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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Accounting Policies of Eco Recycling Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies

(a) Statement of compliance and basis of preparation
and presentation

The financial statements of the Company have
been prepared in accordance with and to comply
in all material aspects with the Companies (Indian
Accounting Standards) Rules, 2015 ("Ind AS") as

amended and notified under Section 133 of the
Companies Act, 2013 ("the Act") and the relevant
provisions of the Act.

(b) Basis of measurement

The financial statements have been prepared on
accrual and going concern basis under the historical
cost convention except for certain class of financial
assets/ liabilities, share based payments and net
liability for defined benefit plans that are measured
at fair value.

(c) Rounding off

The Financial Statements are presented in INR and all
values are rounded off to the nearest thousands (INR
''000), unless otherwise stated.

(d) Use of estimates and judgements

The preparation of financial statements in
conformity with Ind AS requires management to

make judgments, estimates and assumptions, that
affect the application of accounting policies and the
reported amounts of assets, liabilities, income and
expenses at the date of these financial statements
and the reported amounts of revenues and expenses
for the years presented. Actual results may differ

Estimates and underlying assumptions are reviewed
at each balance sheet date. Revisions to accounting
estimates are recognized in the period in which the
estimate is revised and future periods affected.

Key sources of estimation uncertainty at the date
of financial statements, which may cause a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, is in respect
of useful lives of property, plant and equipment,
intangible assets, fair value of financial assets/
liabilities and impairment of investments

(e) Property, plant and equipment

Property, plant and equipment are stated at cost
of acquisition or construction less accumulated
depreciation and accumulated impairment, if any.

Cost includes financing cost attributable to the
construction or acquisition of qualifying tangible

assets upto the date the assets are ready for use.

Depreciation is provided on straight-line basis for
property, plant and equipment so as to expense
the depreciable amount, i.e. the cost less estimated
residual value, over its estimated useful lives.
The estimated useful lives and residual values are
reviewed annually and the effect of any changes in
estimate is accounted for on a prospective basis.

When an asset is scrapped or otherwise disposed off,
the cost and related depreciation are removed from
the books of account and resultant profit or loss, if
any, is reflected in the Statement of Profit and Loss.

The management''s estimate of useful lives are in
accordance with Schedule II to the Companies Act,
2013, other than the following asset classes, based
on the Company''s expected usage pattern supported

by technical assessment''

(f) Intangible assets

Intangible assets are initially measured at acquisition
cost including any directly attributable costs of

preparing the asset for its intended use. Intangible
assets with finite lives are amortized over their

estimated useful economic life and assessed for
impairment whenever there is an indication that the
intangible asset may be impaired. Intangible Assets
with indefinite useful lives are tested for impairment

at least annually, and whenever there is an indication
that the asset may be impaired.

(g) Impairment of assets

At the end of each reporting period, the Company
reviews the carrying amounts of its property, plant
& equipment, and intangible assets to determine
whether there is any indication that those assets
have suffered an impairment loss. If any such
indication exists, the recoverable amount, which is
the higher of the value in use or fair value less cost
to sell, of the asset or cash-generating unit, as the
case may be, is estimated and impairment loss (if any)
is recognized and the carrying amount is reduced
to its recoverable amount. In assessing the 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. 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 an impairment loss subsequently reverses, the
carrying amount of the asset or a cash-generating
unit is increased to the revised estimate of its
recoverable amount, so that the increased carrying
amount does not exceed the carrying amount that
would have been determined had no impairment loss
been recognized for the asset (or cash-generating
unit) earlier.

(h) Inventories

Inventories comprise all costs of purchase, conversion

and other costs incurred in bringing the inventories to
their present location and condition. Raw materials
and bought out components are valued at the lower
of cost or net realisable value. Cost is determined on
the basis of the weighted average method.

Finished goods produced, stock in trade and work-
in-progress are carried at cost or net realisable value
whichever is lower.

(i) Foreign exchange transactions and translation

Transactions in foreign currencies i.e. other than
the Company''s functional currency of Indian Rupees

are recognized at the rates of exchange prevailing
at the dates of the transactions. At the end of each
reporting period, monetary items denominated in
foreign currencies are translated at the functional
currency using exchange rates prevailing at that date.
Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair value
is determined. Exchange differences on monetary
items are recognized in profit or loss in the period in
which they arise.

O'') Financial assets, financial liabilities and equity
instruments

Financial assets and liabilities are recognized when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value, except
for trade receivables which are initially measured at
transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial
assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the
fair value measured on initial recognition of financial
asset or financial liability.

The Company derecognises a financial asset only
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards

of ownership of the asset to another entity. The
Company derecognises financial liabilities when, and
only when, the Company''s obligations are discharged,
cancelled or have expired.

Cash and cash equivalents

The Company considers all highly liquid investments,

which are readily convertible into known amounts
of cash that are subject to an insignificant risk of
change in value, to be cash equivalents. Cash and
cash equivalents consist of balances with banks

which are unrestricted for withdrawal and usage. It
also includes short-term balances with an original
maturity of three months or less from the date of
acquisition.

Financial assets at Fair value through other
comprehensive income

Financial assets are subsequently measured at fair
value through Other Comprehensive Income if these

financial assets are held for collection of contractual
cash flows and for selling the financial assets, where
the asset''s cash flows represent solely payments of
principal and interest.

Movements in the carrying value are taken through
Other Comprehensive income, except for the
recognition of impairment gains or losses, interest
revenue and foreign exchange gains or losses
which are recognised in the Statement of Profit
and Loss. When the financial asset is derecognised,
the cumulative gain or loss previously recognised in
Other Comprehensive Income is reclassified from
Other Comprehensive Income to the Statement of
Profit and Loss. Interest income on such financial
assets is included as a part of the Company''s income
in the Statement of Profit and Loss using the effective
interest rate method.

Financial assets at Fair value through profit or loss

Assets that do not meet the criteria for amortised
cost or FVOCI are measured at fair value through
profit or loss. A gain or loss on such debt instrument

that is subsequently measured at FVTPL and is not
part of a hedging relationship as well as interest

income is recognised in the Statement of Profit and
Loss.

