Accounting Policies of GK Consultants Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are
set out below. These policies have been consistently applied to all the years presented, unless
otherwise stated.

2.1 Statement of Compliance and Basis of Presentation and Preparation of financial
statements

These financial statements are presented in ‘Indian Rupees’, which is also the Company’s
functional currency.

a. Statement of Compliance

These financial statements of the Company have been prepared in accordance with the
Indian Accounting Standards ("Ind AS") as per the Companies (Indian Accounting
Standards) Rules 2015 as amended from time to time and notified under section 133 of the
Companies Act, 2013 ("the Act"), and in conformity with the accounting principles
generally accepted in India and other relevant provisions of the Act. Any application
guidance/ clarifications/ directions issued by the RBI or other regulators are implemented as
and when they become applicable.

The Company had prepared its financial statements in accordance with accounting standards
notified under section 133 of the Companies act 2013, read together with paragraph 7 of the
Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment
Rules, 2016 and the Master Directions - Non-Banking-Financial Company Systemically
Important Non-Deposit taking Company (hereinafter referred as ''previous GAAP'').The
financial statements are presented in Indian Rupees (INR) and all values are rounded to the
thousands (with two digit), except when otherwise indicated.

The regulatory disclosures as required by Master Direction - Reserve Bank of India (Non¬
Banking Financial Company -Scale Based Regulation) Directions, 2023 issued by Reserve
Bank of India (‘RBI Master Directions’) to be included as a part of the Notes forming part of
the financial statements as prepared as per the requirements.

b. Presentation of financial statements

The Balance Sheet, the Statement of Changes in Equity and the Statement of Profit and Loss
arepresented in the format prescribed under Division III of Schedule III of the Act, as
amended from timeto time, for Non-Banking Financial Companies (‘NBFCs’) that are
required to comply with Ind-AS. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information as per the
requirements of IND AS 7 ‘Statement of Cash Flows’.

c. Preparation of financial statements

The financial statements have been prepared on an accrual basis as a going concern and
under the historical cost convention.

d. Use of Estimates

In preparing these financial statements, management has made judgements, estimatesand
assumptions that affect the application of the Company’s accounting policies and the
reportedamounts of assets, liabilities, income, expenses andthe disclosures of contingent
assets and liabilities. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these
estimates and the differences between the actual results and the estimates are recognised in
the periods in which the results are known / materialise.

2.2 Financial Instruments

a. Date of Recognition

Financial assets and financial liabilities are recognised in the Company’s balance sheet when
the Company becomes a party to the contractual provisions of the instrument.

b. Initial Measurement

Regular way purchases and sales of financial assets are recognised on trade-date, the date on
which theCompany commits to purchase or sell the asset.

2.3 Financial Assets

Financial asset is recognised on trade date initially at cost of acquisition net of transaction
costand income that is attributable to the acquisition of the financial asset. Cost equates the
fairvalue on acquisition. Financial asset measured at amortised cost and Financial measured
at fairvalue through other comprehensive income is presented at net carrying value in the
financial statements. Unamortised transaction cost and incomes and impairment allowance
on financial asset is shown as a deduction from the gross carrying amount of the financial
assets.

a. Cash and Cash Equivalents

Cash and cash equivalents include cash at banks and on hand, demand deposits with banks
having maturity less than 3 months, other short term highly liquid investments with original
maturities of three months or less that are readily convertible toknown amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in the balance sheet.

The Company follows the policy of crediting the customer’s account only on receipt of
amount in the bankand as such no cheques in hand are taken into consideration.

b. Inventories

The company has valued the inventories at fair value in the Financial Statements.

c. Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of property, plant and equipment includes interest on

borrowings attributable to acquisition up to the date the asset is ready for its intended use &
other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed
assets is capitalised only if such expenditure results in an increase in the future 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 profit or loss
during the reporting period in which they areincurred.

Depreciation methods, estimated useful lives & residual value

Depreciation on Property, Plant and Equipment is provided in accordance with the
provisions of Schedule II of the CompaniesAct, 2013. Tangible assets are depreciated on
straight line basis method over the useful life of assets, as prescribed in Part C of Schedule II
of the Companies Act, 2013.

