8 Provisions & contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When

discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liability arises when the Company has:

a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the entity; or

b) a present obligation that arises from past events but is not recognised because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(ii) the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recorded in the financial statement but, rather, are disclosed in the note to the financial statements.

(B) Key accounting estimates

1 Revenue Recognition

Judgement is applied to determine whether revenue should be recognized over time or at a point in time, based on transfer of control. For service contracts, estimates are
made in measuring the stage of completion using either input or output methods.Where the contract includes variable consideration, the Company estimates the amount of
consideration to which it expects to be entitled. Significant judgement is required to determine whether the variable consideration should be constrained to avoid significant
revenue reversals in the future.

2 Employee Benefit Expenses

Management considers inflation, promotion policy, historical trends, and market trends while determining the salary escalation rate, which directly impacts the projected
benefit obligations.

3 Taxes

Tax on Income comprises current tax. It is recognised in statement of profit and loss except to the extent that it relates to a business combination, or items recognised directly in
equity or in other comprehensive income.

Current tax

Tax on income for the current period is determined on the basis on estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws
and based on the expected outcome of assessments / appeals. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies.

( b ) T erms / rights attached to equity shares

In respect of Ordinary shares, voting rights shall be in the same proportion as the capital paid upon such ordinary share bears to the total paid up ordinary capital of
The Dividend proposed by the board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of
In the event of liquidation, the shareholders of Ordinary shares are eligible to receive the remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholdings.

Nature and purpose of reserves:

(1) Securities Premium : In cases where the company issues shares at a premium, whether for cash or otherwise, a sum equal to the
aggregate amount of the premium received on those shares has been transferred to “Securities Premium”. The Company may issue
fully paid-up bonus shares to its members out of the securities premium and to buy-back of shares.

(2) Capital redemption reserve : Capital redemption reserve represents the amount transferred on account of redemption of
preference shares.

(3) Retained Earnings : Surplus in statement of Retained Earnings are the profits / (losses) that the company has earned / incurred
till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re¬
measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to the statement of profit and loss.
Retained earnings is a free reserve available to the company and eligible for distribution to shareholders, in case where it is having
positive balance representing net earnings till date.

18 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders of the Company by the weighted average number
of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity
shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential
Equity shares into Equity shares.