Accounting Policies of CLIO Infotech Ltd. Company

Mar 31, 2024

3 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These standalone financial statements have been prepared on historical cost basis except for certain financial
instruments and defined benefit plans which are measured at fair value or amortised cost 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. All assets and liabilities have been classified as current and non¬
current as per the Company''s normal operating cycle. Based on the nature of services rendered to customers and time
elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such
services rendered, the Company has considered an operating cycle of 12 months.

b Use of estimates

The preparation of standalone financial statements in conformity with the recognition and measurement principles of
Ind AS requires management of the Company to make estimates and judgements that affect the reported balances of
assets and liabilities, disclosures of contingent liabilities as at the date of standalone financial statements and the
reported amounts of income and expenses for the periods presented.

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 future periods are affected.

The Company uses the following critical accounting estimates in preparation of its standalone financial statements

(i) Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This
reassessment may result in change in depreciation expense in future periods.

(ii) Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including the
Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments.

(iii) Provision for income tax and deferred tax assets

The Company uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue,
costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred
tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilised. Accordingly, the Company exercises its judgement
to reassess the carrying amount of deferred tax assets at the end of each reporting period.

(iv) Provisions and contingent liabilities

The Company estimates the provisions that have present obligations as a result of past events and it is probable
that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each
reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are recognised when
there is a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company
or a present obligation that arises from past events where it is either not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are
neither recognised nor disclosed in thestandalone financial statements.

c Property, Plant and Equipment

Property, plant and equipment (including furniture, fixtures, vehicles, etc.) held for use in the production or supply of
goods or services, or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation
and accumulated impairment losses. Cost of acquisition is inclusive of freight, duties, taxes and other incidental
expenses. When significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Freehold land is not depreciated.

Capital work in progress is stated at cost, net of impairment loss, if any. Cost includes items directly attributable to the
construction or acquisition of the item of property, plant and equipment, and, for qualifying assets, borrowing costs
capitalised in accordance with the Company''s accounting policy. Such properties are classified to the appropriate
categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets,
on the same basis as-other property assets, commences when the assets are ready for their intended use.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under
construction) less their residual values over their useful lives, using the WDV method. The estimated useful lives,
residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate accounted for on a prospective basis.

Depreciation is charged on a pro-rata basis at the written down value method over estimated economic useful lives of
its property, plant and equipment generally in accordance with that provided in the Schedule II to the Act as provided
below and except in respect of moulds and dies which are depreciated over their estimated useful life of 1 to 7 years,
wherein, the life of the said assets has been assessed based on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturers warranties and maintenance support, etc.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of
property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of
the asset and is recognised in profit or loss. The useful lives for various property, plant and equipment are given below:

d Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of
a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including
anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by
an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an
option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease,
it considers all relevant facts and ircumstances that create an economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if
there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a
portfolio of leases with similar characteristics.

e Impairment

At the end of each reporting period, the Company assesses, whether there is any indication that an asset may be
impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs of disposal and value in
use.

When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of
allocation can be identified, corporate assets are also allocated to individual cashgenerating units, or otherwise they are
allocated to the smallest Company of cash-generating units for which a reasonable and consistent allocation basis can be
identified.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions
can be identified, an appropriate valuation model is used.

the Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared
separately for each of the Company''s cash generating unit (CGU).

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cashgenerating unit) is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the
asset (or a cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised
immediately in profit or loss.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at
least annually, and whenever there is an indication that the asset may be impaired. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash
flows have not been adjusted.

f Financial instruments

A financial instrument is any contract that gives rise to asset of one entity and a financial liability or equity instrument of
another entity. Financial instruments also include derivative contracts such as foreign currency forward contracts, cross
currency interest rate swaps, interest rate swaps and currency options; and embedded derivatives in the host contract.

Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are 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 recognized on the trade date, i.e., the date that the company
commits to purchase or sell the 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 recognized on the trade date, i.e., the date that the company
commits to purchase or sell the asset.

Classifications

The Company classifies its financial assets as subsequently measured at either amortised cost or fair value through other
comprehensive income (FVOCI) or fair value through Profit and Loss Account (FVTPL) on the basis of either Company''s
business model for managing the financial assets or Contractual cash flow characteristics of the financial assets.

Business model assessment

The company makes an assessment of the objective of a business model in which an asset is held at an instrument level
because this best reflects the way the business is managed and information is provided to management.

