Accounting Policies of Royale Manor Hotels And Industries Ltd. Company

Mar 31, 2015

2.1 BASIS OF ACCOUNTING: These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on an accrual basis, unless otherwise stated hereinafter and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013. The accounting policies applied by the Company are consistent with those used in previous year.

2.2 USE OF ESTIMATES: The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accounting estimates could change from period to period and actual results could differs from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes. Changes in estimates are reflected in the financial statements in the period in which changes are made.

2.3 REVENUE RECOGNITION: Revenue is recognized upon rendering of the services provided pervasive evidence of an arrangement exists. Revenue comprises Sale of RoomsFood & Beverages and other allied services relating to hotel operations including Banquet, Business Center,"Laundry, Shop Rent and Telephone are included under other services.

2.4 FIXED ASSETS :

Fixed Assets have been recorded at actual cost inclusive of duties, taxes and other incidental expenses related to acquisition, improvement and installation.

2.5 DEPRECIATION:

Depreciation on tangible assets other than freehold land & live stocks has been provided on the straight-line method over the useful life of assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on assets purchased/sold during the year has been proportionately charged.

2.6 IMPAIRMENT OF FIXED ASSETS:

Fixed assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset's net selling price and value in use.

2.7 INVESTMENTS:

Investments are Long Term Investments and are stated at cost and provision is made for diminution, other than temporary, in value of the investments.

2.8 FOREIGN CURRENCY TRANSACTIONS:

Earnings in foreign currencies are recorded at the exchange rate prevailing on the date of transactions. Gain/Loss arising out of fluctuations in exchange rates is accounted for on settlement and the same is charged to the Statement of Profit and Loss. Payments in foreign currencies are recorded at the rates prevailing on the date of actual remittance.

2.9 BORROWING COST:

Borrowing costs directly attributable to the acquisition or construction of qualifying fixed assets and are capitalized as a part of cost of that assets till such time the fixed assets are substantially ready for their intended use. Qualifying fixed asset is an asset that necessarily takes a substantial period of time to get ready for their intended use or sale. All other borrowing costs are charged to Statement of Profit and Loss over the tenure of the borrowing.

2.10 INVENTORIES:

Inventories have been valued at cost on First in First Out (FIFO) basis.

2.11 EMPLOYEES' BENEFITS:

Company accounts for leave encashment benefits on the basis of actuarial valuation. Further, contribution to the Gratuity Fund linked with Life Insurance Corporation of India is charged to Statement of Profit & Loss.

2.12 TAXES ON INCOME:

Taxes on Income are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made on the basis of estimated taxable income, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under. Deferred tax is the tax effect of timing differences. The timing differences are differences between the taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period.

2.13 EARNING PER SHARE (EPS):

Basic earnings per share is computed by dividing the profit/ (loss) after tax 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 by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of OCPS (Optionally Convertible Preference Shares).

2.24 CONTINGENCIES AND PROVISIONS:

Provisions are recognized when there is a present legal obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of obligation cannot be made. Contingent assets are not recognized in the financial statements.

2.15 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 available information.

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Mar 31, 2014

1.1 BASIS OF ACCOUNTING:

(i) The Financial Statements have been prepared under the Historical Cost Convention and generally accepted accounting practices followed in India and provisions of Companies Act, 1956 and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India(ICAI).

(ii) The Company generally follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

(iii) The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which results are known / materialized.

1.2 FIXED ASSETS :

Fixed Assets have been recorded at actual cost inclusive of freights, duties, taxes and other incidental expenses related to acquisition, improvement and installation. Capital Work-in- progress includes Cost of Assets not installed.

1.3 DEPRECIATION:

Depreciation on Fixed Assets other than freehold land & live stocks has been provided on "Straight Line Method (SLM)" at the rates specified in Schedule XIV to the Companies Act 1956, as existing on that date, except in case of Heat Ventilating & Air Conditioning and Plumbing Machineries included in Plant and Machineries which have been depreciated @ 7.42% p.a. on double shift basis.

1.4 BORROWING COSTS:

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalized as part of the cost of respective assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

1.5 INVESTMENTS:

Investments are long term trade investments and are stated at Cost.

1.6 INVENTORIES:

Inventories have been valued at cost on First in First Out (FIFO) basis.

1.7 REVENUE RECOGNITION:

Revenue from sale of Rooms, Food & Beverages and other allied services is recognized when the services are rendered and the same becomes chargeable. Revenue from Banquet, Business Centre, Laundry, Shop Rent & Telephone are included under Other services.

