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
reliably estimated. 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.

Liabilities which are material and whose
future outcome cannot be ascertained
with reasonable certainty are treated
as contingent. The Company does not
recognise a contingent liability but discloses
its existence in financial statements

l) Cash flow statement

Cash flow are reported using the indirect
method, whereby profit for the period is
adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals
of past or future operating cash receipts or
payments and item of income or expenses
associated with investing or financing cash
flows. The cash flow from operating investing
and financing activities of the Company are
segregated.

m) Foreign Currency Transactions

The functional currency of the Company is
Indian Rupee. These financial statements are
presented in Indian Rupee.

Transactions and Balances.

The foreign current transactions are recorded,
on initial recognition in the functional
currency, by applying foreign current
amount the spot exchange rate between the
functional currency and the foreign current at
the date of transaction.

The foreign current monetary items are
translated using closing rate at the end of
each reporting period. Non-monetary items
that are measured in terms of historical
cost in a foreign currency shall be translated
using the exchange rate at the date of
transaction. Exchange differences arising
on the settlement of monetary items or on
translating monetary items at rates different
from those at which they were translated
on initial recognition during the period or
in previous financial statements shall be
recognised in profit or loss in the period in
which they arise.

n) Retirement & Other Benefits

i.) Gratuity: - The Company has a defined
benefit gratuity plan. Every employee
who has completed 5 years are more of
service is entitled to gratuity on terms
not less favorable than the Provisions

of " The Payment of Gratuity Act 1972."
The Company contributes periodically
with LIC of India.

ii) Provident Fund: - Retirement benefit in

the form of provident fund is a defined
contribution scheme. The Company
has no obligation, other than the
contribution payable to the provident
fund. The Company recognises
contribution payable to the provident
fund scheme as an expenses, when an
employee renders the related service.

iii.) Superannuation Fund:- Certain

employees are also participants in the
superannuation plan which is a defined
contribution plan. The Company has no
further obligations to the plan beyond
its monthly contribution which are
periodically contributed to corpus which
is invested with the Life Insurance Corp.
of India.