The estimated useful lives for the different types of assets are:

(i) Furniture and Fixtures -10 years

(ii) Office Equipment owned - 5 years

(iii) Computers - 3 years

(iv) Air Conditioners - 10 years

The Company provides pro-rata depreciation from the day the asset is put to use and for any
asset sold, till the date of sale. The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is
written down immediately to its recoverable amount if the asset’s carrying amount is
greaterthan its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount
and are recognised in thestatement of profit and loss.

d. Intangible Assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if
any. The cost of an intangible asset comprises its purchase price, including any import duties
and other taxes (other than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its intended use and net of
any trade discounts and rebates. Intangible Assets are amortised on straight-line basis over
the useful life of the asset up to a maximum of 5 years commencing from the month in which
such asset is first installed.

The Company provides pro-rata depreciation from the day the asset is put to use and for any
asset sold, till the date of sale.

e. Impairment of Assets

At the end of each year, the Company determines whether a provision should be made for
impairment loss on Property, Plant and Equipment to determine whetherthere is any
indication that the asset have suffered an impairment lossAn impairment loss is charged to
Statement of Profit and Loss in the year in which, an asset is identified as impaired, when the
carrying value of the asset exceeds its recoverable value. The impairment loss recognised in
prior accounting periods is reversed if there has been a change in the estimate of recoverable
amount.

f. Investments

Long-term investments (excluding investment properties), are carried individually at cost
less provision for diminution, other than temporary if any, in the value of such investments.
Investments are nil in the company.

g. Reclassifications within classes of financial assets

A change in the business model would lead to a prospective re-classification of the
financialasset and accordingly the measurement principles applicable to the new
classification will beapplied. During the current financial year and previous accounting
period there was no changein the business model under which the Company holds financial
assets and therefore noreclassifications were made.

h. Modification and De-recognition of financial assets
Modification of financial assets

A modification of a financial asset occurs when the contractual terms governing the cash
flowsof a financial asset are renegotiated or otherwise modified between initial
recognition andmaturity of the financial asset. A modification affects the amount and/or
timing of thecontractual cash flows either immediately or at a future date. The Company
renegotiates loansto customers in financial difficulty to maximise collection and
minimise the risk of default. Aloan forbearance is granted in cases where although the
borrower made all reasonable effortsto pay under the original contractual terms, there is
a high risk of default or default hasalready happened and the borrower is expected to be
able to meet the revised terms. Therevised terms in most of the cases include an
extension of the maturity of the loan, changes tothe timing of the cash flows of the loan
(principal and interest repayment), reduction in theamount of cash flows due (principal
and interest forgiveness).

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similarfinancial assets) is derecognised when:

1) the rights to receive cash flows from the asset have expired, or

2) the Company has transferred its rights to receive cash flows from the asset
andsubstantially all the risks and rewards of the asset, or the Company has neither
transferrednor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

If the Company retains substantially all the risks and rewards of ownership of a
transferredfinancial asset, the Company continues to recognise the financial asset and
also recognises acollateralised borrowing for the proceeds received.

Write-off

Impaired loans and receivables are written off, against the related allowance for loan
impairment on completion of the Company’s internal processes and when the Company
concludes that there is no longer any realistic prospect of recovery of part or all of the
loan.

For loans that are individually assessed for impairment, the timing of write off is
determinedon a case-by-case basis. A write-off constitutes a de-recognition event. The
Company has rightto apply enforcement activities to recover such written off financial
assets. Subsequentrecoveries of amounts previously written off are credited to the
income statement.

2.4 Financial Liability and Equity

Debt and equity instruments that are issued are classified as either financial liabilities or
asequity in accordance with the substance of the contractual arrangement.

a. Financial liabilities

A financial liability is a contractual obligation to deliver cash or another financial asset or
toexchange financial assets or financial liabilities with another entity under conditions that
are potentially unfavourable to the Company or a contract that will or may be settled in the
Company’s own equity instruments and is a non-derivative contract for which the Company
is or may be obliged to deliver a variable number of its own equity instruments, or a
derivative contract over own equity that will or may be settled other than by the exchange of
a fixedamount of cash (or another financial asset) for a fixed number of the Company’s own
equity instruments.

Financial liability is recognised initially at cost of acquisition net of transaction costs and
incomes that is attributable to the acquisition of the financial liability.

De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and payable is
recognised in profit or loss.

b. Equity

An equity instrument is any contract that evidences a residual interest in the assets of
anentity after deducting all of its liabilities. Equity instruments issued by the Company are
recognised at the proceeds received, net of direct issue costs. A conversion option that will
besettled by the exchange of a fixed amount of cash or another financial asset for a fixed
numberof the Company’s own equity instruments is an equity instrument.

