ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Exhicon Events Media Solutions Ltd.

2 SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the material accounting policies
adopted in the preparation of these standalone financial
statements. These policies have been consistently applied
to all the years except where newly issued accounting
standards are initially adopted.

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Standalone financial statements of the company have
been prepared in accordance with generally accepted
accounting principles in India (Indian GAAP). The company
has prepared these standalone financial statements to
comply in all material respects with the accounting
standards notified under section 133 of the Companies Act
2013 (The Act), read together with paragraph 7 of the
Companies (Accounts) Rules, 2014. The standalone
financial statements have been prepared on an accrual
basis and under the historical cost convention. The
accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.

The Standalone financial statements and the
accompanying notes are presented in Indian Rupee (I)
which is the functional currency of the Company. All
amounts havebeen rounded off to the nearest Lakh, except
earnings per share, unless otherwise stated.

2.2 CURRENT/NON-CURRENT CLASSIFICATION

All assets and liabilities have been classified as current or
non-current as per the Company’s operating cycle and
other criteria set out in Schedule III to the Companies Act,
2013. Based on the nature of products and the time
between the acquisition of assets for processing and their
relisation in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the
purpose of current - non current classification of assets and
liabilities.

An Assets is classified as current when it is expected to be
realised or intended to be sold or consumed in normal
operating cycle. All other assets are classified as non
current.

Liabilities is classified as current when it is settled in normal

operating cycle. All other liabilities are classified as non
current.

Differed Tax Assets and Liabilites are classified as Non¬
current assets and liabilities.

2.3 USE OF ESTIMATES

The preparation of financial statements in conformity with
Indian GAAP requires the management to make
judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. Although these estimates are
based on the management’s best knowledge of current
events and actions, uncertainty about these assumptions
and estimates could result in the outcomes requiring an
adjustment to the carrying amounts of assets or liabilities in
future periods.

2.4 TANGIBLE FIXED ASSETS

Fixed assets are stated at cost less accumulated
depreciation and impairment loss, if any. Cost comprises
the purchase price including taxes, freight and incidental
expenses attributable to bringing the asset to its working
condition for its intended use.

Depreciation on tangible fixed assets

Depreciation on fixed assets is determined based on the
estimated useful life of the assets using the written down
value method as prescribed under the schedule II to the
Companies Act, 1956. Depreciation on assets
purchased/sold during the period is proportionately
charged. Leasehold land is amortized on a straight line
basis over the period of lease. Intangible assets, if any, are
amortized over their useful life on a straight line method.

2.5 INTANGIBLE ASSETS

Intangible assets are stated at acquisition cost, net of
accumulated amortization and accumulated impairment
losses, if any except for assets acquired through Business
Transfer Agreement which are recognised as a difference
between Purcahse Consideration and fair value of assets
acquired. Intangible assets are amortised on a straight line
basis over their estimated useful lives. A rebuttable
presumption that the useful life of an intangible asset will
not exceed ten years from the date when the asset is
available for use is considered by the management. The
amortisation period and the amortisation method are
reviewed at least at each financial year end. If the excepted
useful life of the assets is significantly different from
previous estimates, the amortisation period is changed
accordingly.

Gains or losses arising from the retirement of disposal of an
intangible asset are determined as the difference between the
net disposal proceeds and the carrying amount of the asset and
recognized as income or expenses in the Statement of Profit and
Loss.

2.6 IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

The carrying amounts of assets are reviewed at each
balance sheet date if there is any indication of impairment
based on internal/external factors and if there is any
impairment, necessary provision is accounted for.

After impairment, depreciation is provided on the revised
carrying amount of the respective asset over its remaining
useful life.

