Notes to Accounts of Krishca Strapping Solutions Ltd

Mar 31, 2025

12 Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event, the
Company has a present legal obligation that can be estimated
reliably and it is probable that an outflow of economic
benefit will be required to settle the obligation. Provisions
are determined by the best estimate of outflow of economic
benefits required to settle the obligation at the reporting date.
Where no reliable estimate can be made, a disclosure is made
as contingent liability. A disclosure for a contingent liability
is also made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow
of resources. Where there is possible obligation or present
obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

13 Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit
after tax by the weighted average number of equity shares
outstanding during the period. Diluted earnings per share is
computed by dividing the net profit after tax by the weighted
average number of shares considered for deriving basic
earnings per share and also the weighted average number of
equity shares that could have been issued upon conversion of

all dilutive potential equity shares. The diluted potential equity
shares are adjusted for the proceeds receivable had the shares
been actually issued at fair value which is the average market
value of the outstanding shares. Dilutive potential equity
shares are deemed converted as at the beginning of the period,
unless issued at a later date. Dilutive potential equity shares are
determined independently for each period presented.

14 Cash and Cash Equivalents:

Cash and cash equivalents comprise cash on hand and Cheque
in hand, balance with bank, demand deposits with banks and
other short term highly liquid investments that are readily
convertible to known amounts of cash & which are subject to
an insignificant risk of changes in value where it has a short
maturity of three months or less from the date of acquisition.

15 Cash Flow Statement:

Cash flows are reported using indirect method, whereby net
profit/loss before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item 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.

The Company''s cash and cash equivalents consist of cash on
hand and in banks and demand deposits with banks, which
can be withdrawn at any time, without prior notice or penalty
on the principal. For the purposes of the statement of cash
flows, cash and cash equivalents include cash on hand, in
banks and demand deposits with banks, net of outstanding
bank overdrafts that are repayable on demand and are
considered part of the Company''s cash management system.
In the balance sheet, bank overdrafts are presented under
borrowings within current liabilities.

16 Investments:

Investments, which are readily realizable and intended to be
held for not more than 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.

17 Government Grants

A. Government grants related to revenue

Government grants are recognised where there is reasonable
assurance that the grant will be received, and all attached
conditions will be complied with. Government grants related to
revenue are recognised 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.

Such grants should either be shown separately under ''other
income'' or deducted in reporting the related expense.

B. Government grants related to assets

Government grants related to assets are deducted from the
gross value of the assets concerned in arriving at their book
value. If the grant related to a specific fixed asset equals the
whole, or virtually the whole, of the cost of the asset, then
asset will be shown in the balance sheet at a nominal value.
Alternatively, government grants related to depreciable fixed
assets may be treated as deferred income which should be
recognised in the profit and loss statement on a systematic and
rational basis over the useful life of the asset, i.e., such grants
should be allocated to income over the periods and in the
proportions in which depreciation on those assets is charged.
Note: On the basis of method adopted, change policy

18 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition
or construction of qualifying assets are capitalised as part of the
cost of such assets. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended
use. Interest income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalisation. All other borrowing costs are charged to the
Statement of Profit and Loss for the period for which they are
incurred.

19 Leases

As a Lessee

I. Financial Lease

The Company recognise the finance lease as an asset and a
liability. Such recognition will be at an amount equal to the fair
value of the leased asset at the inception of the lease. However,
from the standpoint of the Company, if the fair value of the
leased asset exceeds the present value of the minimum lease
payments, the amount recorded as an asset and a liability
will be the present value of the minimum lease payments. In
calculating the present value of the minimum lease payments
the discount rate is the interest rate implicit in the lease, if this
is practicable to determine; if not, the Company''s incremental
borrowing rate is used.

II. Operating Lease

Lease payments under an operating lease is recognised as an
expense in the statement of profit and loss on a straight line
basis over the lease term unless another systematic basis is
more representative of the time pattern of the user''s benefit.

4 In opinion of the Board, the Company has used borrowings from banks and financial institutions only for specific purpose for which it
was taken at the balance sheet date.

5 In the opinion of the Board, the assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have
value on realization in the ordinary course of business equal to the amount at which they are stated.

6 Details of Benami Property held

The Company has no proceedings which have been initiated or pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

8 The company is not declared as wilful defaulter by any bank or financial institution or other lender.

9 The company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

10 The Company do not have any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

11 Compliance with number of layers of companies:

The company has no parent and subsidiaries with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

12 Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013.