No gain/loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the
Company’s own equity instruments.

2.5 Segment reporting

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

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

2.6 Revenue Recognition

Ind-AS 115 Revenue from Contractswith Customers outlines a single comprehensive model
of accounting for revenue arising from contracts with customers. Revenue is generally
recognised on accrual basis as and when they are earned. Revenue is recognised when (or as)

the Company satisfies a performance obligation by transferring a promised good or service
to a customer.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the
amount of the transaction price (excluding estimates of variable consideration) that is
allocated to that performance obligation.

a. Interest Income

Interest income from investments/financial assets isrecognized when it is certain that the
economic benefits will flow to the Company and theamount of income can be measured
reliably. Interest income is accrued on a time basis, by reference to the principal outstanding
and atthe effective interest rate applicable. The interest income is earned on loans, advances
and bank deposits.

b. Dividend Income

Dividend income is accounted for on receipt basis. The company is dealing in trading of
shares & securities and dividend earned on such dealings of shares is shown as other
operating revenue. Such income is generally accounted when the Company’s right to receive
dividend is established.

c. Fees and commission Income

Fee for professional advisory services is accounted as and when service is rendered provided
there is reasonable certainty of its ultimate realisation.

Revenue from commission income is recognised when the service is performed.

d. Sale of products

Sales are recognised on transfer of significant risks and rewards of ownership to the buyer as
and when the same are traded on Stock Exchange.

e. F & O Income

Income and/or loss on Future and Options as well as derivative dealings are recognised in
books of assets are on maturity of such transactions on settlement date. Outstanding/Pending
transactions/positions, which are not settled by end of any period, are not recognised as
income or loss.

2.7 Employees Benefits

Gratuity

As per terms of employment, none of the employee of the company is entitled for gratuity.
Compensated Absences/Leave Encashment

As per the company’s employment policy, employees are not entitled for leave encashment.
Other short-term benefits

Expense in respect of other short-term benefits is recognized on the basis of the amount paid
or payable for the period during which services are rendered by the employee.

2.8 Borrowing Costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange
differences arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent
not directly related to the acquisition of qualifying assets are charged to the Statement of
Profit and Loss over the tenure of the loan wherever applicable. Borrowing costs, allocated
to and utilised for qualifying assets, pertaining to the period from commencement of
activities relating to construction/development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets wherever applicable.

2.9 Leases

Leases are classified as operating lease where significant portion of risks and reward
ofownership of assets acquired under lease is retained by the lessor. Leases of assets
underwhich substantially all of the risks and rewards of ownership are effectively retained
bythelessee are classified as finance lease.

Assets given under finance lease are recognised as a receivable at an amount equal to
thenetinvestment in the lease. Lease rentals are apportioned between principal and interest on
theinternal rate of return. The principal amount received reduces the net investment in the
leaseand interest is recognised as revenue.

Lease rental - under operating leases (excluding amount for services such as insurance
andmaintenance) are recognised on a straight-line basis over the lease term, except for
increase inline with expected inflationary cost increases.

2.10 Foreign currencies transactions

Transactions in currencies other than the Company’s functional currency are recorded
oninitial recognition using the exchange rate at the transaction date. At each Balance Sheet
date, foreign currency monetary items are reported at the rates prevailing at the year end.
Non-monetary items that are measured in terms of historical cost in foreign currency are
notretranslated.

Exchange differences that arise on settlement of monetary items or on reporting of
monetaryitems at each Balance Sheet date at the closing spot rate are recognised in the
Statement ofProfit and Loss in the period in which they arise.

2.11 Other Expenditure

Other expenses are accounted on accrual basis.

2.12 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the
post-tax effect of extraordinary items, if any) by the number of equity shares outstanding
during the year.

