Siddha Ventures Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Significant Accounting Policies

1. General Information:

a) Siddha Ventures Limited (''''the Company") is a public company domiciled in India and registered under the provisions of Companies Act, 1956. The Company is listed on Bombay Stock Exchange.

The financial statements for the year ended 31^st March, 2025 were authorized and approved by the Board of Directors on 30 May, 2025

b) Statement of Compliance

The financial Statements have been prepared in accordance with the Indian Accounting Standards (referred to as'' ''IND AS'''') as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of Companies Act, 2013 ('''' the Act"), read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

2. Basis of Preparation:

a) The financial statements have been prepared on going concern under historical cost basis except for certain financial assets and liabilities which are measured at fair value

b) Functional and Presentation Currency

The Financial Statements have been prepared in Indian Rupees (INR), which is also the Company''s functional currency. All amounts have been denominated in lacs and rounded off to the nearest two decimals, except when otherwise stated.

3. Use of Estimates and Judgements:

a) The preparation of the financial statements in conformity with the Ind AS requires management to make estimates, judgements and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Examples of such estimates includes provision for income taxes, classification of assets and liabilities into current and non-current and the useful lives of the tangible and intangible assets. Although these estimates are based upon management''s best knowledge of current events and actions, actual

results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

Critical accounting judgements and key sources of estimation uncertainty: Key assumptions:

i) Recognition and measurement of provisions, liabilities and contingencies: -

Provision and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events that can be reasonably be estimated. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

Contingencies in the normal course may be arise from litigation and other claims. Potential liabilities that are possible but not probable of crystalizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes to accounts but are not recognized.

ii) Income Taxes:-

The Company''s tax jurisdiction is India. Significant judgements are involved in determining the provisions for income taxes including amount expected to be paid or recovered for uncertain tax positions.

iii) Fair value measurements: -

When the fair value of the financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on the quoted prices in the active markets, their fair value is measured using the valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

4) Significant Accounting Policies:

a) Overall Considerations :-

The financial statements have been prepared using significant accounting policies and measurement basis that are in effect at 31^st March, 2025 as summarised below:-

b) Current versus non-current classification:-

The company presents assets and liabilities in the balance sheet on current and noncurrent classification:-

i) The asset/liability is expected to be realised/settled in normal operating cycle;

ii) The asset is intended for sale or consumption;

iii) The asset/liability is held primarily for purpose of trading;

iv) The asset/liability is expected to be realised/settled within twelve months after reporting period;

v) The asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after reporting date;

vi) In the case of a liability, there is no unconditional right to defer settlement of the liability for at least twelve months after reporting date;

All other assets and liabilities are classified as non-current.

c) Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, cash at bank, highly liquid investments with original maturities of three months or less , which are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

d) Taxation

Tax expense recognised in the Statement of Profit or Loss comprises the sum of the current tax and deferred tax except the ones recognised in Other Comprehensive Income or directly in Equity.

i) Current Income Tax

Calculation of current tax is based on tax rates and tax laws that have been enacted for the reporting period. Current Income Tax relating to items recognised outside the profit or loss is recognised either is Comprehensive Income or in Equity.

Current Income Tax for the current and prior periods is recognised at the amounts expected to be paid to or received from the tax authorities, using the tax rates and the tax laws enacted or substantively enacted by the Balance Sheet date.

The Company off sets current tax assets and liabilities , where it has legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis , or to realise the asset and settle the liability simultaneously.

ii) Deferred Tax

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled based on the tax

rate (and tax laws) that have been enacted or substantively enacted at the end of the reporting period.

Deferred tax is recognised in respect of the temporary differences between the carrying amount of assets and liabilities for the financial reporting purposes and the corresponding amounts used for taxation purposes (i.e. tax base).

Deferred tax assets are recognised to the extent possible that the taxable profit will be available against which the deductible temporary differences can be utilized. Entire deferred tax asset to be utilized. Any reduction is reversed to the extent possible that it becomes probable that sufficient taxable profit will be available. Deferred tax relating to the items recognised outside the Statement of Profit and

Loss is recognised either in other comprehensive income or in equity. Deferred tax assets and liabilities are offset when there is legally enforceable right to set off the non-current assets against non-current liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its non-current assets and liabilities on a net basis.

iii) Minimum Alternate Tax

Minimum Alternate tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. MAT Credits are in form of unused tax credits that are carried forward by the Company for a specified period of time. Accordingly, MAT Credit Entitlement has been grouped with deferred tax assets (net). Correspondingly, MAT Credit Entitlement has been grouped with deferred tax in Statement of Profit and Loss.

e) Provisions, contingent liabilities and contingent assets Provisions

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to provision is presented in the statement of profit and loss. Provisions are reviewed at each balance sheet date.