De-recognition

A financial asset is derecognised only when the
Company has transferred the rights to receive cash
flows from the financial asset. Where the Company
has transferred an asset, the Company evaluates
whether it has transferred substantially all risks and
rewards of ownership of the financial asset. In such
cases, the financial asset is derecognised. Where the
Company has not transferred substantially all risks
and rewards of ownership of the financial asset,
the financial asset is not derecognised. Where the
Company retains control of the financial asset, the
asset is continued to be recognised to the extent of
continuing involvement in the financial asset.

Financial liabilities

All financial liabilities are recognised initially at fair
value Transaction costs that are directly attributable
to the acquisition or issue of financial liabilities,
which are not at fair value through profit or loss, are

adjusted to the fair value on initial recognition.

After initial recognition, financial liabilities that are
not carried at fair value through profit or loss are
subsequently measured at amortised cost using
the effective interest method. Gains and losses are
recognised in the Statement of Profit and Loss when
the liabilities are derecognised, and through the
amortisation process.

De-recognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or

expires. When an existing financial liability is replaced
by another from the same lender on substantially

different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as a de-recognition of the
original liability and the recognition of a new liability,
and the difference in the respective carrying amounts
is recognised in the Statement of Profit and Loss.

(k) Revenue Recognition

Revenue is recognized to the extent that it is

probable that the economic benefits will flow to the
company and the revenue can be reliably measured.
Net turnover is determined as income from the
supply of goods and services, less discounts and such
like, exclusive of turnover taxes.

Sale of goods

Revenue is recognized when the significant risks
and rewards of ownership of the goods have been
passed to the buyer. Sales are disclosed net of GST,
trade discounts and returns, as applicable. Company
derives revenues primarily from purchase of e-waste
Scraps, segregates and accordingly sell it to the
concerned customers.

Income from services

Revenue from services is recognized when services
have been rendered and there should be no
uncertainty regarding consideration and its ultimate

collection. Company provides Data Destruction
Services as a part of the services.

Dividend and interest income

Dividend from investments are recognized in profit or
loss when the right to receive payment is established.

Interest income from a financial asset is recognized
when it is probable that the economic benefits will

flow to the Company and the amount of income can
be measured reliably.

(l) Employee benefits

Superannuation Fund, ESIC and Labour Welfare
Fund

The Company''s contribution paid / payable during
the year to Superannuation Fund, ESIC and Labour
Welfare Fund are recognized in profit or loss.

Defined contribution plans

The Company pays provident fund contributions to

publicly administered funds as per local regulations.
The Company has no further payment obligations once
the contributions have been paid. The contributions
are accounted for as defined contribution plans
and the contributions are recognized as employee
benefit expenses when they are due.

The Company is liable for the contribution and any
shortfall and remeasurement thereof, if any, based
on actuarial valuation is recognized through Other
Comprehensive Income (OCI).

(n) Borrowing Costs

Borrowing costs directly attributable to the
acquisition, construction or production of qualifying

assets, which are assets that necessarily take a
substantial period of time to get ready for their
intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially
ready for their intended use or sale. Interest income
earned on the temporary investment of specific
borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible
for capitalization. All other borrowing costs are
recognized in profit or loss in the period in which they
are incurred.

(o) Taxes
Current tax

Current tax is determined as the amount of tax
payable in respect of taxable income for the year. The
Company''s current tax is calculated using tax rates
that have been enacted or substantively enacted by
the end of the reporting period.

Deferred tax

Deferred tax assets and liabilities are recognized
for the future tax consequences of temporary

differences between the carrying values of assets
and liabilities and their respective tax bases.
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 realized,
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.

Deferred tax assets and liabilities are not recognized
for the temporary differences arising from the initial

recognition of assets and liabilities in a transaction
that affects neither the taxable profit nor the
accounting profit.

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.

Current and deferred tax for the year

Current and deferred tax are recognized in profit
or loss, except when they relate to items that are
recognized in other comprehensive income or directly

in equity, in which case, the current and deferred tax
are also recognized in other comprehensive income
or directly in equity respectively. Where current tax
or deferred tax arises from the initial accounting for
a business combination, the tax effect is included in
the accounting for the business combination.

Mar 31, 2024

2. Significant Accounting Policies

(a) Statement of compliance and basis of preparation and presentation

The financial statements of the Company have been prepared in accordance with and to comply in all material aspects with the Companies (Indian Accounting Standards) Rules, 2015 ("Ind AS") as

amended and notified under Section 133 of the Companies Act, 2013 ("the Act") and the relevant provisions of the Act.

(b) Basis of measurement

The financial statements have been prepared on accrual and going concern basis under the historical cost convention except for certain class of financial assets/ liabilities, share based payments and net liability for defined benefit plans that are measured at fair value.

(c) Rounding off

The Financial Statements are presented in INR and all values are rounded off to the nearest thousands (INR ''000), unless otherwise stated.

(d) Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to

make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses at the date of these financial statements and the reported amounts of revenues and expenses

for the years presented. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

Key sources of estimation uncertainty at the date of financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of useful lives of property, plant and equipment, intangible assets, fair value of financial assets/ liabilities and impairment of investments.

(e) Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment, if any.

Cost includes financing cost attributable to the construction or acquisition of qualifying tangible

assets upto the date the assets are ready for use.

Depreciation is provided on straight-line basis for property, plant and equipment so as to expense the depreciable amount, i.e. the cost less estimated residual value, over its estimated useful lives. The estimated useful lives and residual values are reviewed annually and the effect of any changes in estimate is accounted for on a prospective basis.

When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Statement of Profit and Loss.

The management''s estimate of useful lives are in accordance with Schedule II to the Companies Act, 2013, other than the following asset classes, based on the Company''s expected usage pattern supported by technical assessment:

(f) Intangible assets

Intangible assets are initially measured at acquisition cost including any directly attributable costs of preparing the asset for its intended use. Intangible assets with finite lives are amortized over their estimated useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Intangible Assets with indefinite useful lives are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

(g) Impairment of assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant

& equipment, and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount, which is the higher of the value in use or fair value less cost to sell, of the asset or cash-generating unit, as the case may be, is estimated and impairment loss (if any) is recognized and the carrying amount is reduced to its recoverable amount. In assessing the 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. 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 an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is increased to the revised estimate of its

recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) earlier.