1.8 EMPLOYEES BENEFITS:

The Company accounts for leave encashment benefits on the basis of actuarial valuation. Further, contribution to the Gratuity Fund linked with Life Insurance Corporation of India is charged to Statement of Profit & Loss.

1.9 FOREIGN CURRENCY TRANSACTIONS:

Earnings in foreign currencies are recorded at the exchange rate prevailing on the date of transactions. Gain/Loss arising out of fluctuations in exchange rates are accounted for on settlement and the same is charged to the Statement of Profit and Loss. Payments in foreign currencies are recorded at the rates prevailing on the date of actual remittance.

1.10 IMPAIRMENT OF FIXED ASSETS:

Fixed assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset''s net selling price and value in use.

1.11 TAXATION:

Income Tax expense comprises of Current Tax and Deferred Tax expense/credit.

(i) Current Tax

Provision for current income tax is made on the basis of estimated taxable income, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under.

(ii) Deferred Tax

Consequent to the issuance of AS-22 "Accounting for Taxes on Income" by the ICAI, Deferred Tax is recognized, on timing differences, between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

1.12 EARNING PER SHARE (EPS):

Basic earnings per share is computed by dividing the profit/ (loss) after tax 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 by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares viz. OCPS (Optionally Convertible Preference Shares) and Share Warrants.

1.13 CONTINGENCIES AND PROVISIONS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed after careful evaluation of the facts and legal aspects of the matter, by the management. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1.1 BASIS OF ACCOUNTING:

(i) The Financial Statements have been prepared under the Historical Cost Convention and generally accepted accounting practices followed in India and provisions of Companies Act, 1956 and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India(ICAI).

(ii) The Company generally follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

(iii) The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which results are known / materialized.

1.2 FIXED ASSETS :

Fixed Assets have been recorded at actual cost inclusive of freights, duties, taxes and other incidental expenses related to acquisition, improvement and installation. Capital Work-in-progress includes Cost of Assets not installed.

1.3 DEPRECIATION:

Depreciation on Fixed Assets other than freehold land & live stocks has been provided on "Straight Line Method (SLM)" at the rates specified in Schedule XIV to the Companies Act 1956, as existing on that date, except in case of Heat Ventilating & Air Conditioning and Plumbing Machineries included in Plant and Machineries which have been depreciated @ 7.42% p.a. on double shift basis.

1.4 BORROWING COSTS:

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalized as part of the cost of respective assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

1.5 INVESTMENTS:

Investments are long term trade investment and are stated at Cost.

1.6 INVENTORIES:

Inventories have been valued at cost on First in First Out (FIFO) basis.

1.7 REVENUE RECOGNITION:

Revenue from sale of Rooms, Food & Beverages and other allied services is recognized when the services are rendered and the same becomes chargeable. Revenue from Banquet, Business Centre, Laundry, Shop Rent & Telephone are included under Other services.

1.8 EMPLOYEES BENEFITS:

The Company accounts for leave encashment benefits on the basis of actuarial valuation. Further, contribution to the Gratuity Fund linked with Life Insurance Corporation of India is charged to Statement of Profit & Loss.

1.9 FOREIGN CURRENCY TRANSACTIONS:

Earnings in foreign currencies are recorded at the exchange rate prevailing on the date of transactions. Gain/Loss arising out of fluctuations in exchange rates are accounted for on settlement and the same is charged to the Statement of Profit & Loss. Payments in foreign currencies are recorded at the rates prevailing on the date of actual remittance.

1.10 IMPAIRMENT OF FIXED ASSETS:

Fixed assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset''s net selling price and value in use.

1.11 TAXATION:

Income Tax expense comprises of Current Tax and Deferred Tax expense/credit.

(i) Current Tax

Provision for current income tax is made on the basis of estimated taxable income, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under.

(ii) Deferred Tax

Consequent to the issuance of AS-22 "Accounting for Taxes on Income" by the ICAI, Deferred Tax is recognized, on timing differences, between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

1.12 EARNING PER SHARE (EPS):

Basic earnings per share is computed by dividing the profit/ (loss) after tax 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 by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares viz. OCPS (Optionally Convertible Preference Shares) and Share Warrants.

