Accounting Policies of Goyal Associates Ltd. Company

Mar 31, 2024

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Accounting Convention:

The financial statements have been prepared and presented in accordance with Ind AS under the historical cost
convention on the accrual basis except for certain financial instruments which are measured at fair value at the
end of each reporting period, as explained in the accounting policies mentioned below. Historical cost is generally
based on the fair value of the consideration given in exchange of goods or services. The Company complies with
the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of
the Companies Act, 2013, to the extent applicable and directions prescribed by the Reserve Bank of India. The
financial statements are presented in Indian rupees.

2.2 Statement of compliance:

The financial statements have been prepared as a going concern in accordance with Indian Accounting Standards
(Ind AS) notified under the Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian
Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

2.3 Use of Estimates and Judgments

The preparation of the Ind AS financial statements in conformity with the generally accepted accounting principles
in India requires management to make estimates and assumptions that affect the reported amount of assets and
liabilities as of the Balance Sheet date, reported amount of revenue and expenses for the year and disclosure of
contingent liabilities and contingent assets as of the date of Balance Sheet. The estimates and assumptions used in
these Ind AS financial statements are based on management''s evaluation of the relevant facts and circumstances
as of the date of the Ind AS financial statements. The actual amounts may differ from the estimates used in the
preparation of the Ind AS financial statements and the difference between actual results and the estimates are
recognized in the period in which the results are known/materialize.

2.4 Revenue recognition

Ind AS 115 applies, with limited exceptions, to all revenue arising from contracts with its customers. Ind AS 115
establishes a five-step model to account for revenue arising from contracts with customers and requires that
revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in
exchange for transferring goods or services to a customer. Ind AS 115 requires entities to exercise judgment,
taking into consideration all of the relevant facts and circumstances when applying each step of the model to
contracts with their customers. It also specifies the accounting for the incremental costs of obtaining a contract
and the costs already related to fulfilling a contract. The Company has adopted the modified retrospective method
of applying Ind AS 115 Revenue from Contract with customers in its initial year of application. Revenue is
measured at the fair value of the consideration received or receivable.

Sale of goods: Revenue from sale of products is recognized at the point in time when control of the asset is
transferred to the customer, generally when the product is shipped to the customer.

Other Revenues: Other operating revenues comprise of income from ancillary activities incidental to the
operations of the Company and is recognized when the right to receive the income is established as per the terms
of the contract. Service income is recognized as and when services are rendered as per the terms of the contract.

2.5 Other income:

Interest: Interest income is calculated on effective interest rate, but recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.

Dividend: Dividend income is recognized when the right to receive dividend is established.

Insurance Claim: Insurance Claims are recognized when the claims are assessed to be receivable.

Rental Income: Rental income from operating leases is accrued based on the terms of the relevant lease.

2.6 Finance Cost

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are
incurred.

2.7 Trade receivables:

Trade receivables are measured at amortized cost less provision for impairment, if any.

2.8 Cash and cash equivalents:

Cash and Cash equivalents include cash on hand, cheques and drafts in hand, balances with bank. These do not
include bank balances earmarked / restricted for specific purposes.

2.9 Financial Instruments:

a. Classification

The Company classifies its financial assets and financial liabilities in the following measurement categories:

i) Those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss), and

ii) Those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual
terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income. For investments in debt instruments, this will depend on the business model in which the investment is
held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable
election at the time of initial recognition to account for the equity investment at fair value through other
comprehensive income. The Company reclassifies debt investments when and only when its business model for
managing those assets changes.

b. Measurement

Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets (other than financial assets at fair value through profit or loss) are added to
financial assets, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss.

c. Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of
principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently
measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset
is derecognised or impaired. Interest income from these financial assets is included in other gain or loss using the
effective interest rate method.

d. Fair value through other comprehensive income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets''
cash flows represent solely payments of principal and interest, are measured at fair value through other
comprehensive income FVOCI. Movements in the carrying amount are taken through OCI, except for the
recognition of impairment gains or losses and interest revenue are recognised in profit and loss. When the
financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity
to profit or loss and recognised under other income. Interest income from these financial assets is included in
other gain or loss using the effective interest rate method.

e. Fair value through profit or loss (FVtL):

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 a debt investment that is subsequently measured at fair value through profit or loss is recognised
in profit or loss and presented in the statement of profit and loss under other gain or loss in the period in which it
arises. Interest or dividend income, if any from these financial assets is separately included in other gain or loss.

f. Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of
the risks and rewards of ownership of the financial asset are transferred or in which the Company neither
transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the
financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains
either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not
derecognized.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

2.10 Non-Performing Assets & Write-off Policy

The company shall directly reduce the gross carrying amount of a financial asset when the entity has no
reasonable expectations of recovering a financial asset in its entirety or a portion thereof. A write-off constitute
derecognition event. Identification of Non-Performing Assets (NPAs) is being done as per the guidelines of Master
Direction-Non Banking Financial Company -Non -Systemically Important Non- Deposit taking Company (Reserve
Bank) Directions, 2016 prescribed by the Reserve Bank of India. The company is writing off NPAs in its books of
accounts every year.

2.11 Inventories

Inventories are stated at cost or net realisable value whichever is lower. Cost is determined on First-In-First-Out
basis.

Net realisable value represents the estimated selling price for inventories less all estimated costs of completion
and costs necessary to make the sale.

''Cost'' comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventory to the
present location and condition.

Items such as spare parts, stand-by equipment and servicing equipment which is not plant and machinery gets
classified as inventory.

2.12Property, plant and equipment:

Property, plant and equipment are carried at cost of acquisition or construction less accumulated depreciation.
The cost of fixed assets comprises of purchase price and all other attributable costs of bringing the assets to
working condition for intended use.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non -
refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing
the item to its working condition for its intended use and estimated costs of dismantling and removing the item
and restoring the site on which it is located.

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

2.13 Intangible assets and amortisation thereof.

Intangible assets, representing software is initially recognised at cost and subsequently carried at cost less
accumulated amortisation and accumulated impairment, if any. The Company recognises internally generated
intangible assets when it is certain that the future economic benefit attributable to the use of such intangible
assets are probable to flow to the Company and the expenditure incurred for development of such intangible
assets can be measured reliably. The cost of an internally generated intangible asset comprises all directly
attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner
intended by the Company. The intangible assets including those internally generated is amortised using the
straight line method over a period of five years, which is the Management''s estimate of its useful life. The useful
lives of intangible assets is reviewed at each financial year end and adjusted prospectively, if appropriate.
Intangible assets not ready for the intended use on the date of Balance Sheet are disclosed as ''Intangible assets
under development''. An intangible asset is derecognised on disposal, or when no future economic benefits are
expected. Gains and losses arising from derecognition of an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the assets are recognised in the Statement of Profit and Loss
when the asset is derecognised.

2.14Depreciation:

On fixed assets, depreciation is provided on written down Value method. The rates of depreciation prescribed in
Schedule II to the Companies Act, 2013, are considered as minimum rates.

2.15Trade and other payables:

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
period which are unpaid. They are recognised at their fair value.

2.16Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

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.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognised immediately in the statement of Profit and Loss.

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, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the
statement of Profit and Loss.

2.17Foreign Currency Transactions

i) Functional currency

The functional currency of the company is the Indian rupee. These financial statements are presented in Indian
rupees.

ii) Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount
the exchange rate between the functional currency and the foreign currency at the date of the transaction.

iii) Subsequent Recognition

As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a
foreign currency are reported using the exchange rate at the date of the transaction. All non-monetary items
which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the
exchange rates that existed when the values were determined.

All monetary assets and liabilities in foreign currency are restated at the end of accounting period. Exchange
differences on restatement of all other monetary items are recognised in the Statement of Profit and Loss.

2.18Employees benefits:

Short-term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term
employee benefits. These benefits include salary, wages and bonus. The undiscounted amount of short- term
employee benefits expected to be paid in exchange for the services rendered by employees is recognised during
the period of rendering of service by the employee.

Defined contribution plans

The Company has defined contribution plans for post-employment benefits namely Provident Fund which are
recognised by the income tax authorities. The Company contributes to a Government administered provident fund
on behalf of its employees and has no further obligation beyond making its contribution. The Company makes
contributions to state plans namely Employee''s State Insurance Fund and has no further obligation beyond making
the payment to them. The Company''s contributions to the above funds are charged to the Statement of Profit and
Loss every year.

2.19Borrowings:

Borrowing Cost that are directly attributable to the acquistion/ construction of the qualifying asset are capitalised
until the time all the substantial activities necessary to prepare such assets for the intended use are complete. All
other borrowing costs are recognised as expenditure during the period in which they are incurred.

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred
or liabilities assumed is recognised in profit or loss.

2.20 Income Tax

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net
profit or loss for the period.

