Accounting Policies of Asia Capital Ltd. Company

Mar 31, 2024

2.1 Basis of accounting and preparation of financial statements
Compliance with Ind AS

The financial statements of the Company have been prepared in accordance with the relevant provisions of the
Companies Act, 2013, (“The Act”) the Indian Accounting Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015 read with the Companies (Indian Accounting Standards)
Amendment Rules, 2016 and the Guidance Notes and other authoritative pronouncements issued by the
Institute of Chartered Accountants of India
(ICAI).

Histioric Cost Convention and Fair Value

The financial statements have been prepared on a historical cost basis, except for certain financial assets and
liabilities measured at fair value at the end of each reporting period, as explained in the accounting policies
below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and
services.

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. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

Reporting Presentation Currency

The financial statement are prepared in Indian Rupee (“ INR ”) and all values are rounded to nearest INR,
except when otherwise indicated.

This being the first period of presentation and reporting of financial statements, comparison and reporting of
any change in accounting policies adopted in the preparation of the financial statements vis-a-vis the previous
year does not apply.

2.2 Current and Non-Current Classification of Assets and Liabilities

An asset is considered as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period

All other assets are classified as non-current.

A liability is considered as current when:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.3 Use of estimates

The preparation of the financial statements requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates are recognised in the periods in which the results are
known/materialise.

2.4 Inventories

Inventories are valued at the lower of cost (e.g. on FIFO/weighted average basis) and the net realisable value
after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of sale, including STT, Cess and other levies.

2.5 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with
an original maturity of three months or less from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.6 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the Company are segregated.

2.7 Depreciation on Tangible Fixed Assets

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated
residual value. Depreciation on tangible fixed assets has been provided on the written down value method as
per the useful life prescribed in Schedule II to the Companies Act, 2013.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each
financial year and the amortisation period is revised to reflect the changed pattern, if any.

2.8 Revenue Recognition

Revenue is recognized to the extent that it is probability that the economic benefits will flow to the company
and the revenue can be reliably measured. The following specific criteria must also be met before revenue is
recognized.

a Sale/Purchase of Shares

Shares Purchases/Sales has been taken on absolute basis.
b Other Income

Dividend income is accounted for when the right to receive is established.
c Interest

Interest income is recognized as applicable rate, on a time proportion basis on principal amount only, taking
into account and the same interest accrued amount is due as and when paid by the party. Interest income is
included under the head "Revenue from operations" in the Statement of Profit and Loss.

d Dividend

Dividend Income is recognized when the company''s right to receive dividend is established by the reporting
date.

2.9 Accounting for forward contracts

Premium/discount on forward exchange contracts, which are not intended for trading or speculation purposes,
are amortised over the period of the contracts if such contracts relate to monetary items as at the balance sheet
date. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as
income or as expense in the period in which such cancellation or renewal is made.

2.10 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for
diminution, other than temporary, in the value ofsuch investments. Current investments are carried individually,
at the lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage, fees and
duties.

2.11 Employee benefits

Employee benefits include provident fund, superannuation fund, employee state insurance scheme, gratuity
fund, compensated absences, long service awards and post-employment medical benefits. Retirement benefits
are accounted for as and when paid.

Basic earnings per share are computed by dividing the profit / (loss) after tax 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 (net of any attributable taxes) 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. Potential dilutive equity
shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.
The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued
at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented.

2.13 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation
and management structure. The operating segments are the segments for which separate financial information is available and for
which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources
and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue,
segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the
operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market/fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable
basis have been included under “unallocated revenue/expenses/assets/liabilities ”.

2.14 Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised
as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis
over the lease term.

2.15 Income Taxes

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax
rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that
originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates
and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing
differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward
losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these
can be realised. However, if there are unabsorbed depreciation and carry forward of losses and items relating to capital losses,
deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient
future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on
income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets
are reviewed at each balance sheet date for their realisability.

Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Statement of
Profit and Loss.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against
current liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation
authority.

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Mar 31, 2014

1. BASIS OF PREPARATION OF ACCOUNTS

i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

ii) The accounts of the Company are prepared under the historical cost convention on accrual basis and as per applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and disclosures requirement of schedule VI to the Companies Act 1956.

2. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation. Depreciation on fixed assets has been provided on written down value method at the rate and in the manner prescribed in Schedule XIV to Companies Act, 1956.

Depreciation on any addition in fixed assets during the year has been charged on pro-rata basis.

3. TAXES ON INCOME/DEFERRED TAX

The current Corporate Tax of Rs. 1,71,093/- is calculated as per applicable tax rates and laws.

Deferred Tax is provided on timing differences between tax and accounting treatment that originate in one period and are expected to be reversed or settled in subsequent periods.