2.13 Taxation

a. Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s
taxable income based on the applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

b. Current Taxes

Provision for current tax is made after taking into consideration benefits admissible under
the provisions of the IncomeTax Act, 1961. Minimum Alternate Tax (MAT) paid in
accordance with the tax laws, which gives future economic benefits in the form of
adjustment to future income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as
an asset in the Balance Sheet when it is probable that future economic benefit associated
with it will flow to the Company, if applicable.

c. Deferred Taxes

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are
recognised using the taxrates that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets are recognisedonly to the extent there is reasonable certainty
that the assets can be realised in future; however, where there isunabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are recognised only if there
isreasonable certainty of realisation of such assets. Deferred tax assets are reviewed as at
each balance sheet date andwritten down or written up to reflect the amount that is
reasonably certain (as the case may be) to be realised. Deferred tax assets in respect of
unabsorbed depreciation and carry forward of losses are recognised only if there is virtual
certainty that there will be sufficient future taxable income available to realise such assets.

d. Goods and Services Input Tax Credit

Goods and Services tax input credit is accounted for in the books in the period in which
thesupply of goods or service received is accounted and when there is no uncertainty
inavailing/utilising the credits.

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Mar 31, 2024

The principal accounting policies applied in the preparation of these financial statements are
set out below. These policies have been consistently applied to all the years presented, unless
otherwise stated.

2.1 Statement of Compliance and Basis of Presentation and Preparation of financial
statements

These financial statements are presented in ‘Indian Rupees’, which is also the Company’s
functional currency.

a. Statement of Compliance

These financial statements of the Company have been prepared in accordance with the
Indian Accounting Standards ("Ind AS") as per the Companies (Indian Accounting
Standards) Rules 2015 as amended from time to time and notified under section 133 of the
Companies Act, 2013 ("the Act"), and in conformity with the accounting principles
generally accepted in India and other relevant provisions of the Act. Any application
guidance/ clarifications/ directions issued by the RBI or other regulators are implemented as
and when they become applicable.

The Company had prepared its financial statements in accordance with accounting standards
notified under section 133 of the Companies act 2013, read together with paragraph 7 of the
Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment
Rules, 2016 and the Master Directions - Non-Banking-Financial Company Systemically
Important Non-Deposit taking Company (hereinafter referred as ''previous GAAP'').The
financial statements are presented in Indian Rupees (INR) and all values are rounded to the
thousands (with two digit), except when otherwise indicated.

The regulatory disclosures as required by Master Direction - Reserve Bank of India (Non¬
Banking Financial Company -Scale Based Regulation) Directions, 2023 issued by Reserve
Bank of India (‘RBI Master Directions’) to be included as a part of the Notes forming part of
the financial statements as prepared as per the requirements.

b. Presentation of financial statements

The Balance Sheet, the Statement of Changes in Equity and the Statement of Profit and Loss
arepresented in the format prescribed under Division III of Schedule III of the Act, as
amended from timeto time, for Non-Banking Financial Companies (‘NBFCs’) that are
required to comply with Ind-AS. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information as per the
requirements of IND AS 7 ‘Statement of Cash Flows’.

c. Preparation of financial statements

The financial statements have been prepared on an accrual basis as a going concern and
under the historical cost convention.

d. Use of Estimates

In preparing these financial statements, management has made judgements, estimatesand
assumptions that affect the application of the Company’s accounting policies and the
reportedamounts of assets, liabilities, income, expenses andthe disclosures of contingent
assets and liabilities. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these
estimates and the differences between the actual results and the estimates are recognised in
the periods in which the results are known / materialise.

2.2 Financial Instruments

a. Date of Recognition

Financial assets and financial liabilities are recognised in the Company’s balance sheet when
the Company becomes a party to the contractual provisions of the instrument.

b. Initial Measurement

Regular way purchases and sales of financial assets are recognised on trade-date, the date on
which theCompany commits to purchase or sell the asset.

².^{3 Fin}aⁿcia^l A,sset;s

Financial asset is recognised on trade date initially at cost of acquisition net of transaction
costand income that is attributable to the acquisition of the financial asset. Cost equates the
fairvalue on acquisition. Financial asset measured at amortised cost and Financial measured
at fairvalue through other comprehensive income is presented at gross carrying value in
thefinancial statements. Unamortised transaction cost and incomes and impairment
allowanceon financial asset is shown separately under the heading "Other non-financial
asset", Othernon-financial liability" and "Provisions" respectively.

a. Cash and Cash Equivalents

Cash and cash equivalents include cash at banks and on hand, demand deposits with banks,
other short term highly liquid investments with original maturities of three months or less
that are readily convertible toknown amounts of cash and which are subject to an
insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

The Company follows the policy of crediting the customer’s account only on receipt of
amount in the bankand as such no cheques in hand are taken into consideration.

b. Inventories

The company has valued the inventories at fair value in the Financial Statements.

c. Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of property, plant and equipment includes interest on

borrowings attributable to acquisition up to the date the asset is ready for its intended use &
other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed
assets is capitalised only if such expenditure results in an increase in the future 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 profit or loss
during the reporting period in which they areincurred.