Contingent Liabilities

A contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that is not recognised because it is probable that an outflow resources will be required to settle the obligation or it cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent Assets

Contingent Assets are neither recognised nor disclosed. However, when realisation of the income is virtually certain, related asset is recognised.

f) Revenue Recognition

Revenue is recognised and reported to the extent possible that the economic benefits will flow to the company and the revenue can be reliably measured.

Interest Income

Interest Income is recorded using Effective Interest Rate (EIR) for all the instruments measured at amortised cost. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial assets or to the amortised cost of financial liability.

Dividend Income

Dividend Income is recognised when the right to receive payment is established.

g) Inventories (Stock in Trade)

Closing Stock of Shares and Securities have been valued at Cost or market value/fair, whichever is lower. In case of unquoted shares, fair value is taken at breakup value of shares as per the last available balance sheet of the concerned company. In case of Mutual Funds, the NAV (net asset value) of the unit is considered as market value /fair value.

h) Borrowing Costs

Interest on borrowing cost is recognized on a time proportion basis into account the amount outstanding and at the rate applicable on the borrowing. Ancillary expenditure

incurred in connection with the arrangement of borrowings is amortized over the tenure of the respective borrowings. An unamortized borrowing cost remaining if any is fully expensed off as and when the related borrowing is prepaid or cancelled.

i) Employee Benefits Expenses

Short Term Employee Benefits

Short Term Employee Benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which related services are rendered.

j) Earnings Per Share (EPS): -

Basic earnings per share is 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 year.

For the purpose of calculating diluted earnings per share, the net Profit or Loss for the year attributable to the equity shareholders and weighted average number of share outstanding if any are adjusted for the effects of all dilutive potential equity shares

k) Financial Instruments: -

A financial instrument is any contract that gives rise to financial asset of one entity and a financial liability or equity instrument of another equity.

Financial Assets

Initial Recognition and Measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through value through profit or loss, transaction costs

that are attributable to the acquisition of the financial asset. Trade Receivables are initially measured at the transaction price. Regular way of purchase and sale of financial assets are accounted for at trade date.

Subsequent Measurement

For the purposes of subsequent measurement, financial assets are classified in three categories.

• Amortised Cost

• Fair Value through Other Comprehensive Income (FVTOCI)

• Fair Value through Profit or loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

Measured at Amortised Cost: A financial asset is measured at amortised cost if it is held within a business model whose objective is achieved by both collecting 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 (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.

Measured at FVTOCI: A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assetsand the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Financial assets included within the FVTOCI category are measured initially as well at each reporting date at fair value. Fair value measurement is recognised in Other Comprehensive Income.

Measured at FVTPL: A financial asset which is not classified in any of the above categories are measured at FVTPL.

Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

De-recognition

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for the measurement and recognition of impairment loss for financial assets.

ECL is the weighted average of the difference between all the contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the

Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:

-All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets

-Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Trade Receivables

In respect of trade receivables, the Company applies the simplified approach of bid AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses that result from all possible default events over the expected life of a financial instrument.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12 month ECL area portion of the lifetime ECL which result from default events that are possible with 12 months from the reporting date, ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecast of future economic conditions.

Financial Assets

In respect of other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount

equal to 12- month expected credit losses, else at an amount equal to the lifetime expected credit losses.

While making the assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make the assessment, Company compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers

reasonable and supportable information, that is available without undue cost or effort that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.

Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are at initially recognised at fair value plus any transaction cost that

are attributable to the acquisition of the financial liabilities except financial liabilities at fair value through profit or loss which are initially measured at fair value.

Subsequent Measurement:

For the purpose of subsequent measurement, financial liabilities are classified in following categories: -

• Fair Value through Profit or loss (FVTPL)

• Amortised Cost

Measured at FVTPL: A financial liability is classified as at FVTPL. It is classified as held for trading or it is derivative or it is designated as such on initial recognition. Financial liabilities as at FVTPL are measured at fair value and net gains and losses, including any interest expense is recognised in profit and loss.

Measured at Amortised: Other financial liabilities are subsequently measured at amortised cost using the effective interest rate method.

