O. Provisions and Contingencies:

A provision is recognised when:

• The Company has a present obligation 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.

Provisions are measured at the management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to
the liability. The increase in the provision due to the passage of time is recognised as
finance costs.

The Company does not recognise contingent liabilities but it is disclosed in the financial
statements unless the possibility of an outflow of resources embodying economic benefits
is remote.

Contingent asset is not recognised in the financial statements.

P. Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the
Company by the weighted average number of equity shares outstanding during the
financial year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share after considering the income tax effect of all finance costs associated with
dilutive potential equity shares, and the weighted average number of additional equity
shares that would have been outstanding assuming the conversion of all dilutive potential
equity shares.

The Company has not issued any dilutive potential equity shares.

Q. Exceptional items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining
to the ordinary activities of the Company is such that its disclosure improves the
understanding of the performance of the Company, such income or expense is classified
as an exceptional item and accordingly, disclosed in the notes accompanying to the
financial statements.

3. USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

While preparing financial statements in conformity with Ind AS, the management has
made certain estimates and assumptions that require subjective and complex judgments.
These judgments affect the application of accounting policies and the reported amount of
assets, liabilities, income and expenses, disclosure of contingent liabilities at the
statement of financial position date and the reported amount of income and expenses for
the reporting period. Financial reporting results rely on the management estimate of the
effect of certain matters that are inherently uncertain. Future events rarely develop
exactly as forecasted and the best estimates require adjustments, as actual results may
differ from these estimates under different assumptions or conditions. Estimates and

underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized prospectively.

Judgment, estimates and assumptions are required in particular for:

a) Determination of the estimated useful life of tangible assets

Useful life of tangible assets is based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful life are different from that prescribed
in Schedule II, they are based on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past
history of replacement, anticipated technological changes, manufacturers' warrant ies
and maintenance support.

b) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of
actuarial assumptions. Key actuarial assumptions include discount rate, trends in
salary escalation, actuarial rates and life expectancy. The discount rate is determined
by reference to market yields at the end of the reporting period on government bonds.
The period to maturity of the underlying bonds correspond to the probable maturity
of the post-employment benefit obligations. Due to complexities involved in the
valuation and its long-term nature, defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting period.

c) Recognition of deferred tax liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carryforwards and
tax credits. Deferred tax assets are recognized to the extent that it is probable that
future taxable income will be available against which the deductible temporary
differences, unused tax losses, depreciation carry-forwards and unused tax credits
could be utilized.

d) Discounting of financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial
recognition. In case of financial assets / liabilities which are required to be
subsequently measured at amortized cost, interest is accrued using the effective
interest method.