PAE Ltd. कंपली की लेखा नीति

Mar 31, 2025

The Company was incorporated on July 13, 1950. The Company is engaged in Sale & Service of Lead Storage Batteries,
Power Back up System & Automotive Parts. The Company''s registered office is located at Level-I, Block-A, Shiv Sagar
Estate, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India. The company shares are listed in Bombay
Stock Exchange (BSE). Corporate office of the Company is located at A-1115 Titanium Business Park, Nr Makarba
Railway Crossing, Jivraj Park, Ahmedabad, , Gujarat-380051 , India.

PAE Limited (hereinafter called "The Company") went into CORPORATE INSOLVENCY RESOLUTION PROCESS
(CIRP) after one of the Financial Creditors ALP Acres and Landlines filed an application under section 7 of Insolvency
and Bankruptcy Code, 2016.

The said application was admitted by the National Company Law Tribunal vide order dated 22nd April, 2024.The
Resolution Plan submitted by Successful Resolution Applicant Mr. Jatinbhai Ramanbhai Patel, was unanimously
approved by the CoC (Committee of Creditors), by 100% of the voting share through e-voting.The approved resolution

1.01.Statement of Compliance:

The financial statements of the company have been prepared in accordance with Ind AS notified under the Companies
(Indian Accounting Standards) Rules, 2015 notifies under Section 133 of Companies Act, 2013 (the "Act") and the other
relevant provisions of the Act.

These standalone financial statements have been prepared for the Company as a going concern on the basis of relevant
Ind AS that is effective at the Company''s annual report date, March 31, 2025. These standalone financial statements were
authorized for issuance by the Company''s Board of Directors on May 29 2025.

1.02. Basis of preparation and presentation:

The financial statement have been prepared on the historical cost except for certain financial instruments that are
measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange of goods and services. Fair
value is the price which that would be received or paid to transfer a liability in an orderly transaction between market

1.03. Use of Estimates:

The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS
requires the management of the Company to make estimates and assumptions that affect the reported balances of assets
and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and future periods are affected. The management believes that
the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due
to these estimates and differences between actual results and estimates are recognized in the periods in which the results

Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to
the carrying amounts of assets and liabilities within the next financial year, is in respect of Fair valuation of financial
instruments, useful lives of property, plant and equipment, valuation of deferred tax Assets & liabilities and provisions

Useful lives of property, plant and equipment

Valuation of deferred tax assets & Liabilities

The Company reviews the carrying amount of deferred tax assets & Liabilities at the end of each reporting period.
Provisions and contingent liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it is
probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.

Provisions are measured at the present value of the expenditures expected to be required to settle the Obligation using a
pre-tax rate that reflects current market assessments of the time value of money (if the impact of discounting is
significant) and the risks specific to the obligation. The increase in the Provision due to unwinding of discount over
passage of time is recognized as finance cost. Provisions are reviewed at the each reporting date and adjusted to reflect

A provision for onerous contracts is recognized when the expected benefits to be derived by the company from a contract
are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the
present value of the expected net cost of continuing with the contract. Before a provision is established, the company

A disclosure for a contingent liability is made where there is a possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the company or a present obligation that arises from the past events where it is either not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot
be made. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor

Fair value measurements and valuation processes

Some of the company''s assets and liabilities are measured at fair value for financial reporting purposes. The company has
obtained independent fair valuation for financial instruments wherever necessary to determine the appropriate valuation
techniques and inputs for fair value measurements. In some cases the fair value of financial instruments is done internally
by the management of the Company using market-observable inputs. In estimating the fair value of an asset or a liability,
the company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the
company engages third party qualified valuers to perform the valuation. The qualified external valuers establish the
appropriate valuation techniques and inputs to the model. The external valuers report to the management of the

1.04. Property, Plant & Equipment

Pursuant to Hon''ble NCLT Order dated 27.11.2024, Property Plant & Equipment has been written off as per relevant

1.05. Depreciation on Property, plant and equipment:

Pursuant to Hon''ble NCLT Order dated 27.11.2024, Property Plant & Equipment has been written off so no Depreciation

1.06. Non - current assets held for sale

Pursuant to Hon''ble NCLT Order dated 27.11.2024, Non-current asset has been written off as per relevant Income Tax

No Intangible Assets recorded as at March 31, 2025.

