Accounting Policies of Veer Global Infraconstruction Ltd. Company

Mar 31, 2025

1. Statement of Compliance

The financial statements have been prepared in accordance dance with Indian Accounting senders (Ind
AS) as notified under Section 133 of The Companies Act, 2013 (the “Act”) read with Rule 4 of the
Companies (Indian Accounting Standards) Rules, 2015 as amended and the relevant provisions of the
Act and accounting principles generally accepted in India.

2. Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the
application of accounting policies and the reported amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of the financial statements and reported amounts of revenues
and expenses during the period. Application of accounting policies that require critical accounting
estimates involving complex and subjective judgments and the use of assumptions in these financial
statements have been disclosed in notes below. Accounting estimates could change from period to
period. Actual results could differ from these estimates. Appropriate changes in estimates are made as
management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and if material,
then effects are disclosed in the notes to the financial statements.

3. Current and Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification. An asset is classified as current if:

a. It is expected to be realized or sold or consumed in the Company''s normal operating cycle;

b. It is held primarily for the purpose of trading;

c. It is expected to be realized within twelve months after the reporting period; or

d. It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

All other assets are classified as non-current. A liability is classified as current if:

a. It is expected to be settled in normal operating cycle;

b. It is held primarily for the purpose of trading;

c. It is expected to be settled within twelve months after the reporting period;

d. It has no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period.

All other liabilities are classified as non-current. The operating cycle is the time between acquisition of
assets for processing and their realization in cash and cash equivalents. The Company''s normal operating
cycle is twelve months.

4. Functional and Presentation Currency

Items included in the financial statements of the Company are measured using the currency of the
primary economic environment in which the Company operates. The Indian Rupee (?) is the functional
currency of the Company. Accordingly, the financial statements are presented in Indian Rupees, which
is also the Company’s presentation currency. All amounts reported in the financial statements are
expressed in Indian Rupees (? in Lakhs), except for equity shares, which are presented in absolute
numbers.

5. Revenue Recognition

The Company recognizes revenue from contracts with customers when it satisfies a performance
obligation by transferring promised good or service to a customer. The revenue is recognized to the
extent of transaction price allocated to the performance obligation satisfied. Performance obligation is
satisfied over time when the transfer of control of asset (good or service) to a customer is done over time
and in other cases, performance obligation is satisfied at a point in time. For performance obligation
satisfied over time, the revenue recognition is done by measuring the progress towards complete
satisfaction of performance obligation. The progress is measured in terms of a proportion of survey of
performance to date.

Transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring good or service to a customer excluding amounts collected on behalf of a third
party. Costs to obtain a contract which are incurred regardless of whether the contract was obtained are
charged-off in Profit & Loss immediately in the period in which such costs are incurred. Impairment loss
(termed as provision for foreseeable losses in the financial statements) is recognized in profit or loss to
the extent the carrying amount of the contract asset exceeds the remaining amount of consideration that
the company expects to receive towards remaining performance obligations (after deducting the costs
that relate directly to fulfil such remaining performance obligations). In addition, the Company
recognizes impairment loss (termed as Allowance for expected credit loss on contract assets in the
financial statements) on account of credit risk in respect of a contract asset using expected credit loss
model on similar basis as applicable to trade receivables.

A. Recognition of Revenue from Contractual Projects

The company recognizes construction contract revenue over time, as performance obligations are
satisfied, due to the continuous transfer of control to the customer. Construction contracts are generally
accounted for as a single unit of account (a single performance obligation) The Company adopts the
output method in recognizing the revenue over time by reference to the progress.

Towards complete satisfaction of the relevant performance obligation. The progress towards complete
satisfaction of a relevant performance obligation is measured by reference to the surveys of work
performed primarily includes certificates issued by the internal or external surveyors on the performance
completed to date. The percentage of- completion method (output method) is the most faithful depiction
of the company’s performance because it directly measures the value of the services transferred to the
customer. Where the entity is unable to reasonably measure the percentage of completion, the revenue
is recognized only up to the amount of cost incurred provided the entity expects to at least recover its
cost.

B. Other Income

The Company recognizes income under the below mentioned heads, provided that it is probable that the
economic benefits will flow to the Company and the amount of income can be measured reliably.

i. Interest Income from Financial Instruments

Interest income is accrued on a time proportionate basis taking into account the principal
outstanding and the effective interest rate applicable. Interest Income on disputed revenue is
recognized on realization basis.

ii. Dividend Income.

