Accounting Policies of Dynamic Archistructures Ltd. Company

Mar 31, 2024

2B Significant accounting policies:

The accounting policies set out below have been applied consistently to the periods presented
in the financial statements.

a. Revenue from contracts with customers:

(i) Interest Income

Interest income is recognized by applying effective interest rate (EIR) to the gross carrying
amount of financial assets other than credit-impaired assets and financial assets classified as
measured at FVTPL, taking into account the amount outstanding and the applicable interest
rate. Interest income is recognized on non-performing assets at net of ECL.

The EIR is computed

a. As the rate that exactly discounts estimated future cash payments or receipts through the
expected life of the financial asset to the gross carrying amount of a financial asset.

b. By considering all the contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) in estimating the cash flows

c. Including all fees paid or received between parties to the contract that are an integral part
of the effective interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows are recognized in interest
income with the corresponding adjustment to the carrying amount of the assets.

(ii) Dividend Income

Dividend income is recognized when the right to receive the payment is established.

(iii) Fees & Commission Income

Fees and commissions are recognized when the Company satisfies the performance
obligation, at fair value of the consideration received or receivable based on a five-step model
as set out below, unless included in the effective interest calculation:

Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between
two or more parties that creates enforceable rights and obligations and sets out the criteria for
every contract that must be met.

Step 2: Identify performance obligations in the contract: A performance obligation is a
promise in a contract with a customer to transfer a good or service to the customer.

Step 3: Determine the transaction price: The transaction price is the amount of consideration
to which the Company expects to be entitled in exchange for transferring promised goods or
services to a customer, excluding amounts collected on behalf of third parties.

Step 4: Allocate the transaction price to the performance obligations in the contract: For a
contract that has more than one performance obligation, the Company allocates the
transaction price to each performance obligation in an amount that depicts the amount of
consideration to which the Company expects to be entitled in exchange for satisfying each
performance obligation.

Step 5: Recognize revenue when (or as) the Company satisfies a performance obligation.

(iv) Net gain on fair value changes

Any differences between the fair values of financial assets classified as FVTPL held by the
Company on the balance sheet date is recognized as an unrealized gain / loss. In cases there is
a net gain in the aggregate, the same is recognized in “Net gains on fair value changes” under
Revenue from operations and if there is a net loss the same is disclosed as “Net loss on fair
value changes” under Expenses in the Statement of Profit and Loss.

Similarly, any realized gain or loss on sale of financial instruments measured at FVTPL and
debt instruments measured at FVOCI is recognized in net gain / loss on fair value changes.

However, Net gain / loss on derecognition of financial instruments classified as amortised
cost is presented separately under the respective head in the Statement of Profit and Loss.

b. Property, plant and equipment and depreciation

i. Items of property, plant and equipment are measured at cost, which includes capitalised
borrowing costs, less accumulated depreciation and accumulated impairment losses, if any.
Cost includes taxes, duties, freight and other incidental expenses directly related to
acquisition / construction and installation of the assets. Any trade discounts and rebates are
deducted in arriving at the purchase price.

ii. Subsequent expenditure related to an item of tangible assets are added to its book value
only if they increase the future benefits from the existing asset beyond its previously assessed
standard of performance.

iii. Capital work-in-progress includes fixed assets not ready for their intended use and related
incidental expenses and attributable interest.

iv. The estimated useful life of assets are as follows:

Building (Office premises) 60 years

Furniture & fittings (Office furniture) 10 years
Motor vehicles (Motor car) 8 years
Office equipments (Office equipment) 5 years
Computer and data processing units (Computers) 3 years

Depreciation on tangible assets has been provided on Straight Line Method. Depreciation is
provided on a pro-rata basis, i.e. from the date on which asset is ready for use.

Depreciation method, useful lives and residual values are reviewed at each financial year-end
and adjusted if appropriate.

v. An item of property, plant and equipment is eliminated from the financial statements on
disposal or when no further benefit is expected from its use and disposal. Gains / losses
arising from disposal are recognized in the Statement of Profit and Loss.

c. Impairment of Property, plant and equipments

The carrying values of assets at each balance sheet date are reviewed for impairment if any
indication of impairment exists.

If the carrying amount of the assets exceeds the estimated recoverable amount, an impairment
is recognized for such excess amount. The impairment loss is recognized as an expense in the
Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any
impairment loss of the revalued asset is treated as a revaluation decrease to the extent a
revaluation reserve is available for that asset.

The recoverable amount is the greater of the net selling price and their value in use. Value in
use is arrived at by discounting the future cash flows to their present value based on an
appropriate discount factor.

When there is indication that an impairment loss recognized for an asset (other than a
revalued asset) in earlier accounting periods no longer exists or may have decreased, such
reversal of impairment loss is recognized in the Statement of Profit and Loss, to the extent the
amount was previously charged to the Statement of Profit and Loss. In case of revalued assets
such reversal is not recognized.

d. Inventories

i. Stock in trade is valued at lower of cost and net reliasable value.

e. Employee benefits

i. Employee benefits payable wholly within twelve months of receiving employees services
are classified as short-term employee benefits. The short-term employee benefits are
accounted on undiscounted basis during the accounting period based on services rendered by
employees.

f. Income taxes

Income tax expense comprises current tax (i.e. amount of tax for the period determined in
accordance with the income tax law), deferred tax charge or credit (reflecting the tax effects
of timing differences between accounting income and taxable income for the period).