1.08.Impairment of Assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased
to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit)

1.09.Financial Instruments:

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the
instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities [other than financial assets and financial
liabilities at Fair Value through Profit or Loss (FVTPL)] are added to or deducted from the fair value of the financial assets

Financial assets at amortized cost:

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business whose
objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a
business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and

Financial asset at fair value through profit or loss:

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value
through other comprehensive income on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the statement of

A Financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt
instruments.

Financial guarantee contracts issued by a holding company are initially measured at their fair values and, if not

• The amount of loss allowance determined in accordance with impairment requirements of IND AS 109: and

• The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance
Impairment of financial assets

The company recognizes loss allowance using the expected credit loss (ECL) model for the financial assets which are not
fair valued through profit or loss. Loss allowance for all financial assets is measured at an amount equal to lifetime ECL.
The company has used practical expedient by computing expected credit loss allowance for trade receivable by taking
into consideration historical credit loss experience and adjusted for forward looking information. The amount of expected
credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required

De-recognition of financial assets

The company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire or when it
transfers the financial asset and substantially all the risk and rewards of ownership of the asset to another party. On
Derecognition of a financial assets in its entirety, the difference between the asset''s carrying amount and the sum of the
consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive
income and accumulated in equity is recognized in the statement of Profit or Loss if such gain or loss would have

Gains or losses arising on re-measurements are recognized in the statement of Profit or Loss. The net gain or loss
recognized in the statement of Profit and Loss incorporates any dividend or interest earned on the financial assets and in

1.10.Financial Liabilities and Equity Instruments:

Classification as debt or equity

Debt and Equity instruments issued by a company are classified as either financial liabilities or as Equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the company are recognized at the proceeds received, net of direct issue costs.

Financial Liabilities

All financial liabilities are measured at amortized cost using the effective interest method.

De-recognition of financial liabilities

AUDITED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

The company derecognizes financial liabilities when, and only when, the company''s obligations are discharged, cancelled
or have expired. An exchange with a new lender of debt instruments with sub- stantially different terms is accounted for
as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a
substantially modification of the terms of an existing financial liability is accounted for as an extinguishment of the
original financial liability and the recognition of a new financial liability. The difference between the carrying amount of

1.11.Inventories:

No Inventories were recorded in the Financial Year 2024-25
1.12.Revenue Recognition:
i) Revenue from Operation:

The company was under CIRP Process untill the NCLT Order dated 27.11.2024, so Revenue from Operations is NIL for
ii. Other Income

Pursuant to NCLT Order dated 27.11.2024, All Liabilities of the company has been written off as per applicable provisions
1.13.Operating cycle

Assets and liabilities other than those relating to long term contracts are classified as current if it is expected to realize or
settle within 12 months after the balance sheet date.

1.14. Cash and Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of
cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from
the date of purchase, to be cash equivalents. Cash and cash equivalents consist of Cash in hand, balances with banks &
demand deposits with banks which are unrestricted for withdrawal and usage. The amount is Rs 1.89 Lacs for the FY

1.15. Cash Flow Statement

Cash flows are reported using 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

1.16. Foreign Currency Transactions:

The functional currency of the Company is Indian rupee.Transactions in foreign currency are recorded at the exchange
rate prevailing on the date of transaction. Foreign currency denominated monetary assets and liabilities are translated at
the exchange rate prevailing on the balance sheet date.Exchange rate differences resulting from foreign currency
transactions settled during the period including year-end translation of assets & liabilities are recognized in the statement
of profit and loss.Non-monetary assets which are measured in terms of historical cost denominated in a foreign currency

1.17. Employee Benefits:

(a) Defined Contribution Plan

Payments to defined contribution retirement benefit scheme for eligible employees in the form of superannuation fund
and the Company''s contribution towards provident fund are recognized as an expense when employees have rendered

(i) Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan
provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of
employment of an amount equivalent to 15/26 days salary payable for each completed year of service. Vesting occurs
upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable in future

(ii) Compensated Absences:

The Company provides for the encashment of compensated absences with pay subject to certain rules. The employees are
entitled to accumulate compensated absences subject to certain limits, for future encashment. Accumulated leave, which
is expected to be utilized within the next twelve months, is treated as short-term employee benefit and the accumulated
leave expected to be carried forward beyond twelve month is treated as long-term employee benefit which are provided

1.18.Income Taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in
accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those
that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing
differences arising between the taxable incomes and accounting income computed using the tax rates and the laws that
have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is

1.19.Earnings per share:

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share. Basic
earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit or loss for
the period by the weighted average number of equity shares outstanding during the period as adjusted for the effects of

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Mar 31, 2015

A) Basis of preparation:

The financial statements have been prepared to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis. The Company has consistently applied the accounting policies which are consistent with those used in the previous year.

The Accounting Policies adopted in the preparation of financial statements are consistent with those of previous year.

b) Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management's evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

c) Tangible Fixed Assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance. All other expenses on exsisting fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

d) Depreciation on tangible fixed assets:

i. Depreciation is computed using the Written Down Value Method("WDV") as per the useful life of the asset as prescribed in part C of Schedule II of the Companies Act, 2013 leaving a residual value of 5% of original cost of the asset.

ii. Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

e) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated useful economic life of the asset.

ii. Computer software forming part of intangible assets is amortised over a period of five years.

f) Impairment of 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. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

g) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

h) Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

i) Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognised on receipt basis.

j) Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/ losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

k) Employee Benefits

i. Defined Contribution Plan; The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group's liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

l) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the statement of profit and loss on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

m) Income Taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets / liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

n) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

o) Provisions, Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions:Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience.The estimate of such warranty cost is revised annually.

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Mar 31, 2014

A) Basis of preparation:

The financial statements of the company have been prepared in accrodance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies(Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of significant uncertainties.

The Accounting Policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

b) Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

c) Tangible fixed assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance.All other expenses on exsisting fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

d) Depreciation on tangible fixed assets:

i. Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

ii. Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

e) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated useful economic life of the asset.

ii. Computer software forming part of intangible assets is amortised over a period of five years.

f) Impairment of 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. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

g) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

h) Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) T raded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

i) Revenue recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognised on receipt basis.

j) Foreign currency transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/ losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

k) Employee benefits

i. Defined Contribution Plan: The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group''s liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

l) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the statement of profit and loss on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

m) Income taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets / liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

n) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

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

o) Provisions, contingent liabilities and contingent assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions: Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience.The estimate of such warranty cost is revised annually.

(b) Terms/rights attached to equity / preference shares

(i) The company has equity shares having a face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(ii) During the year ended March 31, 2014, the Company issued 50,00,000 (fifty lacs) 11% Non-convertible, cumulative, redeemable preference shares(NCRPS) of Rs. 10/- each fully paid up. The NCRPS holder shall have a right to vote on resolution placed before the company which directly affect the rights attached to his preference share only, and any resolution for the winding up of the company or repayment or reduction of its equity or preference share capital, provided that where the dividend is not paid for two or more years such class of NCRPS holders shall have right to vote on all resolutions placed before the company. The NCRPS shall be redeemed by the company at par on expiry of 13 years from the date of allotment, or on the request of NCRPS holders, which ever is earlier. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(a) During the year Rs. 40 lacs (previous year nil) was taken as loan against refinance of existing motor vehicles owned by the company from Kotak Mahindra Prime Ltd. This loan carries an interest of 18.08% p.a. and is payable in 24 installments alongwith interest from the date of the loan. The period of maturity w.r.t. balance sheet date is 1 year and 7 month with EMI of Rs. 2.80 lacs for 3 months, with EMI of Rs. 1.88 lacs for 8 months and with EMI of Rs. 1.08 lacs for 8 months respectively.

(b) Fixed deposits from related parties carry interest @ 11% to 11.75% p.a.(previous year 11% to 11.75% p.a.) and are repayable after 3 years from the respective dates of deposit.

(c) Fixed deposits from shareholders and others carry interest ranging from 11% to 11.75% p.a. (previous year 11% to 11.75% p.a.) and are repayable after 2 years and 3 years from the respective dates of deposit.