13 Utilisation of Borrowed funds and share premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)

B. The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)

24 Undisclosed income:

The Company do not have any transactions which are not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961. There is no previously unrecorded income and related
assets have been recorded in the books of account during the year.

25 Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the Period

26 Dues to Micro, Small and Medium Enterprises:

The principal amount remaining unpaid to the supplier registered under Micro, Small and Medium Enterprises Development Act, 2006
are outstanding for more than 45 days as at the end of the reporting period and compounding interest amounts to H15.01 Lakhs

Notes to be disclosed

1. Terms and conditions of sales and purchases: the sales and purchases transactions among the related parties are in the ordinary course of
business based on normal commercial terms, conditions, market rates and memorandum of understanding signed with the related parties.
For the year ended 31^st March, 2025, the Company has not recorded any loss allowances for transactions between the related parties.

2. As the future liabilities for gratuity and leave encashment is provided on an actuarial basis and payment of insurance costs are made for the
Company as a whole, the amount pertaining to the key management personnel is not ascertainable, therefore, not included above.

3. No amounts in respect of related parties have been written off/ written back during the year or has not made any provision for doubtful
debts/ receivable.

31 Inventories:

As on 31^st March, 2025 the Company has Inventories at H2,828.50 Lakhs

(a) the amount of any write-down of inventories recognised as an expense in the period - Nil

(b) the amount of any reversal of any write-down that is recognised as a reduction in the amount of inventories recognised as expense
in the period - Nil

(c) the circumstances or events that led to the reversal of a write down of inventories - Nil

(d) the carrying amount of inventories pledged as security for liabilities is H2,828.50 Lakhs

32 Employee Benefit (Incurred in India):

A. Provident Fund - The Company has contributed for the year ended 31 March 2025 H24.51 Lakhs and H11.00 Lakhs in the previous
year towards the Employees Provident Fund.

B. Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.
This method considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit
separately to build up the final obligation.

Interest cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the actuarial
assumption of the interest rate.

Current Service Cost: is the discounted present value of the benefits from the Plan''s benefit formula attributable to the services
rendered by employees during the accounting period.

Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial assumptions. It
could also occur due to changes made in the actuarial assumptions.

34 Changes in Accounting Estimates

There are no changes in Accounting Estimates made by the company during the year.

35 Changes in Accounting Policies

There are no changes in an accounting policies made by the company during the year.

36 Non-Compliance of Fundamental accounting assumption

The company has complied with fundamental accounting assumptions

37 Postponement of Revenue Recognition

There are no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

38 Disclosures on PPE and Intangible Assets

I. Property, plant and equipment

1) Existence and amounts of restrictions on title, and property, plant and equipment pledged as security for liabilities (in case
the properties are pledged or hypothecation).

2) Amount of expenditure recognised in the carrying amount of an item of property, plant and equipment in the course of its
construction is H2,596.97 Lakhs

3) There is no contractual commitments for the acquisition of property, plant and equipment.

4) The company has no amount of compensation from third parties for items of property, plant and equipment that were
impaired, lost or given up that is included in the statement of profit and loss.

5) The Company has no assets that are retired from active use and held for disposal.

6) There are no temporarily idle property, plant and equipment.

7) The Company has fully depreciated property, plant and equipment that is still in use.

8) The Company has not revalued any class of property, plant and equipment during the financial year.

9) There are no property, plant and equipment retired from active use and not held for disposal.

II. Intangible asset

1) The company has no Intangible assets which has been amortised over more than ten years, from the date when the asset is
available for use.

2) The Company has no individual intangible asset that is material to the financial statements of the enterprise as a whole.

3) The title of intangible assets are not restricted and the carrying amounts of intangible assets are not pledged as security for
liabilities.

4) The Company has no commitments for the acquisition of intangible assets.

5) The company has no intangible asset which is fully amortised and that is still in use.

6) Company has not acquired any assets through business combinations.

7) The Company has recognised the depreciation charged during the period in statement of profit and loss.

39 Investments

I. Company has not disposed of any Investment during the year.

II. Significant restrictions of the following with regard to investments have been disclosed:

a) right of ownership of investments

The Company has made investment in Axis short term fund - Regular growth of H48.50 Lakhs(Market value H52.51 Lakhs)
and which has been lien marked in favour of Tata Capital Financial Services Ltd

