x. Provisions And Contingent Liabilities:

A provision is recognized when the company has a present obligation as a result of past events
and it is probable that the outflow of resources embodying economic benefits will occur to settle that
obligation. The company recognizes the provision on the basis of best available estimates. These
estimates are reviewed at each reporting date to reflect the current situation. Contingent Liabilities
and Contingent Assets are neither recognized nor disclosed in the financial statements but are
shown by way of a note to the Financial Statements.

xi. Business Purchase:

Business Purchase transactions are accounted for using the purchase (acquisition) method. The
assets and liabilities acquired are incorporated in the financial statements at their existing
carrying amount and the consideration has been paid by issue of fully paid equity shares at face value.
Transaction costs incurred in connection with a business acquisition are expensed as incurred. Any
excess of the amount of consideration over the value of the net assets of the firm acquired by us is
recognized in our company's financial statements as goodwill arising on Business Purchase.
Goodwill shall be amortized to income on a systematic basis over its useful life of five years.

xii. Borrowing Cost:

Borrowing cost directly attributable to the acquisition, construction of qualifying asset that
necessarily takes a substantial period of time to get ready for its intended use are capitalised as
part of cost of asset. The borrowing costs includes interest and transaction cost

that the company incurs in connection with the borrowing of the funds. Other interest and borrowing
costs are charged to the Statement of Profit and Loss.

xiii. Employee Benefit Expenses:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the
Statement of Profit and Loss for the year in which the related services are rendered. Provision for
long-term employee benefits such as Gratuity has been made in the books of account in accordance
with AS-15.

xiv. Cash flow Statement:

The Cash flow statement is prepared by Indirect method as per AS 3.

xv. Impairment of Assets:

At each balance sheet date, the company reviews the carrying of its fixed assets to determine whether
there is any indication that those assets suffered an impairment loss. If any such indication exists,
the recoverable amount of the assets is estimated in order to determine the extent of impairment
loss. An impairment loss is charged to Profit and loss account in the year which an asset is
identified as impaired.

xvi. Prior period comparatives:

Previous year's figures have been regrouped/reclassified where necessary, to confirm to
current year's classification.

xvii. Foreign Currency Transactions:

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate
prevailing on the date of the transaction or that approximates the actual rate at the date of the
transaction.

(ii) Monetary items denominated in foreign currencies at the period/year-end are restated at
period/year-end rates.

(iii) Any income or expenses on account of exchange difference either on settlement or on translation is
recognized in the Statement of Profit and Loss.

(iv) Premiums or discounts on forward contracts for hedging foreign currency transactions are
amortized and recognized in the statement of profit and loss over the period of the contract.

xviii. Government Grants:

Grants and subsidies from the government are recognized when there is reasonable assurance that
the grant/subsidy will be received, and all attaching conditions will be complied with. When the
grant or subsidy relates to an expense item, it is netted off from the respective expenses necessary
to match them on a systematic basis to the costs, which it is intended to compensate. Where the
grants or subsidy relates to an asset, its value is deducted in arriving at the carrying amount of the
related asset.