F. Provisions and contingencies
A provision is recognized when the Company has a present obligation as a result of past events and it
is probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their
present value and are determined based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates.
The Company creates a provision when there is a present obligation as a result of past event that
probably requires and outflows of resources and a reliable estimate can be made of the amount of
obligation. A disclosure of contingent liability is made when there is possible obligation or a present
obligation that will probably not require outflow of resources or where a reliable estimate of obligation
cannot be made.
G. Taxes on income
Income tax comprises current and deferred income tax. Income tax expense is recognized directly in
equity or in other comprehensive income. Provision for Current Tax is made after taking into
consideration benefits admissible under the provisions of Income Tax Act, 1961.
H. Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax
effect of extraordinary items, if any) by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including
the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges
to expense or income relating to the dilutive potential equity shares, by the weighted average number
of equity shares considered for deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only if their conversion to equity shares would
decrease the net profit per share from continuing ordinary operations.
I. Cash Flow Statements
Cash Flow Statement has been prepared in accordance with Accounting Standard 3 issued by Institute
of Chartered Accountants of India.
J. Segment Reporting
The Company operates in a single segment and there are no separate reportable segments as defined
in Accounting Standard, AS-17.
Note: "Previous Year's figure have been regrouped rearranged wherever considered necessary"
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