Depreciation methods, estimated useful lives & residual value

Depreciation on Property, Plant and Equipment is provided in accordance with the
provisions of Schedule II of the CompaniesAct, 2013. Tangible assets are depreciated on
straight line basis method over the useful life of assets, as prescribed in Part C of Schedule II
of the Companies Act, 2013.

The estimated useful lives for the different types of assets are:

(i) Furniture and Fixtures -10 years

(ii) Office Equipment owned - 5 years

(iii) Computers - 3 years

(iv) Air Conditioners - 10 years

The Company provides pro-rata depreciation from the day the asset is put to use and for any
asset sold, till the date of sale. The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is
written down immediately to its recoverable amount if the asset’s carrying amount is
greaterthan its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount
and are recognised in thestatement of profit and loss.

d. Intangible Assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if
any. The cost of an intangible asset comprises its purchase price, including any import duties
and other taxes (other than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its intended use and net of
any trade discounts and rebates. Intangible Assets are amortised on straight-line basis over
the useful life of the asset up to a maximum of 5 years commencing from the month in which
such asset is first installed.

The Company provides pro-rata depreciation from the day the asset is put to use and for any
asset sold, till the date of sale.

e. Impairment of Assets

At the end of each year, the Company determines whether a provision should be made for
impairment loss on Property, Plant and Equipment to determine whetherthere is any
indication that the asset have suffered an impairment lossAn impairment loss is charged to
Statement of Profit and Loss in the year in which, an asset is identified as impaired, when the
carrying value of the asset exceeds its recoverable value. The impairment loss recognised in
prior accounting periods is reversed if there has been a change in the estimate of recoverable
amount.

f. Investments

Long-term investments (excluding investment properties), are carried individually at cost
less provision for diminution, other than temporary if any, in the value of such investments.
Investments are nil in the company.

g. Reclassifications within classes of financial assets

A change in the business model would lead to a prospective re-classification of the
financialasset and accordingly the measurement principles applicable to the new
classification will beapplied. During the current financial year and previous accounting
period there was no changein the business model under which the Company holds financial
assets and therefore noreclassifications were made.

h. Modification and De-recognition of financial assets
Modification of financial assets

A modification of a financial asset occurs when the contractual terms governing the cash
flowsof a financial asset are renegotiated or otherwise modified between initial
recognition andmaturity of the financial asset. A modification affects the amount and/or
timing of thecontractual cash flows either immediately or at a future date. The Company
renegotiates loansto customers in financial difficulty to maximise collection and
minimise the risk of default. Aloan forbearance is granted in cases where although the
borrower made all reasonable effortsto pay under the original contractual terms, there is
a high risk of default or default hasalready happened and the borrower is expected to be
able to meet the revised terms. Therevised terms in most of the cases include an
extension of the maturity of the loan, changes tothe timing of the cash flows of the loan
(principal and interest repayment), reduction in theamount of cash flows due (principal
and interest forgiveness).

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similarfinancial assets) is derecognised when:

1) the rights to receive cash flows from the asset have expired, or

2) the Company has transferred its rights to receive cash flows from the asset
andsubstantially all the risks and rewards of the asset, or the Company has neither
transferrednor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

If the Company retains substantially all the risks and rewards of ownership of a
transferredfinancial asset, the Company continues to recognise the financial asset and
also recognises acollateralised borrowing for the proceeds received.

Write-off

Impaired loans and receivables are written off, against the related allowance for loan
impairment on completion of the Company’s internal processes and when the Company
concludes that there is no longer any realistic prospect of recovery of part or all of the
loan.

For loans that are individually assessed for impairment, the timing of write off is
determinedon a case-by-case basis. A write-off constitutes a de-recognition event. The
Company has rightto apply enforcement activities to recover such written off financial
assets. Subsequentrecoveries of amounts previously written off are credited to the
income statement.