Current tax:

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation
laws prevailing in the respective jurisdictions.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred tax:

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for
deductible and taxable temporary differences arising between the tax base of assets and liabilities and their
carrying amount in financial statements.

Deferred tax asset is recognized to the extent that it is probable that taxable profit will be available against which
such deferred tax assets can be realized. The carrying amount of deferred tax assets is reviewed at each reporting
date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow
all or part of the deferred income tax asset to be utilized.

2.21 Earnings per share (EPS):

Basic EPS is 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
EPS, the net profit or loss for the period attributable to equity shareholders and the weighted average number of
additional equity shares that would have been outstanding are considered assuming the conversion of all dilutive
potential equity shares. Earnings considered in ascertaining the EPS is the net profit for the period and any
attributable tax thereto for the period.

2.22 Cashflow:-

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals of past or future cash receipts and payments. The cash flows
from regular operating, investing and financing activities of the company are segregated.

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Mar 31, 2014

1. Basis for preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as applicable and the applicable norms as laid down by the Reserve Bank of India. Except where otherwise stated, the accounting principles are consistently applied.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets, liabilities and contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Investments

a) Investments, which are intended to be carried for a period exceeding one year are treated as Long Term Investments. All other investments are considered as Current Investments.

b) Long Term Investments are carried at cost. Temporary diminutions in value of long term investments are not considered in the accounts. Current investments are carried at lower of cost and net realizable value. Cost for the purpose includes all costs incurred on purchase/acquisition of such investments.

4. Fixed Assets & Depreciation

Fixed Assets are stated at historical cost. Cost for the purpose includes all costs attributable to bring- ing the specified asset to its present location.

Depreciation on Fixed Assets is charged on Written Down Value method at the rates and manner as specified under Schedule XIV to the Companies Act, 1956.

5. Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to, is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. 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 recover- able amount subject to a maximum of depreciable historical cost.

6. Provision and Contingencies

Apart from the mandatory provisioning in accordance with the norms as laid down by the Reserve Bank of India from time to time, the Company creates provisions when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of

the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

7. Inventories

Stock of shares are valued at lower of cost and market value. Cost for the purpose includes all costs attributable to the acquisition of stock including brokerage, taxes & duties etc. Cost Formulae used: FIFO method.

8. Revenue Recognition

a) Income from sales is recognized as and when the sales are complete.

b) Revenue in respect of all other income is recognized when a reasonable certainty as to its realiza- tion exists.

9. Employees'' Retirement and Other Benefits

a) Retirement gratuity is accounted for on accrual basis subject to the completion of one year by the employee concerned.

b) Provident Fund & Miscellaneous Provisions Act, 1952, is not applicable to the Company for the year under reference.

c) Cost of earned leave of the employees is estimated at the end of every year and expensed to the profit and loss account of the year in which such leave were earned.

10. Accounting for Taxes

a) Current Tax and Fringe Benefit Tax are accounted on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or subsequently enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future.

11. Prudential Norms issued by the R.B.I.

The Company follows the Prudential Norms as applicable to it, issued by the Reserve Bank of India in respect of Non-Banking Financial Companies (NBFCs).

12. Loan sanctioned/granted by the Company

The policy of the Company for sanction of any loan stipulates the period for which the loan is sanc- tioned and also the date for demanding or calling up of such loan. Similarly, interest, if any, on such loan is payable in accordance with the terms of sanction.

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Mar 31, 2013

1. Basis for preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as applicable and the applicable norms as laid down by the Reserve Bank of India. Except where otherwise stated, the accounting principles are consistently applied.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets, liabilities and contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Investments

a) Investments, which are intended to be carried for a period exceeding one year are treated as Long Term Investments. All other investments are considered as Current Investments.

b) Long Term Investments are carried at cost. Temporary diminutions in value of long term investments are not considered in the accounts. Current investments are carried at lower of cost and net realizable value. Cost for the purpose includes all costs incurred on purchase/acquisition of such investments.

4. Fixed Assets & Depreciation

Fixed Assets are stated at historical cost. Cost for the purpose includes all costs attributable to bringing the specified asset to its present location.

Depreciation on Fixed Assets is charged on Written Down Value method at the rates and manner as specified under Schedule XIV to the Companies Act, 1956.

5. Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to, is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. 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 a maximum of depreciable historical cost.

