Accounting Policies of Ardi Investment & Trading Company Ltd. Company

Mar 31, 2024

Note 1: Material Accounting Policies

i) These financial statements have been prepared in accordance with the Indian Accounting
Standards (hereinafter referred to as the ‘Ind AS'') as notified by Ministry of Corporate Affairs
pursuant to Section 133 of the Companies Act, 2013 (‘Act'') read with of the Companies (Indian
Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act. The
accounting policies are applied consistently to all the periods presented in the financial
statements.

The financial statements have been prepared under the historical cost convention with the
exception of certain financial assets and liabilities which have been measured at fair value, on an
accrual basis of accounting.

All the assets and liabilities have been classified as current and non-current as per normal
operating cycle of the Company and other criteria set out in as per the guidance set out in
Schedule III to the Act. Based on nature of services, the Company ascertained its operating cycle
as 12 months for the purpose of current and non-current classification of asset and liabilities.

The Company''s financial statements are reported in Indian Rupees, which is also the Company''s
functional currency, and all values are rounded to the nearest lakhs (INR 00,000), except when
otherwise indicated.

ii) Accounting Estimates

The preparation of the financial statements, in conformity with the Ind AS, requires the
management to make estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities and disclosure of contingent liabilities
as at the date of financial statements and the results of operation during the reported period.
Although these estimates are based upon management''s best knowledge of current events and
actions, actual results could differ from these estimates which are recognised in the period in
which they are determined.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date, that have a material accounting policy of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year. The Company based its
assumptions and estimates on parameters available when the financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may
change due to market changes or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to the financial statements.

Deferred tax assets

In assessing the realisability of deferred income tax assets, management considers whether

some portion or all of the deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon the generation of future taxable
income during the periods in which the temporary differences become deductible. Management
considers the scheduled reversals of deferred income tax liabilities, projected future taxable
income, and tax planning strategies in making this assessment. Based on the level of historical
taxable income and projections for future taxable income over the periods in which the deferred
income tax assets are deductible, management believes that the Company will realize the
benefits of those deductible differences. The amount of the deferred income tax assets
considered realizable, however, could be reduced in the near term if estimates of future taxable
income during the carry forward period are reduced.

iii) Financial Instruments

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

a) Financial Assets

Initial Recognition

In the case of financial assets, not recorded at fair value through profit or loss (FVPL), financial
assets are recognised initially at fair value plus transaction costs that are directly attributable to
the acquisition of the financial asset. Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation or convention in the market place
(regular way trades) are recognised on the trade date, i.e., the date that the Company commits to
purchase or sell the asset.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories:
Financial Assets at Amortised Cost

Financial assets are subsequently measured at amortised cost if these financial assets are held
within a business model with an objective to hold these assets in order to collect 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 on the principal amount outstanding.
Interest income from these financial assets is included in finance income using the effective
interest rate (“EIR”) method. Impairment gains or losses arising on these assets are recognised
in the Statement of Profit and Loss.

Financial Assets Measured at Fair Value

Financial assets are measured at fair value through Other comprehensive income( ‘OCI'' )if these
financial assets are held within a business model with an objective to hold these assets in order
to collect contractual cash flows or to sell these financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. Movements in the carrying amount are taken
through OCI, except for the recognition of impairment gains or losses, interest revenue and
foreign exchange gains and losses which are recognised in the Statement of Profit and Loss.
Financial asset not measured at amortised cost or at fair value through OCI is carried at FVPL.”

Impairment of Financial Assets

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

The Company follows ‘simplified approach'' for recognition of impairment loss allowance on
trade receivables. Simplified approach does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting
date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the group in accordance
with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR. Lifetime ECL are the expected credit losses resulting from all
possible default events over the expected life of a financial instrument. The 12-month ECL is a
portion of the lifetime ECL which results from default events that are possible within 12 months
after the reporting date.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as
income/ expense in the Statement of Profit and Loss.”

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows
from the asset expire, or it transfers the financial asset and substantially all risks and rewards of
ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognizes its retained interest in
the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.

b) Equity Instruments and Financial Liabilities

Financial liabilities and equity instruments issued by the Company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability
and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the
Company after deducting all of its liabilities. Equity instruments which are issued for cash are
recorded at the proceeds received. Equity instruments which are issued for consideration other
than cash are recorded at fair value of the equity instrument.

Financial Liabilities

1) Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and
borrowings and payables as appropriate. All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and payables.

2) Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below

Financial liabilities at FVPL

Financial liabilities at FVPL include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at FVPL. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on
liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method. Any difference between the proceeds (net of transaction
costs) and the settlement or redemption of borrowings is recognised over the term of the
borrowings in the Statement of Profit and Loss.

Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs
in the Statement of Profit and Loss.”