There is dividend income for the period under consideration.

C. Others:

Other items of income are accounted as and when the right to receive such income arises and it is
probable that the economic benefits will flow to the Company and the amount of income can be measured
reliably.

6. Inventories

a. Inventory of Construction raw material & stores and spares and other consumables are stated at
lower of cost and net realizable value.

b. Works in progress are estimated at cost or net realizable value whichever is owner.

c. Finished goods and scraps are valued at cost or net realizable value whichever is lower.

7. Property, Plant and Equipment
I. Recognition and measurement

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses,
if any. The cost comprises purchase price borrowing cost if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for the ed use. Any discount and rebates
are deducted in arriving at the purchase price.

II. Subsequent expenditure

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Company. All other repair and maintenance costs are recognized in statement of profit and loss as
incurred.

III. Depreciation

Depreciation on property, plant and equipment is provided on the Straight-Line Method (SLM)
computed on the basis of useful lives prescribed in Schedule II to the Companies Act, 2013.

IV. De-recognition

An item of property, plant and equipment initially recognized is de-recognized upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or loss arising on de¬
recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is recognized in statement of profit and loss when the asset is derecognized.

8. Financial Instruments
I. Financial Assets

i) Classification: The Company classifies financial assets as subsequently measured at

• Amortized cost or

• Fair value through other comprehensive income or

• Fair value through profit or loss on the basis of its business model for managing the financial assets
and the contractual cash flow characteristics of the financial asset.

ii) Initial Recognition and Measurement: Financial assets are recognized when the company becomes
party to a contract embodying the related financial instruments. All financial assets are initially measured
at transaction values and where such values are different from the fair value, at fair value. Transaction
costs that are attributable to the acquisition financial assets (other than financial assets at fair value
through profit or loss) are added to the fair value of such assets on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets measured at fair value through profit or loss are
recognized immediately in profit or loss.

iii) Subsequent Measurement: For the purpose of subsequent measurement, the financial assets are
classified into four categories:

• Debt Instruments at amortized cost

• Debt instruments at fair value through other comprehensive income

• Debt instruments at fair value through profit or loss

• Equity Instruments

iv) Debt Instruments at amortized cost: A ‘debt instrument’ is measured at the amortized cost if both
the following conditions are met:

• The asset is held within a business model whose objective is to hold assets in order to collect
contractual cash flows; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium and fees or costs that are an integral part of the EIR. The EIR amortization is included in the
finance income in the Statement of Profit and Loss. The Losses arising from impairment are recognized
in the Statement of Profit and Loss.

v) Debt Instruments at fair value through other comprehensive income: Debt instruments that meet
the following conditions are subsequently measured at fair value through other comprehensive income
(FVTOCI) (unless the same are designated as fair value through profit or loss).

• The asset is held within a business model whose objective is achieved both by collecting
contractual cash flows and selling financial assets; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

For debt instruments that are measured at FVTOCI, income by way of interest, dividend and exchange
difference (on debt instrument) is recognized in profit or loss and changes in fair value (other than on
account of such income) are recognized in Other Comprehensive Income and accumulated in other
equity. On disposal of debt instruments measured at FVTOCI, the cumulative gain or loss previously
accumulated in other equity is reclassified to profit or loss.

vi) Debt Instruments at fair value profit or loss: Debt instruments included within the fair value
through profit and loss (FVTPL) category are measured at fair value with all changes recognized in the
Statement of Profit and Loss.

vii) Equity Instruments: All equity instruments including investment in subsidiaries are measured at
fair value. Equity instruments which are held for trading are classified as at Fair Value through Profit
and Loss (FVTPL). For all other equity instruments, the Company has decided to classify the same at
FVTOCI. The classification is made on the initial recognition and is irrevocable.

viii) De-recognition: A financial asset (or, where applicable, a part of a financial asset) is primarily de¬
recognized when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred substantially all the risks and rewards of the asset, or

• The Company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred the control of the asset.