1.13 CONTINGENCIES AND PROVISIONS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed after careful evaluation of the facts and legal aspects of the matter, by the management. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

1.1 BASIS OF ACCOUNTING:

(i) The Financial Statements have been prepared under the Historical Cost Convention and generally accepted accounting practices followed in India and provisions of Companies Act, 1956 and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India(ICAI).

(ii) The Company generally follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

1.2 FIXED ASSETS AND DEPRECIATION:

(i) FIXED ASSETS:

Fixed Assets have been recorded at actual cost inclusive of freights, duties, taxes and other incidental expenses related to acquisition, improvement and installation. Capital Work-in- progress includes Cost of Assets not installed.

(ii) DEPRECIATION:

Depreciation on Fixed Assets other than freehold land & live stocks has been provided on "Straight Line Method (SLM)" at the rates specified in Schedule XIV to the Companies Act 1956, as existing on that date, except in case of Heat Ventilating & Air Conditioning and Plumbing Machineries included in Plant and Machineries which have been depreciated @ 7.42% p.a. on double shift basis.

(iii) BORROWING COSTS:

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalized as part of the cost of respective assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

1.3 INVESTMENTS:

Investments are long term trade investment and are stated at Cost.

1.4 INVENTORIES:

Inventories have been valued at cost on First in First Out (FIFO) basis.

1.5 REVENUE RECOGNITION:

Sales and services are stated at net of discounts and inclusive of surplus of luxury tax but exclusive of Taxes. The duty exemption, tax incentives and insurance claims etc. are accounted as and when it is determined and approved by concerned authorities.

1.6 EMPLOYEES BENEFITS:

The Company accounts for leave encashment benefits on the basis of actuarial valuation. Further, contribution to the Gratuity Fund linked with Life Insurance Corporation of India is charged to Statement of Profit and Loss.

1.7 FOREIGN CURRENCY TRANSACTIONS:

Earnings in foreign currencies are recorded at the exchange rate prevailing on the date of transactions. Gain/Loss arising out of fluctuations in exchange rates are accounted for on settlement and the same is charged to the Statement of Profit And Loss. Payments in foreign currencies are recorded at the rates prevailing on the date of actual remittance.

1.8 USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which results are known / materialized.

1.9 IMPAIRMENT OF FIXED ASSETS:

Fixed assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset's net selling price and value in use.

1.10 TAXATION:

Income Tax expense comprises of Current Tax and Deferred Tax expense/credit.

(i) Current Tax

Provision for current income tax is made on the basis of estimated taxable income, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under.

(ii) Deferred Tax

Consequent to the issuance of AS-22 "Accounting for Taxes on Income" by the ICAI, Deferred Tax is recognized, on timing differences, between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

1.11 EARNING PER SHARE (EPS):

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and dilative equity equivalent shares outstanding during the year except where the results would be anti dilative.

1.12 CONTINGENCIES AND PROVISIONS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed after careful evaluation of the facts and legal aspects of the matter, by the management. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2011

1.1 BASIS OF ACCOUNTING :

(i) The Financial Statements have been prepared under the Historical Cost Convention and generally accepted accounting practices followed in India and provisions of Companies Act, 1956 and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India(ICAI).

(ii) The Company generally follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

1.2 FIXED ASSETS AND DEPRECIATION : (i) FIXED ASSETS :

Fixed Assets have been recorded at actual cost inclusive of freights, duties, taxes and other incidental expenses related to acquisition, improvement and installation. Capital Work-in- progress includes Cost of Assets not installed and advances made for acquisition of capital Assets.

(ii) DEPRECIATION :

Depreciation on Fixed Assets other than freehold land & live stocks has been provided on "Straight Line Method (SLM)" at the rates specified in Schedule XIV to the Companies Act 1956, as existing on that date, except in case of Heat Ventilating & Air Conditioning and Plumbing Machineries included in Plant and Machineries which have been depreciated @ 7.42% p.a. on double shift basis.

(iii) BORROWING COSTS:

Borrowing costs directly attributable to the acquisition or construction of fixed assets, are capitalized as part of the cost of respective assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

1.3 INVESTMENTS:

Investments are long term trade investment and are stated at Cost.

1.4 INVENTORIES :

Inventories have been valued at cost on First in First Out (FIFO) basis.

1.5 REVENUE RECOGNITION:

Sales and services are stated at net of discounts and inclusive of surplus of luxury tax but exclusive of Taxes. The duty exemption, tax incentives and insurance claims etc. are accounted as and when it is determined and approved by concerned authorities.

