Accounting Policies of SVJ Enterprises Ltd. Company

Mar 31, 2025

1 SIGNIFICANT ACCOUNTING POLICIES:

1.1 Corporate information

The Financial Statements of “S. V. J Enterprises Limited” (“the Company”) are for the year ended March 31,2025

S. V. J. Enterprises (The Company) is a public limited company incorporated under the provisions of the companies Act
applicable in India. The registered office of the company is located at 02/A Sonam Palace CHS. Old Golden Nest -1. Mira
Bhainder road Mira East Thane 401107. However, all or any books of accounts and Papers are maintained at 02/A Sonam
Palace CHS. Old Golden Nest -1. Mira Bhainder road Mira East Thane 401107 and 54 P Donar Industrial Area, Donar,
Darbhanga Bihar

1.2 Basis of preparation and presentation:

These Financial Statements have been prepared in accordance with Indian AccountingStandards (Ind AS) under the historical
cost convention on the accrual basis except for

(i) Certain financial assets and liabilities measured at fair value,

The Financial Statements of the Company have been prepared in accordance with applicable Indian Accounting Standards
(‘Ind-AS'') Prescribed under section 133 of Companies Act,2013 (“Act”) read with the Companies (Indian Accounting Standards)

Rules and other relevant provisions of the Act and Rules thereunder, as amended from time to time.

The financial statements of the Company are for the year ended 31 March 2025 and are prepared in
Indian Rupees being the functional currency and all values are rounded to the nearest lakhs (R
00,000), except when otherwise indicated, amount in zero (0.00) represents amount below R 500.

1.3 Current and non-current classification:

The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

(i) expected to be realised or intended to be sold or consumed in normal operatingcycle,

(ii) held primarily for the purpose of trading,

(iii) expected to be realised within twelve months after the reporting period,

(iv) cash or cash equivalent unless restricted from being exchanged or used to settlea liability for at least twelve months after the reporting period,
or

(v) carrying current portion of non current financial assets.All other assets are classified as non-current.

A liability is current when:

(i) it is expected to be settled in normal operating cycle ;

(ii) it is held primarily for the purpose of trading ;

(iii) it is due to be settled within twelve months after the reporting period,

(iv) there is no unconditional right to defer the settlement of the liability for at leasttwelve months after the reporting period, or

(v) It includes current portion of non current financial liabilities.All other liabilities are classified as non-current.

1.4 Operating cycle

All assets and liabilities have been classified as current and non-current as per the company''s normal operating cycle and other criteria set
out above which are in accordance with the schedule III to the Act. Based on the nature of services and time between the acquisition of
assets for providing of services and their realisation in cashand cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current / non-current classification of assets and liabilities.

1.5 Property Plant and Equipment:

Property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

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 Company 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 tothe Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation is provided under the “written down value” method at the rates and in the manner prescribed in Part C of Schedule II to
the Companies Act, 2013, overtheir useful life., and management believe that useful life of assets are same as those prescribed in Part C
of Schedule II to the Act.

Useful life considered for calculation of depreciation for various assets class are as follows-

Asset Class Useful Life

Furniture and Fixtures 10 years

Office Equipment 5 years

Computers 3 years

The Property, plant and equipment residual values, useful lives and method of depreication are reviewed, and adjusted if appropriate, at
the end of each reporting period.

Gains and losses arising from dereognition of a property, plant and equipment are measured as the difference between the net disposal
proceeds and the carrying amount of the assets and are recognised in the Statement of Profit and Loss, when the asset isderecognised.

An property, plant and equipment carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount
is greater than its estimated recoverable amount.

1.6 Investments and other financial assets: I nitial recognition

In the case of financial assets, not recorded at fair value through profit or loss (FVPL), financial assets are recognised initially at fair value
plus transaction costs that are directly attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the
trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories

(a) Financial Assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model with an
objective 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. Interest income
from these financial assets is included in finance income using the effective interest rate (“EIR”) method. Impairment gains or losses
arising on these assets are recognised i n the Statement of Profit and Loss.

(b) Financial Assets measured at fair value

Financial assets are measured at fair value through other comprehensive income (FVOCI) if these financial assets are held within
a business model with an objective to hold these assets in order to collect contractual cash flows or to sell these 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. Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Statement of Profit and Loss.