6. Provision and Contingencies

Apart from the mandatory provisioning in accordance with the norms as laid down by the Reserve Bank of India from time to time, the Company creates provisions when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

7. Inventories

Stock of shares are valued at lower of cost and market value. Cost for the purpose includes all costs attributable to the acquisition of stock including brokerage, taxes & duties etc. Cost Formulae used: FIFO method.

8. Revenue Recognition

a) Income from sales is recognized as and when the sales are complete.

b) Revenue in respect of all other income is recognized when a reasonable certainty as to its realization exists.

9. Employees'' Retirement and Other Benefits

a) Retirement gratuity is accounted for on accrual basis subject to the completion of one year by the employee concerned.

b) Provident Fund & Miscellaneous Provisions Act, 1952, is not applicable to the Company for the year under reference.

c) Cost of earned leave of the employees is estimated at the end of every year and expensed to the profit and loss account of the year in which such leave were earned.

10. Accounting for Taxes

a) Current Tax and Fringe Benefit Tax are accounted on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or subsequently enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future.

11 . Prudential Norms issued by the R.B.I.

The Company follows the Prudential Norms as applicable to it, issued by the Reserve Bank of India in respect of Non-Banking Financial Companies (NBFCs).

12. Loan sanctioned/granted by the Company

The policy of the Company for sanction of any loan stipulates the period for which the loan is sanctioned and also the date for demanding or calling up of such loan. Similarly, interest, if any, on such loan is payable in accordance with the terms of sanction.

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Mar 31, 2012

A SYSTEM OF ACCOUNTING

(i) Company maintain its accounts on accrual basis following the historical cost convention in compliance with the Accounting Standards Specified to be mandatory by the Institute of Chartered Accountants of India and relevant provision of the Companies Act, 1956.

(ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B REVENUE RECOGNISE

1) Sales

Sale of securities is accounted on the basis of Contract notes issued by Stock Brokers.

2) Interest,commission, Duty Drawback and other Income are accounted on accrual basis.

3) Dividend is accounted on receipt basis.

C EXPENSES

It is company''s policy to account of expenses on accrual basis except expenses of traditional nature which are accounted on cash basis.

D INVENTORY

Closing Stock of Shares and Securities has been valued at cost or market price whichever is lower.

E INVESTMENT

There are no investments held by the Company.

F RETIREMENT BENEFITS

We have been informed that payment of Gratuity and provident fund are not applicable to company.

G PROVISION AND CONTINGENT LIABILITY

Provisions are recognised for present obligation, of uncertain timing or amount, arising as a result of past events where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability unless the probability of outflow of resources embodying economics benefit is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events, are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.

H TAXATION

(a)

The Company has incurred losses in the year, so no tax has been charged.

(b) Deferred tax is provided in accordance with the Accounting Standards - 22, Accounting for taxes on Income, issued by the Institute of Chartered Accountants of India on timing differences between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets or liabilities are measured using the enacted tax rates for the current year. Adjustment of deferred tax assets or liability attributable to change in tax rates is shown in the profit and loss account as a part of deferred tax adjustment for the year.

I EARNING PER SHARE

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

J SEGMENT REPORTING

The company has organised its operation into Financial Activities.

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Mar 31, 2010

A SYSTEM OF ACCOUNTING

(i) Company maintain its accounts on accrual basis following the historical cost convention in compliance with the Accounting Standards Specified to be mandatory by the Institute of Chartered Accountants of India and relevant provision of the Companies Act, 1956.

(ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B REVENUE RECOGNISE

1) Sales

Sale of Fabric is recognised on the basis of dispatch of goods is accounted net of sales return, if any.

Sale of securities is accounted on the basis of debit notes issued to party.

2) Interest,commission, Duty Drawback and other Income are accounted on accrual basis.

3) Dividend is accounted on receipt basis.

C EXPENSES

It is company's policy to account of expenses on accrual basis except expenses of traditional nature which are accounted on cash basis.

D FIXED ASSETS AND DEPRECITION

Company does not have any fixed assets. Hence, no depreciation has been provided.

E INVENTORY

Closing stock of fabric/ shares and securities has been valued at Cost or market price whichever is lower.

F INVESTMENT

Investments are long term. Investment are valued at cost. Provision for diminution in value of investments is made only if such a decline is otherwise than temporary.

G RETIREMENT BENEFITS

We have been informed that payment of Gratuity and provident fund are not applicable to company.

H PROVISION AND CONTINGENT LIABILITY

Provisions are recognised for present obligation, of uncertain timing or amount, arising as a result of past events where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability unless the probability of outflow of resources embodying economics benefit is remote.