Derecognition

The Company derecognizes a financial liability (or a part of financial liability) only when the obligation specified in the contract discharged or cancelled or expires.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

Impairment of non-financial 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). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to the individual cash-generating units, or otherwise they are allocated to the smallest group of cash generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount 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 have not been adjusted.

If the recoverable amount of an asset (or cash generating unit) is estimated less that its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Profit and Loss, unless the relevant asset at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where 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 has been recognised immediately in the Statement of Profit and Loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1) Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and or disclosure purposes in the financial statements is determined on such basis.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;

• Level 3 inputs are unobservable inputs for the asset or liability

m) Event after reporting date

Where the events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed

n) Segment Reporting

Operating Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. As per requirement of Ind AS 108 "Segment Reporting" no disclosures are required to be made since the Company''s activities consists of a single business segment.

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Mar 31, 2024

4) Significant Accounting Policies:

a) Overall Considerations :-

The financial statements have been prepared using significant accounting policies and
measurement basis that are in effect at 31^st March, 2024 as summarised below:-

b) Current versus non-current classification:-

The company presents assets and liabilities in the balance sheet on current and non-current
classification:-

i) The asset/liability is expected to be realised/settled in normal operating cycle;

ii) The asset is intended for sale or consumption;

iii) The asset/liability is held primarily for purpose of trading;

iv) The asset/liability is expected to be realised/settled within twelve months after reporting
period;

v) The asset is cash or cash equivalent unless it is restricted from being exchanged or used to
settle a liability for at least twelve months after reporting date;

vi) In the case of a liability, there is no unconditional right to defer settlement of the liability
for at least twelve months after reporting date;

All other assets and liabilities are classified as non-current.

c) Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents
includes cash on hand, cash at bank, highly liquid investments with original maturities of
three months or less , which are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

d) Taxation

Tax expense recognised in the Statement of Profit or Loss comprises the sum of the current tax
and deferred tax except the ones recognised in Other Comprehensive Income or directly in
Equity.

i) Current Income Tax

Calculation of current tax is based on tax rates and tax laws that have been enacted for
the reporting period. Current Income Tax relating to items recognised outside the
profit or loss is recognised either is Comprehensive Income or in Equity.

Current Income Tax for the current and prior periods is recognised at the amounts
expected to be paid to or received from the tax authorities, using the tax rates and the
tax laws enacted or substantively enacted by the Balance Sheet date.

The Company off sets current tax assets and liabilities , where it has legally
enforceable right to set off the recognised amounts and where it intends either to settle
on a net basis , or to realise the asset and settle the liability simultaneously.

ii) Deferred Tax

Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply to the period when the asset is realized or the liability is settled based on the tax
rate (and tax laws) that have been enacted or substantively enacted at the end of the
reporting period.

Deferred tax is recognised in respect of the temporary differences between the
carrying amount of assets and liabilities for the financial reporting purposes and the
corresponding amounts used for taxation purposes (i.e. tax base).

Deferred tax assets are recognised to the extent possible that the taxable profit will be
available against which the deductible temporary differences can be utilized.

Entire deferred tax asset to be utilized. Any reduction is reversed to the extent possible
that it becomes probable that sufficient taxable profit will be available.

Deferred tax relating to the items recognised outside the Statement of Profit and Loss
is recognised either in other comprehensive income or in equity. Deferred tax assets
and liabilities are offset when there is legally enforceable right to set off the non¬
current assets against non-current liabilities and when they relate to income taxes
levied by the same taxation authority and the Company intends to settle its non¬
current assets and liabilities on a net basis.

iii) Minimum Alternate Tax

Minimum Alternate tax (MAT) paid in accordance with the tax laws, which gives
future economic benefits in the form of adjustment to future tax liability, is considered
as an asset if there is convincing evidence that the Company will pay normal income
tax .MAT Credits are in form of unused tax credits that are carried forward by the
Company for a specified period of time. Accordingly, MAT Credit Entitlement has
been grouped with deferred tax assets (net). Correspondingly, MAT Credit
Entitlement has been grouped with deferred tax in Statement of Profit and Loss.

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Mar 31, 2014

A. Basis of Accounting

The financial statements have been prepared on accrual basis and under the historical cost convention in accordance with Generally accepted Accounting Principles (GAAP) in India and the Accounting Standard (AS) and the relevant provisions of the Companies Act, 1956.