Financial assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss.

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies the expected credit loss (“”ECL””) model for measurement and recognition of
impairment loss on financial assets and credit risk exposures.

The Company follows ‘simplified approach'' for recognition of impairment loss allowance on trade receivables. Simplified approach does
not require the Company to changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each
reporting date, right from its initial recognition.For recognition of impairment loss on other financial assets and risk exposure, the
Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime
ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in
credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company i n accordance with the contract and all the cash flows
that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. Lifetime ECL are the expected credit losses
resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL
which results from default events that are possible within 12 months after the reporting date. ECL impairment loss allowance (or reversal)
recognised during the period is recorded as expense/ income in the Statement of Profit and Loss.

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rightsto the cash flows from the asset expire, or it transfers
the financial asset and substantially all risks and rewards of ownership of the asset to another entity. If the Company neither transfers
nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes
its retained interest in the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to
recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

Equity investments

All equity investments in the scope of Ind AS 109, Financial Instruments, are measured at fairvalue. For equity instruments, the Company
may make an irrevocable election to present the subsequent fair value changes in Other Comprehensive Income (OCI). The Company
makes such election on an instrument-by-instrumentbasis. The classification is made on initial recognition and is irrevocable. There is

no recycling of the amounts from OCI to profit or loss, even on sale of investment. Equity instruments included within the FVTPL (fair
value through profit and loss) category are measured at fair value with all changes in fair value recognized in theprofit or loss.

1.7 Financial Liabilities Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and borrowings and payables as appropriate. All
financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable
transaction costs.

Subsequent measurement Financial liabilities at FVPL

Financial liabilities at FVPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as FVPL.
Financial liabilities are classifiedas held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on
liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Any
difference between theproceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of
the borrowings in the Statement of Profit and Loss.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortisations included as finance costs in the Statement of Profit and Loss.

Where the terms of a financial liability is re-negotiated and the Company issues equity i nstruments to a creditor to extinguish all or part of
the liability (debt for equity swap), a gain or loss is recognised in the Statement of Profit and Loss; measured as a difference between the
carrying amount of the financial liability and the fair value of equity instrument issued.

De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contractis discharged, cancelled or expired. When an
existing financial liability is replacedby another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treatedas de-recognition of the original liability and recognition of a new
liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.

1.8 Fair value measurement

The Company measures financial assets and financial liability 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 fairvalue measurement is based on the presumption that the transaction to sell the asset ortransfer the liability
takes place either:

- In the principal market for the asset or liability, or

- 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. The
Company uses valuation techniques that are appropriatei n 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.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, basedon the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assetsor liabilities

- Level 2 — Valuation techniques for which the lowest level input that is significant
to the fair value measurement is directly or indirectly observable

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets
and liabilities thatare recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred
between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as
a whole) at the end of each reporting period.

The Company''s Valuation team determines the policies and procedures for both recurring fair value measurement, such as derivative
instruments and unquoted financial assets measured at fair value, and for non-recurring measurement

1.9 Impairment of non-financial assets

Assessment is done at each Balance Sheet date to evaluate whether there is any indication that a non-financial asset may be impaired. For

the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are
largely independent of the cash inflows from other assetsor groups of assets, is considered as a cash generating unit. If any such
indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made. Assets whose carrying value exceeds
their recoverable amount are written down to their recoverable amount. Recoverable amount is higher of an asset''s or cash generating unit''s
net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing
use of an asset and from its disposal at the end of its useful life. A previously recognised impairment loss is increased or reversed depending
on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed
by charging usual depreciation if there was no impairment.

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Mar 31, 2024

1 SIGNIFICANT ACCOUNTING POLICIES:

1.1 Corporate information

The Financial Statements of “S. V. J Enterprises Limited” (“the Company”) are for the year ended March 31,2024

S. V. J. Enterprises (The Company) is a public limited company incorporated under the provisions of the companies Act applicable in India. The registered office of the company is located at 02/A Sonam Palace CHS. Old Golden Nest -1. Mira Bhainder road Mira East Thane 401107. However, all or any books of accounts and Papers are maintained at 02/A Sonam Palace CHS. Old Golden Nest -1. Mira Bhainder road Mira East Thane 401107.

