N. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

(i) Provisions

A provisions is recognized when the Company has a present obligation as a result of past event, if 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 obligation.

(ii) Contingent Liability

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence
of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to settle or a reliable estimate of the
amount cannot be made.

(ii) Contingent Assets

Contingent Assets are neither recognized nor disclosed in the financial statements.

O. SEGMENT REPORTING

In accordance with the Accounting Standard 17 "segment reporting" as prescribed under Companies
(Accounting Standard) Rules, 2006 (as amended ), as the company is covered under categories of SMC
companies, the said accounting standard is not applicable to it.

P. CASH & CASH EQUIVALENTS

Cash & cash equivalents comprise cash and cash on deposit with banks and corporations. The company
considers all highly liquid investments with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amount of cash to be cash equivalents.

Q. LEASES

Leases where the Lessor effectively retains substantially all the risks and benefits of ownership of the Leased
Asset, are classified as 'Operating Leases". Lease rentals with respect to assets taken on 'Operating Lease'
are charged to Statement of Profit and Loss on a straight line basis over the lease term.

Leases which effectively transfer to the Company substantially all the risks and benefits incidental to the
ownership of the leased item are classified as 'Finance Lease'. Assets acquired on Finance Lease which
substantially transfer all the risks and rewards of ownership to the Company are capitalized as assets by the
Company at the lower of the fair value and the present value of the minimum lease payment and a liability
is created for an equivalent amount. Lease rentals payable is apportioned between the liability and finance
charge so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

R. GOVERNMENT GRANTS

Government grants / subsidies received towards specific fixed assets have been deducted from the gross
value of the concerned fixed assets and grant / subsidies received during the year towards revenue expenses
have been reduced from respective expenses.