(h) Inventories

Inventories comprise all costs of purchase, conversion

and other costs incurred in bringing the inventories to their present location and condition. Raw materials and bought out components are valued at the lower of cost or net realisable value. Cost is determined on the basis of the weighted average method.

Finished goods produced, stock in trade and work-

in-progress are carried at cost or net realisable value whichever is lower.

(i) Foreign exchange transactions and translation

Transactions in foreign currencies i.e. other than the Company''s functional currency of Indian Rupees are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the functional currency using exchange rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.

O'') Financial assets, financial liabilities and equity instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards

of ownership of the asset to another entity. The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired.

Cash and cash equivalents

The Company considers all highly liquid investments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage. It also includes short-term balances with an original maturity of three months or less from the date of acquisition.

Financial assets at Fair value through other comprehensive income

Financial assets are subsequently measured at fair value through Other Comprehensive Income if these

financial assets are held for collection of contractual cash flows and for selling the financial assets, where the asset''s cash flows represent solely payments of principal and interest.

Movements in the carrying value are taken through Other Comprehensive income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are recognised in the Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from Other Comprehensive Income to the Statement of Profit and Loss. Interest income on such financial assets is included as a part of the Company''s income in the Statement of Profit and Loss using the effective interest rate method.

Financial assets at Fair value through profit or loss

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on such debt instrument that is subsequently measured at FVTPL and is not part of a hedging relationship as well as interest income is recognised in the Statement of Profit and Loss.

De-recognition

A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset. Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Financial liabilities

All financial liabilities are recognised initially at fair value Transaction costs that are directly attributable to the acquisition or issue of financial liabilities, which are not at fair value through profit or loss, are

adjusted to the fair value on initial recognition.

After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using

the effective interest method. Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are derecognised, and through the amortisation process.

De-recognition

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

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Net turnover is determined as income From the supply of goods and services, less discounts and such like, exclusive of turnover taxes.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have been

passed to the buyer. Sales are disclosed net of GST, trade discounts and returns, as applicable. Company derives revenues primarily from purchase of e-waste Scraps, seggregates and accordingly sell it to the

concerned customers.

Income from services

Revenue from services is recognized when services have been rendered and there should be no uncertainty regarding consideration and its ultimate collection. Company provides Data Destruction Services as a part of the services.

Dividend and interest income

Dividend from investments are recognized in profit or loss when the right to receive payment is established.

Interest income from a financial asset is recognized when it is probable that the economic benefits will

flow to the Company and the amount of income can be measured reliably.

(l) Employee benefits

Superannuation Fund, ESIC and Labour Welfare Fund

The Company''s contribution paid / payable during the year to Superannuation Fund, ESIC and Labour Welfare Fund are recognized in profit or loss.

Defined contribution plans

The Company pays provident fund contributions to

publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expenses when they are due.

The Company is liable for the contribution and any shortfall and remeasurement thereof, if any, based on actuarial valuation is recognized through Other Comprehensive Income (OCI).

(n) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying

assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(o) Taxes Current tax

Current tax is determined as the amount of tax payable in respect of taxable income for the year. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets

and liabilities and their respective tax bases. 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 realized, 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.

Deferred tax assets and liabilities are not recognized for the temporary differences arising from the initial

recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly

in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Mar 31, 2023

2 Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. The policies have been consistently applied to all the years presented, unless otherwise stated.

a. Basis of preparation

i. Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'')

read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act. The accounting policies are applied consistently to all the periods presented in the financial statements.

The Financial Statements are presented in INR and all values are rounded off to the nearest

normal operating cycle

â¢ It is held primarily for the purpose of trading

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

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

The Company classifies all other liabilities as non-current.

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

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

b. Operating segment

As the Company is operating only in one business segment i.e. operation of e-waste recycling business in organised manner, the requirement to give segment reporting as per Ind-AS Accounting Standard 108 on Operating Segment issued by the Institute of Chartered Accountants is not applicable.

Use of Accounting Estimates

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported amounts of incomes and expenses for the periods presented.

Fair value measurement

The Company measures financial instruments at fair value at each reporting date.

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:

â¢ In the principal market for the asset or liability, or

â¢ 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 nonfinancial 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:

â¢ Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

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

â¢ Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

External valuers are involved for valuation of significant assets, such as property, plant & equipment.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

c. Revenue recognition

The Company business model is to purchase the e-waste scraps, segregates and accordingly sell it to the concerned customers. The Company also provides Data Destruction Services as a part of the services. The Company also generates income from Share trading,

Membership Fees and Interest Income apart from above key goods and services rendered.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. As the nature of the business, The Company does not have a policy of Sales Return and hence, does not have any accountability for products to be returned or defective services.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money.

The specific recognition criteria described below must also be met before revenue is recognised.

Revenue from sale of products and services are recognised at a time on which the performance obligation is satisfied. Dividend is recognised when the Company''s right to receive the payment is established, which is generally when shareholders approve the dividend.

For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of

the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the group estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest income is included in finance income in the statement of profit and loss.

d. Income 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 that have been enacted or substantively enacted, by the end of the reporting period.

Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits

will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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.

e. Non-current assets held for sale/ distribution to owners and discontinued operations

The Company classifies non-current assets and disposal Company as held for sale/ distribution to owners if their carrying amounts will be recovered principally through a sale/ distribution rather than through continuing use. Actions required to complete the sale/ distribution should indicate that it is unlikely that significant changes to the sale/ distribution will be made or that the decision to sell/ distribute will be withdrawn. Management must be committed to the sale/ distribution expected within one year from the date of classification.

For these purposes, sale transactions include exchanges of non-current assets for other non-current assets when the exchange has commercial substance. The criteria for held for sale/ distribution classification is regarded met only when the assets or disposal Company is available for immediate sale/ distribution in its present condition, subject only to terms that are usual and customary for sales/ distribution of such assets (or disposal Company), its sale/ distribution is highly probable; and it will genuinely be sold, not abandoned. The Company treats sale/ distribution of the asset or disposal Company to be highly probable when:

â¢ The appropriate level of management is committed to a plan to sell the asset (or disposal Company),

â¢ An active programme to locate a

buyer and complete the plan has been initiated (if applicable),

â¢ The asset (or disposal Company) is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

â¢ The sale is expected to qualify for recognition as a completed sale within one year from the date of classification , and

â¢ Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Non-current assets held for sale/ for distribution to owners and disposal Company are measured at the lower of their carrying amount and the fair value less costs to sell/ distribute. Assets and liabilities classified as held for sale/ distribution are presented separately in the balance sheet.