Debt instruments at amortised cost

A financial asset is measured at amortised cost only if both of the following conditions are met:

- It is held within a business model whose objective is to hold assets in order to collect contractual cash flows.

- The contractual terms of the financial asset represent contractual cash flows that are solely payments of principal
and interest.

After initial measurement, such financial assets are subsequently measured at amortised cost using the Effective
Interest Rate (''EIR'') method. 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 income in the profit or
loss. The losses arising from mpairment are recognised in the profit or loss.

Debt instrument at fair value through Other Comprehensive Income (FVOCI)

Debt instruments with contractual cash flow characteristics that are solely payments of principal and interest and held in
a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets are
classified to be measured at FVOCI.

Debt instrument at fair value through profit and loss (FVTPL)

Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified as
at FVTPL.

In addition, the company may elect to classify a debt instrument, which otherwise meets amortized cost or FVOCI
criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or
recognition inconsistency referred to as ''accounting mismatch'').

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit
and loss.

Equity Instruments

All equity instruments in scope of Ind AS 109 are measured at fair value and all changes in fair value are recorded in
FVTPL. On initial recognition an equity investment that is not held for trading, the Company may irrevocably elect to
present subsequent changes in fair value in OCI and fair value changes on the instrument, excluding dividends, are
recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within equity. This election is made on an
investment-by-investment basis.

All other Financial Instruments are classified as measured at FVTPL
Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is
primarily derecognised (i.e. removed from the company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a)
the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
company continues to recognize the transferred asset to the extent of the company''s continuing involvement. In that
case, the company also recognizes an associated liability. The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the company could be required to
repay.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount
allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new
asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is
recognised in profit or loss.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and at FVOCI.

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 revert to recognizing impairment loss allowance
based on 12 month ECL.

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 on a financial
instrument that are possible within 12 months after the reporting date.

With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS 109, Financial
Instruments, which requires expected lifetime losses to be recognised from the initial recognition of the trade
receivables.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, amortised
cost, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of amortised cost, net of directly attributable
transaction costs.

Subsequent measurement

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

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the
EIR amortisation process.

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.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. 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 profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently
transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in
fair value of such liability are recognised in the statement of profit or loss.

Financial guarantee contracts

Financial guarantee contract issued by the Company is contracts that require a payment to be made to reimburse the
holder for a loss it incurs because, the specified debtor fails to make a payment when due in accordance with the terms
of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for
transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured
at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109, and the
transaction amount recognised less cumulative amortisation.

Derecognition of financial liabilities

The company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
Reclassification of financial assets

The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no
reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets
which are debt instruments, a reclassification is made only if there is a change in the business model for managing those
assets. Changes to the business model are expected to be infrequent. The company''s senior management determines
change in the business model as a result of external or internal changes which are significant to the company''s
operations. Such changes are evident to external parties. A change in the business model occurs when the company
either begins or ceases to perform an activity that is significant to its operations. If the company reclassifies financial
assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately
next reporting period following the change in business model. The company does not restate any previously recognized
gains, losses (including impairment gains or losses) or interest.

Offsetting of 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, or to
realise the asset and settle the liability simultaneously.

g Investments

Investment property is a property held to earn rentals and capital appreciation. Investment property is measured
initially at cost, including transaction costs. Subsequent to initial recognition, investment property is measured in
accordance with Ind AS 16''s requirements for cost model.

Investment properties are derecognised either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.

h Employee Benefits

(i) Post-employment benefit plans

Contributions to defined contribution retirement benefit schemes are recognised as expense when employees have
rendered services entitling them to such benefits.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the
statement of profit and loss for the period in which they occur. Past service cost is recognised immediately to the extent
that the benefits are already vested, or amortised on a straight-line basis over the average period until the benefits
become vested.

The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to the present value of available refunds and reductions in future contributions
to the scheme.

(ii) Other employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered
by employees is recognised during the period when the employee renders the service. These benefits include
compensated absences such as paid annual leave, overseas social security contributions and performance incentives.

Compensated absences which are not expected to occur within twelve months after the end of the period in which the
employee renders the related services are recognised as an actuarially determined liability at the present value of the
defined benefit obligation at the balance sheet date.

i Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration entitled in exchange for those goods or services. the Company is
generally the principal as it typically controls the goods or services before transferring them to the customer.

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the
customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of
ownership or future obligations with respect to the goods shipped.

Revenue from rendering of services is recognised over time by measuring the progress towards complete satisfaction of
performance obligations at the reporting period.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for
transferring distinct goods or services to a customer as specified in the contract, excluding amounts collected on behalf
of third parties (for example taxes and duties collected on behalf of the government).

Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised when it
becomes unconditional.

j Employee benefits

Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount
expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.

Accumulated compensated absences which are expected to be settled wholly within twelve months after the end of the
period in which the employees render the related service are treated as short-term benefits. The Company measures
the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement
that has accumulated at the reporting date.

Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided. The company
has following defined contribution plans:

(i) Provident fund

The Company makes specified monthly contributions towards Provident Fund and Employees State Insurance
Corporation (''ESIC''). The contribution is recognized as an expense in the Statement of Profit and Loss during the
period in which employee renders the related service.

Defined benefit plans

The company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit
method. When the calculation results in a potential asset for the company, the recognised asset is limited to the present
value of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable
minimum funding requirements.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other
Comprehensive Income. Net interest expense (income) on the net defined liability (assets) is computed by applying the
discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the
financial year after taking into account any changes as a result of contribution and benefit payments during the year.
Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognised immediately in profit or loss. The company recognises gains and
losses on the settlement of a defined benefit plan when the settlement occurs

The company has following defined benefit plans:

Gratuity

The company provides for its gratuity liability based on actuarial valuation of the gratuity liability as at the Balance Sheet
date, based on Projected Unit Credit Method, carried out by an independent actuary and contributes to the Gratuity
Trust fund formed by the Company. The contributions made are recognized as plan assets. The defined benefit
obligation as reduced by fair value of plan assets is recognized in the Balance Sheet. Remeasurements are recognized in
the Other Comprehensive Income, net of tax in the year in which they arise.

Other long-term employee benefits

The Company''s net obligation in respect of long-term employee benefits is the amount of future benefit that employees
have earned in return for their service in the current and prior periods. That benefit is discounted to determine its
present value. Re-measurements are recognised in profit or loss in the period in which they arise.

The company has following long term employment benefit plans:

Leave Encashment

Leave encashment is payable to eligible employees at the time of retirement. The liability for leave encashment, which is
a defined benefit scheme, is provided based on actuarial valuation as at the Balance Sheet date, based on Projected Unit
Credit Method, carried out by an independent actuary.

k Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported
in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years
and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates and laws that
have been enacted or substantively enacted by the end of the reporting period.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either
in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(i) When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss.

(ii) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in
joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable
that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilised, except:

(i) When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.

(ii) In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests
in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against which the temporary
differences can be utilised.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction
either in other comprehensive income or directly in equity.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner
in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets
and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.

l Foreign currency transactions

Transactions in foreign currencies are translated into the Company''s functional currency at the exchange rates at the
dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign
currency are translated into the functional currency at the exchange rate when the fair value was determined. Non¬
monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at
the date of the transaction. Foreign currency differences are generally recognised in profit or loss.

The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition
of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or
loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

m Inventories

Inventories comprising Securities which are stated at the market value. Costs of inventories are determined on a moving
average.

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Mar 31, 2014

1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared under Historical Cost conventions and on accrual basis in accordance with the Generally Accepted Accounting Principles (''GAAP'') applicable in India, Compa- nies (Accounting Standard) Rules, 2006 notified by Ministry of Company Affairs and Accounting Stan- dards issued by the Institute of Chartered Accountants of India as applicable and relevant provisions of the Companies Act, 1956, as adopted consistently by the Company.

2. Use of Estimates

The preparation of Financial Statements in conformity with Indian GAAP requires estimates and as- sumptions to be made, that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets

Fixed Assets are capitalized at cost less accumulated depreciation inclusive of purchase price, duties and other non refundable taxes, direct attributable cost of bringing asset to its working condition and financing cost till commercial production, if any.

Projects, if any, under which assets are not ready for their intended use are shown as Capital Work-in- Progress. However no project was undertaken during the year under review.

4. Depreciation / Amortization

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Inventories

Shares held by Company as stock-in-trade is valued at cost as per consistent accounting policy de- cided & followed by the management. Shares, Debentures and other Securities, purchased if any, are accounted under Stock-in-trade on trade dates.

6. Revenue Recognition

Interest earned on loans is recognized on accrual basis. Revenue from Capital gain on sale of securi- ties is recognized once trade is done and delivery is given. Dividend is recognized when the right to receive the payment is established.

7. Investment

Investments are classified as Current & Non Current Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Non-Current invest- ments are valued at cost. However no fresh Investment was made by the Company during the year.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capital- ized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss A/c..