2.4 Financial Liability and Equity

Debt and equity instruments that are issued are classified as either financial liabilities or
asequity in accordance with the substance of the contractual arrangement.

a. Financial liabilities

A financial liability is a contractual obligation to deliver cash or another financial asset or
toexchange financial assets or financial liabilities with another entity under conditions that
are potentially unfavourable to the Company or a contract that will or may be settled in the
Company’s own equity instruments and is a non-derivative contract for which the Company
is or may be obliged to deliver a variable number of its own equity instruments, or a
derivative contract over own equity that will or may be settled other than by the exchange of
a fixedamount of cash (or another financial asset) for a fixed number of the Company’s own
equity instruments.

Financial liability is recognised initially at cost of acquisition net of transaction costs and
incomes that is attributable to the acquisition of the financial liability.

De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and payable is
recognised in profit or loss.

b. Equity

An equity instrument is any contract that evidences a residual interest in the assets of
anentity after deducting all of its liabilities. Equity instruments issued by the Company are
recognised at the proceeds received, net of direct issue costs. A conversion option that will
besettled by the exchange of a fixed amount of cash or another financial asset for a fixed
numberof the Company’s own equity instruments is an equity instrument.

No gain/loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the
Company’s own equity instruments.

2.5 Segment reporting

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

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

2.6 Revenue Recognition

Ind-AS 115 Revenue from Contractswith Customers outlines a single comprehensive model
of accounting for revenue arising from contracts withcustomers.Revenue is generally
recognised on accrual basis as and when they are earned. Revenue is recognised when (or as)

the Company satisfies a performance obligation by transferring a promised good or service
to a customer.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the
amount of the transaction price (excluding estimates of variable consideration) that is
allocated to that performance obligation.

a. Interest Income

Interest income from investments/financial assets isrecognized when it is certain that the
economic benefits will flow to the Company and theamount of income can be measured
reliably. Interest income is accrued on a time basis, byreference to the principal outstanding
and atthe effective interest rate applicable. The interest income is earned on loans, advances
and bank deposits.

b. Dividend Income

Dividend income is accounted for on receipt basis. The company is dealing in trading of
shares & securities and dividend earned on such dealings of shares is shown as other
operating revenue. Such income is generally accounted when the Company’s right to receive
dividend is established.

c. Fees and commission Income

Fee for professional advisory services is accounted as and when service is rendered provided
there is reasonable certainty of its ultimate realisation.

Revenue from commission income is recognised when the service is performed.

d. Sale of products

Sales are recognised on transfer of significant risks and rewards of ownership to the buyer as
and when the same are traded on Stock Exchange.

e. F & O Income

Income and/or loss on Future and Options as well as derivative dealings are recognised in
books of assets are on maturity of such transactions on settlement date. Outstanding/Pending
transactions/positions, which are not settled by end of any period, are not recognised as
income or loss.

2.7 Employees Benefits

Gratuity

As per terms of employment, none of the employee of the company is entitled for gratuity.
Compensated Absences/Leave Encashment

As per the company’s employment policy, employees are not entitled for leave encashment.
Other short-term benefits

Expense in respect of other short-term benefits is recognized on the basis of the amount paid
or payable for the period during which services are rendered by the employee.

2.8 Borrowing Costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange
differences arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent
not directly related to the acquisition of qualifying assets are charged to the Statement of
Profit and Loss over the tenure of the loan wherever applicable. Borrowing costs, allocated
to and utilised for qualifying assets, pertaining to the period from commencement of
activities relating to construction/development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets wherever applicable.

2.9 Leases

Leases are classified as operating lease where significant portion of risks and reward
ofownership of assets acquired under lease is retained by the lessor. Leases of assets
underwhich substantially all of the risks and rewards of ownership are effectively retained
bythelessee are classified as finance lease.

Assets given under finance lease are recognised as a receivable at an amount equal to
thenetinvestment in the lease. Lease rentals are apportioned between principal and interest on
theinternal rate of return. The principal amount received reduces the net investment in the
leaseand interest is recognised as revenue.

Lease rental - under operating leases (excluding amount for services such as insurance
andmaintenance) are recognised on a straight-line basis over the lease term, except for
increase inline with expected inflationary cost increases.

².10 Fo^reigⁿ cu^rreⁿcies ^a^acdo^

Transactions in currencies other than the Company’s functional currency are recorded
oninitial recognition using the exchange rate at the transaction date. At each Balance Sheet
date, foreign currency monetary items are reported at the rates prevailing at the year end.
Non-monetary items that are measured in terms of historical cost in foreign currency are
notretranslated.

