Accounting Policies of Aerpace Industries Ltd. Company

Mar 31, 2016

Additional Disclosure 1(A):

I) During the Financial year 2013-14 Equity shares of Rs. 10/- each subdivided into 10 shares of Re 1/- each with effectfrom 1/10/2013 accordingly total numberof equity shares are 3,15,40,000 ii) 31,04,000 Shares were alloted in the last 5 years pursuant to the Scheme of arrangement between Intellivete Capital Ventures Ltd, the demerged Company and Intellivate Capital Advisors Ltd, the First resulting Company and ICVL Chemicals Ltd, the Second resulting company and ICVL Steels Ltd, the Third resulting company and their respective shareholders became effective on 20th January, 2012.

Note 1. (d) Rights,Preferences & Restrictions attach to equity shares

The Company has one class of Equity shares having par value of Re 1/- per share(Previous year Re 1/- per share). Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annul General Meeting, except in case of interim devidend.In the event of liquidation, the Equity Shareholder are eligible to receive the remaining assest of the company after distribution to all preferencial amounts, in proportion to theirshareholding.

Note 16.

Corporate information

ICVL Steels Limited (the Company) is a Public Company and is incorporated under the provisions of The Companies Act,1956. The company is engaged in the Business of trading in Steels & Shares.

Note 17.

Significant accounting policies

17.1 Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) issued by the Central Govt. in terms of section 211 (3C) of the Companies Act, 1956 (the Act) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circullar 15/2013 dated 13 September of the Ministry of Corporate Affairs). Thefinancial statements have been prepared on accrual basis under the historical cost convention.The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year and comply with the mandatory accounting standards and statements issued by Institute of Chartered Accountants of India (ICAI).

Assets and Liabilities are classified as current if it is expected to realise orsettle within 12 months after Balance Sheet.

17.2 Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principles (Indian GAAP) requires the Management to make judgements, estimates and assumptions that affect the application of Accounting Policies and reported amounts of Assets and Liabilities, Income and Expenses and disclosure of Contigent Liabilities at the end of Financial Statements. The Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

17.3 Tangiblefixed assets

''Fixed assets, are stated atcost less accumulated depreciation / amortisation and impariment loss if any.

cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for its intended

use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss ifany.

17.4 Depreciation and amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the CompaniesAct, 1956.

Depreciation in respect of Assets acquired / Purchased / sold / dicarded during theyear has been provided on pro-rata basis.

Intangible assets are amortised overuseful life of the assets.

17.5 Investments

Long term investments are stated atcost less provision, for diminution which is other than temporary in nature. Current investments stated at lowerofcostormarketvalue.

17.6 Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded netofftradediscountSalesTax/ValueAddedTax.

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable,

based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profit on sale of investments is recognized on completion of transactions.

17.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information orestimates.

17.8 Foreign currency transaction

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

17.9 Employee benefits

Shortterm employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account of theyear in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

17.10 Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assessable incomefortheyeardetermined in accordance with the provisions of Income TaxAct 1961.

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assests on unabsorbed tax losses and taxdepreciation are recognised only when there is virtual certainty of their realiasation and or other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assests can be realised. The tax effect is calculated and recognised at the rate of Income Tax pervailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards-22 “Accounting forTaxes on Income”.

17.11 Provisions and contingencies

A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amountof the obligation. Adisclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonablyestimated.

17.14 As regards compliance of Provision as per the requirement of Sec 22 of the Micro, Small and Medium enterprises act 2006 relating to dues to the Micro, Small and Medium enterprises. The company has not received from any parties claim to be small scale industries and the said information is not given.

17.15 Segment Information

The company is operating only in one segment.

17.16 Related partydisclosures under Accounting Standard -18 List of Related Parties where Control exists:

Samruddhi Finstock Ltd

Samco Securities Ltd(formerly known as Samruddhi Stock Brokers Ltd)

Samco Ventures Pvt Ltd

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Mar 31, 2015

1.1 'Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) issued by the Central Govt. in terms of section 211 (3C) of the Companies Act, 1956 (the Act) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13 September of the Ministry of Corporate Affairs). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year and comply with the mandatory accounting standards and statements issued byInstitute ofCharteredAccountantsofIndia(ICAI).

Assets and Liabilities are classified as current if it is expected to realise or settle within 12 months after Balance Sheet date.

1.2 'Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principles (Indian GAAP) requires the Management to make judgements, estimates and assumptions that affect the application of Accounting Policies and reported amounts of Assets and Liabilities, Income and Expenses and disclosure of Contingent Liabilities at the end of Financial Statements. The Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Tangible fixed assets

'Fixed assets, are stated at cost less accumulated depreciation / amortisation and impairment loss if any.

cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for its intended use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss if any.

