B.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of recoverable taxes,trade discount and rebates
less accumulated depreciation and impairment loss, if any. Such cost includes purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for its intended use,
net charges on foreign exchange contracts and adjustment arising from exchange rate variations
attributable to the assets.

Subsequent costs are included in the asset's carrying amount or recognised as a seprate asset, as
approriate, only when it is probable that future economic benefits associated with the item will flow
to the entity and the cost can be measured reliably.

Expenses incurred relating to project, net of income earned during the project development stage prior
to its intended use, are considered as pre-operatiove expenses and disclosed under capital work in
progress.

Depreciation on property, plant and equipment is provided based on useful life on the assets prescribed
in Shedule II to the Companies Act, 2013

The residual values, useful lives and methods of depreciaion of property, plant and equipment are
equipment are reviewed at each financial year end and adjusted propectively, if appropriate.

(b) Leases

Leases are classified as finance leases whenever the terms of the lease, transfer substandially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

In respect of fixed assets given on finance leases, assets are shown as receivable at an amount equal to
net investment n the lease. Initial direct costs are recognised immediately as expenses in the Statement
of Profit and Loss. Income from leased assets is accounted by applying the interest rate implicit in the
lease to the net investment.

(c ) Intangible assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/
depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its working condition for the intended use and net charges on
foreign exchange contracts and adjustments arising from exchange rate variations atributable to the
intangible assets.

Gains or losses arising from derecogition of an intangible assets are measured as the difference between
the net disposal proceeds and the carrying amount of the assets and are recognised in the Statement of
Profit or Loss when the assets is derecognised.

Intangible assets comprising of Software are amortised over the period of 5 to 10 years.

(d) Inventories

Inventories are measured at lower of cost or net realisable value.

(e) Impairment of not-financial assets- property plant and equipment and intangible assets

The Company assesses at each reporting dates as to whether three is any indication that any property,
plant and equipment and intangible assets or group of assets, called cash gererating units (CGU) may be
impaired. If any such indication exists the recoverable amount of an assets or CGU is estimated to
determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of
an individual assets, the Company estimates the recoverable amount of an individual assets, the Company
estimates the recoverable amount of the (CGU) to which the assets belongs.

An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's carrying amount
exceeds its revoverable amount. The recoverable amount is higher of an assets, fair value less cost of
disposal and value in use. Value in use is based on the exstimated future cash flows, discounted to their
present value using pre-tax discount rate that reflects current market assessments of the time value of
money and risk specific to the assets.

The Impairment loss recognissed in prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.

(f) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resource embodying economic benefits will be required
to settle the oblgation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that relects, when appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as finance cost.

(g) Employee Benefits

Pursuant to the requirements of AS 15 (revised 2005) on "Employee Benefits", issued by the Institute of
Chartered Accountants of India (the standard), which has become effective from April 1, 2007, the
Company provided for employee benefits as per the revised requirements of the standard for the current
quarter. In respect of the employee benefits up to June 30, 2010, the actuarial valuation is being carried
out by the management for the recognition of gratuity and leave encashment liability.

Gratuity has been provided on the basis of provisions of gratuity act 1972 and actuarial assumption used by
the actuary and leave encashment has been provided on the basis of company policy and actuarial
assumption used by the actuary in this regard.

(h) Tax Expenses

The tax expense for he period comprises current and deferred tax. Tax is recognised in the Statement
of Profit and Loss, except to the extent that t relates to items recognised in the comprehensive income
or in equiy. In which case, the tax is also recognised in other comprehensive income or equity.

Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance
sheet date.

Deffered tax

Deferred tax is recognised on temporary diffrences between the carrying amounts of assets and liablities
in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liablities and assets are measured at the tax rates that are expeted to apply in the period in
which the liablility is settled or the assets realised, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period. The carrying amount of Deffered Tax Liablities
and Assets are reviewed at the end of each reporting period.

( ') Foreign Currency Transactions

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency
amount the exchange rate between the reporting currency and the foreign currency at the date of the
transaction.

Foreign currency monetary items are reported using the closing rate. Non-monetary items, which are
carried in terms of historical cost denominated in a foreign currecy, are reported using the exchange rate
at the date of transaction.

Exchange differences arising on the settlement of monetary items at rates different from those at which
they were initially recorded during the year, or reported in previous financial statements, are recognized
as income or as expense in the year in which they arise.

(j) Revenue recognition

Revenue from rendering of services is recognised when the performance of agreed contractual task
has been completed . Revenue is measured at the fair value of the consderation received or receivable,
tasking into account contractually defined terms of payment and excluding taxes or duties collected
on behalf of the government.

Revenue from operations includes sale of services, service tax adjusted for discounts (net).

Interest invome from a financial asset is recognised using effective interest rate method.

Revenue is recognised when the Company's right to receive the payment has been established.

(k) Financial Instruments

(i) Financial Assets

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities, which
are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.
Purchase and sale of financial assets are recognised using trade date accounging.

A financial asset is measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual terms
of the contractual terms of the financial asset gice rise on speciifed dates to cash flows that
are solely payments of proncipal and interest on the principle amount outstanding.

A financial asset which is not classified in any of the above categories are measured at fair valued
thorugh profit or loss.

(ii) Financial Liabilities

All financial liabilities are recognized intially at fair value and n case of loans net of directly
attributable cost. Fee of recurring nature are directly recgnised in the Statement of Profit and Loss
as finance cost.

Financial Liablities are carried at amortized cost using the effective interest method. For trade and
othe payables maturing within one year form the balance sheet date, the carrying amounts
approximate fair value due to the short mlaturity of these insturments.

The Company deecognizes a financial asset when the contractual rights to the cash flows from the
financial assets expire or it transfer the financial assets and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the
company's balance sheet when the obligation specified in the contract is discharged or cancelled
or expires.

(l) Investment

Long-term investments are carried at cost less any other-than-temporary diminution in value,
value, determined on the specific identification basis.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair
value is carried out separately in respect of each investment.

Profit or loss on sale of investments is determined as the difference between the sale price and
carrying value of investment.

C. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY:

The preparation of the Company's financial statements requires management to make judgement,
estimates and assumptions that affect the reported amount of revenue, expenses, assets
and liabilities and the accompanying disclosures. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future perids.

a) Depreciation / amortisation and useful lives of property plant and equipment / intangible assets

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated
useful ives, after taking into account estimated residual value. Management reviews the estimated
useful lives and residual valued of the assets annually in order to determing the amount of
depreciation / amortisation to be recorede during any reporting period. The useful lives and residual
valued are absed on the Company's historiacal experience with similar assets and take into account
anticipated technolgical changes. The Depreciation / amortisation for fure periods is revised if
thee are significantchanges fro previous estimates.

b) Recoverability of trade reveivable

Judgements are required in assessing the recoverability of overude trade receviables and
determining whether a provosion agains those recevables is requires. Factors considered include the
counterparty, the amount and timing of anticipated future payments and any possible actions that
can be taken to migtigate the risk of non-payment