Exchange differences that arise on settlement of monetary items or on reporting of
monetaryitems at each Balance Sheet date at the closing spot rate are recognised in the
Statement ofProfit and Loss in the period in which they arise.

2.11 Other Expenditure

Other expenses are accounted on accrual basis.

2.12 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the
post-tax effect of extraordinary items, if any) by the number of equity shares outstanding
during the year.

2.13 Taxation

a. Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s
taxable income based on the applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

b. Current Taxes

Provision for current tax is made after taking into consideration benefits admissible under
the provisions of the IncomeTax Act, 1961. Minimum Alternate Tax (MAT) paid in
accordance with the tax laws, which gives future economic benefits in the form of
adjustment to future income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as
an asset in the Balance Sheet when it is probable that future economic benefit associated
with it will flow to the Company, if applicable.

c. Deferred Taxes

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are
recognised using the taxrates that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets are recognisedonly to the extent there is reasonable certainty
that the assets can be realised in future; however, where there isunabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are recognised only if there
isreasonable certainty of realisation of such assets. Deferred tax assets are reviewed as at
each balance sheet date andwritten down or written up to reflect the amount that is
reasonably certain (as the case may be) to be realised. Deferred tax assets in respect of
unabsorbed depreciation and carry forward of losses are recognised only if there is virtual
certainty that there will be sufficient future taxable income available to realise such assets.

d. Goods and Services Input T ax Credit

Goods and Services tax input credit is accounted for in the books in the period in which
thesupply of goods or service received is accounted and when there is no uncertainty
inavailing/utilising the credits.

---

Mar 31, 2015

1 Corporate information

M/s G.K. Consultants Limited is a Non Banking Financial Company registered with RBI. The company is engaged in business of consultancy, share trading, investment, hiring of assets, software business and other activities of a non banking finance company. It's registered office is situated in Delhi.

2 Significant accounting policies

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). "The Company is not a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the Company has complied with the all the Accounting Standards as applicable to Non Small and Medium Sized Company."

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and the Companies Act, 2013.. The financial statements have been prepared on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

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

2.3 Inventories

Inventories are valued at cost (on FIFO).

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

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

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortization

Depreciation has been provided on the Straight Line Method as per the rates prescribed in Schedule II to the Companies Act, 2013.

2.7 Revenue recognition

All incomes are generally accounted for on accrual basis as they are earned.

2.8 Other income

Dividend income is accounted for on receipt basis.

2.9 Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition up to the date the asset is ready for its intended use & other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits.

2.10 Intangible assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.

2.11 Foreign currency transactions and translations

Not applicable to the company.

2.12 Government grants, subsidies and export incentives

Not applicable to the company.

2.13 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary if any, in the value of such investments. Current investments are nil in the company.

2.14 Employee benefits

Employee benefits which include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits, are nil in the company as per terms of employment.

2.15 Employee share based payments

Not applicable to the company.

2.16 Borrowing costs

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan wherever applicable. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets wherever applicable.

2.17 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance. The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment wherever applicable.

2.18 Leases

The company has not undertaken any lease agreement.

2.19 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the number of equity shares outstanding during the year.

2.20 Research and development expenses

The company has not incurred any research and development expenses.

2.21 Taxes on income

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

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company, if applicable. Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability.

2.22 Joint venture operations

Not applicable to the company.

2.23 Impairment of assets

No impairment of assets has been done during the financial year 2013-14 and in current financial year 2014-15.

2.24 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

2.25 Provision for warranty

The provision for warranty is nil in the company.

2.26 Hedge accounting

Not applicable to the company.

2.27 Derivative contracts

Not applicable to the company.

2.28 Share issues expenses

Not applicable to the company.

2.29 Insurance claims

Not applicable to the company.

2.30 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilizing the credits.

---

Mar 31, 2014

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

"The Company is not a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the Company has complied with the all the Accounting Standards as applicable to Non Small and Medium Sized Company."

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and the Companies Act, 2013. The financial statements have been prepared on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

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

1.3 Inventories

Inventories are valued at cost (on FIFO).

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

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

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation has been provided on the Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

All incomes are generally accounted for on accrual basis as they are earned.

1.8 Other income

Dividend income is accounted for on receipt basis.

1.9 Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition up to the date the asset is ready for its intended use & other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits.

1.10 Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.

1.11 Foreign currency transactions and translations Not applicable to the company.

1.12 Government grants, subsidies and export incentives

Not applicable to the company.