B. Revenue recognition

Income and Expenditure are accounted for on accrual basis except otherwise stated.

C. Fixed Assets

Fixed assets are stated at cost of acquisition, inclusive of expenses incidental to their acquisition as reduced by accumulated depreciation thereon.

D. Investments

Unquoted Investment comprising of shares in private limited company is valued at cost price.

E. Inventories

Inventories comprising quoted and un- quoted shares. The quoted share valued at lower of cost or market value and unquoted shares are valued at cost.

F. Employee''s Benefits

a) Contribution to Provident Fund and other Funds are made in accordance with the Provident Fund and Family Pension Act, 1952 with effect from lstjuly,1995

b) Gratuity has not been provided in the accounts for the current year.

G. Taxation

Tax expenses comprises of current and deferred tax.

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. The deferred tax for timing difference between the book & tax profit for the year is accounted for using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date. Deferred Tax Assets arising from the timing difference are recognised to the extent that there is virtual certainty that sufficient future taxable income will be available.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period.

H. Provisions and Contingencies

A provision is recognised when the Company has a legal and constructive obligation as a result of a past event, for which it is possible that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognised nor disclosed.

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Mar 31, 2013

A. Basis of Accounting

The financial statements have been prepared on accrual basis and under the historical cost convention in accordance with Generally accepted Accounting Principles (GAAP) in India and the Accounting Standard (AS) and the relevant provisions of the Companies Act, 1956.

B. Revenue recognition

Income and Expenditure are accounted for on accrual basis except otherwise stated

C Fixed Assets

Fixed assets ore stated at cost of acquisition, inclusive of expenses incidental 10 their acquisition as reduced by accumulated depreciation thereon.

D. Investments

Unquoted Investment comprising of shares to private limited company is valued at cost price.

E Inventories

Inventories comprising quoted and un- quoted shares. The quoted share valued at lower of cost or inJirket value and un- quoted shares axe valued at cost.

F. Qnployee''s Benefits

a) Contribution to Provident Fund and other Funds are made in accordance with die Provident Fund and Family Pension Act, 1952 with effect from 1st hily,l995

b) Gratuity Jiasnoi been provided in the accounts for the current year.

G. Taxation

Tax expenses comprises of current and deferred tax.

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. The deferred tax for timing difference between the book A tax profit for the year is accounted for using lax rates and tax laws thai have been enacted or substantially enacted at the Balance Sheet date. Deferred Tax Assets arising from the timing difference are recognised to the extent that there is virtual certainty that sufficient future taxable income will bo available.

Minimum Alternate Tax (MAT) credit is recognised as on asset only when and ro the extent there convincing evident*- that the Company wuT pay normal income tax during ihc specified period H. Provisions and Contingencies

A provision is recognised when the Company has a legal and constructive obligation as a result of a past event, for which it is possible that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources wfll be required to settle it. Contingent assets are neither recognised nor disclosed

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Mar 31, 2012

A. Basis of Accounting

The financial Statements have Seen prepared on accrual basis and under the historical cost convention in accordance with Generally accepted Accounting Principles (GAAP) in India and the Accounting Standard (AS) and the relevant provisions of the Companies Act, 1956.

B. Revenue recognition

Income and Expenditure are accounted for on accrual basis accept otherwise Stated.

C. Fixed Assets

Fixed assets are stated at cost of acquisition, inclusive of expenses incidental to their acquisition as reduced by accumulated depreciation thereon.

D. Investments

Unquoted investment comprising of shares in private limited company is valued at Cost price.

E. Inventories

Inventories comprising quoted and un-quoted shares. The quoted share valued at lower of cost or market value and un-quoted shares are valued at cost.

F. Employee's Benefits

a) Contribution to Provident Fund and other Funds are made in accordance with the Provident Fund and Family Pension Act, 1952 with effect from 1st July, 1995.

b) Gratuity has not been provided in the accounts for the current year.

G. Taxation

Tax expenses comprises of current and deferred tax.

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. The deferred tax for timing difference between the book & tax profit for the year is accounted for using tax rates, and tax laws that have been enacted to substantially enacted to the Balance Sheet date. Deferred Tax Assets arising from the timing difference are recognised to the extent that there is virtual certainty that sufficient future taxable Income will be available.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period

H. Provisions and Contingencies

A provision is recognised when the Company has a legal and constructive obligation as a result of a past event, for which it is possible that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognised nor disclosed.