4. REVENUE RECOGNITION

Revenue in respect of sale of goods is recognised at the point of despatch to customers in case of direct sale and at the point when the sales report is received from the consignee agents in case of consignment sales.

5. EMPLOYEE BENEFITSGRATUITY

No provision has been made in the accounts against the liability in respect of future payment of gratuity to employees as the same is accounted for on cash basis. No actuarial valuation of gratuity is done and as such liability is unascertained.

6. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1. BASIS OF PREPARATION OF ACCOUNTS

i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

ii) The accounts of the Company are prepared under the historical cost convention on accrual basis and as per applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and disclosures requirement of schedule VI to the Companies Act 1956.

2. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation. Depreciation on fixed assets has been provided on written down value method at the rate and in the manner prescribed in Schedule XIV to Companies Act, 1956.

Depreciation on any addition in fixed assets during the year has been charged on pro-rata basis.

3. TAXES ON INCOME/DEFERRED TAX

The current Corporate Tax of Rs. 35,004/- is calculated as per applicable tax rates and laws.

Deferred Tax is provided on timing differences between tax and accounting treatment that originate in one period and are expected to be reversed or settled in subsequent periods.

4. REVENUE RECOGNITION

Revenue in respect of sale of goods is recognised at the point of despatch to customers in case of direct sale and at the point when the sales report is received from the consignee agents in case of consignment sales.

5. EMPLOYEE BENEFITS GRATUITY

No provision has been made in the accounts against the liability in respect of future payment of gratuity to employees as the same is accounted for on cash basis. No actuarial valuation of gratuity is done and as such liability is unascertained.

6. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

1. BASIS OF PREPARATION OF ACCOUNTS

i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

ii) The accounts of the Company are prepared under the historical cost convention on accrual basis and as per applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and disclosures requirement of schedule VI to the Companies Act 1956.

2. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost of acquisition less accumulated depreciation. Depreciation on fixed assets has been provided on written down value method at the rate and in the manner prescribed in Schedule XIV to Companies Act, 1956.

Depreciation on any addition in fixed assets during the year has been charged on pro-rata basis.

3. TAXES ON INCOME/DEFERRED TAX

The current Corporate Tax of Rs. 5,042/- is calculated as per applicable tax rates and laws.

Deferred Tax is provided on timing differences between tax and accounting treatment that originate in one period and are expected to be reversed or settled in subsequent periods.

4. REVENUE RECOGNITION

Revenue in respect of sale of goods is recognised at the point of despatch to customers in case of direct sale and at the point when the sales report is received from the consignee agents in case of consignment sales.

5. EMPLOYEE BENEFITS GRATUITY

No provision has been made in the accounts against the liability in respect of future payment of gratuity to employees as the same is accounted for on cash basis. No actuarial valuation of gratuity is done and as such liability is unascertained.

6. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2011

1. BASIS OF PREPARATION OF ACCOUNTS

a) The Financial statements have been prepared under the Historical cost convention on accrual basis and in accordance with generally accepted accounting principles and the provisions of Companies Act, 1956, subject to what is stated herein below as adopted consistently by the Company.

b) The Company generally follows mercantile system of accounting and recognizes significant item of income and expenditure on accrual basis.

c) Accounting policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition less accumulated depreciation.

3. DEPRECIATION

Depreciation on fixed assets has been provided on Written Down Value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

4. RETIREMENT BENEFITS

No provision is made for gratuity as the provisions of payment of Gratuity Act, 1972 are not applicable to the Company.

5. TAX ON INCOME

i) Current Corporate Tax of Rs. 19,044/- is provided as per applicable tax rates & laws.

ii) Deferred tax is provided on timing differences between tax and accounting treatment that originate in one period and are expected to be reversed or settled in subsequent period.

The break-up of net deferred tax assets as at 31st March 2011 is as under:-

Deferred Tax Timing difference on account of: As on 31.03.2011 Assets Liability

Difference between book depreciation and depreciation under the Income Tax 266 Nil Act 1961

Expenditure under Section 43B of the Income Tax Act, 1961 Nil Nil

Lease Finance Nil Nil

Provisions for doubtful debts and advances Nil Nil

Others Nil Nil

Net Deferred Tax Assets 266 Nil

Deferred Tax Timing difference on account of: As on 31.03.2010 Assets Liability

Difference between book depreciation and depreciation under the Income Tax 288 Nil Act 1961

Expenditure under Section 43B of the Income Tax Act, 1961 Nil Nil

Lease Finance Nil Nil

Provisions for doubtful debts and advances Nil Nil

Others Nil Nil

Net Deferred Tax Assets 288 Nil