3) De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged,
cancelled or expired. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as de-recognition of the original liability
and recognition of a new liability. The difference in the respective carrying amounts is
recognised in the Statement of Profit and Loss.

c) Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis to realise the assets and settle the liabilities simultaneously.

iv) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprises of cash at banks and on hand , which
are subject to an insignificant risk of changes in value.

v) Revenue Recognition

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured.

b) Sales are excluding GST and are stated net of discounts, returns and rebates.

vi) Income Tax

Income tax comprises of current and deferred income tax. Income tax is recognised as an
expense or income in the Statement of Profit and Loss, except to the extent it relates to items
directly recognised in equity or in OCI.

a. Current Income Tax

Current income tax is recognised based on the estimated tax liability computed after taking
credit for allowances and exemptions in accordance with the Income Tax Act, 1961. Current
income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date.

b. Deferred Income Tax

Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and
liabilities are recognised for all deductible temporary differences between the financial
statements'' carrying amount of existing assets and liabilities and their respective tax base.
Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are
substantively enacted at the Balance Sheet date. The effect on deferred tax assets and liabilities
of a change in tax rates is recognised in the period that includes the enactment date. Deferred tax
assets are only recognised to the extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilised. Such assets are reviewed at
each Balance Sheet date to reassess realisation.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.

Minimum Alternative Tax (“MAT”) credit is recognised as an asset only when and to the extent it
is probable that the Company will pay normal income tax during the specified period.

vii) Trade Receivables

A receivable is classified as a ‘trade receivable'' if it is in respect of the amount due on account of
goods sold or services rendered in the normal course of business. Trade receivables are
recognised initially at fair value and subsequently measured at amortised cost using the EIR
method, less provision for impairment.

viii) Trade Payables

A payable is classified as a ‘trade payable'' if it is in respect of the amount due on account of goods
purchased or services received in the normal course of business. These amounts represent
liabilities for goods and services provided to the Company prior to the end of the financial year
which are unpaid. These amounts are unsecured and are usually settled as per the payment
terms stated in the contract. Trade and other payables are presented as current liabilities unless
payment is not due within 12 months after the reporting period. They are recognised initially at
their fair value and subsequently measured at amortised cost using the EIR method.

ix) Earnings Per Share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable
to the equity shareholders of the Company by the weighted average number of equity shares
outstanding during the 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,
other than the conversion of potential equity shares, that have changed the number of equity
shares outstanding, without a corresponding change in resources.

Diluted earnings per share is computed by dividing the net profit or loss for the period
attributable to the equity shareholders of the Company and weighted average number of equity
shares considered for deriving basic earnings per equity share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had
the equity shares been actually issued at fair value (i.e. the average market value of the
outstanding equity shares).

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Mar 31, 2012

1. General Information

Ardi Investment And Trading Co. Ltd , incorporated on 01st August 1981, with the Registrar of Companies, Maharashtra.

2. Summary Of Significant Accounting Policies

2.1 Basis Of Preparation Of Financial Statements (AS-1)

The Financial statements have been prepared under the historical cost convention on the accrual basis in accordance with Generally Accepted Accounting Principles in India, and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of .the Companies Act, 1956. Accounting standards have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. Management evaluates all recently issued or revised accounting standards on an ongoing basis. The fundamental assumptions i.e Going concern, Consistency and accrual has been followed.

2.2 Use Of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialized.

2.3 Revenue Recognition (AS-9)

2.3.1 Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.

23.2 Direct fiscal duties and taxes are charged out as an expense in the year in which they are paid or provided.

2.4 Retirement & Other Employee Benefits (AS-15)

2.4.1 Provident Fund

Employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the company make monthly contributions to the Employee''s Provident Fund equal to the specified percentage of the covered employee''s salary. The company has no further obligation beyond its monthly contributions.

2.4.2 Gratuity The company has not made and provision for gratuity liability but the provision will be made as and when it will be recognized.

2. 4 .3 Leave Encashment As per the employment policy of the company, employees are required to avail their annual leave by the year end of the respective financial year and a provision have been made for leave balance as at the year end.

2. 5 Taxes On Income (AS-22)

2.5.1 Currents tax is determined, under the at payable method based on the liability as computed after taking credit for allowances and exemptions. Adjustments in books are made only after the completion of the assessment

2.5.2 Deferred tax is recognised, subject to the consideration of Prudence, on timing differences, being the difference between taxable incomes and accounting income, that originate in one period and reverse in one or more subsequent periods.

2.6 Provisions

Provisions are recognized when the company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

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Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS AS-1)

The Financial statements have been prepared under the historical cost convention on the accrual basis in accordance with Generally Accepted Accounting Principles in India, and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAIJ and the provisions of the Companies Act, 1956. Accounting standards have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. Management evaluates all recently issued or revised accounting standards on an ongoing basis.

2. TAXES ON INCOME AS-22)

i) Current tax is determined, under the tax payable method based on the liability as computed after taking credit for allowances and exemptions. Adjustments in books are made only after the completion of the assessment

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income, that originate in one period and reverse in one or more subsequent periods.

3. RELATED PARTY

Related party disclosure under accounting standard-18 issued by 1CAI is not applicable Th ere is no related part transaction.