1.4 'Depreciation and amortisation

Pursuant to the enactment of the Companies Act,2013 ('the Act), becoming effective from 1st April, 2014, the Company has applied the estimated useful life as specified in the schedule II, accordingly depreciation is Provided on Revised Carrying Amount of the Assets over it's remaining useful life on WDV Method.

'Depreciation in respect of Assets acquired / Purchased / sold / discarded during the year has been provided on pro-rata basis.

'Intangible assets are amortised overuseful life of the assets.

1.5 Investments

Long term investments are stated at cost less provision, for diminution which is other than temporary in nature. Current investments stated at lower of cost or market value.

1.6 'Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded net off trade discount Sales Tax / Value Added Tax

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profit-on sale of investments is recognized on completion of transactions.

1.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information or estimates.

1.8 'Foreign currency transaction

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

1.9 'Employee benefits

Short term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account of the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

1.10 'Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assessable income for the year determined in accordance with the provisionsofIncomeTaxAct1961. Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is virtual certainty of their realisation and or other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assests can be realised. The tax effect is calculated and recognised at the rate of Income Tax prevailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards - 22" Accounting for Taxes on Income".

1.11 'Provisions and contingencies

'A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonably estimated.

1.12 Payment to Auditors

Particulars 31.03.2015 31.03.2014

Audit Fees Rs. 24719 Rs. 24719

For other services Rs. 20270 Rs. 20225

1.13 'As regards compliance of Provision as per the requirement of Sec 22 of the Micro, Small and Medium enterprises act 2006 relating to dues to the Micro, Small and Medium enterprises. The company has not received from any parties claim to be small scale industries and the said information is not given.

1.14 'Segment Information

The company is operating only in one segment.

1.15 Related party disclosures under Accounting Standard-18

List of Related Parties where Control exists:

Samruddhi Finstock Ltd

Samco Securities Ltd(formerly known as Samruddhi Stock Brokers Ltd)

Samco Ventures Pvt Ltd

Samco Commodities Ltd(formerly known as Samruddhi Tradecom India. Ltd)

Bombay Exim Pvt Ltd

Jinal Finvest Pvt Ltd

Jimeet Developers Pvt Ltd

Ashwa Realty (India) Pvt Ltd

Galaxy Realty Pvt Ltd

Niralee Properties Pvt Ltd

High Rise Realty Pvt Ltd

Anish Properties Pvt Ltd

Saria Builders & Developers Pvt Ltd

Rock Builders and Developers Pvt Ltd

Piyali Builders& Developers Pvt Ltd

Win Sure Trade Invest Private Limited

Hansa Villa Realty Private Limited

Intellivate Capital Advisors Ltd.

Intellivate Capital Ventures Ltd.

1.16 Retirement Benefits

'Long Term Employee Benefits are not provided because no employee has completed full year of service.

1.18 Provision for Taxes

Provision for current tax has been made as per the provisions of the Income Tax Act 1961.

1.19 'In the opinion of Management, the Current Assets, Loans and Advances are approximately of the value as stated if realised in the ordinary course of business.

1.20 'Balances standing to the debit/credit of parties is subject to confirmation by them and reviews by the Company.

1.21 The figures of the previous year have been regrouped, rearranged and reclassified wherever necessary to conform to current year's classification.

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Mar 31, 2014

1.1 ''Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) issued by the Central Govt. in terms of section 211 (3C) of the CompaniesAct, 1956 (theAct) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circullar 15/2013 dated 13 September of the Ministry of Corporate Affairs). The financial statements have been prepared on accrual basis under the historical costconvention.The accounting policies adopted in the preparation of the financial statements are consistent with thosefollowed in the previousyearand complywith the mandatory accounting standards and statements issued by Institute ofCharteredAccountantsofIndia(ICAI).

Assets and Liabilities are classified as current ifitis expected to realiseor settle within 12monthsafterBalance Sheet

1.2 ''Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principles (Indian GAAP) requirestheManagement to makejudgements, estimates and assumptions that affect the application of Accounting Policies and reported amounts of Assets and Liabilities, Income and Expenses and disclosure of Contigent Liabilities at the end of Financial Statements. The Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periodsinwhich the resultsare known / materialise

1.3 Tangible fixed assets

Fixed assets, are stated atcost lessaccumulated depreciation / amortisation and impariment loss if any.

Cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for its intended use.

Intangibleassets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss ifany

1.4 ''Depreciationand amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the CompaniesAct, 1956.

Depreciation in respect of Assets acquired / Purchased / sold / dicarded during theyear has been provided on pro-rata basis. Intangible assets are amortised overuseful life ofthe assets

1.5 Investments

Long term investments are stated at cost less provision, for diminution which is other than temporary in nature. Current investments stated at lower of cost or market value.