(d) Unsecured loan from related party having a tenure of 3 years was an interest bearing loan carrying interest @14% and 16.50% p.a. till 31.12.2013. The loan has been converted into interest free loan w.e.f. 01.01.2014.

(a) Margin money deposits with maturity of less than/upto three months is against letter of credit and bank guarantees.

(b) Margin money deposits with maturity more than three months and upto 12 months is against bank guarantees.

(c) Deposits with maturity of more than three months and upto 12 months of Nil (previous year Rs. 54 Lacs) is kept as collateral against cash credit limits with banks.

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Mar 31, 2013

A) Basis of preparation:

The financial statements of the company have been prepared in accrodance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of significant uncertainties.

The Accounting Policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

b) Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

c) Tangible Fixed Assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance.All other expenses on exsisting fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

d) Depreciation on tangible fixed assets:

i. Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

ii. Depreciation on value written up on revaluation of buildings and ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

e) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated useful economic life of the asset. ii. Computer software forming part of intangible assets is amortised over a period of five years.

f) Impairment of 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. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

g) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

h) Inventories:

Inventories are valued after providing for obsolescence, if any, as under:- a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

i) Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognised on receipt basis.

j) Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/ losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

k) Employee Benefits

i. Defined Contribution Plan:The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group''s liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

l) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the statement of profit and loss on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

m) Income Taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets / liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

n) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

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

o) Provisions, Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent assets are neither recognized nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions:Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience.The estimate of such warranty cost is revised annually.

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Mar 31, 2012

A) Basis of preparation:

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies(Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of significant uncertainties.

The Accounting Policies adopted in the preparation of Financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

b) Presentation and disclosure of financial statements:

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. It has significant impact on presentation and disclosures made in the financial statements. The company has reclassified the previous year figures in accordance with the requirement applicable in the current year.

c) Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the end of the reporting period. Such estimates and assumptions are based on management's evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

d) Tangible fixed assets:

i. Fixed assets except in case of buildings and ownership flats which have been revalued on 01.12.2007, are stated at cost, net of accumulated depreciation and accumulated losses if any. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. On 01.12.2007 the company has revalued building and ownership flats existing as on that date. These building are measured at fair value less accumulated depreciation.

iii. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day maintenance and repairs expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred.

e) Depreciation on tangible fixed assets:

i. Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

ii. Depreciation on value written up on revaluation of "Buildings and Ownership flats" has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to statement of profit and loss.

f) Intangible assets:

i. Intangible assets are amortised on a straight line basis over the estimated use full economic life of the asset.

ii. Computer software forming part of intangible assets is amortised over a period of five years.

g) Impairment of 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. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

h) Investments:

Investments are classified as non current and current investments. Investments which are readily realisable and not intended to be held for not more than one year from the date of investments are classified as current investments. All other investments are classified as non current investments. Long-term investments are shown at cost or written down value (incase of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

i) Inventories:

Inventories are valued after providing for obsolescence, if any, asunder:

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in transit are valued at cost,

j) Revenue recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, sales tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements. Interest income is recognized on accrual basis.

d) Dividend is recognized on receipt basis.

k) Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the statement of profit and loss over the period of the contract.

I) Employee benefits:

i. Defined Contribution Plan: The Group makes defined contribution to provident fund, ESI and superannuation schemes which are recognized as an expense in the statement of profit and loss as they are incurred.

ii. Defined Benefit Plan and long term benefits: Group's liabilities towards gratuity and long term benefit in the form of leave encashment are recongnized on the basis of actuarial valuation using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

m) Leases:

Leases in which the company does not transfer substantially all the risk and benefits of ownership of assets are classified as operating leases.

Lease payments under operating lease are recognized as an expense in the profit and loss account on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

n) Income taxes:

Tax expenses comprises of current and deferred tax. Provision for current tax is made based on the liability computed in accordance with the Indian Income Tax Act, 1961.The tax rates and tax laws used to compute the tax liability are those that are enacted or substantively enacted at the reporting date. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized. The deferred tax assets I liabilities are reviewed for the appropriateness of their carrying values at each balance sheet date.

o) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

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

p) Provisions, contingent liabilities and contingent assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent assets are neither recognized nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

ii. Warranty Provisions: Provisions for warranty related cost are recognized when the product is sold or service provided. Provision is based on historical experience. The estimate of such warranty cost is revised annually.