9. Taxation

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured as amount

of tax payable in respect of taxable income for current year as per Income Tax Act 1961 after considering tax allowances and exemptions, if any. Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that origi- nate in one year and are capable of reversal in one or more subsequent year.

Due to brought forward losses no provision is made for current Income Tax. Deffered Tax liability is created on account of timing difference on Depreciation as per Companies Act and Income Tax Act. Company has also w/off excess provision made in past years.

10. Leases Operating Lease

Lease where the lesser effectively retains substantially all risks and benefits of the asset are classified as Operating lease. Operating lease payments are recognized as an expense in the Profit & Loss account.

11. Impairment of Assets

An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss in the year in which an asset is identified as Impaired. As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets have suffered "Impairment Loss".

12. Earnings per Share

In determining the Earnings Per share, the company considers the net profit after tax which includes any post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.

13. Retirement Benefits

Short term employee benefits - The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services. These benefits include performance incentive and com- pensated absences.

According to management, since the number of employees are less than mandatory limit, Company has not yet applied for registration under Provident Fund Act or ESIC Act.

14. Segmental Reporting

Company operates only in one segment viz. financial activities.

15. Related Party Transactions

As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Standards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 are given below;

1. Key Managerial Personnel:

a) Mr. Suresh Bafna

b) Mr. Ashok Bafna

c) Mrs. Manju Bafna

d) Mr. Himanshu Shah

2. Relatives of Key Management Personnel

Names of the Relative Relation

Prithviraj Bafna (Bafna Babulal & Sons) Brother of Director Mr. Suresh Bafna

3. Parties where control exists

Name of the Party Nature of Control

Monarch Securities Pvt. Ltd. Mrs. Manju Bafna & Mr. Ashok Bafna - Directors till 12/08/2013.

Simandhar Securities Pvt.Ltd. Mr. Suresh Bafna, Mrs. Manju Bafna & Mr. Ashok Bafna are Directors.

Monarch Project & Finmarkets Ltd. Mr. Suresh Bafna, Mrs. Manju Bafna, Mr. Ashok Bafna, Mr. Himanshu Shah - Major Shareholders & Mrs. Manju Bafna & Mr. Ashok Bafna are Common Directors.

Further following Related Party Transactions were noticed during the year -

Company carries on its Share Transactions with Monarch Project & Finmarkets Limited, NSE Member.

16. Contingent Liabilities & Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.

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Mar 31, 2013

1. Basis of accounting:

The financial statements are prepared on the historical cost convention basis and on accrual concept as a going concern in accordance with the applicable Accounting Standards referred to in Sub section 3C of Section 211 of the Companies Act, 1956 and normally accepted accounting principles.

2. Accounting Standards:

Accounting standards as prescribed by the Department of Corporate Affairs (Formerly known as Department of Company Affairs) and referred to in the Companies Act, 1956 have been followed wherever applicable.

3. Fixed Assets and its Depreciation:

Fixed assets are stated at cost price comprising of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Deprecation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 & on pro-rata basis wherever applicable, if any.

4. Investments:

Company has not made any fresh investment during the year. Long Term Investments are stated at Cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term invest- ments, if any.

5. Stock in Trade

Shares held by Company as stock-in-trade is valued at cost as decided by the management. Shares, Debentures and other Securities, purchased if any, are accounted under Stock-in-trade on trade dates. Contracts relating to specified shares intended to be squared-off in the same settlement are accounted on the squaring up dates.

6. Contingent Liabilities:

No litigations are filed or is pending against the Company & Company does not have any present obligation arising out of any past event as is just being formed. Hence no provision arises or is made for contingent liabilities.

7. Revenue Recognition:

Interest on Loans is provided as agreed with respective parties and same is made on annual basis. Dividend income is recognized as and when the right to receive dividend is established. Profit or losses from Investments/ Stock-in-trade are recognized on trade dates on first-in-first out basis.

8. Retirement Benefits:

Company has not applied under Provident Fund & Miscellaneous Provisions Act & hence no provision is made towards retirement benefits of Employees.

9. Borrowing Cost:

Company has taken loans from its members & other Corporate Bodies but according to management & from records it appears same are temporary loans and hence according to management interest is not payable to them and hence is not provided for.

10. Taxation:

In view of loss incurred during the year, no provision for current tax is made under the provisions of the Income Tax act, 1961. Deferred tax Asset of Rs.119870/- resulting from timing differences'' between taxable and ac- counting income, mainly on account of Depreciation, is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

11. Segmental Reporting:

The Company is operating only in one segment i.e. Finance.