1.6 ''Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded net off trade discount Sales Tax/ValueAdded Tax

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profiton sale of investments is recognized on completion oftransactions.

1.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information or estimates.

1.8 Foreign currency transaction

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date oftransactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts ofthe year.

1.9 Employee benefits

Short term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized asan expense in the Profit and LossAccount of the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as perActuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefitsare recognized in the Profitand LossAccount.

1.10 Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assessable income for the year determined in accordance with the provisions of Income Tax Act 1961.

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred taxassests on unabsorbed tax losses and taxdepreciation are recognised only when there is virtual certainty of their realiasation and or other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred taxassests can be realised. The tax effect is calculated and recognised atthe rate of Income Tax pervailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards-22 "Accounting for Taxes on Income".

1.11 Provisions and contingencies

A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Adisclosure for contingent liability is made when there is a possible obligation or a present obligation that may but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonablyestimated.

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Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

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

1.2 Use of estimates

The Preparation of the Financial Statements is conformity with Indian Generally Accepted Accounting Prinicipals requires the Management to make estimates and assumptions that affect the reported amounts of Assets and Liabilites and disclosure of Contigent Liabilities at the end of Financial Statements and the results of operations during the reporting period end. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/ materialise.

1.3 Tangible fixed assets

Fixed assets, are stated at cost less accumulated depreciation/amortisation and impairment loss if any, cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for the intended use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accurmulated amortisation and accumulated impairment loss if any.

1.4 Depreciation and amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956.

Depreciation in respect of Assets acquired/Purchased/sold/ dicarded during the year has been provided on pro-rata basis.

Intangible assets are amortised over useful life of the assets.

1.5 Investments

Long term investments are stated at cost less provision, for diminution which is other than temporary in nature Current Investments stated at lower of cost or market value.

1.6 Revenue recognition

Sales are recognition when all significant risks and rewards of ownership have been transferred to the buyer and recorded net off trade discount sales Tax/ Value Added Tax.

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implict in the transactions. Profit on sale of investments is recognized on completion of transactions.

1.7 Expenses

All Materials known expenses and estabilites are provided for according to mercantile system on the basis of available information or estimates.

1.8 Foreign Currency transactions and translations

Transactions denorminated in foreign currency are recorded at the exchanges rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

1.9 Employee benefits

Shrot term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the profit and Loss Account of the year in which the employee has rendered services. The expense in recognized at the prsent value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

1.10 Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assesable income for the year determined in accordance with the provision of income Tax Act 1961. Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is virtual certainty of their realisation and or other items when there is reasonable certaintly that sufficient future taxable income will be availabe against which such deferred tax assets can be realised. The tax effect is calculated and recognised at the rate of Income Tax Pervailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards-22 " Accounting for Taxes on Income".

1.11 Provisions and Contingencies

A Provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estmated can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a posible obligation or a present obligation that may, but probably may not, require an outflow of resources. When there is a possible obligation or a present obligation is respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims. Ligations, assessments, fines, penaties etc, are recorded when it is probable that the liability has been incurred and the amount can be resonably estimated.

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Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

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

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principals requires the Management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contigent Liabilities at the end of Financial Statements and the results of operations during the reporting period end. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Tangible fixed assets

Fixed assets, are stated at cost less accumulated depreciation / amortisation and impariment loss if any.

cost comprises the purchase price and any attributeable cost of bring the assets to its working condotions (or its intended use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss if any.

1.4 Depreciation and amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956.

Depreciation in respect of Assets acquired / Purchased / sold / dicarded during the year has been provided on pro-rata basis.

Intangible assets are amortised over useful life of the assets.

1.5 Investments

Long term investments are sk'ed at cost less provision, for diminution which is other than temporary in nature. Current investments stated at lower of cost or market value.

1.6 Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded net of trade discount, Sales tax / Value Added Tax.

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profit on sale of investments is recognized on completion of transactions.

1.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information or estimates.

1.8 Foreign currency transactions and translations

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

1.9 Employee benefits

Short term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account of the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

1.10 Taxes on income

Income Tax expense comprises of current tax & deferred tax charges or credit. Deferred tax resulting from timing differences between book & tax profit is accounted at the current rate of tax, to the extent the timing difference are expected to crystallize, as deferred tax charge / benefit in the Profit & Loss account and as deferred tax assets / liabilities in the balance sheet. Where there is carry forward loss, deferred tax assets are recognised only if there is virtual certainty of realization in future.

1.11 Provisions and contingencies

A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonably estimated.

1.12 Retirement Benefits

Long Term Employee Benefits are not provided because no employee has completed full year of service.

1.13 Provision for Taxes

No provision has been made for current tax in view of loss incurred uuring the year.