1.13 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary if any, in the value of such investments. Current investments are nil in the company.

1.14 Employee benefits

Employee benefits which include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits, are nil in the company as per terms of employment.

1.15 Employee share based payments

Not applicable to the company.

1.16 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan whereever applicable. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets whereever applicable.

1.17 Segment reporting

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

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

1.18 Leases

The company has not undertaken any lease agreement.

1.19 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the number of equity shares outstanding during the year.

1.20 Research and development expenses

The company has not incurred any research and development expenses.

1.21 Taxes on income

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

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company, if applicable.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets.

Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability

1.22 Joint venture operations

Not applicable to the company.

1.23 Impairment of assets

No impairment of assets has been done during the financial year 2012-13 and in current financial year 2013-14.

1.24 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.25 Provision for warranty

The provision for warranty is nil in the company.

1.26 Hedge accounting

Not applicable to the company.

1.27 Derivative contracts

Not applicable to the company.

1.28 Share issues expenses

Not applicable to the company.

1.29 Insurance claims

Not applicable to the company.

1.30 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

---

Mar 31, 2013

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

"The Company is not a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the Company has complied with the all the Accounting Standards as applicable to Non Small and Medium Sized Company."

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

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

1.3 Inventories

Inventories are valued at cost (on FIFO).

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

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

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation has been provided on the Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

All incomes are generally accounted for on accrual basis as they are earned.

1.8 Other income

Dividend income is accounted for on receipt basis.

1.9 Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition up to the date the asset is ready for its intended use & other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits.

1.10 Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.

1.11 Foreign currency transactions and translations

Not applicable to the company.

1.12 Government grants, subsidies and export incentives

Not applicable to the company.

1.13 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary if any, in the value of such investments. Current investments are nil in the company.

1.14 Employee benefits

Employee benefits which include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits, are nil in the company as per terms of employment.

1.15 Employee share based payments

Not applicable to the company.

1.16 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan whereever applicable. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets whereever applicable.

1.17 Segment reporting

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

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

1.18 Leases

The company has not undertaken any lease agreement.

1.19 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the number of equity shares outstanding during the year.

1.20 Research and development expenses

The company has not incurred any research and development expenses.

1.21 Taxes on income

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

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company, if applicable.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. .

Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability

1.22 Joint venture operations

Not applicable to the company.

1.23 Impairment of assets

No impairment of assets has been done during the financial year 2011-12 and in current financial year 2012-13.

1.24 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.25 Provision for warranty

The provision for warranty is nil in the company.

1.26 Hedge accounting

Not applicable to the company.

1.27 Derivative contracts

Not applicable to the company.

1.28 Share issues expenses

Not applicable to the company.

1.29 Insurance claims

Not applicable to the company.

1.30 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

---

Mar 31, 2010

1. General

The financial statements are prepared under the historical cost convention and on the accrual basis.

2. Revenue & Expenses

All income and expenses are generally accounted for on accrual basis as they are earned or incurred.

3. Fixed Assets

Fixed assets are stated at historical cost (inclusive of freight, duties, taxes and other incidental expenses relating to the acquisition and installation) less accumulated depreciation.

4. Depreciation

Depreciation on fixed assets has been provided for on straight line method by adopting the rates as prescribed in Schedule XIV to the Companies Act 1956. Depreciation on newly acquired assets is provided on pro-rata basis.

5. Investments

Investments are stated at cost of acquisition inclusive of related expenses.

6. Retirement Benefits

The provisions relating to retirement benefits are not applicable to the company.

7. Current Tax

For the Financial Year 2009-2010, provision for current tax of Rs. 431781/- has been made in books of accounts. Income tax u/s 115JB (MAT) of the Income Tax Act, 1961 is not applicable. No Provision for Fringe Benefit Tax for the financial year 2009-2010 has been made in books of account as the same is abolished.

8. Deferred Tax Asset/Liability

Provisions of Deferred Tax Assets & Liabilities have been made in accordance to Accounting Standards AS-22 for the financial year ended 31st March, 2010.

The Deferred tax liability is reduced to Rs. 83247.92 from Rs. 87881.54 of last year and Deferred Tax Asset is decreased to Rs. NIL from Rs. 431.90 of last year.

9. Preliminary Expenses

There were no Preliminary expenses and therefore no provision is made in this regard.