1.2 Basis of preparation and presentation:

These Financial Statements have been prepared in accordance with Indian AccountingStandards (Ind AS) under the historical cost convention on the accrual basis except for

(i) Certain financial assets and liabilities measured at fair value,

The Financial Statements of the Company have been prepared in accordance with applicable Indian Accounting Standards (‘Ind-AS'') Prescribed under section 133 of Companies Act,2013 (“Act”) read with the Companies (Indian Accounting Standards) Rules and other relevant provisions of the Act and Rules thereunder, as amended from time to time.

The financial statements of the Company are for the year ended 31 March 2024 and are prepared in Indian Rupees being the functional currency and all values are rounded to the nearest lakhs (R 00,000), except when otherwise indicated, amount in zero (0.00) represents amount below R 500.

1.3 Current and non-current classification:

The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

(i) expected to be realised or intended to be sold or consumed in normal operatingcycle,

(ii) held primarily for the purpose of trading,

(iii) expected to be realised within twelve months after the reporting period,

(iv) cash or cash equivalent unless restricted from being exchanged or used to settlea liability for at least twelve months after the reporting period, or

(v) carrying current portion of non current financial assets.All other assets are classified as non-current.

A liability is current when:

(i) it is expected to be settled in normal operating cycle ;

(ii) it is held primarily for the purpose of trading ;

(iii) it is due to be settled within twelve months after the reporting period,

(iv) there is no unconditional right to defer the settlement of the liability for at leasttwelve months after the reporting period, or

(v) It includes current portion of non current financial liabilities.All other liabilities are classified as non-current.

1.4 Operating cycle

All assets and liabilities have been classified as current and non-current as per the company''s normal operating cycle and other criteria set out above which are inaccordance with the schedule III to the Act. Based on the nature of services and time between the acquisition of assets for providing of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

1.5 Property Plant and Equipment:

Property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

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 Company 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 the Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation is provided under the “written down value” method at the rates and in the manner prescribed in Part C of Schedule II to the Companies Act, 2013, overtheir useful life., and management believe that useful life of assets are same as those prescribed in Part C of Schedule II to the Act.

Useful life considered for calculation of depreciation for various assets class are as follows-

Asset Class Useful Life

Furniture and Fixtures 10 years

Office Equipment 5 years

Computers 3 years

The Property, plant and equipment residual values, useful lives and method of depreication are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses arising from dereognition of a property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognised in the Statement of Profit and Loss, when the asset is derecognised.

An property, plant and equipment carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

1.6 Investments and other financial assets:Initial recognition

In the case of financial assets, not recorded at fair value through profit or loss (FVPL), financial assets are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories

(a) Financial Assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model with an objective 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. Interest income from these financial assets is included in finance income using the effective interest rate (“EIR”) method. Impairment gains or losses arising on these assets are recognised i n the Statement of Profit and Loss.

(b) Financial Assets measured at fair value

Financial assets are measured at fair value through other comprehensive income (FVOCI) if these financial assets are held within a business model withan objective to hold these assets in order to collect contractual cash flows or to sell these financial assets and the contractual terms of the financial asset giverise on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Statement of Profit and Loss.

Financial assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss.

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies the expected credit loss (“”ECL””) model for measurement and recognition of impairment loss on financial assets and credit risk exposures.

The Company follows ‘simplified approach'' for recognition of impairment loss allowance on trade receivables. Simplified approach does not require the Company to changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition. For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company i n accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. Lifetime ECL are theexpected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months afterthe reporting date.ECL impairment loss allowance (or reversal) recognised during the period is recorded as expense/ income in the Statement of Profit and Loss.

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rightsto the cash flows from the asset expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewardsof ownership and continues to control the transferred asset, the Company recognizes its retained interest in the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

Equity investments

All equity investments in the scope of Ind AS 109, Financial Instruments, are measured at fairvalue. For equity instruments,the Company may make an irrevocable election to present the subsequent fair value changes in Other Comprehensive Income (OCI). The Company makes such election on an instrument-by-instrumentbasis. The classification is made on initial recognition and is irrevocable. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. Equity instruments included within the FVTPL (fair value

1.7 Financial Liabilities Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and borrowings and payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent measurement Financial liabilities at FVPL

Financial liabilities at FVPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as FVPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the Statement of Profit and Loss.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation i s included as finance costs in the Statement of Profit and Loss.

