11. Provisions, Contingent Liabilities and Contingent Assets: - (Indian Accounting Standards)

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 the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for: -

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the
company or

(ii) 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 not recognized in the financial statement since this may result in the recognition of the
income that may never be realized.

12. Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders (after deducting attributable taxes) by the weighted averages number of equity shares outstanding
during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects
of all diluted potential equity shares.

General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles
and have been consistently applied.

B. Additional Notes on Financial Statements:

1. The SSI status of the creditors is not known to the Company; hence the information is not given.

2. Salaries include director’s remuneration on account of salary Rs.44,76,843 /- (Previous Year Rs. 34,02,769/)

3. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been taken at their book
value subject to confirmation and reconciliation.

5. Loans and Advances are considered good in respect of which company does not hold any security other than
the personal guarantee of persons.

6. Related Party disclosure as identified by the company and relied upon by the auditors:

(b) Right, Preferences and Restriction attached to shares
Equity shares

The company has only one class of Equity having a par value Rs. 10.00 per share. Each shareholder is
eligible for one vote per share held. In the event of liquidation, the Equity shareholders are eligible to receive
the remaining assets of the company after distribution of all preferential amounts, in proportion to their
shareholding.