Possible obligations, whose existence will only be confirmed by the occurrence or non- occurrence of one or more uncertain future events, are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.

I TAXATION

(a) Current corporate tax is provided on the profit for the year after considering applicable tax rates and laws.

(b) Deferred tax is provided in accordance with the Accounting Standards - 22. Accounting for taxes on Income, issued by the Institute of Chartered Accountants of India on timing differences between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets or liabilities are measured using the enacted tax rates for the current year.

Adjustment of deferred tax assets or liability attributable to change in tax rates is shown in the profit and loss account as a part of deferred tax adjustment for the year.

J IMPAIRMENT OF ASSETS

Impairment of loss is charged to the Profit and Loss Account in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

K EARNTNGTPER SHARE

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

L SEGMENT REPORTING

The company has organised its operation into two business

- Trading in fabric

- financial Activities

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Mar 31, 2009

A SYSTEM OF ACCOUNTING

(i) Company maintain its accounts on accrual basis following the historical cost convention in compliance with the Accounting Standards Specified to be mandatory by the Companies accounting standards and relevant provision of the Companies Act, 1956.

(ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B REVENUE RECOGNISE

1) Sales

Sale of Fabric is recognised on the basis of dispatch of goods is accounted net of sales return, if any.

Sale of securities is accounted on the basis of debit notes issued to party.

2) Interest commission. Duty Drawback and other Income are accounted on accrual basis.

3) Dividend is accounted on receipt basis.

C EXPENSES

It is company's policy to account of expenses on accrual basis except expenses of traditional nature which are accounted on cash basis.

D FIXED ASSETS AND DEPRECITTON

Company does not have any fixed assets. Hence, no depreciation has been provided.

E INVENTORY

Closing stock of fabric, shares and securities has been valued at Cost price and market price or market price whichever less.

F INVESTMENT

Investments are long term. Investment are valued at cost. Provision for diminution in value of investments is made only if such a decline is otherwise than temporary.

G RETIREMENT BENEFITS

We have been informed that payment of Gratuity and provident fund are not applicable to company.

H PROVISION AND CONTINGENT LIABILITY

Provisions are recognised for present obligation, of uncertain timing or amount, arising as a result of past events where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability unless the probability of outflow of resources embodying economics benefit is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events, are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.

I TAXATION

(a) Current corporate tax is provided on the profit for the year after considering applicable tax rates and laws.

(b) Deferred tax is provided in accordance with the Accounting Standards - 22, Accounting for taxes on Income, issued by the Institute of Chartered Accountants of India on timing differences between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets or liabilities are measured using the enacted tax rates for the current year. Adjustment of deferred tax assets or liability attributable to change in tax rates is shown in the profit and loss account as a part of deferred tax adjustment for the year.

J IMPAIRMENT OF ASSETS

Impairment of loss is charged to the Profit and Loss Account in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

K EARNING PER SHARE

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

L SEGMENT REPORTING

The company has organised its operation into two business

- Trading in Shares .

- Trading in Shares & Securities

The analysis of geographical segment is based on the area in which major operating divisions of the company operate

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Mar 31, 2008

1. Method of Accounting:

Company maintain its account on accrual basis following the historical cost convention in compliance with the Accounting standards specified to be mandatory by the institute of chartered Accountants of India and relevant provision of the companies Act, 1956.

2. Sales:

Sales are net of discount and returns it any.

3. Income and expenditures:

All incomes and expenditures to the extent considered payable and receivable respectively stated to be otherwise are accounted for on accrual basis.

4. Fixed Assets and Depreciation:

There is no Fixed Assets hence no depreciation has provided.

5. Inventories:

Closing stock of shares & Securities has been valued at cost.

6. Investments:

Investments reflected at the end of the year in the balance sheet are long term investments, provision for reduction / diminution in the value of investments, if any has not been provided as we have been informed by the management that such reduction or diminution is temporary. In absence of market value and regular quotations of securities, were cannot comment on the market value of the securities as on 31/03/2008.

7. Taxes on Income:

- Provision for income Tax is made in the books of account as per the provisions of income tax act, 1961.

- Provision for fringe benefit tax is made in the books of account as per the provisions of income tax act, 1961.

- As there is no liming difference provision for DTA/DTL is not made in the books of account.

8. Earning per shares:

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

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

9. Segment Reporting policies:

The company has organized its operations into tow business:

- Trading of Fabrics

- Trading of shares and securities

The analysis of geographical segment is based on the area in which major operating divisions of the company operate.