Accounting Policies of Cindrella Financial Services Ltd. Company

Mar 31, 2024

17. Basis of Preparation, Critical Accounting Estimates and Judgments, Significant Accounting
Policies and Recent Accounting Pronouncements

The financial statements have been prepared on the following basis:

(a) Statement of compliance

These financial statements have been prepared in accordance with Ind AS as notified under the Companies
(Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.

(b) Basis of preparation

These financial statements have been prepared on a historical cost basis, except for certain financial instruments
which are measured at fair value at the end of each reporting period. 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. Current Assets do not include elements which are not expected to be realized within 1 year
and Current Liabilities do not include items which are due after 1 year, the period of 1 year being reckoned from
the reporting date.

(c) Critical accounting estimates and judgments

The preparation of these financial statements in conformity with the recognition and measurement principles of
Ind AS requires management to make judgments, estimates and assumptions, that affect the reported balances of
assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the
reported amounts of income and expenses for the years presented. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected. In particular,
information about significant areas of estimation, uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in the financial statements pertain to:

• Useful lives of property, plant and equipment:

The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of
the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc.
The Company reviews the useful life of property, plant and equipment as at the end of each reporting period. This
reassessment may result in change in depreciation expense in future periods.

• Impairment of investments:

The Company reviews its carrying value of investments carried at cost or amortized cost annually, or more
frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is accounted for.

• Income Taxes:

Deferred tax assets are recognized to the extent that it is regarded as probable that deductible temporary
differences can be realized. The Company estimates deferred tax assets and liabilities based on current tax laws
and rates and in certain cases, business plans, including management’s expectations regarding the manner and
timing of recovery of the related assets. Changes in these estimates may affect the amount of deferred tax
liabilities or the valuation of deferred tax assets and thereby the tax charge in the Statement of Profit or Loss.
Provision for tax liabilities require judgments on the interpretation of tax legislation, developments in case law
and the potential outcomes of tax audits and appeals which may be subject to significant uncertainty. Therefore
the actual results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax
assets, cash tax settlements and therefore the tax charge in the Statement of Profit or Loss.

18. METHOD OF ACCOUNTING:

The Company generally follows the accrual system of accounting. The Accounts are prepared on
historical cost basis as a going concern and are consistent with generally accepted accounting practices.

19. INCOME RECOGNITION:

All known incomes are accounted for on accrual basis except income from dividends which are ac¬
counted for as and when received.

20. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

21. RELATED PARTY TRANSACTIONS:

The details regarding the related party and transactions taken place between them during the financial
year 2023-24 has been given below:

23. Financial Instruments

I. Financial assets

Initial recognition and measurement

The Company subsequently measures all equity investments at fair value. For these investments, the
Company has elected the fair value through Other Comprehensive Income irrevocable option since
these investments are not held for trading Where the Company has elected to present fair value gains
and losses on equity investments in Other Comprehensive Income (“FVOCF’), there is no subsequent
reclassification of fair value gains and losses to profit or loss. Dividends from such investments are
recognized in the Statement of Profit and Loss as other income when the Company’s right to receive
payment is established. When the equity investment is derecognized, the cumulative gain or loss
previously recognized in Other Comprehensive Income is reclassified from Other Comprehensive
Income to the Retained Earnings directly.

II. Financial liabilities

Initial recognition and measurement

Financial liabilities are recognized when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification of its
financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value
and transaction cost are recognized in profit and loss account.

24. No Contingent liabilities existed as on 31.03.2024.

25. Cinderella Hotels Ltd. is an associate of the company. Consolidated financial statements with
Cinderella Hotels Ltd. are made as per section 129(3) of the Companies Act, 2013 and relevant
accounting standard.

26. Figures of the previous year have been regrouped and/or recasted wherever necessary.

FOR AGARWAL MAHESH KUMAR & CO.

CHARTERED ACCOUNTANTS
F.R. No. 319154E

PLACE: SILIGURI V--^

Dated: 30/05/2024

[CA. M.K. AGARWAL]

Partner

M. No. 054394

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Mar 31, 2012

1. METHOD OF ACCOUNTING :

The Company generally follows the accmal system of accounting. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting practices.

