Accounting Policies of Healthy Investments Ltd. Company

Mar 31, 2024

17 Material A ccounting Policies:

1 Property Plant and Equipment:

i Property Plant and Equipment are measured at cost, less accumulated depreciation and
impairment losses.

ii

The cost of property, plant and equipment includes those incurred directly for the construction
or acquisition of the asset, and directly attributable to bringing it to the location and condition
necessary for it to be capable of operating in the manner intended by the management and
includes the present value of expected cost for dismantling/ restoration wherever applicable.

iii Depreciation on tangible assets is provided under straight line method over the useful life of
assets specified in Part C of Schedule II to the Companies Act, 2013 and manner specified
therein.

2 Impairment of Assets:

i Financial Assets:

The Company applies Expected Credit Loss (ECL) model for measurement and recognition of
impairment loss and credit risk exposure on Financial Assets that are debt instruments and are
measured at amortised cost wherever applicable for e.g. loans debt securities, deposits, and
bank balances.

ii Non - Financial Assets:

The Company assesses, at each reporting date, whether there is any objective evidence that a
Non-Financial Asset or a group of Non-Financial Assets is impaired. If any such indication
exists, the Company estimates the amount of impairment loss and accounts for the same.

5 Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being
made. Revenue is measured at the Fair Value of the consideration received or receivable, taking
into account contractually defined terms of payment, excluding taxes or duties collected on behalf of
the Government.

i Revenue on sale of Mutual Fund units is recognised on transfer of ownership.

ii Revenue on sale of Shares / Securities are recognised as on date of transaction.

iii Dividend income from investments is recognised when the right to receive payment is
established.

6 Employee Benefits:

i Short Term Benefits

All employee benefits falling due wholly within twelve months of rendering the service are
classified as Short Term Employee Benefits. The cost of the benefits like salaries, wages,
medical, leave travel assistance, short term compensated absences, bonus, exgratia etc., are
recognised as an expense in the period in which the employee renders the related service.

ii Post-Employment Benefits:

Payment of Provident Fund, E.S.I.C. and Gratuity to employees are not applicable to the
Company, as the number of employees is below the coverage limite. The Company does not
have any scheme for retirement benefits for its employees. Other benefits such as leave
encashment etc., are provided in accordance with the service rules of the Company.

7 Provision for Current and Deferred Tax:

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

ii Deferred Tax is recognised on the timing differences, being the difference between taxable
income and accounting income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and
carry forward of losses are recognised, if there is virtual certainty that there will be sufficient
future taxable income available to realise such losses.

8 Earnings Per Share:

Basic earnings per share are computed by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the period.

9 Financial Instruments (Financial Assets and Financial Liabilities):

Financial Assets which include inter-alia any asset that is cash, equity instrument of another entity or
contractual obligation to receive cash or another Financial Asset or to exchange Financial Asset or
Financial Liability under conditions that are potentially favourable to the Company. A Financial Asset
is recognised when and only when the Company becomes party to the contractual provisions of the
instrument.

i Classification:

The Company classifies its financial assets in the following categories:

- at Amortised Cost;

- at Fair Value Through Other Comprehensive Income (FVTOCI)

ii Initial Recognition and Measurement:

All Financial Assets, except Trade Receivables are recognised initially at Fair Value plus, in the
case of Financial Assets not recorded at Fair Value through Profit or Loss, transaction costs
that are attributable to the acquisition of the Financial Asset. Transaction costs of Financial
Assets carried at fair value through Profit or Loss are expensed in the Statement of profit and
Loss.

The Company measures the Trade Receivables, if any, at their transaction price, if the Trade
Receivables do not contain a significant financing component.

iii Subsequent Measurement:

All equity and mutual fund investments are measured at Fair Value. Instruments which are not
held for trading are classified at Fair Value through Other Comprehensive Income (FVTOCI)
and Fair Value through Profit or loss. The Company makes such election on an instrument by¬
instrument basis. The Classification is made on initial recognition and is irrevocable.

All fair value changes on an equity instrument classified at FVTOCI, are recognized in the OCI.
There is no subsequent reclassification of fair value gains and losses to the Statement of Profit
and Loss. However, the Company may transfer the cumulative gain or loss within equity.
Dividends from such investments are recognized in the Statement of Profit and Loss as other
income when the company’s right to receive payment is established.

All fair value changes on Liquid mutual funds classified at FVTPL and recognised in the Profit
or Loss.

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Mar 31, 2014

Basis of Accounting

i The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the Company. All income & expenditure having the material bearing on the financial statements are recognized on accrual basis.

ii Use of Estimates

The preparation of financial statements in confirmity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and a reported amount of revenues and expenses during the reporting period. Difference between the actual expenses and estimates is recognised in the period in which tire results are known/ materialised.

iii Own Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price, including duties, legal fees, other non-refundable taxes or levies directly attributable cost of bringing the assets to its working condition.

iv Depreciation and Amortisation

Depreciation has been provided on ''Written down value method'' as per rates specified in schedule XIV to the Companies Act, 1956.

v Impairment of Assets

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

vi Revenue Recognition

a) Revenue/Incomes and Cost/Expenditure are generally accounted on accrual, as they are earned or incurred.

b) Sale/purchase of Mutual Fund units is recognised on transfer of ownership as per date of transaction.

c) Sale/purchase of Shares are recognised on date of transaction.

d) Dividend income is recognised on receipt basis. .

vii Borrowing costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue in the year they are incurred.

viii 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.

