f. Provisions (other than Employee Benefits), Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present legal obligation as a result of past event and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made.
Provisions are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not
recognized but are disclosed in the notes to the financial statements. A contingent asset is neither recognized nor
disclosed if inflow of economic benefit is probable.

g. Revenue Recognition
i. Service Income:

Service income is recognised as per the terms of the contract when the related services are rendered. It is stated net
of GST.

ii Business Income:

Income from Business is accounted on accrual basis

iii Interest Income:

Interest income is recognised on time proportion basis

iv Rent Income:

Rent income for asset given under operating lease are recognised on a straight line basis over the lease term, as per
the term agreement

v Other Income:

Income from Investment and other service income are accounted on accrual basis

vi Contract balances:

? Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the

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Company performs by transferring goods or services to a customer before the customer pays consideration or before
payment is due, a contract asset is recognised for the earned consideration that is conditional.

? Trade receivables

A receivable represents the Company's right to an amount of consideration that is unconditional (i.e. only the passage
of time is required before payment of the consideration is due).

? Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs

h Income Tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a
business combination or to an item recognised directly in equity or in other comprehensive income.

i. Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best
estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income
taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Ii Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also
recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be
available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the
extent that It has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable
profit will be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or
recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no
longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the
liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different
taxable entities, but they intend to settle current tax liabilities and assets on net basis or their tax assets and liabilities
will be realised simultaneously.

I Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks and other short
term highly liquid investments that are readily convertible to know amounts of cash and which are subject to an
insignificant risk of changes in value where original maturity is three months or less.

j Borrowing Cost (if any such borrowing cost exists)

Borrowing cost are interest and other costs (including exchange differences relating to foreign currency borrowings to the
extent that they are regarded as an adjustment to interest cost) Incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of asset which necessarily take a substantial period of
time to get ready for their intended use are capitalised as part of cost of asset until such time the assets are substantially
ready for their intended use Other borrowing costs are recognised as an expense in the period in which they are incurred.

k Earnings Per Share

Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to equity shareholders of
the Company by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is
calculated by dividing net profit attributable to equity shareholders (after adjustment for diluted earnings) by average
number of weighted equity shares outstanding during the year plus potential equity shares.

I Cash Flow Statement

Cash flows are reported using the indirect method whereby the profit before tax Is adjusted for the effect of the
transactions of a non cash nature, any deferrals or accruals of past and future operating cash receipts or payments and
items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Company are segregated.

M Non Current Asset Held For Sale

The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered
principally through a sale/ distribution rather than through continuing use. Actions required to complete the sale/
distribution should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell
For these purposes, sate transactions include exchanges of non-current assets for other non-current assets when the
exchange has commercial substance. The criteria for held for sale classification is regarded met only when the assets or
disposal group is available for immediate sale in its present condition, subject only to terms that are usual and customary
for sales/ distribution of such assets (or disposal groups), its sale is highly probable and it will genuinely be sold, not
abandoned. The Company treats sale of the asset or disposal group to be highly probable when:

• The appropriate level of management is committed to a plan to sell the asset (or disposal group);

• An active programme to locate a buyer and complete the plan has been initiated;

• The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair

value;

• The sale is expected to qualify for recognition as a completed sale within one year from the date of classification; and

• Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that
the plan will be withdrawn.

Non-current assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value
less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet

Property, plant and equipment and intangible assets once classified as held for sale to owners are not depreciated or
_amortised._