Current tax

Current tax is computed and provided for in accordance with the applicable provisions of the
Income Tax Act, 1961.

g. 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 assets and liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realized or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the reporting date.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward
of unused tax credits and any unused tax losses. Deferred tax assets are recognized 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.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised. Unrecognized deferred tax assets are re¬
assessed at each reporting date and are recognized to the extent that it has become probable
that future taxable profits will allow the deferred tax asset to be recovered.

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

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

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent
there is convincing evidence that the company will pay normal income tax during the
specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount
of the MAT credit asset is written down to the extent there is no longer a convincing evidence
to the effect that the company will pay normal income tax during the specified period.

h. Borrowing costs

Borrowing costs incurred on constructing or acquiring a qualifying asset is capitalized as cost
of that asset until it is ready for its intended use. A qualifying asset is an asset that necessarily

takes a substantial period of time to get ready for its intended use. All other borrowing costs
are charged to revenue and recognized as an expense in the Statement of Profit and Loss.

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Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements have been prepared on going concern basis under the historical cost convention in accordance with Generally Accepted Accounting Principles in India, the provisions of the Companies Act 2013 and the applicable Accounting Standards issued by The Institute of Chartered Accountants of India Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosures

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation including the shortfall of depreciation consequent upon change in the useful life of assets provided for after residual value of 5% and charged against the opening balance of retained earnings

3. DEPRECIATION & AMORTISATION

(a) Depreciation: - Depreciation on Fixed Assets has been provided on straight line method at the rates and in the manner as prescribed in Schedule "II" to the Companies Act, 2013 and on pro rata basis in respect of additions to all fixed assets

(b) Amortisation: - Not Applicable

4. INVENTORIES

Inventories are valued at cost or NRV whichever is lower however the company is a NBFC so there is no stock

5. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date on which such

(a) Current investments are carried at lower of cost and fair value determined on an individual investment basis

(b) Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of such investments

6. BORROWING COST

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized as part of the cost of that assets Other borrowing costs are recognized as an expense in the period in which they are incurred.

7. IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. However there is no significant loss on account of impairment of assets

8. EXCISE DUTY

Company is a non banking finance company so there is no liability of excise duty.

9. EMPLOYEES RETIREMENT BENEFIT & GRATUITY: -

Provision has not been made for gratuity as no employee has put in the qualifying period of services for entitlement of the benefits

10. REVENUE RECOGNITION

Mercantile method of accounting has been followed by the Company. However, where the amount is immaterial / negligible and / or where the establishment of accrual / determination of amount Is not possible, no entries are made for the accruals

11. ACCOUNTING FOR TAXES ON INCOME: -

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date The deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that these will be realised in future,

12. CONTINGENT LIABILITIES

Contingent liabilities:- Contingent liabilities are generally not provided for in the accounts and are shown separately in notes on accounts However there is no contingent liability (Previous year NIL)

13. PRUDENTIAL NORMS

The company follows the prudential norms for income recognition, classification of assets and provisioning requirement as prescribed by non banking financial companies prudential norms (RBI) directions, 1998

14. SEGMENT REPORTING

The company is a NBFC and all its activities relates to one segment i.e.non banking financial activities and its operations are confined within India.

16. RELATED PARTY DISCLOSURE

As per accounting standard 18, disclosures of the transactions with the related parties as defined in the Accounting Standard are given below,

(i) List of related parties with whom transactions have been taken place and relationship

[NAME OF THE RELATED PARTY RELATIONSHIP

Shri Danmal Porwal Key Management Personnel

Smt. Aditi Porwal Relative of Key Management Personnel

Coal Chem Associates

Utkal Hydrocarbons Associates

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Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

The accompanying financial statements have been prepared on going concern basis under the historical cost convention in accordance with Generally Accepted Accounting Principles in India, the provisions of the Companies Act 1956 and the applicable Accounting Standards issued by The Institute of Chartered Accountants of India. Previous year's figures have been regrouped I reclassified wherever necessary to correspond with the current year's classification I disclosures.

2, FIXED ASSETS

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

3. DEPRECIATION & AMORTISATION :-

(a) Depreciation: - Depreciation on Fixed Assets has been provided on straight line method at the rates and in the manner as prescribed in Schedule "XIV" to the Companies Act, 1956 and on pro rata basis in respect of additions to all fixed assets.

(b) Amortisation: - Not Applicable

4. INVESTMENTS

Investments in shares and mutual funds are valued at cost.

5, INVENTORIES

Inventories are valued at cost however the company is a NBFC so there is no stock.

6, REVENUE RECOGNITION

Mercantile method of accounting has been followed by the Company. However, where the amount is immaterial I , negligible and / or where the establishment of accrual / determination of amount is not possible, no entries are made for: the accruals.

7. ACCOUNTING FOR TAXES ON INCOME: -

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax resulting: from timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that these will be realised in future.

8, EMPLOYEES RETIREMENT BENEFIT & GRATUITY: -

Provision has not been made for gratuity as no employee has put in the qualifying period of services for entitlement of the benefits.

9. CONTINGENT LIABILITIES

Contingent liabilities :- Contingent liabilities are generally not provided for in the accounts and are shown separately in notes on accounts. However there is no contingent liability.

10. PRUDENTIAL NORMS : -

The company follows the prudential norms for income recognition, classification of assets and provisioning requirement as prescribed by non banking financial companies prudential norms (RBI) directions, 1998.

11. IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. However there is no significant loss on account of impairment of assets.

12. SEGMENT REPORTING

The company is a NBFC and all its activities relates to one segment i.e.non banking financial activities and its operations are confined within India.