Where the terms of a financial liability is re-negotiated and the Company issues equity i nstruments to a creditor to extinguish all or part of the liability (debt for equity swap), again or loss is recognised in the Statement of Profit and Loss; measured as a differencebetween the carrying amount of the financial liability and the fair value of equity instrument issued.

De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contracti s discharged, cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treatedas de-recognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reported inthe balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

1.8 Fair value measurement

The Company measures financial assets and financial liability 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 fairvalue measurement is based on the presumption that the transaction to sell the asset ortransfer the liability takes place either:

- In the principal market for the asset or liability, or

- 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 andbest use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate i n the circumstances and for which sufficient data are available to measure fairvalue, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, basedon the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assetsor liabilities

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities thatare recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s Valuation team determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement

1.9 Impairment of non-financial assets

Assessment is done at each Balance Sheet date to evaluate whether there is any indication that a non-financial asset may be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are

largely independent of the cash inflows from other assetsor groups of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to their recoverable amount. Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.10 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

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.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Group or whereany present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

A contingent asset is disclosed, where an inflow of economic benefits is probable. An entity shall not recognize contingent asset unless the recovery is virtually certain.

1.11 Borrowing costs

General and specific borrowing costs directly attributable to the acquisition/ construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such timethe assets are substantially ready for their intended use. All other borrowing costs are recognised as an expense in Statement of Profit and Loss in the period in which they are incurred.

1.12 Recognition of income

Interest income from a financial asset is recognised when it is probable that the economicbenefits will flow to the Company and the amount of income can be measured reliably.Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established.

1.13 Employee benefits

a) Short term employee benefits

Short term employee benefits are recognised as expenditure at the undiscountedvalue in the statement of profit and loss of the year in which the related service is rendered.

b) Post employment benefits

i) Defined contribution plan

The Company''s contribution to Provident Fund and Employees State Insurance Scheme is determined based on a fixed percentage of the eligibleemployees'' salary and charged to the Statement of Profit and Loss on accrualbasis. The Company has categorised its Provident Fund, labour welfare fund and the Employees State Insurance Scheme as a defined contribution plan since it has no further obligations beyond these contributions.

ii) Defined benefits plan

The Company''s liability towards gratuity, being a defined benefit plan are accounted for on the basis of an independent ‘actuarial valuation based on Projected Unit Credit Method.

Service cost and the net interest cost is included in employee benefit expense in the Statement of Profit and Loss. Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in ‘other comprehensive income'' as income or expense.

iii) Compensated absences

Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured atthe expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as atthe year end. The Company''s liability is actuarially determined (using the Projected Unit Credit method)

1.14 Income Tax

Income tax expense comprises current tax, deferred tax charge or credit. The deferredtax charge or credit and the corresponding deferred tax liability and assets are recognized using the tax rates that have been enacted or substantially enacted on the Balance Sheet date.

Deferred Tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual certainty of realization of such amounts. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.

Deferred tax assets are reviewed at each Balance Sheet date to reassess their reliability.

1.15 Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits with any qualifying financial institution repayable on demand or maturing within three months from the dateof acquisition and which are subject to an insignificant risk of change in value.

1.16 Earnings per share

Basic earnings per share (EPS) is calcualted by dividing the net profit or loss for the yearattributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivatent shares outstanding during the year.

1.17 Significant management judgements in applying accounting policies and estimation uncertainty

When preparing the financial statements, management makes a number of judgements,estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. 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.

Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

Depreciation and useful lives of property, plant and equipment

Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation for future periods is adjusted if there are significant changes from previous estimates.

Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate therisk of non-payment.

Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events andthe amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgement to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

Defined benefit obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Fair value measurement of financial instruments

Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary fromthe actual prices that would be achieved in an arm''s length transaction at the reportingdate.

Material uncertainty about going concern:

In preparing financial statements, management has made an assessment of Company''s ability to continue as a going concern. Financial statements are prepared on a going concern basis. The Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the Company''s ability to continue as a going concern.