40 Disclosures relating to Foreign Currency

A. The reporting currency is same that of the currency of the country in which the enterprise is domiciled.

B. There is a no change in the classification of a significant foreign operation.

41 Borrowing Costs

Amount of borrowing costs capitalised during the period is H30.47 Lakhs

42 Leases

Lessee: Finance leases

1) Whether the lessee, in addition to the requirements of AS 10, ''Property, Plant and Equipment'' and the governing statue, has made
the following disclosures for a finance lease including assets acquired on hire-purchase basis:

a) Assets acquired under finance lease as segregated from the assets owned - Refer note 11

b) For each class of assets, the net carrying amount at the balance sheet date - Refer note 11

c) a reconciliation between the total of minimum lease payments at the balance sheet date and their present value

d) the total of minimum lease payments at the balance sheet date, and their present value, for each of the following periods:

e) a general description of the lessee''s significant leasing arrangements including, but not limited to, the following :

1. the basis on which contingent rent payments are determined - NA

2. the existence and terms of renewal or purchase options and escalation clauses - NA

3. restrictions imposed by lease arrangements, such as those concerning dividends, additional debts, and further leasing
- NA

As per our report of even date attached For and on behalf of the Board of Directors of

For L.U. KRISHNAN & CO KRISHCA STRAPPING SOLUTIONS LIMITED

Chartered Accountants
Firm''s Registration. No: 001527S

NAVANEETHAKRISHNAN SARALADEVI L. BALA MANIKANDAN

P K MANOJ Chief Financial Officer Managing Director

Partner DIN: 07941812 DIN: 07941696

Membership Number: 207550

UDIN: 25207550BMJDHW7824 DIYA VENKATESAN JAGAJYOTI NASKAR

Company Secretary Chief Executive Officer

Mem No 55736 DIN: 09541125

Place: Chennai
Date: 26-05-2025

---

Mar 31, 2024

1 Contingent liabilities and commitments (to the extent not provided for):

A. Contingent Liabilities	(Amount in '' Lakhs)
Particulars	As at
	31-Mar-24	31-Mar-23
Claims against the company not acknowledged as debt	-	-
Guarantees	-	-
Other money for which the company is contingently liable	-	-
Total	-	-
B. Commitments
	(Amount in '' Lakhs)
Particulars	As at
	31-Mar-24	31-Mar-23
Estimated amount of contracts remaining to be executed on capital account and not provided for	1,992.22	-
Uncalled liability on shares and other investments partly paid	-	-
Other commitments (specify nature)	-	-
Total	1,992.22	-

2 Company hasn''t proposed any Dividend during the financial year 2023-24.

3 No issue of securities were made for the specific purpose by the company during the reporting year.

4 The company has not made borrowings from banks and financial institution for the specific purpose during the reporting year.

5 In the opinion of the Board, the assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have value on realization in the ordinary course of business equal to the amount at which they are stated

6 Details of Benami Property held

The Company has no proceedings which have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

8 Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

9 The company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

10 The Company do not have any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

11 Compliance with number of layers of companies:

The company has no parent and subsidiaries with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

12 Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

13 Utilisation of Borrowed funds and share premium:

A. Where company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B. Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

15 Corporate Social Responsibility:

In case of Companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities are as follows:

a. Amount required to be spent by the company during the year is Rs. 8.53 Lakhs

c. shortfall at the end of the year out of the amount required to be spent by the Company during the year- 1 . 78 Lakhs

d. total of previous years shortfall-NIL

e. The reason for above shortfalls by way of a note,

(a) the shortfall amount ( 1.78 Lakhs ), in respect of other than ongoing projects, is expected to transfer to a Fund specified in Schedule VII tithe Act, as per section 135(5) of the Act;

(b) The shortfall amount (i.e. unspent amount), pursuant to any ongoing project, transferred to special account as per section 135(6) of the Act.-NA

f. The nature of CSR activities undertaken by the Company-Promoting education

g. Details of related party transactions-Nil

h. The Company has not made any provision with respect to a liability incurred by entering into a contractual obligation.

18 (a) The company has not set aside or proposed to be set aside any material amount to reserve, but not including

provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance sheet is made up.

19 (a) The company has not set aside any material amount for provisions made for meeting specific liabilities,

contingencies or commitments.

20 (a) No Dividends received from subsidiary companies.

(b) No Provision has been for losses of subsidiary companies

24 Undisclosed income:

The Company do not have any transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. There is no previously unrecorded income and related assets have been recorded in the books of account during the year.

25 Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the Period

26 Dues to Micro, Small and Medium Enterprises:

The principal amount remaining unpaid to the supplier registered under Micro, Small and Medium Enterprises Development Act, 2006 are outstanding for more than 45 days as at the end of the reporting period and compounding interest amounts to Rs. 0.56 Lakhs

Notes to be disclosed

1. Terms and conditions of sales and purchases: the sales and purchases transactions among the related parties are in the ordinary course of business based on normal commercial terms, conditions, market rates and memorandum of understanding signed with the related parties. For the year ended 31st March, 2024, the Company has not recorded any loss allowances for transactions between the related parties.

