Aluwind Infra-Tech Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

NOTE-2 SIGNIFICANT ACCOUNTING POLICIES :

2.1 Basis of Preparation and presentation of Financial
Statements:

The financial statements of the Company have been
prepared in accordance with the generally accepted
accounting principles in India (Indian GAAP). The Company
has prepared these financial statements to comply in all
material respects with the accounting standards notified
under section 133 of the Companies Act 2013 read together
with the Companies (Accounting Standards) Rules, 2021
and presentation requirements of Division I of Schedule III
to the Companies Act, 2013. The financial statements have
been prepared on an accrual basis and under the historical
cost convention, except for the following:

These financial statements have been prepared on a
historical cost basis.

The financial statements are presented in Indian Rupee
(INR/T). All the values are rounded off to the nearest lakhs,
except when otherwise indicated.

2.2 Use of Estimates:

The preparation of financial statements in conformity with
IGAAP requires the Management of the Company to make
judgements, estimates and assumptions in the application
of the accounting policies that affect the reported amounts
of assets, liabilities, income, expenses and disclosure of
contingent assets and liabilities. Accounting estimates
could change from period to period. Actual results may
differ from these estimates. Continuous evaluation is done
on the estimation and judgements based on historical
experience and other factors, including expectations of
future events that are believed to be reasonable. Revisions
to accounting estimates are recognised prospectively.

2.3 Current versus non-current classification

The Company presents assets and liabilities in the
Statement of Assets and Liabilities based on current / non¬
current classification.

An asset it is classified as current when it is:

• Expected to be realised or intended to be sold or
consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within 12 months after the
reporting period, or

• Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least 12
months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

• It is Expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within 12 months after the
reporting period, or

• There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents. The Company has determined its operating
cycle, as explained in schedule III of the Companies Act,
2013, as twelve months, having regard to the nature of
business being carried out by the Company. The same
has been considered for classifying assets and liabilities
as current and non-current while preparing the financial
statements.

2.4 Cash and cash equivalents:

Cash and cash equivalents in the balance sheet comprise
cash on hand and at banks and short-term investments
with original maturity of three months or less, which are
subject to an insignificant risk of changes in value. It also
includes fixed deposits made by the Company, which are
marked as lien against the bank guarantees offered by the
Company.

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short term deposits,
as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company’s cash
management.

2.5 Revenue recognition:

The Company derives revenue primarily from the fabrication
and installation of Aluminium Windows and Glass Facade
Work on client premises under contractual agreements.
The Company enters into fixed price contracts with its
customers and recognises the revenue on same based on
the accounting prescribed under AS - 7 i.e., “Construction
Contracts”.

Contract Revenue is recognized only to the extent of cost
incurred till such time the outcome of the job cannot be
ascertained reliably. When the outcome of the contract
is ascertained reliably, contract revenue is recognised at
cost of work performed on the contract plus proportionate
margin, using the percentage of completion method.
Percentage of completion is the proportion of cost of work
performed to-date, to the total estimated contract costs.

Expected loss, if any, on the construction/project related
activity is recognised as an expense in the period in which
it is foreseen, irrespective of the stage of completion of the
contract. While determining the amount of foreseeable
loss, all elements of costs and related incidental income not
included in contract revenue are taken into consideration.

Revenue from contracts for the rendering of design
services and other services which are directly related to the
construction of an asset is recognised on similar basis as
stated above.

Revenue excludes amounts collected on behalf of
government authorities such as Goods and Service Tax
(GST), returns, trade allowances, rebates and amounts
collected on behalf of third parties.

2.6 Inventories:

Inventory includes raw materials, work-in-progress, stores
and spares and finished goods which are valued at lower of
cost or net realisable value. The Company used Weighted
average method or Specific Identification Method for
valuing its inventory.

Cost of inventory comprises all costs of purchase, cost
of conversion and other costs incurred in bringing the
inventories to their present location and condition.

Net realisable value is the estimated selling price in
the ordinary course of business, less estimated cost of
completion and the estimated cost necessary to make the
sale.

The Company reviews the condition of its inventories
and makes provision against obsolete and slow - moving
inventory items which are identified as no longer suitable for
sale or use. Obsolete and slow - moving items are valued at

cost or estimated net realisable value, whichever is lower.
Any write down of inventories is recognised as an expense
during the year. However, the value of raw materials, stores
and spares is not impaired to its net realisable value and is
carried at cost where the finished good in which they are
used is sold at or above cost.

2.7 Property, Plant and Equipment and Intangible Assets:

Items of property, plant and equipment are stated at
cost, net of accumulated depreciation and accumulated
impairment losses, if any.

