14 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can
be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A Contingent liability is disclosed for:

a. Possible obligation which will be confirmed only by future events not wholly within the control of the Company, or

Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation cannot be made.

c. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure Is made.

A contingent asset is neither recognized nor disclosed In the financial statements since this may result in the recognition of income that may never be
realized.

15 Earnings Per Share

Basic earnings per share Is computed by dividing the profit/ (loss) after tax (including the post-tax effect of extraordinary Items, if any) by the weighted
average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of extraordinary Items, If any) as adjusted for
dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been Issued on the
conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing
ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been Issued at a
later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average
market value of the outstanding shares). Dilutive potentially equity shares are determined independently for each period presented. The number of
equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

16 Cash Flows

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature such as
depreciation, provisions, and unrealized foreign exchange gains and losses, 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. Cash flows from operating, investing and financing activities
of the Company are presented, accordingly.

17 Segment Accounting

a. The business segment has been considered as the primary segment

. The Company's primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns,

D.

the organization structure and the internal financial reporting system.

The Company's primary business includes design, development, fabrication and supply of software-based automated test equipment. This Is the
only segment as envisaged in Accounting Standard 17: 'Segment Reporting' therefore disclosure for Segment reporting Is not applicable.

18 Events occurring after the Balance Sheet Date

Material events occurring after the balance sheet are considered up to the date of approval of the accounts by the board of directors.

E. Changes In Accounting policies in the Financial Years covered in the Financial Statements:

There have been no changes in the accounting policies of the company for the years covered in the financial statements.