Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of
past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in
notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Retirement Benefits :-

(a) Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the
concerned authority

(b) Provision for gratuity has been made on the method as prescribed in the respective act.

(c) Provision has been made for accrued leave salary due to the employees, computed with reference to un-availed leave of the
employee at the year end.

Deferred Tax :-

Provision for Tax is made for current and deferred taxes. Current taxes is provided on the taxable income using applicable tax rates
and tax laws.Deferred Tax Assets and Liabilities arising on account of timing differential and which are capable of reversal in
subsequent periods are recognized using the Tax rates and Tax Laws that have been enacted or substantively enacted till the date of
the Balance Sheet. Deferred Tax Assets are not recognized unless there is “Virtual Certainty” that Sufficient future taxable income will
be available against which such Deferred Tax Assets will be realized.

Impairment of Assets :-

The carrying amount of assets are reviewed at each balance sheet date, if there is an Indication of impairment based on the internal
and external factors.

The Company have two class of shares i.e. Equity & Preference carrying a nominal value of Rs 10 each and Rs
100 each respectively. Each holder of equity Shares is entitled to one vote per share. The Company shall declare
and pay dividend in Indian Rupees. When the company have distributable profit, the company shall propose
dividend, subject to the approval of shareholders in annual general meeting. In the event of liquidation of the
company, the holders of equity shares will be entitled to receive remaining assets of the company, after
distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by
the shareholders. Also the preference shares shall be redeemed only when the company have distributable
profits which would otherwise be available for dividend or out of proceeds of fresh issue of shares made for the
purpose of redemption, hence for the year under review the shares shall not be redeemed

The Company have two class of shares i.e. Equity & Preference carrying a nominal value of Rs 10 each and Rs 100
each respectively. Each holder of equity Shares is entitled to one vote per share. The Company shall declare and pay
dividend in Indian Rupees. When the company have distributable profit, the company shall propose dividend, subject to
the approval of shareholders in annual general meeting. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company, after distribution of all prefential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders. Also the preference shares
shall be redeemed only when the company have distributable profits which would otherwise be available for dividend or
out of proceeds of fresh issue of shares made for the purpose of redemption, hence for the year under review the
shares shall not be redeemed

11% Redeemable Cumulative Preference shares were redeemable before September 1995 by giving six months notice
by such redemption to the holders thereof. However, as per the terms of the Sanctioned Rehabilitation Scheme, the
preference Shares are to be continued with roll over option for another 5 years and no interest is payable during such
rehabilitation period. Accordingly, no provision for any interest has been made during the year. Due to non-availability
of profit, no provision has been made for payment of dividend to the Preference Shareholders; cumulative from the date
of allotment i.e 20th September 1980 upto the due date of redemption amounting to Rs 41.60 Lacs or the dividend
payable thereafter. Further 0% Redeemable Preference Shares shall be subject to redemption when the Company has
distributable profit. Hence, for the year under review the Shares shall not be redeemned

Issue of Shares :- 9,00,000 0% Redemmable Preference Share of Rs. 100/- at par has been issued and allotted by the
Company by conversion of unsecured Loans during the financial year ended on 31st March 2017.The Preference
Shares shall from the date of allotment rank pari-passu in all respects with all other preference shares of similar
category in the Company then on issue.The Preference shares shall be redeemed before the expiry of 20 years when
the company has distributable profits and upon mutual consent of the allottees and company with an option to redeem
at the sole discretion of the company at any time after the expiry of thirty six month from the date of the allotment, at par
or at a premium out of the distributable profits of the company.