2.7 INVENTOREIS

The Company is primarily engaged in the serivice industry
of event and exhibition organisation and accordingly does
not hold any inventories in the nature of raw materials or
finished goods in the oridinary course of business.
However, in respect of contract for construction and
developement of Vnue and convention centres and related
infrastructure, the company incure expenditure towards
materials, labour, subcontracting and other dirctly
attributable costs prior to the rasising of sales invoices, for
which the corresponding revenue to be recognised in
accordance with Letter of Intent (LOI). Such expenditure is
appropriately classified as work in progess WIP), as
applicable, untill the related revenue is recognised.
The items used for conducting events such as hanger
structures, air conditioners, generators, octonorm stalls,
furniture, sound & light equipment etc. are capitalized and
classified under Property, Plant & Equipment, since they
provide enduring benefits over multiple events and
financial periods.

2.8 GOVERNMENT GRANTS

Grants and subsidies from the government are recognized
when there is reasonable assurance that (i) the company
will comply with the conditions attached to them, and (ii)
the grant/subsidy will be received.

When the grants or subsidy related to revenue, it is
recognized as income on a systematic basis in the
statement of profit and loss over the periods necessary to
match them with the related costs, which they are intended
to compensate. Where the grant relates to an asset, it is
recognized as deferred income and released to income in
equal amounts over the expected useful life of the related
asset.

Government grants of the nature of promoters’
contribution are credited to capital reserve and treated as a
part of the shareholders’ fund.

2.9 INVESTMENTS

The preparation of financial statements in conformity with
Indian GAAP requires the management to make
judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. Although these estimates are
based on the management’s best knowledge of current
events and actions, uncertainty about these assumptions
and estimates could result in the outcomes requiring an
adjustment to the carrying amounts of assets or liabilities
in future periods.

2.10 REVENUE RECOGNITION

Revenue comprise of the fair value of the consideration
received or receivable for the sale of Goods and Services in
the ordinary course of the Company''s activites.

Sale of Goods :

Revenue from sale of goods is recognized when all the
significant risks and rewards of ownership of the goods
have been passed to the buyer, usually on delivery of the
goods. The company collects Goods and Service Tax on
behalf of the government and, therefore, these are not
economic benefits flowing to the company. Hence, they are
excluded from the revenue.

Revenue from Services :

Revenue from services is recognized to the extent that it is
probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, as
and when the services are rendered. It is shown net of
Goods and Service Tax and returns.

Revenue from Job Work/ Contract :

Revenue from Job work/ Contract is recognized when the
contractual obligation is fulfilled and goods/services are
delivered to the contractee.

Interest Income :

Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the
applicable interest rate and on reasonable certainty of
realisation thereof. Interest income is included under the
head "other income" in the statement of profit and loss.

2.11 Foreign Currency Translation, accounting for
forward contracts and other derivative instruments

a) Initial recognition

Foreign currency transactions are recorded in the reporting
currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign
currency at the date of the transaction.

b) Conversion

Foreign currency monetary items are reported using the closing
rate. Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.

c) Exchange Differences

Exchange differences arising on the settlement of monetary
items or on reporting such monetary items of company at rates
different from those at which they were initially recorded during
the year, or reported in previous financial statements, are
recognized as income or as expenses in the year in which they
arise.

Charges on foreign currency derivative contracts are expensed
as incurred under ''Interest and Finance Charges''.

2.12 RETIREMENT AND OTHER EMPLOYEE BENEFITS

a) Retirement benefits in the form of Provident Fund and
Employee State Insurance are a defined contribution scheme
and the contributions are charged to the Statement of Profit and
Loss of the year when an employee renders the related services.
There are no other obligations other than the contribution
payable to the respective Provident Fund Authority.

b) Gratuity liability is a defined benefit obligation and is
provided for on the basis of an actuarial valuation on projected
unit credit method made at the end of each financial year.
Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.

c) Short term compensated absences are provided as per the
policies of the Company.

2.13 INCOME TAXES

Tax expense comprises of current tax and deferred tax.

Current income tax It is measured at the amount expected to
be paid to the tax authorities in accordance with the Indian
Income Tax Act. Deferred income taxes reflects the impact of
current year timing differences between taxable income and
accounting income for the year and reversal of timing
differences of earlier years.