Cost of property, plant and equipment comprises its
purchase price net of any trade discounts and rebates, but
includes import duties and other non - refundable purchase
taxes and any directly attributable costs of bringing the
asset to working condition and location for its intended use,
including relevant borrowing costs.

Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company and
the cost of the item can be measured reliably. All other
repair and maintenance cost are charged to the Statement
of Profit and Loss during the period in which they were
incurred.

If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components) of
property, plant and equipment.

Material items such as spare parts, stand-by equipment
and service equipment are classified as property, plant and
equipment when they meet the definition of property, plant
and equipment as specified in AS 10 - Property, Plant and
Equipment.

An item of property, plant, and equipment is derecognised
upon its disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss on
disposal of the item of property, plant and equipment is
included in the Statement of Profit and Loss.

Capital subsidy receivable, if any has been deducted from
the gross block of the Property, Plant & equipments.

An item of property, plant and equipment that is not ready
for its intended use on the date of the Balance Sheet is
disclosed as “Capital work-in-progress”.

Intangible assets are stated at the original cost net of tax/
duty credits availed if any, less accumulated amortization
and cumulative impairment. Intangible assets are
recognized when it is probable that the future economic

benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured
reliably. Intangible assets are amortised over their useful
life as follows:

• Specialised software: over a period of six years.

• Technical know-how: over a period of six years in case
of foreign technology and three years in the case of
indigenous technology.

• Development costs for new products: over a period of
five years.

Administrative and other general overhead expenses that
are specifically attributable to acquisition of intangible
assets are allocated and capitalised as a part of the cost
of the intangible assets. Intangible assets not ready for the
intended use on the date of the Balance Sheet are disclosed
as “intangible assets underdevelopment”. Amortisation on
impaired assets is provided by adjusting the amortisation
charges in the remaining periods so as to allocate the
asset’s revised carrying amount over its remaining useful
life.

2.8 Depreciation And Amortization:

Depreciation is the systematic allocation of the depreciable
amount of property, plant and equipment over its useful
life and is provided on a WDV method as prescribed in
Schedule II to the Companies Act, 2013 (“the Act”) or as
per technical assessment by the Management.

Freehold land with indefinite life is not depreciated.

Depreciable amount for property, plant and equipment
is the cost of property, plant and equipment less its
estimated residual value. The useful life of property, plant
and equipment is the period over which it is expected
to be available for use by the Company or the number of
production or similar units expected to be obtained from it
by the Company. The Company has considered the useful
lives prescribed by Schedule II of the Act, for the purpose of
depreciating its property, plant and equipment.

Depreciation on additions is provided on a pro - rata basis
from the month of installation or acquisition and in case of
projects from the date of commencement of commercial
production. Depreciation on deductions / disposals is
provided on a pro-rata basis up to the month preceding the
month of deduction / disposals.

Depreciation charge for impaired assets is adjusted in
future periods in such a manner that the revised carrying
amount of the asset is allocated over its remaining useful
life.

2.9 Impairment:

As at each Balance Sheet date, the carrying amount of
assets is tested for impairment so as to determine:

• the provision for impairment loss, if any; and

• the reversal of impairment loss recognised in previous
periods, if any.

Impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable amount.
Recoverable amount is determined:

• in the case of an individual asset, at the higher of the
net selling price and the value in use;

• in the case of a cash generating unit (a group of assets
that generates identified, independent cash flows), at
the higher of the cash generating unit’s net selling price
and the value in use.

Value in use is determined as the present value of estimated
future cash flows from the continuing use of an asset and
from its disposal at the end of its useful life.

2.10 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.

On initial recognition, all investments are measured at cost.
The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties.

Current investments are carried in the Special purpose
Interim Financial statements at lower of cost and fair
value determined for each category separately. Long-term
investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other
than temporary in the value of the investments.

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

2.11 Employee Benefits:

(i) Short term employee benefits: All employee benefits
falling due wholly within twelve months of rendering the
service are classified as short term employee benefits.
The benefits like salaries, wages, short term compensated
absences etc. and the expected cost of bonus, ex-gratia are
recognised in the period in which the employee renders the
related service.

(ii) Post-employment benefits:

Defined contribution plans

The Company recognizes contribution payable to the
provident fund scheme as an expense, during the period
in which employee renders the related service. If the
contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized
as a liability. If the contribution already paid exceeds the
contribution due for services received before the balance
sheet date, then excess is recognized as an asset to the
extent that the pre-payment will lead to a reduction in
future payment or a cash refund.

Defined benefit plans

The company’s liabilities under Payment of Gratuity Act is
determined on the basis of actuarial valuation made at the
end of each financial year using the projected unit credit
method.

The obligation is measured at the present value of the
estimated future cash flows. The discount rate used for
determining the present value of the obligation under
defined benefit plans, is based on the market yield on
government securities of a maturity period equivalent to the
weighted average maturity profile of the related obligations
at the Balance Sheet date.