12. Related Party Transactions:

As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Stan- dards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 are given below;

1. Key Managerial Personnel:

a) Mr. Suresh Bafna

b) Mr. Ashok Bafna

c) Company carries on its Share Transactions with Monarch Project & Fin markets Limited, NSE Member.

13. Earnings (Loss) Per Share:

Basic EPS - (0.67) = 7375069/- (Net Loss attributable to Shareholders) /11010950 (Weighted Avg. No of Equity Shares)

Diluted EPS - (0.67) = 7375069/- (Net Loss attributable to Shareholders) / 11010950 (Weighted Avg. No of Equity Shares)

Diluted EPS is similar to Basic EPS as there are no potential equity share as on date.

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Mar 31, 2012

1. ACCOUTING CONVENTION

The accounts have been prepared under the historical cost convention.

2. FIXED ASSETS

Fixed Assets are stated at cost inclusive of expenses in connection therewith and deduction is made for the depre- ciation.

3. DEPRECIATION

Deprecation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XTV to the Companies Act, 1956.

4. TREATMENT OF STOCK OF STATIONERY FORMS, SHARES ETC.

The entire amount of printing and stationery is treated as expenditure for the year without making any provision for stock at the end of the year. Further shares held by the Company as stock-in-trade is valued at cost as decided by the management.

Shares, Debentures and other Securities, purchased if any, are accounted under Stock-in-trade on trade dates. Contracts relating to specified shares intended to be squared-off in the same settlement are accounted on the squar- ing up dates. The brokerage is included in the cost of Investments/ Stock-in-Trade.

5. VALUATION OF INVESTMENTS

Long term Investment are carried at cost less provision, if any, for permanent diminution in the value of such investments. The comparative shortfall is charged to revenue.

6. REVENUE RECOGNITION

Interest on Loans is provided as agreed with respective parties and same is made on annual basis. Dividend income is recognized as and when the right to receive dividend is established. Profit or losses from Investments/ Stock-in-trade are recognised on trade dates on first-in-first out basis.

7. EXPENDITURE

All the expenses comprising interest, rent and charges are provided on accrual basis except certain petty expenses which are accounted on cash basis.

8. TAXES ON INCOME

Current Charge for Income Tax including Deferred Tax, if any, is calculated in accordance with the relevant tax regulations applicable to the Company.

9. EMPLOYEE RETIREMENT BENEFITS

Leave encashment liabilities is accounted for on cash basis as the liability on the date of the Balance Sheet is not expected to be material.

10. Material Events occurring after Balance Sheet date are taken into cognizance.

11. PRIOR PERIOD AND EXTRA ORDINARY ITEMS

Prior period and Extra ordinary Hero and changes in Accounting policies having material impact on the financial attain of the company, if any, have been disclosed.

12. Contingent liabilities ate not provided for and are disclosed by way of notes, if any.

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Mar 31, 2010

1. ACCOUTING CONVENTION

The accounts have been prepared under the historical cost convention.

2. FIXEDASSETS

Fixed Assets are stated at cost inclusive of expenses in connection therewith and deduction is made for the depreciation.

3. DEPRECIATION

Deprecation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

4.TREATMENT OF STOCK OF STATI ON ERYFORMS ETC.

The entire amount of printing and stationery is treated as expenditure for the year without making any provision for stock at the end of the year.

5. INVESTMENTS/STOCK-IN-TRADE

(a) Shares, Debentures and other Securities are accounted under Investments/Stock-in-trade on trade dates. Contracts relating to specified shares intended to be squared-off in the same settlement are accounted on the squaring up dates.

(b) The brokerage is included in the cost of Investments/ Stock-in-Trade.

6. VALUATION OFDSVESTMENTS/STOCK-IN-TRADE

Long term Investment are carried at cost less provision, if any, for permanent diminution in the value of such investments. Stock-in-trade is valued at cost or market value whichever is lower. The comparative shortfall is charged to revenue. The comparison for each scrip is made separately.

7. DETERMNATION OF THE MARKET VALUE OF INVESTMEN

i) Quoted shares, securities are taken at the year-end closing market rates prevailing on the principal stock exchanges where they are traded.

ii) Unquoted shares are taken at cost or break-up value of the shares as per the last audited Balance Sheet of the Company concerned, whichever is lower.

iii) Investment in estate finance is valued at cost taking into account all the value additions made thereon.