Deferred tax : It is measured based on the tax rates and the tax
laws enacted or substantively enacted at the balance sheet
date. Deferred tax assets and deferred tax liabilities are offset, if
a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to the taxes on income levied by
same governing taxation laws. Deferred tax assets are
recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against
which such deferred tax assets can be realized. In situations
where the company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognized only if

there is virtual certainty supported by convincing evidence that
they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses
unrecognized deferred tax assets. It recognizes unrecognized
deferred tax assets to the extent that it has become reasonably
certain or virtually certain, as the case may be that sufficient
future taxable income will be available against which such
deferred tax assets can be realized.

Minimum Alternative tax (MAT) : MAT credit is recognized as an
asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the
specified period. In the year in which the MAT credit becomes
eligible to be recognized as an asset in accordance with the
recommendations contained in Guidance Note issued by the
Institute of Chartered Accountants of India, the said asset is
created by way of a credit to the statement of profit and loss and
shown as MAT Credit Entitlement. The Company reviews the
same at each balance sheet date and writes down the carrying
amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay
normal Income Tax during the specified period.

2.14 SEGMENT REPORTING

The Company has only one business segment, which is
providing services for Event Management, Exhibition, Trade
Fair, Marketing and their Infrastructureo to the Media and
Technologies industries. The Company''s primary operations are
based in India and also does not have any assets located
outside India.

2.15 EARNINGS PER SHARE

Earning per share are calculated by dividing the net profit or loss
after taxes for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding
during the period.

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

2.16 CASH & CASH EQUIVALENTS

Cash and cash equivalents for the purposes of Cash Flow
Statement comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.

1 Corporate Information

Exhicon Events Wedia Solutions Limited is a company domiciled in India and incorporated on 26th Sep 2010 under The Companies
Act, 1956. The company is engaged in the business of Event Management, Exhibition, Trade Fair, Marketing and Advertising Services
and their Infrastructure. Its principal place of business is at Unit No. 134 It 146, 1st Floor, Andhen Industrial Estate, Plot No. 22,
Veera Desai Road, Andheri West, Mumbai - 400053, Maharashtra, India

2 Significant Accounting Policies

2.1 Basis Of Preparation of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting
standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules,
2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting
policies adopted in the preparation of financial statements are consistent with those of previous year.

2.2 Current/Non-Current Classification

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set
out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for
processing arid their relisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the
purpose of current non current classification of assets and liabilities.

An Assets is classified as current when It Is expected to be realised or intended to be sold or consumed In normal operating cycle. Ail
other assets are classified as non current.

Liabilities is classified as current when it is settled in normal operating cycle. All other liabilities are classified as non current.
Differed Tax Assets and Liabilites are classified as Non-current assets arid liabilities.

2.3 Us* of Estimates

The preparation of financial statements In conformity with Indian GAAP requires the management to make Judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current
events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring an adjustment to the
carrying amounts of assets or liabilities in future periods.

2.4 Tangible Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price
including taxes, freight and incidental expenses attributable to bringing the asset to its working condition for its intended use.

Depreciation on tangible fixed assets

Depreciation on fixed assets is determined based on the estimated useful life of the assets using the written down value method as
prescribed under theCompanies Act, Depreciation on assets purchased/sold during the period is proportionately charged. Leasehold
land is amortized on a straight line basis over the period of lease. Intangible assets, If any, are amortized over their useful life on a
straight line method.

2.5 Intangible Assets

Intangible assets are stateo at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any except
for assets acquired through Business Transfer Agreement which are recognised as a difference between Purcahse Consideration and
fair value of assets acquired. Intangible assets are amortised on a straight line basis over their estimated useful lives. A rebuttable
presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use is
considered by the management. The amortisation period and the amortisation method are reviewed at least at each financial year
end. If Che excepted useful life of the assets is significantly different from previous estimates, the amortisation period is changed
accordingly.

Gains or losses arising from the retirement of disposal of an intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and recognized as income or expenses in the Statement of Profit and Loss.

2.6 Impairment of tangible and intangible assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/extemal factors and if there is any impairment, necessary provision is accounted for.