Actuarial gains and losses, Current service cost and
interest obligation thereon are recognised immediately
in the Statement of Profit and Loss as Employee Benefit
Expenses.

Gains or losses on the curtailment or settlement of any
defined benefit plan are recognised when the curtailment
or settlement occurs. Past service cost is recognised as
expense on a straight-line basis over the average period
until the benefits become vested.

2.12 Finance Cost:

General and specific borrowing costs that are attributable
to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of such
asset till such time the asset is ready for its intended use
and borrowing cost are being incurred. A qualifying asset
is an asset that necessarily takes a substantial time to get
ready for its intended use. All other borrowing costs are
recognised as an expense in the period they are incurred.

Borrowing cost includes interest expense, commitment
charges, amortisation of discounts and ancillary costs
incurred in connection with borrowing of funds. 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.

2.13 Earnings Per Share:

Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. Partly paid equity
shares are treated as a fraction of an equity share to the
extent that they are entitled to participate in dividends
relative to a fully paid equity share during the reporting
period. The weighted average number of equity shares
outstanding during the period and for all periods presented
is adjusted for events, such as bonus shares, bonus
element in right issue, share split, other than the conversion
of potential equity shares, that have changed the number of
equity shares outstanding without a corresponding change
in resources.

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.

2.14 Income Taxes:

Current Income Tax

Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation authorities in accordance with the Income-tax Act,
1961.

Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred Tax

Deferred tax is recognised on timing differences between
the income accounted in financial statements and the
taxable income forthe year, and quantified using the tax
rates and laws enacted or substantively enacted as on the
Balance Sheet date.

Deferred tax assets relating to unabsorbed depreciation/
business losses/losses under the head “capital gains”
are recognised and carried forward to the extent there is
virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets can be
realised.

2.15 Accounting of Indirect Tax:

The Company is recording sales and purchases on exclusive
method and GST are not passed through the Statement of
Profit and Loss of the Company.

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Mar 31, 2024

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation and presentation of Financial Statements

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013 read together with the Companies (Accounting Standards) Rules, 2021 and presentation requirements of Division I of Schedule III to the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for the following:

These financial statements have been prepared on a historical cost basis.

The financial statements are presented in Indian Rupee (INR/^). All the values are rounded off to the nearest lakhs, except when otherwise indicated.

2.2 Use of Estimates

The preparation of financial statements in conformity with IGAAP requires the Management of the Company to make judgements, estimates and assumptions in the application of the accounting policies that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Accounting estimates could change from period to period. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and judgements based on historical experience and other factors, including expectations of future events that are believed to be reasonable.

Revisions to accounting estimates are recognised prospectively.

2.3 Current versus non-current classification:

The Company presents assets and liabilities in the Statement of Assets and Liabilities based on current / noncurrent classification.

An asset it is classified as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within 12 months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

• It is Expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within 12 months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has determined its operating cycle, as explained in schedule III of the Companies Act, 2013, as twelve months, having regard to the nature of business being carried out by the Company. The same has been considered for classifying assets and liabilities as current and non-current while preparing the financial statements.

2.4 Cash and Cash Equivalents:

Cash and cash equivalents in the balance sheet comprise cash on hand and at banks and short-term investments with original maturity of three months or less, which are subject to an insignificant risk of changes in value. It also includes

fixed deposits made by the Company, which are marked as lien against the bank guarantees offered by the Company.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

2.5 Revenue Recognition:

The Company derives revenue primarily from the fabrication and installation of Aluminium Windows and Glass Facade Work on client premises under contractual agreements. The Company enters into fixed price contracts with its customers and recognises the revenue on same based on the accounting prescribed under AS - 7 i.e., "Construction Contracts".

Contract Revenue is recognized only to the extent of cost incurred till such time the outcome of the job cannot be ascertained reliably. When the outcome of the contract is ascertained reliably, contract revenue is recognised at cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.

Expected loss, if any, on the construction/project related activity is recognised as an expense in the period in which it is foreseen, irrespective of the stage of completion of the contract. While determining the amount of foreseeable loss, all elements of costs and related incidental income not included in contract revenue are taken into consideration.

Revenue from contracts for the rendering of design services and other services which are directly related to the construction of an asset is recognised on similar basis as stated above.

Revenue excludes amounts collected on behalf of government authorities such as Goods and Service Tax (GST), returns, trade allowances, rebates and amounts collected on behalf of third parties.

2.6 Inventories

Inventory includes raw materials, work-in-progress, stores and spares and finished goods which are valued at lower of cost or net realisable value. The Company used First-InFirst-Out (FIFO)or Specific Identification Method for valuing its inventory.