Property, plant and equipment and intangible assets once classified as held for sale/ distribution to owners are not depreciated or amortised.

A disposal Company qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: Represents a separate major line of business or geographical area of operations,

â¢ Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations Or

â¢ Is a subsidiary acquired exclusively with a view to resale Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit and loss.

f. Property, plant and equipment

The Company had applied for the one time transition exemption of considering the carrying cost on the transition date i.e. 1st April, 2015 as the deemed cost under IND AS. Hence regarded thereafter as historical cost. Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and Residual Value

Depreciation is calculated using straight-line method over the estimated useful life of the assets as given below. These estimated useful lives are in accordance with those prescribed under Schedule II to the Companies Act, 2013.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

The residual values are not more than 5% of the original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other gains/ (losses).

g. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs.

Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and impairment losses, if any.

h. Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash-generating units). Assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

Mar 31, 2018

1 Significant Accounting policies:

1.1 Property Plant and Equipment (âPPEâ):

PPE is measured at initial recognition at cost less accumulated depreciation and accumulated impairment losses if any. Cost of an item of PPE shall comprise of purchase price (less trade discounts and rebates), import duties and non-refundable purchase taxes, initial estimate of dismantling and other costs required to restore the site on which it is located and all directly attributable costs to bring the asset to its location and condition necessary for it to be capable of operating in the manner as intended by the management.

An item of PPE shall always be recognised initially at cost. The cost of an item of PPE acquired is the cash price equivalent at the recognition date. If payment of an item of PPE is deferred beyond the normal credit terms, the difference between the total payment and cash price equivalent is deferred and recognsised separately as finance cost over the period of credit.

Any component of an item of PPE which has a cost significant in relation to the total cost of the item, shall be depreciated separately.

The depreciable amount of a PPE shall be allocated on a systematic basis over its useful live. The useful lives of PPE is determined in accordance with Schedule II of the Companies Act 2013 and the residual value shall not exceed 5% of the original cost of the asset.

After initial recognition the company adopts the Cost model for subsequent measurement of its PPE.

On disposal of an item of PPE, any gains or losses are recognised in the profit and loss.

1.2 Financial Instruments:

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

1.2.1 Financial Assets - Initial Recognition and Measurement:

Initial recognition of financial assets is always at fair value. An entity shall classify all financial assets as subsequently measured either at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both (i) the entityâs business model for managing financial assets, and (ii) the contractual cash flow characteristics of the financial asset.

Reclassification: an entity shall reclassify financial assets when and only when it changes the business model for managing those financial assets

Financial Assets - De-recognition:

Financial assets are de-recognised when and only when:

â(a) The contractual rights to cash flows from the financial asset expires; or (b) The financial asset is transferred and the transfer qualifies for derecognitionâ

A transfer qualifies for de-recognition, when the entity transfers substantially all the risks and rewards of ownership of the financial asset.

On derecognition, the difference between the carrying amount of the financial asset and the consideration received shall be recognised in the statement of profit and loss

Investments in subsidiaries, associates and joint ventures: Investment in subsidiaries, joint ventures and associates are measured at cost as per Ind AS 27.

Trade Receivables: Trade receivables do not have significant financing component and are carried at fair value which is the initial transaction price.

Impairment of Financial Assets:

Expected credit losses (ECL) are recognised for all financial assets subsequent to initial recognition other than financial assets in FVTPL category.

For financial assets other than trade receivables that do not carry any significant component, expected credit losses are measured are measured either using the 12-month expected credit loss approach or the lifetime expected credit loss approach depending on whether the credit on the financial asset has increased significantly since its initial recognition.

For trade receivables that do not contain significant financing component, the company has adopted the simplified approach to measure loss allowance at an amount equal to life time expected credit losses i.e. expected cash shortfalls. The impairment losses and reversals are recognised in the Statement of Profit and Loss.

1.2.2 Financial Liabilities - Initial

Recognition and Measurement:

Initial recognition of financial liabilities shall always be at fair value. All financial liabilities shall be subsequently measured at amortised cost except for financial liabilities at FVTPL and financial guarantee contracts.

A financial liability shall be derecognised when and only when it is extinguished ie. When the obligation specified in the contract is discharged or cancelled or expires. Any difference between the carrying amount of the financial liability and consideration paid, shall be recognised in profit or loss.

Financial Liabilities - Financial Guarantee contracts:

âFinancial guarantee contracts issued by the company, are those contracts that require a payment to be made to reimburse the holder for loss it incurs because the specified debtor fails to make payment when due, in accordance with the terms of the debt instrument. Financial guarantee contracts are recognised as financial liability at the time the guarantee is issued and measured initially at fair value. Subsequently financial guarantee liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 - Financial Instruments and the amount initially recognised less cumulative amortisation, where appropriateâ

Financial Liabilities - De-recognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another, from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

1.3 Iventories:

Inventories are valued at lower of cost and net realisable value. Cost of work in progress and finished goods comprise of purchase cost, conversion costs and other costs incurred in bringing the inventories to their present location and condition. Cost is determined using the weighted average basis.

Net realisable is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

1.4 Income Taxes:

Income tax comprises of current tax and deferred tax. Income tax is recognised in the statement of profit and loss except for items that are recognised directly in equity or in other comprehensive income.

Current tax: current tax liabilities (assets) for the current and prior periods shall be measured at the amounts expected to be paid to (recovered from) the taxation authorities. Current tax is measured using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current tax assets and current tax liabilities shall be offset if and only if the entity has a legally enforceable right to set off the recognised amounts and where the entity intends to either settle on a net basis or to realise the asset and liability simultaneously.

Deferred tax: Deferred tax is recognised using the balance sheet liability approach. Deferred income tax assets and liabilities are recognised for all deductible temporary differences and taxable temporary differences arising from differences between the carrying amounts of assets and liabilities and their respective tax bases.

