K.) Provisions and Contingent Assets, and Contingent Liabilities

Provisions are recognised only when there is a present obligation (legal
or constructive), as a result of past events, and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and when a reliable estimate of the amount of
obligation can be made at the reporting date. Provisions are discounted
to their present values, where the time value of money is material, 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.
When the Company expects some or all of a provision to be reimbursed,
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.

Onerous contracts

If the Company has an onerous contract, the present obligation under the
contract is recognised and measured as a provision. However, before a
separate provision for an onerous contract is established, the Company
recognises any impairment loss that has occurred on assets dedicated to
that contract.

An onerous contract is a contract under which the unavoidable costs (i.e.
the costs that the Company cannot avoid because it has the contract) of
meeting the obligations under the contract exceed the economic benefits
expected to be received under it. The unavoidable costs under a contract
reflect the least net cost of exiting from the contract, which is the
lower of the cost of fulfilling it and any compensation or penalties
arising from failure to fulfil it.

These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimates.

Contingent liability is disclosed for:

Possible obligations which will be confirmed only by future events not
wholly within the control of the Company, or Present obligations arising
from 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.

Contingent assets are neither recognised nor disclosed except when the
realisation of income is virtually certain, related asset is disclosed.

L. ) Cash and cash equivalents.

Cash and cash equivalents in the Balance Sheet comprise cash at banks
and on hand and short-term deposits/investments with an original maturity
of three months or less from the date of acquisition, which are subject
to an insignificant risk of changes in value. These exclude bank balances
(including deposits) held as margin money or security against borrowings,
guarantees, etc., being not readily available for use by the Company.
For the purpose of the Statement of cash flows, cash and cash equivalents
consist of cash and short-term deposits and exclude items which are not
available for general use as on the date of Balance Sheet, as defined
above, net of bank overdrafts which are repayable on demand where they
form an integral part of an entity's cash management.

M. ) Earnings per share

Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after deducting
attributable taxes) by the weighted-average number of equity shares
outstanding during the period. The weighted-average number of equity
shares outstanding during the period is adjusted for events such as bonus
issue, bonus element in a rights issue, share split, and reverse share
split (consolidation of shares) that have changed the number of equity
shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit
or loss for the period attributable to equity shareholders and the

weighted-average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.