Deferred tax is recognised, on the timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

The company has not recognised the net deferred tax assets in respect of accumulated business as well as capital losses in view of nonavailability of benefit in future.

ix Earnings per Share

Basic earnings per share is computed by dividing the net profit after tax by the average number of equity shares outstanding during the period.

x Investments:

Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. Provision for diminution in the value of long-term Investments is made only if such a decline is other than temporary.

xi Purchase/sale:

Purchases of shares/securities is accounted for inclusive of stamp, security transaction tax and transfer fees and booked on the date of contract.

xii Provisions, Contingent Liabilities and Contingent Assets

Provisions and Contingent Liability: The Company recognises a provision when there is a 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 outflow of resources. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

xiii Retirement benefits:

The laws relating to payment of Provident Fund, E.S.I.C. and Gratuity to employees are not applicable to the Company. The Company does not have any scheme for retirement benefits for its employees. Other benefits such as leave encashment etc are provided in accordance with the service rules of the company.

xiv Segment reporting:

The Company is engaged primarily in the business of investments and accordingly there are no separate reportable segments as per Accounting Standard - AS -17 ''Segment Reporting'' issued by ICAI.

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Mar 31, 2013

I Basis of Accounting

The financial statements have heen prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of tire Companies Act, 1956, as adopted consistently by the Company. All income & expenditure having the material bearing on the financial statements are recognized on accrual basis.

ii Use of Estimates

The preparation of financial statements in confirmity wit accounting principles requires estimates to be made that affect the reported amount of assets and libilities on the date of financial statements and a reported amount of revenues and expense during the reporting period. Difference between the actual expenses and estimates is recognised in the period in which the results are known/materialised.

iii Own Fixed Assets

Fixed, assets are stated at he purchase price, including duties, legal fees, other non-refundable taxes or levies directly attributable cost of bringing the assets to its working condition.

Iv Depreciation and Amortisation

Depreciation has been provided on "Written down value method'' as per rates specified in schedule XIV to the Companies Act, 1956.

v Impairment of Assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an assets is idetified as impaired. The impairment loss n prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

vi Revenue Recognition

a) Revenue/Incomss and C est /Expend i.ture are generally accounted on accrual, as they are earned or incurred.

b) Sale/purchase of Mutual Fund unit en-hip as per date of transaction. Shares are recognised on date of transaction. d) Dividend income is recognised on receipt basis.

vii Borrowing costs

Interest and other bor i able to qualifying asset =d. Other interest and borrowing costs are charged to revenue in the year they are incurred.

viii Taxes on Income

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

Deferred tax is recognised, on tire timing differences, bring the difference between taxable income and accounting income reversal in one or more subsequent periods.Deferred tax assets in respect of unabsorlx- i n and carry forward of losses are recognised if there is virtual, certainty that mere will be red tax assets in respect of accumulated business as well as capital losses in view of non; iefit in future.

ix Earnings per Share

Basic: earnings per share is computed by dividing the net profit after tax by the average number of equity shares outstanding during the period.

x Investments :

Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. Provision for diminution in the value of long-term Investments is made only if such a decline is other man temporary.

xi Inventories items of inventories are measured at lower of cost and net realisable value. Cost of inventories comprises of cost of purchase, brokerage & other expenses.

xii Ptirchase/sale:

Purchases of shares/securities is accounted for inclusive of stamp, security transaction tax and transfer fees and booked on the date of contract,

xiii Provisions, Contingent Liabilities and Contingent Assets

Provisions and Contingent Liability: The Company recognises a provision when there is a 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 outflow of resources. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure is made. Continegent Assets are neither recognized nor disclosed in the financial statements.

xiv Retirement benefits:

The laws relating to payment of Provid.oni frmd, ;!. I''.C and Gratuity to employees are not applicable to the Compnay. The Company does not have any scheme for retirement benefits for its empoloyees. Other benefits such as leave encashment etc are provided in s i ice rules of the company.

xv Segment reporting:

The Company i n.ess of investments and accordingly there are no separate reportable

xx Related party disclosures:

Disclosures as required by fee Accounting Standard 18 "Related Party Disclosures" are given below : a) List of Related Parlies : Associate Companies;

1. Unijoily Investments Company Ltd.

2. Lakshmi Finance & Industrial Corporation Ltd.

Key management personnel:

1. Sri Murali D. Kanuri

2. Sri K. Harishchandra Prasad

3. Smt. C. Shanta Prasad

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Mar 31, 2012

I The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act 195$, as adopted consistently by the Company. AH income & expenditure, having the material bearing on the financial statements are recognized on accrual basis.