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

Deferred assets are shall be recognised for carry forward of unused tax laws and unused tax credits to the extent it is probable that future taxable profits will be available against which the unused tax losses and unused tax credits can be utilised.

The carrying amount of a deferred tax asset shall be reviewed at the end of each reporting period and shall be reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all that deferred tax asset to be utilised. Deferred tax assets and liabilities shall be offset, if and only if, the entity has a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or on different taxable entities which intend to settle current tax liabilities and assets on net basis, or to realise the assets and settle the liabilities simultaneously.

1.5 Revenue Recognition:

a) Sale of Goods: Revenue from sale of goods is recognised when all significant risks and rewards of ownership are transferred to the buyer as per the terms of the contract, there is no continuing managerial involvement with the goods and the amount of revenue can be measured reliably. The company retains no effective control of the goods transferred and no significant uncertainty exists regarding the amount of the consideration that will be derived from sale of goods.

Revenue is measured at fair value of consideration received or receivable after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as sales tax, value added tax etc.

b) Rendering of Services: Income from services is recognised based on agreements/ arrangements with the customers, as the service is performed in proportion to the stage of completion of the transaction at the reporting date and the amount of revenue can be measured reliably.

c) Interest Income and Dividend: Interest income is recognised using the effective interest rate (EIR) method. Dividend income on investments is recognised when the right to receive dividend is established.

1.6 Finance Cost:

Finance cost includes interest expense on borrowings calculated using the effective interest rate (EIR) method. The entity capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of the asset. All other borrowing costs is recognised as an expense in the period in which incurred.

1.7 Employee Benefit Expenses:

a) Short Term Employee Benefits:

Short term employee benefits include wages and salaries, paid annual leaves, paid sick leave, profit sharing and bonuses etc. expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service. Short term employee benefits are recognised in the financial statements at an undiscounted amount, as an expense, for the period in which the employee has rendered the service.

b) Post Employment Benefits:

Under defined contribution plans the entity pays fixed contributions into a separate entity (a fund) with no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. The related actuarial and investment risks fall on the employee. The reporting entityâs obligation is determined by the amounts contributed for that period and the contribution paid / payable is recognised as an expense for the period the related services are rendered by the employee

1.8 Foreign Currency Translation:

The companyâs function currency is Indian rupees (INR). All foreign currency transactions are initially translated into the functional currency using exchange rates at the date of transaction. At each reporting date, all monetary foreign currency items are translated into functional currency using the closing rate. All non monetary items foreign currency items are translated into functional currency at transaction date rates or at exchange rates at the date the fair value of non monetary items were re-valued, wherever applicable. All resulting exchange gains / losses are recognised in profit or loss.

In case of foreign operations, all monetary and non monetary items are translated into the functional currency using the closing rates. The resultant exchange differences are recognised in other comprehensive income net of taxes and accumulated in other equity as a separate component.

1.9 Earnings Per Share:

Basic earnings per share (BEPS) is computed by dividing the Net profit for the year attributable to equity share holders of the company by the weighted average number of equity shares (WAN) outstanding during the period. For calculating Diluted earnings per share (DEPS), the net profit for the period attributable to equity share holders of the company is divided by WAN, adjusted for the effects of all dilutive potential equity shares.

1.10 Provisions and Contigent Liabilities:

A provision is a liability of uncertain timing or amount. Provision is recognised when the entity has a present obligation based on a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where the effect of time value of money is material, the amount of provision shall be the present value of the expenditures expected to be required to settle the obligation.

Contingent liability shall never be recognised. A contingent liability is disclosed, unless the possibility of outflow of resources embodying economic benefits is remote.

1.11 Leases:

Leases in which a substantial portion of risks and rewards of ownership are retained by the lessor are classified as operating leases. Operating lease payments and receipts are recognised in profit and loss on a straight line basis over the lease term unless the lease payments are structured to increase in line with expected general inflation to compensate the lessorâs expected inflationary cost increases, in which case the same is recognised as expense or income in line with the contractual term.

A Lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership to the lessee.

Mar 31, 2017

1 COMPANY OVERVIEW

The Company was incorporated in August 1 994 having CIN No. L74120MH1994PLC079971, at Mumbai under The Companies Act, 1956.

The Company is engaged in the e-waste recycling business in an organized manner, with the help of superior technology, complying norms set by the Pollution Control Board for the environmental safety.

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements:

The financial statements are prepared to comply in all material aspects under the Historical Cost convention and in accordance with generally accepted accounting principles in India and the mandatory Accounting Standards prescribed under Section 133 of the Companies Act 2013 (''Act'') read with Rule - 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

2.2 Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires Management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon Management''s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Fixed Assets:

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Advances paid towards the acquisition of fixed assets are disclosed as "Capital advances" under Loans and Advances and the cost of assets not ready to be put to use as at the balance sheet date are disclosed as ''Capital work-in-progress''.

2.4 Depreciation:

a) Tangible Fixed Assets

Depreciation on fixed assets is provided under straight line method based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 with the exception of the following:

Depreciation is provided on prorata basis from/up to the date of purchase or disposal, for asset purchased or sold during the year. Assets costing less than Rs 5,000 individually are fully depreciated in the year of purchase.

2.5 Impairment Loss

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the statement of profit and loss. If at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to maximum of depreciated historical costs.

2.6 Branding Expenses:

Brand building expenses have been considered as intangible fixed asset and shown at actual cost. Branding expenses will be amortized over its useful life of assets, however, not exceeding a period of 10 years. The write off will commence from the year in which the branding exercise is completed.

2.7 Revenue Recognition:

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

a) Revenue from sale of goods is recognized when all the significant risk and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects Sales Tax & Value Added Taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

b) Revenue from service charges are recognized pro-rata over the period of the contract as and when services are rendered. The company collects service tax on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

c) Interest Revenue is recognized on a time proportionate basis taking into account the amount outstanding and the applicable interest rate.

d) Dividend Income is recognized when the company''s right to receive dividend is established.

2.8 Inventories:

Closing Stock are valued at cost and net realizable value, whichever is lower.

2.9 Investments:

Investment that are readily realizable and intended to be held for not more than a year from the date on which such investment are made are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investments basis. 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. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

2.10 Retirement and Other Employee Benefits:

Retirement benefits in the form of provident fund and employee state insurance scheme are a defined contribution scheme. The contribution to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable towards provident fund and employee state insurance scheme.