1.6 EMPLOYEE BENEFITS :

The company accounts for leave encashment benefits on the basis of actuarial valuation. Further, contribution to the Gratuity Fund linked with Life Insurance Corporation of India is charged to Profit and Loss Account.

1.7 FOREGIN CURRENCY TRANSACTIONS :

Earnings in foreign currencies are recorded at the exchange rate prevailing on the date of transactions. Gain/Loss arising out of fluctuations in exchange rates are accounted for on settlement and the same is charged to the Profit And Loss Account. Payments in foreign currencies are recorded at the rates prevailing on the date of actual remittance.

1.8 TAXATION :

Income Tax expense comprises current tax, minimum alternative tax and deferred tax expense/

credit.

(i) Current Tax and Minimum Alternative Tax (MAT)

Provision for current tax (if any) is calculated in accordance with the provisions of the Income Tax Act, 1961 and is made annually based on the tax liability computed after considering tax allowances and exemptions.

The company has provided for MAT in accordance with the provision of Income Tax Act, 1961.

(ii) Deferred Tax

Current tax (if any) is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realized. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance sheet date to reassess realization.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance-sheet date.

1.9 EARNING PER SHARE (EPS) :

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and dilative equity equivalent shares outstanding during the year except where the results would be anti dilative.

1.10 CONTINGENCIES AND PROVISIONS :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

1.1 BASIS OF ACCOUNTING :

(i) The Financial Statements have been prepared under the Historical Cost Convention and generally accepted accounting practices followed in India and provisions of Companies Act, 1956 and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India(ICAI).

(ii) The Company generally follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

1.2 FIXED ASSETS AND DEPRECIATION : (i) FIXED ASSETS :

Fixed Assets have been recorded at actual cost inclusive of freights, duties, taxes and other incidental expenses related to acquisition, improvement and installation. Capital Work-in- progress includes Cost of Assets not installed and advances made for acquisition of capital Assets.

(ii) DEPRECIATION :

Depreciation on Fixed Assets other than freehold land & live stocks has been provided on "Straight Line Method (SLM)" at the rates specified in Schedule XIV to the Companies Act 1956, as existing on that date, except in case of Heat Ventilating & Air Conditioning and Plumbing Machineries included in Plant and Machineries which have been depreciated @ 7.42% p.a. on double shift basis.

(iii) BORROWING COSTS:

Borrowing costs directly attributable to the acquisition or construction of fixed assets, are capitalized as part of the cost of respective assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

1.3 INVESTMENTS:

Investments are long term trade investment and are stated at Cost.

1.4 INVENTORIES:

Inventories have been valued at cost on First in First Out (FIFO) basis.

1.5 REVENUE RECOGNITION:

Sales and services are stated at net of discounts and inclusive of surplus of luxury tax but exclusive of Taxes. The duty exemption, tax incentives and insurance claims etc. are accounted as and when it is determined and approved by concerned authorities.

1.6 EMPLOYEE BENEFITS:

The company accounts for leave encashment benefits on the basis of actuarial valuation. Further, contribution to the Gratuity Fund linked with Life Insurance Corporation of India is charged to Profit and Loss Account.

1.7 FOREGIN CURRENCY TRANSACTIONS :

Earnings in foreign currencies are recorded at the exchange rate prevailing on the date of transactions. Gain/Loss arising out of fluctuations in exchange rates are accounted for on settlement and the same is charged to the Profit And Loss Account. Payments in foreign currencies are recorded at the rates prevailing on the date of actual remittance. Difference arising on fluctuations in exchange rates of Foreign Currency Loan has been capitalized and added to the fixed assets at the year end.

1.8 TAXATION:

Income Tax expense comprises current tax, minimum alternative tax and deferred tax expenses / credit.

(i) Current Tax and Minimum Alternative Tax (MAT) Provision for current tax (if any) is calculated in accordance with the provisions of the Income Tax Act, 1961 and is made annually based on the tax liability computed after considering tax allowances and exemptions. The company has provided for MAT in accordance with the provisions of Income Tax Act, 1961.

(ii) Deferred Tax Current Tax (if any) is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realized. Other deffered tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each balance sheet date to reassess realization.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance-sheet date.

1.9 EARNING PER SHARE (EPS):

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and dilative equity equivalent shares outstanding during the year except where the results would be anti dilative.

1.10 CONTINGENCIES AND PROVISIONS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.