Cost of inventory comprises all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and the estimated cost necessary to make the sale.

The Company reviews the condition of its inventories and makes provision against obsolete and slow - moving inventory items which are identified as no longer suitable for sale or use. Obsolete and slow - moving items are valued at cost or estimated net realisable value, whichever is lower. Any write down of inventories is recognised as an expense during the year. However, the value of raw materials, stores and spares is not impaired to its net realisable value and is carried at cost where the finished good in which they are used is sold at or above cost.

2.7 Property, Plant, Equipment and Intangible Assets:

Items of property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

Cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, but includes import duties and other non - refundable purchase taxes and any directly attributable costs of bringing the asset to working condition and location for its intended use, including relevant borrowing costs.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance cost are charged to the Statement of Profit and Loss during the period in which they were incurred.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Material items such as spare parts, stand-by equipment and service equipment are classified as property, plant and equipment when they meet the definition of property, plant and equipment as specified in AS 10 -Property, Plant and Equipment.

An item of property, plant, and equipment is derecognised upon its disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal of the item of property, plant and equipment is included in the Statement of Profit and Loss.

Capital subsidy receivable, if any has been deducted from the gross block of the Property, Plant & equipment.

An item of property, plant and equipment that is not ready for its intended use on the date of the Balance Sheet is disclosed as "Capital work-in-progress".

Intangible assets are stated at the original cost net of tax/duty credits availed if any, less accumulated amortization and cumulative impairment. Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are amortised over their useful life as follows:

- Specialised software: over a period of six years.

- Technical know-how: over a period of six years in case of foreign technology and three years in the case of indigenous technology.

- Development costs for new products: over a period of five years.

Administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets. Intangible assets not ready for the intended use on the date of the Balance

Sheet are disclosed as "intangible assets underdevelopment". Amortisation on impaired assets is provided by adjusting the amortisation charges in the remaining periods so as to allocate the asset''s revised carrying amount over its remaining useful life.

2.8 Depreciation and Amortization

Depreciation is the systematic allocation of the depreciable amount of property, plant and equipment over its useful life and is provided on a straight-line basis over the useful life as prescribed in Schedule II to the Companies Act, 2013 ("the Act") or as per technical assessment by the Management.

Freehold land with indefinite life is not depreciated.

Depreciable amount for property, plant and equipment is the cost of property, plant and equipment less its estimated residual value. The useful life of property, plant and equipment is the period over which it is expected to be available for use by the Company or the number of production or similar units expected to be obtained from it by the Company. The Company has considered the useful lives prescribed by Schedule II of the Act, for the purpose of depreciating its property, plant and equipment.

Depreciation on additions is provided on a pro - rata basis from the month of installation or acquisition and in case of projects from the date of commencement of commercial production. Depreciation on deductions / disposals is provided on a pro-rata basis up to the month preceding the month of deduction / disposals.

Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is allocated over its remaining useful life.

2.9 Impairment

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

- the provision for impairment loss, if any; and the reversal of impairment loss recognised in previous periods, if any.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:

- in the case of an individual asset, at the higher of the net selling price and the value in use;

- in the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit''s net selling price and the value in use.

Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life.

2.10 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.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the Special purpose Interim Financial statements at lower of cost and fair value determined for each category separately. Longterm investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

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

2.11 Employee Benefits

(i) Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

(ii) Post-Employment benefits:

Defined Contribution Plans

The Company recognizes contribution payable to the provident fund scheme as an expense, during the period in which employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to a reduction in future payment or a cash refund.

Defined Benefit Plans

The company''s liabilities under Payment of Gratuity Act is determined on the basis of actuarial valuation made at the end of each financial year using the projected unit credit method.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans, is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses, Current service cost and interest obligation thereon are recognised immediately in the Statement of Profit and Loss as Employee Benefit Expenses.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight-line basis over the average period until the benefits become vested.

2.12 Finance Cost:

General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of such asset till such time the asset is ready for its intended use and borrowing cost are being incurred. A qualifying asset is an asset that necessarily takes a substantial time to get ready for its

intended use. All other borrowing costs are recognised as an expense in the period they are incurred.

Borrowing cost includes interest expense, commitment charges, amortisation of discounts and ancillary costs incurred in connection with borrowing of funds. 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.

2.13 Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, bonus element in right issue, share split, other than the conversion of potential equity shares that have changed the number of equity shares outstanding without a corresponding change in resources.

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.

2.14 Income Taxes Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities in accordance with the Income-tax Act, 1961.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred tax is recognised on timing differences between the income accounted in financial statements and the taxable income forthe year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head "capital gains" are recognised and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

2.15 Accounting for Indirect Tax:

The Company is recording sales and purchases on exclusive method and GST are not passed through the Statement of Profit and Loss of the Company.