After impairment, depreciation is provided on the revised carrying amount of the respective asset over its remaining useful life.

2.7 Inventoreis

The Company is engaged in the business of event and exhibition organisation and does not hold any inventories in the nature of raw
materials, work-in-progress, or finished goods.

The items used for conducting events such as hanger structures, air conditioners, generators, octonorm stalls, furniture, sound ft
light equipment etc. are capitalized and classified under Property, Plant & Equipment, since they provide enduring benefits over
multiple events and financial periods.

Accordingly, no inventory is carried in the financial statements as at the reporting date.

2.8 Government Grants

Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the company will comply with
the conditions attached to them, and (ii) the grant/subsidy will be received.

When the grants or subsidy related to revenue, it is recognized as income on a systematic basis in the statement of profit and loss
over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to
an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related
asset.

Government grants of the nature of promoters’ contribution are credited to capital reserve and treated as a part of the shareholders''
fund.

2.9 Investments

Investments, which are readily realizable and intended to be held for not more that one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long term investments. Current
investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long
term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary
in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the
statement of profit and loss.

2.10 Revenue Recognition

Revenue comprise of the fair value of the consideration received or receivable for the sale of Goods and Sendees in the
ordinary course of the Company''s activates.

Sale of Goods :

Revenue from sale of goods Is recogntzed when all the significant risks and rev/ards of ownership of the goods have been
passed to the buyer, usually on delivery of the goods. The company collects Goods and Service Tax on behalf of the
government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from the
revenue.

Revenue from Services:

Revenue from services Is recognized to the extent that it is probable that the economic benefits wall flow to the Company
and the revenue can be reliably measured, as and when the services are rendered. It is shown net of Goods and Service
Tax and returns.

Revenue from Job Work/ Contract:

Revenue from Job work/ Contract is recognized when the contractual obligation is fulfilled and goods/services are
delivered to the contractee.

Interest Income :

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the applicable Interest rate
and on reasonable certainty of realisation thereof. Interest Income is Included under the head "other income’ in the statement of
profit and loss.

2.11 Foreign Currency Translation, accounting for forward contracts and other derivative instruments

a) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate
between the reporting currency and the foreign currency at the date of the transaction.

b) Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical
cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

c) Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting such monetary items of company at rates different
from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.

Charges on foreign currency derivative contracts are expensed as incurred under ''Interest and Finance Charges''.

2.12 Retirement and other employee benefits

a) Retirement benefits in the form of Provident Fund and Employee State Insurance are a defined contribution scheme and the
contributions are charged to the Statement of Profit and Loss of the year when an employee renders the related services. There are
no other obligations other than the contribution payable to the respective Provident Fund Authority.

b) Short term compensated absences are provided as per the policies of the Company.

2.13 Income Taxes

Tax expense comprises of current tax and deferred tax.

Current Income tax It is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income
Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting
Income for the year and reversal of timing differences of earlier years.

Deferred tax : It Is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing
taxation laws. Deferred tax assets are recognized only to the extent that there Is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed
depredation or carry forward tax losses, all deferred tax assets are recognized only If there is virtual certainty supported by
convindng evidence that they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax
assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable
income will be available against which such deferred tax assets can be realized.

Minimum Alternative tax (MAT): MAT credit is recognized as an asset only when and to the extent there is convincing evidence that
the Company will pay normal income tax. during the specified period. In the year in which the MAT credit becomes eligible to be
recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered
Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit
Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the
specified period.

2.14 Segment Reporting

The Company has only one business segment, which is providing services to Media and Technologies industries. The Company''s
primary operations are based in India and also does not have any assets located outside India.

2.15 Earnings Per Share

Earning per share are calculated by dividing the net profit or loss after taxes for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.

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

2.16 Cash ft Cash equivalents

Cash and cash equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and short-term investments
with an original maturity of three months or less.