2. INCOME RECOGNITION :

All known incomes are accounted for on accrual basis except income from dividends which are accounted for as and when received.

3. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

4. SHARE CAPITAL:

Equity Shares have equitable voting rights.

The details of shareholding in excess of 5% are as below:

5. DEFFERED TAX ASSET/LIABILITY:

To provide Snd recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available Jo realize such assets. -

6. TAXES ON INCOME:

The current tax liability has been calculated after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961 and provided for as short term provisions.

7. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation changes less Depredation. Details of Fixed Assets have been given in "Note no 9" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

8. INVENTORIES:

Inventories have been valued at lower of Cost. As the Company is involved in trading of shares, the inventories of the Company includes the shares of various Companies.

9. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written Down Value Method on a consistent basis as per Schedule XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Note no 6" forming part of Balance Sheet and Profit & Loss Account.

10. RELATED PARTY TRANSACTIONS:

The details regarding related parties and transactions taken place between them during the financial year 2011-12 has been given below:

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Mar 31, 2011

I. METHOD OF ACCOUNTING:

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting practices.

ii. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written down Value Method on a consistent basis as per Schedule XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Schedule B" forming part of Balance Sheet and Profit & Loss Account.

iii. INCOME RECOGNITION :

All known incomes are accounted for on accrual basis except income from dividends which are accounted for as and when received.

iv. FIXED ASSETS.

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation. Details of Fixed Assets have been given in "Schedule-B" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

v. ACCOUNTING FOR INVESTMENTS:

The company's trade investments in pursuance of its objective is meant to be held for long term and as such are valued at cost. However, provision if any for diminution is made to recognize any decline other than temporary, in the value of investment. But there is no diminution in value of investment which would have long term effect The Market Value of quoted investments amounts to Rs.3,07,05,553/-.

vi. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

vii. RELATED PARTY TRANSACTIONS:

The details regarding related parties and transactions taken place between them during the financial year 2010-11 has been given below:

viii. EARNING PER SHARE:

Basic and diluted earning per share (pursuant to AS-20) 31.03.2011

ix. TAXES ON INCOME:

a. Current Year: To provide and determine current year tax liability as the amount of the tax payable in respect of taxable income for the year, after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961.

b. Deferred Tax: To provide and recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

1.During the year, the Deferred Tax Liability of Rs.368.47 has been originated and therefore the closing balance of Deferred Tax Liability as on 31.03.2011 is Rs.94,552.71. The Deferred Tax Liability Comprise of tax effect of the following timing difference:-

2.In the view of Companies past financial performance and the future profit projection, the Company expects to fully recover the Deferred Tax Liability.

x. INTANGIBLE ASSETS:

In pursuance to Accounting Standard-26, any expenses relating to pre-operational activities have to be written off in the same year. This policy is being followed. The Public Issue Expenses are not covered by this standard and hence it is being written off in equal installments over a period of 10 years.

xi. IMPAIRMENT OF ASSETS:

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

xii. CONTINGENT LIABILITIES:

Contingent liabilities existed as on 31.03.2011 amounting to Rs. Nil (P.Y. Nil).

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Mar 31, 2010

I. METHOD OF ACCOUNTING:

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical

cost basis as a going concern and are consistent with generally accepted accounting practices.

ii. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written down Value Method on a consistent basis as per Schedule

XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Schedule B"

forming part of Balance Sheet and Profit & Loss Account.

iii. INCOME RECOGNITION :

All known incomes are accounted for on accrual basis except income from dividends which are accounted for as and when received.

iv. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation.

Details of Fixed Assets have been given in "Schedule-B" forming part of Balance Sheet and Profit & Loss

Account. None of the Fixed Assets have been revalued during the year.

v. ACCOUNTING FOR INVESTMENTS:

The companys trade investments in pursuance of its objective is meant to be held for long term and as such

are valued at cost, unless there is permanent fall in its market value.

vi. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

viii. TAXES ON INCOME:

a. Current Year: To provide and determine current year tax liability as the amount of the tax payable in respect of taxable income for the year, after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961.

b. Deferred Tax: To provide and recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

ix.IMPAIRMENT OF ASSETS:

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.