2. As the future liabilities for gratuity and leave encashment is provided on an actuarial basis and payment of insurance costs are made for the Company as a whole, the amount pertaining to the key management personnel is not ascertainable, therefore, not included above.

3. No amounts in respect of related parties have been written off/ written back during the year or has not made any provision for doubtful debts/ receivable.

4. The borrowings of the Company are secured by personal guarantees given by the Bala Manikandan and Sarladevi.

31 Inventories:

As on 31st March, 2024 the Company has Inventories at Rs. 1,313.48 Lakhs

(a) the amount of any write-down of inventories recognised as an expense in the period-Nil

(b) the amount of any reversal of any write-down that is recognised as a reduction in the amount of inventories recognised as expense in the period.-NIL

(c) the circumstances or events that led to the reversal of a write down of inventories-Nil

(d) the carrying amount of inventories pledged as security for liabilities during the reporting period is Rs 1,313.48 Lakhs

32 Employee Benefit (Incurred in India):

A. Provident Fund - The Company has contributed Rs. 11.00 Lakhs for the year ended 2024 and Rs. 6.09 Lakhs for the year ended 2023 towards the Employees Provident Fund.

B. Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. This method considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

Interest cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the actuarial assumption of the interest rate.

Current Service Cost: is the discounted present value of the benefits from the Plan''s benefit formula attributable to the services rendered by employees during the accounting period.

Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial assumptions. It could also occur due to changes made in the actuarial assumptions.

34 Changes in Accounting Estimates

There are no changes in Accounting Estimates made by the company during the year.

35 Changes in Accounting Policies

There are no changes in an accounting policies made by the company during the year.

36 Postponement of Revenue Recognition

There are no circumstances in which revenue recognition has been postponed pending the resolution of significant

uncertainties.

37 Disclosures on PPE and Intangible Assets

I. Property, plant and equipment

33 Cashflow Statement

(1) The Company has no Significant amount of cash and cash equivalent balances held that are not readily available for use extent for margin money

(2) The Company have undrawn borrowing facilities that may be available for future operating activities is 143.33 Lakhs

(3) The Company has appropriate amount cash flows that represent increases in operating capacity separately from those cash flows that are required to maintain operating capacity.

(4) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

1) The Company have restrictions on the title property, plant and equipment pledged as security for liabilities.

2) There is contractual commitments for the acquisition of property, plant and equipment to the tune of Rs. 3000 Lakhs.

3) There is no amount of compensation from third parties for items of property, plant and equipment that were impaired, lost or given up that is included in the statement of profit and loss.

4) Company has no assets that are retired from active use and held for disposal.

5) There are no temporarily idle property, plant and equipment.

6) The Company has fully depreciated property, plant and equipment that is still in use.

7) The Company has not revalued any class of property, plant and equipment during the financial year.

8) The Company has no property, plant and equipment retired from active use and not held for disposal.

II. Intangible asset

1) The company has no Intangible assets which has been amortised over more than ten years, from the date when the asset is available for use.

2) Company has no individual intangible asset that is material to the financial statements of the enterprise as a whole.

3) The title of intangible assets are not restricted and the carrying amounts of intangible assets are not pledged as security for liabilities.

4) The Company has no commitments for the acquisition of intangible assets.

5) The company has no intangible asset which is fully amortised and that is still in use.

6) Company has not acquired any assets through business combinations.

7) The Company has recognised the depreciation charged during the period in statement of profit and loss.

38 Investments

(a) Company has not disposed of any Investment during the year.

(b) The Company has made investment in Axis short term fund - Regular growth of Rs.45.48 Lakhs(Market value Rs.48.50 Lakhs) and which has been lien marked in favour of Tata Capital Financial Services Ltd

39 Government Grants

1. Government grants recognized in the financial statements, including grants of non-monetary assets given at a concessional rate or free of cost.