ii Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and a reported amount of revenues and. expenses during the reporting period. Difference between the actual expenses and estimates is recognised in the period in which the results are known/ materialised.

iii Own Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price, including duties, legal fees, other non-refundable taxes or levies directly attributable cost of bringing the assets to its working condition.

iv Depreciation and Amortisation

Depreciation has been provided on 'Written down value method' as per rates specified in schedule XIV to the Companies Act, 1956. On revalued assets, depreciation has been provided as per rates specified in schedule XTV to the Companies Act, 1956 from me date of revaluation and depredation to the extent of revaluation debited to revaluation reserve.

v Impairment of Assets

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

vi Revenue Recognition

a) Revenue/Incomes and Cost/Expenditure are generally accounted on accrual, as they are earned or incurred.

b) Sale/purchase of Mutual Fund units is recognised on transfer of ownership as per date of transaction.

c) Sale/purchase of Shares are recognised on date of transaction,

d) Dividend income is recognised on receipt basis.

vii Borrowing costs

interest and other borrowing costs attributable to qualifying assets are capitalized-Of her interest and borrowing costs are charged to revenue in the year they are incurred.

viii 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.

Deferred tax is recognised, on the timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

The company has not recognised the net deferred tax assets in respect of accumulated business as well as capital losses in view of not* availability of benefit in future.

ix Earnings per Share

Basic earnings per share is computed by dividing the net profit after tax fay the average number of equity shares outstanding during the period.

x Investments:

investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost Provision for diminution in the value of long-term Investments is made only if such a decline is other than temporary.

xi Inventories

Items of inventories are measured at lower of cost and net realisable value. Cost of inventories comprises of cost of purchase, brokerage & other expenses.

xii Purchase/sale:

Purchases of shares/securities is accounted for inclusive of stamp, security transaction tax and transfer fees and booked on the date of contract

xiii Provisions, Contingent Liabilities and Contingent Assets

Provisions and Contingent liability: The Company recognises a provision when there is a 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 outflow of resources. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

xiv Retirement benefits:

The laws relating to payment of Provident Fund, E.S.I.C. and Gratuity to employees are not applicable to the Company. The Company does not have any scheme for retirement benefits for its employees, Other benefits such as Leave Encashment etc are provided in accordance with the service rules of the company.

xv Segment reporting:

The Company is engaged primarily in the business of investments and accordingly there are no separate reportable segments as per Accounting Standard - AS -17 'Segment Reporting' Issued by ICAI.

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Mar 31, 2010

I) SYSTEM OF ACCOUNTING :

a) Basis of accounting :

The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered accountants of India and the provisions of the Companies act, 1956, as adopted consistently by the Company. All income & expenditure having the material bearing on the financial statements are recognized on acrrual basis.

b) Use of estimates :

The preparation of financial statements in confirmity with generally accepted accounting principles requires estimates and assumptions to be made that affect, the reported amount of assets and libilities on the date of financial statements and a reported amount of revenues and expenses during the reporting period. Difference between the actual expenses and estimates is is recognised in the period in which the results are known/materialised.

ii) REVENUE RECOGNITION :

Dividend income is accounted for as and when declared. Sale / purchase of shares / securities are considered on contract basis. Interest income is considered on accrued basis over the full financial year.

iii) INVESTMENTS:

Investments are stated at cost of acquisition inclusive of brokerage and stamp duty.

1) Statement on Accounting Policies :

iv) FIXED ASSETS:

Fixed assets are capitalised at cost inclusive of legal and/or installation expenses.

v) DEPRECIATION:

Depreciation is provided under the "Written Down Value Method at rates provided by Schedule XIV to the Companies Act, 1956.

vi) STOCK IN TRADE :

Shares and securities are carried at lower of cost or market value.

vii) PURCHASE/SALE:

Purchases of shares/securities is accounted for inclusive of stamp & transfer fees.

viii) CONTINGENCY & EVENT OCCURRING AFTER THE BALANCE SHEET DATE :

There has been no material events occurring after the balance sheet date that require adjustments to as disclosure in the financial statements.

ix) RETIREMENT BENEFITS:

The laws relating to payment of Provident Fund, E.S.I.C. and Gratuity to employees are not applicable to the Compnay. The Company does not have any scheme for retirement benefits for its empoloyees is considered necessary. Other benefits such as Leave Encashment etc are provided in accordance with the service rules of the company.

x) BORROWING COST:

Borrowing cost are charged to Drofit & loss account in the vear in which thev are incurred.

xi) FOREIGN EXCHANGE :

a) Earings in Foreign Currency : Rs NIL (Previous Year Rs. NIL)

b) Expenditure in Foreign Currency : Rs NIL (Previous Year Rs. NIL)

xii) RELATED PARTY DISCLOSURES :

Disclosures as required by the Accounting Standard 18 "Related Party Disclosures" are given below : a) List of Related Parties : Associate Companies :

1. Unijolly Investments Company Ltd.

2. Lakshmi Finance & Corporation Ltd.