(xiv) Accounting for provisions, contingent liabilities and contingent assets

Provisions are recognized, when there is a present legal or constructive obligation as a result
of past events, where it is probable that there will be outflow of resources to settle the
obligation and when a reliable estimate of the amount of the obligation can be made. Where a
provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows. Where the effect is material, the
provision is discounted to net present value using an appropriate current market-based pre¬
tax discount rate and the unwinding of the discount is included in finance costs. However,
company has not created any provision during the year and all the known liabilities are
accounted for in the books.

Contingent liabilities are recognized only when there is a possible obligation arising from past
events, due to occurrence or non-occurrence of one or more uncertain future events, not
wholly within the control of the Company, or where any present obligation cannot be
measured in terms of future outflow of resources, or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis and only those
having a largely probable outflow of resources are provided for. Contingent liability has been
disclosed in the note no. 30 to the financial statement.

Contingent assets are not disclosed in the financial statements unless an inflow of economic
benefits is probable

(xv) Earnings per share

Basic Earnings per share is calculated by dividing the net profit / (loss) for the period
attributable to the equity shareholders by the weighted average number of equity shares
outstanding during the period. The Company did not have any potentially dilutive securities
in any of the year presented.