II. Financial Liabilities

i) Classification: The Company classifies all financial liabilities as subsequently measured at amortized
cost.

ii) Initial Recognition and measurement: Financial liabilities are recognized when the company
becomes party to a contract embodying the related financial instruments. All financial liabilities are
initially measured at transaction values and where such values are different from the fair value, at fair
value. Transaction costs that are attributable to the issue of financial liabilities are deducted from the fair
value of such assets on initial recognition.

iii) Loans and Borrowings: After initial recognition, interest -bearing loans and borrowings are
subsequently measured at amortized cost using Effective Interest Rate (EIR) method. Gains and losses
are recognized in the Statement of Profit and Loss when the liabilities are derecognized. Amortized cost
is calculated by taking into account any discount or premium on acquisition and transaction costs. The
EIR amortization is included as finance costs in the Statement of Profit and Loss. This category generally
applies to loans and borrowings.

iv) De-recognition: A financial liability is de-recognized when the related obligation expires or is
discharged or cancelled, when an existing 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 treated as the de-recognition of the original liability and the recognition of

a new liability. The difference in the respective carrying amounts is recognized in Profit and Loss for
the year.

09. Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax. Current and
deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognized in other comprehensive income or directly in equity respectively.

Current tax: Current tax is determined on taxable profits for the year chargeable to tax in accordance
with the applicable tax rates and the provisions of the Income Tax Act, 1961 including other applicable
tax laws that have been enacted or substantively enacted.

Deferred tax: Deferred tax is recognized on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation
of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it
is probable that taxable profits will be available against which those deductible temporary differences
can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax asset is recognized for the carry forward of unused tax losses and unused tax credits to the
extent that it is probable that future taxable profit will be available against which the unused tax losses
and unused tax credits can be utilized. The carrying amount of deferred tax assets is reviewed at the end
of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Company expects, at the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities.

10. Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand.

11. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to
equity shareholders (after deducting attributable taxes) by the weighted average number of equities
shares outstanding during the period. The weighted average number of equities shares outstanding during
the period is adjusted for events including a bonus issue. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity shareholders and the weighted average

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

1. Statement of Compliance

The financial statements have been prepared in accordance dance with Indian Accounting senders (Ind AS) as notified under Section 133 of The Companies Act, 2013 (the "Act") read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and the relevant provisions of the Act and accounting principles generally accepted in India.

2. Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in notes below. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, then effects are disclosed in the notes to the financial statements.

3. Current and Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is classified as current if:

(a) it is expected to be realized or sold or consumed in the Company''s normal operating cycle;

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

(c) it is expected to be realized within twelve months after the reporting period; or

(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current. A liability is classified as current if:

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

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

(c) it is expected to be settled within twelve months after the reporting period;

(d) it has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current,

The operating cycle is the time between acquisition of assets for processing and their realization in cash and cash equivalents. The Company''s normal operating cycle is twelve months.

4. Functional and Presentation Currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company Operated (Function Currency) Indian rupee (Rs. or*) is the functional currency of the Company. The financial statements are presented in Indian rupees, which the Company''s presentation currency. All amounts included in the financial statements are reported in Indian rupees (Rupees in Lakhs) except equity shares, which are expressed in numbers.

5. Revenue Recognition

The Company recognizes revenue from contracts with customers when it satisfies a performance obligation by transferring promised good or service to a customer. The revenue is recognized to the extent of transaction price allocated to the performance obligation satisfied. Performance obligation is satisfied over time when the transfer of control of asset (good or service) to a customer is done over time and in other cases, performance obligation is satisfied at a point in time. For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of survey of performance to date.

Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring good or service to a customer excluding amounts collected on behalf of a third party. Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in Profit & Loss immediately in the period in which such costs are incurred. Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognized in profit or loss to the extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the company expects to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfil such remaining performance obligations). In addition, the Company recognizes impairment loss (termed as Allowance for expected credit loss on contract assets in the financial statements) on account of credit risk in respect of a contract asset using expected credit loss model on similar basis as applicable to trade receivables.

(a) Recognition of Revenue from Contractual Projects

The company recognizes construction contract revenue over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer.

Construction contracts are generally accounted for as a single unit of account (a single performance obligation) The Company adopts the output method in recognizing the revenue over time by reference to the progress.

Towards complete satisfaction of the relevant performance obligation. The progress towards complete satisfaction of a relevant performance obligation is measured by reference to the surveys of work performed primarily includes certificates issued by the internal or external surveyors on the performance completed to date. The percentage of- completion method (output method) is the most faithful depiction of the company''s performance because it directly measures the value of the services transferred to the customer. Where the entity is unable to reasonably measure the percentage of completion, the revenue is recognized only up to the amount of cost incurred provided the entity expects to at least recover its cost.

