets carrying cost does not exceed the carrying amount that would have been determined net of depreciation and amortization, if no impairment loss has been recognized.

g) Foreign Currency Transactions

Foreign exchange transactions are recorded at the exchange rates prevailing at the date of the transaction. Realised gains and losses on foreign exchange transactions during the year are recognised in the profit and loss account. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. The resultant exchange differences are recognised in the profit and loss account.

h) Income Taxes

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year.

Deferred tax assets are recognized, subject to the consideration of prudence, for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against with such deferred tax assets can be realized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

i) Post employment and other benefits

Short- term employee benefits:

All employee benefits payable wholly within twelve months of rendering service are classified as short-term employee benefits. Benefits such as salaries, allowances, short-term compensated absences and the expected cost of other benefits is recognised in the period in which the employee renders the related serviced

j) Earnings per share

Basic earnings per share are computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

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Mar 31, 2011

A) System of Accounting

The Company follows the mercantile basis of accounting both as to income and expenditure except in case of items with significant uncertainties. Financial statements are based on historical costs, convention and in accordance with applicable Accounting Standards referred in section 211 (3C) of the Companies act 1956 and generally accepted accounting principles.

b) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and costs during the reporting period. Examples of such estimates include estimated costs to be incurred on contracts, provision for doubtful debt, future obligations under employee retirement benefit plan and estimated useful life of assets. Actual results could differ from those estimates. Any revision to accounting estimates shall be recognized prospectively in current and future periods.

c) Provisions and contingencies

The Company recognises a provision when there is present obligation as a result of past event and it is more likely than not that there will be an outflow of resources to settle such obligation and the amount of such obligation can be reliably estimated. Provisions are not discounted to their present value and are determined based on the management's best estimate of the amount of obligation at the year-end. These are reviewed at each balance sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of future events not wholly within the control of the Company. Contingent liabilities are also disclosed for present obligations in respect of which it is not probable that there will be an outflow of resources or a reliable estimate of the amount of obligation cannot be made.

When there is a possible obligation or a present obligation where the likelihood of an outflow of resources is remote, no disclosure or provision is made.

d) Fixed Assets

(i) All fixed assets are valued at cost of acquisition less accumulated depreciation thereon.

(ii) Depreciation: -

(a) The Company has provided for depreciation on all assets under Straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(b) Depreciation on additions to assets or sale or disposal of assets is calculated on pro-rata basis from/ to the date of addition/ deduction.

e) Intangible Assets

Intangible assets are recognised if:

It is probable that the future economic benefits that are attributable to the assets will flow to the company, and the cost /fair value of the assets can be measured reliably.

f) Foreign Currency Transactions

Foreign exchange transactions are recorded at the exchange rates prevailing at the date of the transaction. Realised gains and losses on foreign exchange transactions during the year are recognised in the profit and loss account. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. The resultant exchange differences are recognised in the profit and loss account,

g) Income Taxes

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year.

Deferred tax assets are recognized, subject to the consideration of prudence, for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against with such deferred tax assets can be realized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

h) Impairment of assets

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of the future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net selling price and present value as determined above. An impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount, An impairment loss is recorded only to the extent that assets carrying cost does not exceed the carrying amount that would have been determined net of depreciation and amortisation, if no impairment loss has been recognised.

i) Post employment and other benefits Short- term employee benefits:

All employee benefits payable wholly within twelve months of rendering service are classified as short-term employee benefits. Benefits such as salaries, allowances, short-term compensated absences and the expected cost of other benefits is recognised in the period in which the employee renders the related serviced

j) Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

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Mar 31, 2010

A) System of Accounting

The Company follows the mercantile basis of accounting both as to income and expenditure except in case of items with significant uncertainties. Financial statements are based on historical costs, convention and in accordance with applicable Accounting Standards referred in section 211 (3C) of the Companies act 1956 and generally accepted accounting principles.

b) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and costs during the reporting period. Examples of such estimates include estimated costs to be incurred on contracts, provision for doubtful debt, future obligations under employee retirement benefit plan and estimated useful life of assets. Actual results could differ from those estimates. Any revision to accounting estimates shall be recognized prospectively in current and future periods.

c) Provisions and contingencies

The Company recognises a provision when there is present obligation as a result of past event and it is more likely that there will be an outflow of resources to settle such obligation and the amount of such obligation can be reliably estimated. Provisions are not discounted to their present value and are determined based on the managements best estimate of the amount of obligation at the year-end. These are reviewed at each balance sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of future events not wholly within the control of the Company. Contingent liabilities are also disclosed for present obligations in respect of which it is not probable that there will be an outflow of resources or a reliable estimate of the amount of obligation cannot be made.

When there is a possible obligation or a present obligation where the likelihood of an outflow of resources is remote, no disclosure or provision is made.

d) Fixed Assets

(i) All fixed assets except referred to in 1 (d) (ii) (b) below are valued at cost of acquisition less accumulated depreciation thereon.

(ii) Depreciation; -

(a) The Company has provided for depreciation on all assets under Straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(b) Revaluation of Companys Premises at Tardeo, Mumbai has been made on 1 * March 1994, on the basis of Valuation Report submitted by M/s. N.B. Dharmadhikari, valuers appointed for the purpose. The resultant Increase on such revaluation over the written down value of this asset has been credited to Revaluation Reserve. Depreciation of this resultant increase has been reduced from Revaluation Reserve.

(c) Depreciation on additions to assets or sale or disposal of assets is calculated on pro-rata basis from/ to the date of addition/ deduction.

e) Intangible Assets

Intangible assets are recognised if:

It is probable that the future economic benefits that are attributable to the assets will flow to the company, and the cost /fair value of the assets can be measured reliably.

f) Foreign Currency Transactions

Foreign exchange transactions are recorded at the exchange rates prevailing at the date of the transaction. Realised gains and losses on foreign exchange transactions during the year are recognised in the profit and loss account. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. The resultant exchange differences are recognised in the profit and loss account,

g) Income Taxes

Tax expense for the year, comprising current.tax and deferred tax is included in determining the net profit for the year.

Deferred tax assets are recognized, subject to the consideration of prudence, for all deductible timing differences and carried forward to the extent it is probable that future taxable profit will be available against with such deferred tax assets can be realized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

h) Impairment of assets

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the present value of the future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net selling price and present value as determined above. An impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount. An impairment loss is recorded only to the extent that assets carrying cost does not exceed the carrying amount that would have been determined net of depreciation and amortisation, if no impairment loss has been recognised.

I) Post employment and other benefits Short- term employee benefits:

All employee benefits payable wholly within twelve months of rendering service are classified as short-term employee benefits. Benefits such as salaries, allowances, short-term compensated absences and the expected cost of other benefits is recognised in the period in which the employee renders the related serviced.

j) Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.