2. The government grants that are receivable as compensation for expenses or losses incurred in a previous accounting period or for the purpose of giving immediate financial support to the enterprise with no further related costs has been disclosed in the statement of profit and loss for the period in which they are receivable as an extraordinary item for 30Lakhs

3. Grant related to a non-depreciable asset requires the fulfilment of certain obligations and the grant is credited to income over the same period over which the cost of meeting such obligations is charged to income, whether such deferred income balance has been separately disclosed in the financial statements-Nil

40 Borrowing Costs

Amount of borrowing costs capitalised during the period is Rs- 10.15 Lakhs

41 Leases

Lessee: Finance leases

1) Whether the lessee, in addition to the requirements of AS 10, ''Property, Plant and Equipment'' and the governing statue, has made the following disclosures for a finance lease including assets acquired on hire-purchase basis:

a) Assets acquired under finance lease as segregated from the assets owned-Refer Note 9

b) For each class of assets, the net carrying amount at the balance sheet date -Refer Note 9

g) a general description of lessee''s significant leasing arrangements including, but not limited to, the following:

1. the basis on which contingent rent payments are determined-NA

2. the existence and terms of renewal or purchase options and escalation clauses-NA

3. restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing- NA

Lessee: Operating leases

3) Whether the lessee has made the following disclosures for operating leases?

a) the total of future minimum lease payments under non - cancellable operating leases for each of the following periods:

b) the total of future minimum sublease payments expected to be received under non- cancellable subleases at the balance sheet date-NA

c) lease payments recognised in the statement of profit and loss for the period, with separate amounts for minimum lease payments and contingent rents-NA

d) sub-lease payments received (or receivable) recognised in the statement of profit and loss for the period-NA

e) a general description of the lessee''s significant leasing arrangements including, but not limited to, the following :

1. the basis on which contingent rent payments are determined-NA

2. the existence and terms of renewal or purchase options and escalation clauses-NA

3. restrictions imposed by lease arrangements, such as those concerning dividends, additional debts, and further leasing-NA

e) contingent rents recognised as expense in the statement of profit and loss for the period-Nil

f) the total of future minimum sublease payments expected to be received under non- cancellable subleases at the balance sheet date-NA

43 Impairment of Assets

There are no impaired assets during the year.

44 Balance shown under head Sundry debtors, creditors and advances are subject to confirmation.

45 Previous year''s figures have been regrouped / reclassified wherever necessary to conform with current year''s classification.

---

Mar 31, 2023

12 PROVISIONS AND CONTINGENT LIABILITIES:

A provision is recognised if, as a result of past event,
the Company has a present legal obligation that can be

estimated reliably and it is probable that an outflow of
economic benefit will be required to settle the obligation.
Provisions are determined by the best estimate of outflow
of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can
be made, a disclosure is made as contingent liability.
A disclosure for a contingent liability is also made when
there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources.
Where there is possible obligation or present obligation in
respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.

13 EARNINGS PER SHARE:

Basic Earnings per share is computed by dividing the net
profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings
per share is computed by dividing the net profit after tax
by the weighted average number of shares considered for
deriving basic earnings per share and also the weighted
average number of equity shares that could have been
issued upon conversion of all dilutive potential equity
shares. The diluted potential equity shares are adjusted
for the proceeds receivable had the shares been actually
issued at fair value which is the average market value of
the outstanding shares. Dilutive potential equity shares
are deemed converted as at the beginning of the period,
unless issued at a later date. Dilutive potential equity
shares are determined independently for each period
presented.

14 CASH AND CASH EQUIVALENTS:

Cash and cash equivalents comprise cash on hand and
Cheque in hand, balance with bank, demand deposits with
banks and other short term highly liquid investments that
are readily convertible to known amounts of cash & which
are subject to an insignificant risk of changes in value
where it has a short maturity of three months or less from
the date of acquisition.

15 CASH FLOW STATEMENT:

Cash flows are reported using indirect method, whereby
net profit/loss before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payments and
item 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.

16 INVESTMENTS:

Investments, which are readily realizable and intended
to be held for not more than 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.

17 GOVERNMENT GRANTS

Government grants related to assets are deducted from
the cost of the asset and amortised over the useful life
of the asset. Government grants related to income are
presented as an offset against the related expenditure, and
government grants that are awarded as incentives with no
ongoing performance obligations are recognised as other
income in the period in which the grant is received.

18 BORROWING COSTS

Borrowing costs include exchange differences arising
from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.

Borrowing costs that are directly attributable to the
acquisition or construction of qualifying assets are

capitalised as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of time
to get ready for its intended use. Interest income earned on
the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalisation. All other
borrowing costs are charged to the Statement of Profit
and Loss for the period for which they are incurred.

19 LEASES
As a Lessee
I. Operating Lease

Lease payments under an operating lease is recognised as
an expense in the statement of profit and loss on a straight
line basis over the lease term

As a Lessor
I. Operating Lease

Lease income from operating leases is recognised in the
statement of profit and loss on a straight line basis over
the lease term.