COMPANY OVERVIEW

EXHICON EVENTS MEDIA SOLUTIONS LIMITED is public company (CIN: U74990MH2010PLC202 18) incorporated on under the provisions of the Comapnies Act, 1956 with the Registrar of companies,. Its registered office is Unit No. 134 & 146, 1st Floor, Andheri Industrial Estate, Plot No. 22, Veera Desai Road, Andheri, Mumbai, Maharashtra, India, 400053

NOTE - 1. SIGNIFICANT ACCOUNTING POLICIES1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the company have been prepared under the historical cost convention, in accordance with generally accepted accounting principles in India (Indian GAAP) on an accrual basis. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounts) Rules, 2014, and the relevant provisions of the Companies Act, 1956, to the extent applicable and the guidance notes, standards issued by the Institute of Chartered Accountants of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in the accounting policy hitherto in use.

1.2 USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

1.3 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL WORK IN PROGRESS

Fixed assets are stated at cost, after reducing accumulated depreciation and impairment up to the

date of the Balance Sheet. Direct costs are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition of construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use. Capital work in progress includes the cost of fixed assets that are not yet ready for their intended use. Intangible assets, if any, are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

1.4 DEPRECIATION

Depreciation on fixed assets is determined based on the estimated useful life of the assets using the written down value method as prescribed under the schedule II to the Companies Act, 1956. Individual assets costing less than Rs. 5000.00 or less are depreciated within a year of acquisition. Depreciation on assets purchased/sold during the period is proportionately charged. Leasehold land is amortized on a straight line basis over the period of lease. Intangible assets, if any, are amortized over their useful life on a straight line method.

1.5 Employee benefits

Short Term benefits are recognized as an expense at the undiscounted amount in the statement of Profit and Loss of the year in which related service is rendered. Retirement benefits in form of gratuity, leave encashment etc. will be accounted for on accrual basis. The company has not incurred any liabilities in this respect till the end of the year. Provisions of Employees’ Provident Fund and Miscellaneous Provisions Act and Payment of gratuity act are not applicable to the company. However, there is no liability accrued in this respect as on the end of the financial year.

1.6 Government grants

Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the company will comply with the conditions attached to them, and (ii) the grant/subsidy will be received.

When the grants or subsidy related to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods

necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset.

Government grants of the nature of promoters’ contribution are credited to capital reserve and treated as a part of the shareholders’ fund.

1.7 Investments

Investments, which are readily realizable and intended to be held for not more that one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.8 Inventories

All trading goods are valued at lower of cost and net realizable value. Cost of inventories is determined on first in first out basis. Scrap is valued at net realizable value

Net realizable value is the estimated selling price in the ordinary course of business.

1.9 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are

excluded from the revenue.

Income from Job work/Services

Revenue from Job work/ Services is recognized when the contractual obligation is fulfilled and goods/services are delivered to the contractee.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest. Interest income is included under the head “Other Income” in the statement of profit and loss.

1.10 Income Taxes

Tax expenses comprise current and deferred tax. Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidences that they can be realized against future taxable profits. Deferred tax assets are reviewed at each reporting date. Minimum Alternate Tax paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit

as an asset in accordance with the guidance note on accounting for credit available in respect of minimum alternate tax under the income tax act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT Credit Entitlement.” The company reviews the “MAT credit entitlement” at each reporting date.

1.11 Provisions and contingent liabilities

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a present obligation that cannot be estimated reliably or a possible or present obligation that may, but probably will not, require and outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.12 Earning Per Share

Earning per share are calculated by dividing the net profit or loss after taxes for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

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

1.13 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.8. Provisions and contingencies

Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the 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 disclosed on the basis of information available with the Company.

2.9. Balances with third parties

Insurance Claims are accounted for on the basis of actual loss assessed, as and when finally settled and received.

2.10. Balances with third parties

Balances of Sundry Debtors, Creditors, Loans, Deposits, Advances are subject to confirmation reconciliation and adjustments, if any.

2.11. Cash and cash equivalents

for the purpose of cash flow comprise Cash at bank, Cash in Hand and short term fixed deposits.Cash and cash equivalents