The company has paid the liability towards leave enacashment at the year end as an when accrued to the company and does not provide any liability. The amount paid is charged to the Statement of profit and loss account.

2.11 Borrowing Costs:

Borrowing Costs include interest, incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur.

2.12 Foreign Exchange Transactions:

Foreign currency transactions are recorded at the exchange rates prevailing at the date of the transaction. Monetary foreign currency assets and liabilities are translated into Indian rupees at the exchange rate prevailing at the balance sheet date. All exchange differences are dealt with in th statement of profit and loss account.

2.13 Operating Leases:

a) Where the company is lessee Leases where significant portion of risk and reward of ownership are retained by the lessor are classified as operating leases and lease rental thereon are charged to statement of profit and loss.

b) Where the company is the lessor Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assest subject to operating lease are included in fixed assets (Facility Land). Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term.

2.14 Finance Lease:

Finance Lease or similar arrangements, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed under Tangible Assets. Finance Expenses to the extent of Borrowing cost are capitalized and remaining are charged to statement of profit and loss account.

2.15 Research and Development Expenditure:

Research costs are expensed as incurred. Development expenditure incurred on a project is recognized as an intangible asset where the company can demonstrate the criteria laid down in AS-26 for recognition of an Intangible Asset.

2.16 Taxes on Income:

Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period.

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of The Income Tax Act, 1961. Deferred Tax represents the effect of "timing differences" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets are recognized only on reasonable certainty of realization and on unabsorbed depreciation and brought forward losses only on virtual certainty.

2.17 Provisions and Contingencies:

A provision is recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

2.18 Earning Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.19 Cash and Cash Equivalents:

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

Mar 31, 2016

1 COMPANY OVERVIEW

The Company was incorporated in August 1 994 having CIN No. L74120MH1994PLC079971, at Mumbai under The Companies Act, 1956. The Company is engaged in the e-waste recycling business in an organized manner, with the help of superior technology, complying norms set by the Pollution Control Board for the environmental safety.

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements:

The financial statements are prepared to comply in all material aspects under the Historical Cost convention and in accordance with generally accepted accounting principles in India and the mandatory Accounting Standards prescribed under Section 133 of the Companies Act 2013 (''Act'') read with Rule- 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

2.2 Use of Estimates:

2.3 Fixed Assets:

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs of capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Advances paid towards the acquisition of fixed assets are disclosed as "Capital advances" under Loans and Advances and the cost of assets not ready to be put to use as at the balance sheet date are disclosed as ''Capital work-in-progress''.

2.4 Depreciation:

a) Tangible Fixed Assets

Depreciation on fixed assets is provided under straight line method based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 with the exception of the following:

Plant &	23 Yrs.
Machinery
Vehicle	11Yrs.

Depreciation is provided on prorate basis from/up to the date of purchase or disposal, for asset purchased or sold during the year. Assets costing less than ''5,000 individually are fully depreciated in the year of purchase.

2.5 Impairment Loss

2.6 Branding Expenses:

2.7 Revenue Recognition:

c) Interest Revenue is recognized on a time proportionate basis taking into account the amount outstanding and the applicable interest rate.

d) Dividend Income is recognized when the company''s right to receive dividend is established.

2.8 Inventories:

Closing Stock are valued at cost and net realizable value, whichever is lower.

2.9 Investments:

Investment that are readily realizable and intended to be held for not more than a year from the date on which such investment are made are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investments basis. Longterm 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. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

2.10 Retirement and Other Employee Benefits:

Retirement benefits in the form of provident fund and employee state insurance scheme are a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable towards provident fund and employee state insurance scheme.

The company has paid the liability towards leave encashment at the year end as an when accrued to the company and does not provide any liability. The amount paid is charged to the Statement of profit and loss account.

2.11 Borrowing Costs:

2.12 Foreign Exchange Transactions:

2.13 Operating Leases:

b) Where the company is the lessor Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating lease are included in fixed assets (Facility Land). Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term.

2.14 Finance Lease:

2.15 Research and Development Expenditure:

2.16 Taxes on Income:

"Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period.

2.17 Provisions and Contingencies:

2.18 Earning Per Share:

"Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.19 Cash and Cash Equivalents:

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

c) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of ''10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of prefential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.

Secured Long Term Borrowings

- Indian Rupee term loan from bank is repayable in equated periodic installments up to a 5 year period each along with interest. Further, the loan has been guaranteed by personal guarantee of the chairman and managing director of the company, Ecoreco Ventures Private Limited, the holding company and by collateral security of the registered office in the name of B.K.Soni (HUF) and Pledge of 3.40 lakhs equity shares of the company by the chairman and managing director of the company Mr. B.K. Soni.

- The Vehicle loan from ICICI bank is repayable in equated periodic installments up to 36 months period each along with interest. Further, the loan has been secured by hypothecation of Vehicle and personal guarantee of Director.

Unsecured Long-Term Borrowings:

c) Repayment to start after 1 year from the date of commercialization of the project in 5 annual installments

Mar 31, 2014

1.1 Basis of preparation of financial statements:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by The Central Government as Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.2 Use of Estimates:

The preparation of financial statements is in conformity with generally accepted accounting principles (''GAAP'') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Fixed Assets and Depreciation:

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and all attributable cost of bringing the asset to its working condition for its intended use. Depreciation on Fixed Assets has been provided on straight line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 Branding Expenses:

Brand building expenses have been considered as intangible fixed asset and shown at actual cost. Branding expenses will be amortized over its useful life of assets, however, not exceeding a period of 10 years. The write off will commence from the year in which the branding exercise is completed.

1.5 Goodwill on Merger:

Pursuant to the court order on amalgamation, Goodwill is written off from the General Reserve. The same is done over a period of 5 years.

1.6 Revenue Recognition:

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

a) Revenue from sale of goods is recognized when all the significant risk and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects Sales Tax & Value Added Taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

b) Revenue from service charges are recognized pro-rata over the period of the contract as and when services are rendered. The company collects service tax on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

c) Interest Revenue is recognized on a time proportionate basis taking into account the amount outstanding and the applicable interest rate.

d) Dividend Income is recognized when the company''s right to

receive dividend is established.