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Mar 31, 2011

1. Basis of Accounting:

a) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

b) Financial statements are based on historical costs and are prepared in accordance with the requirements of the Companies Act, 1956 and the applicable Accounting Standards as prescribed by Companies (Accounting Standards) Rules 2006 (as amended).

2. Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of statements. The actual results may differ from these estimates.

3. Fixed Assets and Depreciation/Amortisation:

a) Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use.

b) Computer Software forming part of Intangible assets is amortized over a period of five years.

c) Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

d) Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to Profit and Loss Account.

4. Impairment of 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. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

5. Investments:

Investments are classified as long-term and current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost or fair value whichever is lower.

6. Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of FIFO method.

b) Goods in Transit are valued at cost.

7. Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts Sales Tax/VAT and returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements.

8. Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the profit and loss account over the period of the contract.

9. Employee Benefits:

a) Defined Contribution Plan: The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the Profit and Loss Accountas they are incurred.

b) Defined Benefit Plan and long term benefits: Groups liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the Profit and Loss Account.

10. Leases:

Lease payments under operating lease are recognized as an expense in the Profit and Loss Account on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis over the lease term.

11. Taxation:

Provision for Current tax and Wealth Tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each balance sheet date.

12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

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Mar 31, 2010

1. Basis of Accounting:

a) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

b) Financial statements are based on historical costs and are prepared in accordance with the requirements of the Companies Act, 1956 and the applicable Accounting Standards as prescribed by Companies (Accounting Standards) Rules 2006 (as amended).

2. Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of statements. The actual results may differfrom these estimates.

3. Fixed Assets and Depreciation/Amortisation:

a) Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price and any cost attributable to bring the asset to its working condition for its intended use.

b) Computer Software forming part of Intangible assets is amortized overa period of five years.

c) Depreciation is provided on written down value method in accordance with Schedule XIV of the Companies Act, 1956. Depreciation is provided from/upto the month of addition/disposal.

d) Depreciation on value written up on revaluation of Buildings and Ownership flats has been provided on straight line method on the basis of estimated life determined by the valuer and equivalent amount of depreciation has been transferred from Revaluation Reserve to Profit and Loss Account.

4. Impairment of Assests:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

5. Investments:

Investments are classified as long-term and current investments. Long-term investments are shown at cost or written down value (in case of other than temporary diminution) and current investments are shown at cost orfair value whichever is lower.

6. Inventories:

Inventories are valued after providing for obsolescence, if any, as under:-

a) Traded Goods are valued at lower of cost or net realizable value. Cost is determined on the basis of Fl FO method.

b) GoodsinTransitarevaluedatcost.

7. Revenue Recognition:

a) Sales are recognized on dispatch of goods. Sales are net of trade discounts, Sales Tax/VATand returns.

b) Service income is recognized on execution of orders.

c) Rent income is recognized on accrual basis in accordance with the terms of the respective agreements.

8. Foreign Currency Transactions:

Foreign currency transactions are accounted on the basis of rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are restated at the year end exchange rates. Gains/Losses arising out of exchange rate differences are recognized as profit or loss in the period in which they arise. Exchange rate differences arising out of forward contracts are charged to the profit and loss account over the period of the contract.

9. Employee Benefits:

a) Defined Contribution Plan: The Group makes defined contribution to Provident Fund, ESI and Superannuation Schemes which are recognized as an expense in the Profit and LossAccountas they areincurred.

b) Defined Benefit Plan and long term benefits: Groups liabilities towards gratuity and long term benefit in the form of leave encashment are recongnised using the projected unit credit method as at Balance Sheet date. Actuarial gains/losses are recognized immediately in the Profit and LossAccount.

10. Leases:

Lease payments under operating lease are recognized as an expense in the Profit and LossAccount on straight line basis over the lease term.

Assets leased out under operating lease are capitalized. Rental income is recognized on accrual basis overthe lease term.

11. Taxation:

Provision for Current Tax and Wealth Tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Deferred tax is recognized on the basis of timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each balance sheet date.

12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects of the matter involved. Contingent Assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.