PROVISION AND CONTIGENT LIABILTY

b. Financial assets at fair value through other comprehensive income: (FVTOCI)

A financial assets is subsequently measured at fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets and the contractual terms of the financial assets give rise on specified dates to cash flows
that are solely payments of principal interest on the principal amount outstanding.

c. Financial assets at fair value through profit and loss (FVTPL)

Financial assets which are not classified in any of the above categories are subsequently fair valued through
profit or loss.

3. Equity instruments

All equity investments are measured at fair value, with value changes recognised in the statement of profit and loss, except
for those equity investments for which the company has elected to present the value changes in 'other comprehensive
income'.

4. Investment in Subsidiaries and Associates and Joint Venture :

The company has accounted for its investments in Subsidiaries and Associates and Joint Venture at cost and at amortised
cost.

J. Foreign Currency

Functional Currency

The functional currency of the company is the Indian Rupee. The financial statements are presented in Indian Rupees
(Rounded off to Thousands).

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at
exchange rates in effect at the balance sheet date. The gains or losses resulting from such translations are included
in net profit in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in a
foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value
was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at
historical cost are translated at the exchange rate prevalent at the date of the transaction.

Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue, expense and cashflow items denominated in foreign currencies
are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction.

K. Employee Benefits

a. Short Term Employee Benefits are recognized as an expense at the undiscounted amount in the profit and loss
account of the year in which the related service is rendered.

b. Post employment benefits are recognized as an expense in the Profit and Loss account for the year in which the
employee has rendered services. The defined benefit obligation is provided for on the basis of an actuarial valuation
on projected unit cost method.

c. Long Term employee benefits are recognized as an expense in the Profit and Loss account for the year in which
the employee has rendered services.

L. Taxation

a. Provision for current tax is made with reference to taxable income computed for the accounting period, for
which the financial statements are prepared by applying the tax rates as applicable.

b. The Company has carried forward losses under Tax Laws. In absence of virtual certainty of sufficient future
taxable income, deferred tax asset has not been recognized by way of prudence in accordance with Indian
Accounting Standard 12 “ Income Taxes” issued by The Institute of Chartered Accountants of India.

M. Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended
use. All other borrowing costs are charged to revenue.

N. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised 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
recognised but are disclosed in the notes to the accounts. Contingent Assets are neither recognised nor disclosed in
the financial statements.

O. Segmental Reporting:

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and
financial reporting of the Company, the Company has only one segment viz; Gold Mining & Exploration.