1.7 Inventories:

Stock-in-Trade are valued at cost or net realizable value, whichever is lower.

1.8 Investments:

Investment that are readily realizable and intended to be held for not more than a year from the date on which such investment are made are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investments basis. 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. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.9 Derivative Instruments:

In accordance with the ICAI announcement, derivative contracts, other than foreign currency forward contracts covered under AS-11, are marked to market on portfolio basis, and the net loss, if any, after considering the offsetting effect of gain on the underlying hedge item, is charged to the statement of profit and loss. Net gain, if any, after considering the offsetting effect of loss on the underlying hedge item, is ignored.

1.10 Retirement and Other Employee Benefits:

Retirement benefits in the form of provident fund and employee state insurance scheme are a defined contribution scheme. The contribution to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable towards provident fund and employee state insurance scheme.

The company has paid the liability towards leave enacashment at the year end as an when accrued to the company and does not provide any liability. The amount paid is charged to the Statement of profit and loss account.

1.11 Borrowing Costs:

Borrowing Costs include interest, incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur.

1.12 Foreign Exchange Transactions: Foreign currency transactions are recorded at the exchange rates prevailing at the date of the transaction. Monetary foreign currency assets and liabilities are translated into Indian rupees at the exchange rate prevailing at the balance sheet date. All exchange differences are dealt with in th statement of profit and loss account.

1.13 Operating Leases:

a) Where the company is lessee Leases where significant portion of risk and reward of ownership are retained by the lesser are classified as operating leases and lease rental thereon are charged to statement of profit and loss.

b) Where the company is the lessor Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assest subject to operating lease are included in fixed assets (Facility Land). Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term.

1.14 Finance Lease:

Finance Lease or similar arrangements, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed under Tangible Assets. Finance Expenses to the extent of Borrowing cost are capitalized and remaining are charged to statement of profit and loss account.

1.15 Research and Development Expenditure:

Research costs are expensed as incurred. Development expenditure incurred on a project is recognized as an intangible asset where the company can demonstrate the criteria laid down in AS-26 for recognition of an Intangible Asset.

1.16 Taxes on Income:

"Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period."

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of The Income Tax Act, 1961.

Deferred Tax represents the effect of "timing differences" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets are recognized only on reasonable certainty of realization and on unabsorbed depreciation and brought forward losses only on virtual certainty.

1.17 Provisions and Contingencies:

A provision is recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

1.18 Earning Per Share:

"Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period."

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.19 Cash and Cash Equivalents:

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

Mar 31, 2013

1.1 Basis of preparation of financial statements:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by The Central Government as Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.2 Use of Estimates:

The preparation of financial statements is in conformity with generally accepted accounting principles (''GAAP'') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates.Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Fixed Assets and Depreciation:

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and all attributable cost of bringing the asset to its working condition for its intended use. Depreciation on Fixed Assets has been provided on straight line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 Branding Expenses:

Brand building expenses have been considered as intangible fixed asset and shown at actual cost. Branding expenses will be amortized over its useful life of assets, however, not exceeding a period of 10 years. The write off will commence from the year in which the branding exercise is completed.

1.5 Goodwill on Merger:

Pursuant to the court order on amalgamation, Goodwill is written off from the General Reserve. The same is done over a period of 5 years.

1.6 Revenue Recognition:

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

a) Revenue from sale of goods is recognized when all the significant risk and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects Sales Tax & Value Added Taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

b) Revenue from service charges are recognized pro-rata over the period of the contract as and when services are rendered. The company collects service tax on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

c) Interest Revenue is recognized on a time proportionate basis taking into account the amount outstanding and the applicable interest rate.

d) Dividend Income is recognized when the company''s right to receive dividend is established.

1.7 Inventories:

a) Stock-in-Trade are valued at cost or net realizable value, whichever is lower.

b) Shares held as stock in trade are valued at purchase cost.

1.8 Investments:

Investment that are readily realizable and intended to be held for not more than a year from the date on which such investment are made are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investments basis. 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. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.9 Derivative Instruments:

In accordance with the ICAI announcement, derivative contracts, other than foreign currency forward contracts covered under AS-11, are marked to market on portfolio basis, and the net loss, if any, after considering the offsetting effect of gain on the underlying hedge item, is charged to the statement of profit and loss. Net gain, if any, after considering the offsetting effect of loss on the underlying hedge item, is ignored.

1.10 Retirement and Other Employee Benefits:

Retirement benefit in the form of provident fund and employee state insurance scheme are a defined contribution scheme. The contribution to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable towards provident fund and Employee state insurance scheme.

The Company has paid the liability towards leave enacashment at the year end as an when accrued to the company and does not provide any liability. The amount paid is charged to the Statement of profit and loss account.

1.11 Borrowing Costs:

Borrowing Costs includes interest, incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective assets. All other borrowing cost are expensed in the period they occur.

1.12 Foreign Exchange Transactions:

Foreign currency transactions are recorded at the exchange rates prevailing at the date of the transaction. Monetary foreign currency assets and liabilities are translated into Indian rupees at the exchange rate prevailing at the balance sheet date. All exchange differences are dealt with in th statement of profit & loss account.

1.13 Operating Leases:

a) Where the company is lessee Leases where significant portion of risk and reward of ownership are retained by the lesser are classified as operating leases and lease rental thereon are charged to statement of profit and loss.

b) Where the company is the lessor

Leases in which the company doesnot transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assest subject to operating lease are included in fixed assets (Facility Land). Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term.

1.14 Finance Lease:

Finance Lease or similar arrangements, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed under Tangible Assets. Finance Expenses to the extent of Borrowing cost are capitalized and remaining are charged to statement of profit and loss account.

1.15 Research and Development Expenditure:

Research costs are expensed as incurred. Development expenditure incurred on a project is recognized as an intangible asset where the company can demonstrate the criteria laid down in AS-26 for recognition of an Intangible Asset.

1.16 Taxes on Income:

"Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period. Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961. Deferred Tax represents the effect of ""timing differences"" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets are recognized only on reasonable certainty of realization and on unabsorbed depreciation and brought forward losses only on virtual certainty."

1.17 Provisions and Contingencies:

A provision is recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

1.18 Earning Per Share:

"Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares."

