(f ) Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability.

(g) Income taxes

Income tax comprises current and deferred taxes. Income tax is recognized in the
Statement of Profit and Loss except when they relate to items that are recognized outside
profit or loss (whether in other comprehensive income or directly in equity), in which case tax
is also recognized outside profit or loss. Current income taxes are determined based on
respective taxable income of each taxable entity.

Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carry-forwards and tax
credits. Such deferred tax assets and liabilities are computed separately for each taxable
entity. Deferred tax assets are recognized to the extent that it is probable that future taxable
income will be available against which the deductible temporary differences, unused tax
losses, depreciation carry-forwards and unused tax credits could be utilized.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to
apply in the period when the asset is realized or the liability is settled, based on tax rates and
tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Company intends to settle its current tax assets and
liabilities on a net basis.

(h) Earnings per share

Basic earnings per share has been computed by dividing profit/loss for the year by the
weighted average number of shares outstanding during the year.

Partly paid up shares are included as fully paid equivalents according to the fraction paid
up. Diluted earnings per share has been computed using the weighted average number of
shares and dilute potential shares, except where the result would be anti-dilute.

(i) Inventories

Inventories are valued at the lower of cost and net realizable value. Cost of raw materials,
components and consumables are ascertained on a moving weighted average/monthly
moving weighted average basis. Cost, including fixed and variable production overheads, is
allocated to work-in-progress and finished goods determined on a full absorption cost basis.
Net realizable value is the estimated selling price in the ordinary course of business less
estimated cost of completion and selling expenses.

Q') Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction less
accumulated depreciation less accumulated impairment, if any.

Freehold land is measured at cost and is not depreciated.

Cost includes purchase price, taxes and duties, labour cost and direct overheads for self-
constructed assets and other direct costs incurred up to the date the asset is ready for its
intended use.

Interest cost incurred for constructed assets is capitalized up to the date the asset is ready for
its intended use, based on borrowings incurred specifically for financing the asset or the
weighted average rate of all other borrowings, if no specific borrowings have been incurred
for the asset.

Depreciation is provided on the Straight Line Method (SLM) over the estimated useful lives of
the assets considering the nature, estimated usage, operating conditions, past history of
replacement, anticipated technological changes, manufacturers warranties and
maintenance support. Taking into account these factors, the Company has decided to
apply the useful life for various categories of property, plant & equipment,

(k) Assets taken on lease

(i) Operating leases - where the Company is a lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership
of the leased item, are classified as operating leases. Accounting for lease are done on the
basis of IND AS 116.

(ii) Finance leases - where the company is a lessee N.A.

(l) Cash Flow Statement

Cash flows are reported using indirect method. The cash flows from operating, financing and
investing activities of the company are segregated based on the available information.

(m) Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short
term highly liquid investments with original maturities of three months or less.

(n) Segment reporting

The accounting policies adopted for segment reporting are in conformity with the
accounting policies adopted for the Company. The Company's operating businesses are
organized and managed separately according to the nature of products and services
provided, with each segment representing a strategic business unit that offers different
products and serves different markets. The analysis of geographical segments is based on the
areas in which major operating divisions of the Company operate.

Further, inter-segment revenue have been accounted for based on the transaction price
agreed to between segments which is primarily market based. Unallocated items include
general corporate income and expense items, which are not allocated to any business
segment.

However, the company has no separate business and geographical segments to be
reported