(b) Other Income

The Company recognizes income under the below mentioned heads, provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

a. Interest Income from Financial Instruments

Interest income is accrued on a time proportionate basis taking into account the principal outstanding and the effective interest rate applicable. Interest Income on disputed revenue is recognized on realization basis.

b. Dividend Income.

There is dividend income for the period under consideration.

c. Others

Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

6. Inventories

a. Inventory of Construction raw material & stores and spares and other consumables are stated at lower of cost and net realizable value.

b. Works in progress are estimated at cost or net realizable value whichever is owner.

c. Finished goods and scraps are valued at cost or net realizable value whichever is lower.

7. Property, Plant and Equipment

(i) Recognition and measurement

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. The cost comprises purchase price borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the ed use. Any discount and rebates are deducted in arriving at the purchase price.

(ii) Subsequent expenditure

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future ecomic benefits associated with the item will flow to the Company. All other repair and maintenance costs are recognized in statement of profit and loss as incurred.

(iii) Depreciation

Depreciation on property, plant and equipment is provided on the Straight-Line Method (SLM) computed on the basis of useful lives prescribed in Schedule II to the Companies Act, 2013.

(iv) De-recognition

An item of property, plant and equipment initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in statement of profit and loss when the asset is derecognized.

8. Financial Instruments I. Financial Assets

i) Classification

The Company classifies financial assets as subsequently measured at

• amortized cost or

• Fair value through other comprehensive income or

• Fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

ii) Initial Recognition and Measurement

Financial assets are recognized when the company becomes party to a contract embodying the related financial instruments. All financial assets are initially measured at transaction values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to the acquisition financial assets (other than financial assets at fair value through profit or loss) are added to the fair value of such assets on initial recognition. Transaction costs directly attributable to the acquisition of financial assets measured at fair value through profit or loss are recognized immediately in profit or loss.

iii) Subsequent Measurement

For the purpose of subsequent measurement, the financial assets are classified into four categories:

• Debt Instruments at amortized cost

• Debt instruments at fair value through other comprehensive income

• Debt instruments at fair value through profit or loss

• Equity Instruments

iv) Debt Instruments at amortized cost

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of the EIR. The EIR amortization is included in the finance income in the Statement of Profit and Loss. The Losses arising from impairment are recognized in the Statement of Profit and Loss.

v) Debt Instruments at fair value through other comprehensive income

Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (FVTOCI) (unless the same are designated as fair value through profit or loss)

• The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For debt instruments that are measured at FVTOCI, income by way of interest, dividend and exchange difference (on debt instrument) is recognized in profit or loss and changes in fair value (other than on account of such income) are recognized in Other Comprehensive Income and accumulated in other equity. On disposal of debt instruments measured at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified to profit or loss.

vi) Debt Instruments at fair value profit or loss

Debt instruments included within the fair value through profit and loss (FVTPL) category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

vii) Equity Instruments

All equity instruments including investment in subsidiaries are measured at fair value. Equity instruments which are held for trading are classified as at Fair Value through Profit and Loss (FVTPL). For all other equity instruments, the Company has decided to classify the same at FVTOCI. The classification is made on the initial recognition and is irrevocable.

viii) De-recognition

A financial asset (or, where applicable, a part of a financial asset) is primarily de-recognized when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred substantially all the risks and rewards of the asset, or

• The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred the control of the asset.

II. Financial Liabilities

i) Classification

The Company classifies all financial liabilities as subsequently measured at amortized cost.

ii) Initial Recognition and measurement

Financial liabilities are recognized when the company becomes party to a contract embodying the related financial instruments. All financial liabilities are initially measured at transaction values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to the issue of financial liabilities are deducted from the fair value of such assets on initial recognition.

iii) Loans and Borrowings

After initial recognition, interest -bearing loans and borrowings are subsequently measured at amortized cost using Effective Interest Rate (EIR) method. Gains and losses are recognized in the Statement of Profit and Loss when the liabilities are derecognized. Amortized cost is calculated by taking into account any discount or premium on acquisition and transaction costs. The EIR amortization is included as finance costs in the Statement of Profit and Loss. This category generally applies to loans and borrowings.

iv) De-recognition

A financial liability is de-recognized when the related obligation expires or is discharged or cancelled, when an existing 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 treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in Profit and Loss for the year.

09.Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax. Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

Current tax: Current tax is determined on taxable profits for the year chargeable to tax in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 including other applicable tax laws that have been enacted or substantively enacted.

Deferred tax: Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax asset is recognized for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

10. Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and.

11. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.