1.19 Cash and Cash Equivalents:

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

Mar 31, 2012

1.1 Basis of preparation of financial statements:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accrual basis of accounting and accounting standards issued by The Central Government as Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.2 Use of Estimates:

The preparation of financial statements is in conformity with generally accepted accounting principles ('GAAP') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Presentation & disclosure of financial statements

During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.4 Fixed Assets and Depreciation:

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and all attributable cost of bringing the asset to its working condition for its intended use. Depreciation on Fixed Assets has been provided on straight line method on pro-rata basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.5 Revenue Recognition:

Revenue (income) is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

a) Revenue from sale of goods is recognized when all the significant risk and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects Sales Tax & Value Added Taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

b) Revenue from service charges are recognized pro-rata over the period of the contract as and when services are rendered. The company collects service tax on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue.

c) Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

d) Dividend Income is recognized when the company's right to receive dividend is established.

1.6 Inventories:

a) Stock-in-Trade are valued at cost or net realizable value whichever is lower.

b) Shares held as stock in trade are valued at purchase cost.

1.7 Investments:

Investment that are readily realizable and intended to be held for not more than a year from the date on which such investment are made are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investments basis. 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.

1.8 Foreign Exchange Transactions:

Foreign currency transactions are recorded at the exchange rates prevailing at the date of the transaction. Monetary foreign currency assets and liabilities are translated into Indian rupees at the exchange rate prevailing at the balance sheet date. All exchange differences are dealt with in profit and loss account.

1.9 Leases:

Leases where significant portion of risk & reward of ownership are retained by the lesser are classified as operating leases & lease rental thereon are charged to Profit & Loss Account.

1.10 Taxes on Income:

"Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period. Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961. Deferred Tax represents the effect of ""timing differences"" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets are recognized only on reasonable certainty of realization and on unabsorbed depreciation and brought forward losses only on virtual certainty."

1.11 Provisions and Contingencies:

A provision is recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible or present obligation where it is not probable that outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

1.12 Earning Per Share:

"Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares."

1.13 Cash and Cash Equivalents:

Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short- term investments with an original maturity of three months or less.

1.14 Branding Expenses:

Brand building expenses have been considered as intangible fixed asset and shown at actual cost. Branding expenses will be amortized over its useful life of assets, however, not exceeding a period of 10 years. The written off will commence from the year in which the branding exercise is completed.

1.15 Goodwill on Merger:

Pursuant to court order on amalgamation, goodwill is written off from the General Reserve. The same is done over a period of 5 years.

1.16 Research and Development Expenditure:

Research cost are expensed as incurred. Development expenditure incurred on an project is recognized as an intangible asset when the company can demonstrate the criteria laid down in AS-26 for recognition of an Intangible Asset.

1.17 Derivative Instruments:

In accordance with the ICAI announcement, derivative contracts, other than foreign currency forward contracts covered under AS-11, are marked to market on portfolio basis, and the net loss, if any, after considering the offsetting effect of gain on the underlying hedge item, is charged to the statement of profit and loss. Net gain, if any, after considering the offsetting effect of loss on the underlying hedge item, is ignored.

Mar 31, 2011

(a) Accounting convention & concepts: The financial statements are prepared under the historical cost convention, in accordance with accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, on accrual basis, as adopted consistently by the Company.

(b) Revenue Recognition:

i. Income and expenditure are recognized on accrual basis.

ii. Dividend income is recognized as and when received.

iii. In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis.

(c) Fixed Assets: Fixed assets are stated at cost less accumulated depreciation. Cost includes all identifiable expenditure to bring the assets to its present location and condition.

(d) Depreciation: Depreciation on fixed assets is provided on Straight Line Method on a pro Ã rata basis at the rates specifiedin the Schedule XIV to the Companies Act, 1956.

(e) Investments: Investments are valued at cost of acquisition and include brokerage fees and incidental expenses, wherever applicable. Investments are classified as long term and are carried at cost.

(f) Foreign Exchange transaction: Transactions in foreign currency are converted at the rates prevailing on the date of the transactions.

(g) Inventories:

i. Inventories are valued at cost or net realizable value whichever is lower .

ii. Shares held as stock-in-trade are valued at cost or market value whichever is lower.

(h) Branding expenses: It is considered as intangible fixed asset and shown at actual cost. Branding expenses is proposed to be written off from the year in which the branding exercise is completed .

(i) Goodwill on Merger: 1/5th of the total goodwill written-off in accordance with AS-14 and AS-26

Mar 31, 2010

(a) Accounting convention & concepts:

The financial statements are prepared under the historical cost convention, in accordance with accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, on accrual basis, as adopted consistently by the Company.

(b) Accounting Treatment Of Merger:

The appointed date of merger is 1st January, 2010 between INFOTREK SYSCOM LTD (Transferee Company) and ECO RECYCLING LTD (Transferor Company). To give effect to the merger, the assets and liabilities are recorded at Book Value in the books of the Transferee Company in accordance with AS - 14, as notified by the Companies (Accounting Standards) Rules, 2006 as amended from time to time. The Investments of Transferee Company in the Transferor Company stands cancelled. The difference between the book value of Assets and Liabilities, Inter-Company Investments and Fresh Issue of Capital to the Shareholders (excluding to Transferee Company) is treated as Goodwill.

(c) Revenue Recognition

a. Income and expenditure are recognized on accrual basis.

b. Dividend income is recognized as and when received.

c. In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis.

(d) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. Cost includes all identifiable expenditure to bring the assets to its present location and condition.

(e) Depreciation

Depreciation on fixed assets is provided on Straight Line Method on a pro - rata basis at the rates specified in the Schedule XIV to the Companies Act, 1956.

(f) Investments

Investments are valued at cost of acquisition and include brokerage fees and incidental expenses, wherever applicable. Invest ments are classified as long term and are carried at cost.

(g) Foreign Exchange transaction:-

Transactions in foreign currency are converted at the rates prevailing on the date of the transactions.

(h) Inventories

a. Shares held as stock-in-trade are valued at cost or market value whichever is lower.

b. Others stock-in-trade is valued at cost.

(i) Branding expenses

It is considered as intangible fixed asset and shown at actual cost.

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