Accounting Policies of Anand Credit Ltd. Company

Mar 31, 2012

1) Historical Cost Basis:

The financial statements are prepared under the historical cost convention on accrual basis and ongoing concern basis and in accordance with the generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants of India, as applicable and relevant presentation requirements of the Companies Act, 1956.

2) Use of Estimates:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to the contingent liability as at the date of the financial statements and reported amounts of income and expenses like provision for doubtful debts, allowances for slow or non moving inventories, useful lives of fixed assets, provision for taxation and provision of employee benefits, etc., during the period. Management believes the estimates used in the preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

3) Revenue Recognition:

All Known expenditure and income to the extent payable or receivable respectively and quantifiable till the date of finalization of accounts are accounted on accrual basis.

4) Fixed Assets and Depreciation:

i) Fixed Assets are carried at cost of acquisition or construction including incidental expenses related to acquisition and installation on concerned assets, less accumulated depreciation and amortization.

ii) Depreciation has been provided on State line method in accordance with the provision of Section 205 (2) (b) of the Companies Act, 1956 on prorata basis with reference to the date of acquisition/installation.

5) Valuation of Investment

Long term investments are stated at cost. Provision for dimulation in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

6) Employees Benefits:

No Provision for retirement benefits for employees has been made since the Gratuity Act. Provident Fund Act not applicable to the company. And the company has adopted PAY-AS- YOU- GO method for the Payment of other retirement benefits if any payable to the employees.

7) Foreign currency transaction:

Foreign Currency Transaction are accounted at the exchange rates ruling on the date of the transactions. Foreign currency monetary items as at the Balance Sheet date are restated at the closing exchange rates. Exchange differences arising on actual payments / realizations and year - end restatements are dealt with in the profit and loss account.

8) Provisions, Contingent Liabilities and Contingent Assets:

i) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the Company has a present obligation as a result of a past event.

b) a probable outflow of resources is expected to settle the obligation and

c) the amount of obligation can be reliably estimated

ii) Contingent liability is stated in the case of:

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) A possible obligation, unless the probability of outflow of resources is remote.

iii) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

iv) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets" issued by the Institute of Chartered Accountants of India.

9) Accounting for Taxes of Income :

i) Current Tax

Provision for current income tax is made in accordance with provision of Income Tax Act 1961.

ii) Deferred tax

Provision for deferred tax is calculated at the current rate of Income Tax rates enacted or substantially enacted as at the balance sheet date and is recognized on timing difference, being the difference between taxable income and accounting income that origin in one period and are capable of reversal in one or more subsequent period.

Deferred tax asset, subject to the consideration of prudence is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax asset can be set off.

10) Valuation of Inventories

1) Raw Materials - At Cost

2) Finished Goods - At Cost or net realizable value whichever is less.

3) Work in process - At Estimated Cost

11) Miscellaneous Expenditure

Preliminary Expenses: In accordance with the provisions of section 35D of the Income tax Act 1961, the company has written of 1/10 of Preliminary expenses

12) Impairment of Fixed Assets

Factors giving rise to any indication of impairment of the carrying amounts of the Company''s assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in the carrying cost of Company''s Assets.

13) Borrowing Cost

Borrowing cost directly attributable or funds borrowed generally and used for the purpose of acquision/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised.

14) General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice

---

Mar 31, 2010

The accounts are prepared in accordance with the accounting principles accepted in India. The significant accounting policies to the extent applicable to the company are as under :-

1. SYSTEM OF ACCOUNTING :

The Financial statements are prepared on the basis of historical cost convention on accrual basis and on going concern basis.

2. REVENUE RECOGNITION:

All known expenditure and income to the extent payable or receivable respectively and Quantifiable till the date of finalisation of accounts are accounted on accrual basis.

3. FIXED ASSETS :

Fixed assets are carried at cost of acquisition or construction including incidental expenses related to acquisition and installation on concerned assets, less accumulated depreciation and amortisation.

4. DEPRECIATION :

Depreciation has been provided on straight line method in accordance with the provision of Section 205(2)(b) of the Companies Act, 1956 at the rate prescribed in Schedule XIV of the companies Act, 1956 on prorata basis with reference to the date of acquisition/installation.

5. INVESTMENTS:

Long term investments are stated at cost. Provision for dimulation in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

6. CONTINGENT LIABILITIES :

There were no contigent liabilities. All liabilities were accounted forthwith.

7. RETIREMENT BENEFITS:

No provision for retirements benefits for employees has been made since the Gratuity Act. Provident Fund Act not applicable to the company. And the Company has adopted PAY-AS-YOU-GO method for the payment of other retirement- benefits -if fany payable of the employees.

8. MISCELLANEOUS EXPENDITURE :

(a) Preliminary Expenses : In accordance with the provisions of section 35D of the Income Tax Act 1961, the company has written of 1/10 of Preliminary expenses.

(b) Public Issue Expenses : public issue expenditures to .be amortised over a period of ten years from the year in which public issue held.