Accounting Policies of IB Infotech Enterprises Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

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

1. Basis of preparation of financial statements

(a) Statement of compliance

These financial statements are prepared in accordance with Indian Accounting Standards (hereinafter
referred to as “Ind AS”) under the provisions of the Companies Act, 2013 (hereinafter referred to as
''the Act'') (to the extent notified). The Ind AS are prescribed under Section 133 of the Act read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian
Accounting Standards) Amendment Rules, 2016.

The accounting policies have been consistently applied by the Company unless otherwise stated or
where a newly issued accounting standard is initially adopted.

(b) Basis of measurement

The financial statements have been prepared on historical cost basis except the following

• certain financial assets and liabilities (including derivative instruments) are measured at fair value;

• assets held for sale- measured at fair value less cost to sell;

• defined benefit plans- plan assets measured at fair value; and

• share based payments

2. Use of estimates

The preparation of financial statements requires estimates and assumptions that affect the reported
amount of assets and liabilities on the date of the financial statements and the reported amount of
revenues and expenses during the reporting period. Differences between the actual results and the
estimates are recognised in the period in which the same are known / materialized.

3. Current versus non-current classifications

The Company presents assets and liabilities in the balance sheet based on current / non-current
classifications.

An asset is treated as current wnen it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting date, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting date.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in a normal operating cycle.

• It is due to be settled within twelve months after the reporting date, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting date.

All other liabilities are classified as non-current.

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

Based on the nature of products and services offered by the Company, operating cycles determined is
12 months for the purpose of the current and non-current classification of assets and liabilities.

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

4. Inventories

Stock-in-trade is valued at lower of cost and net realizable value. Cost is computed based on First in First
out (FIFO) basis in respect of procured materials. Cost also includes all charges incurred for bringing the
inventories to their present location and condition.

5. Cash flow statements

Cash Flows are reported using the indirect method, whereby net profit before tax is adjusted for the effect
of transactions of non cash nature, any deferral or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash
flow from operating, investing and financing activities is segregated. For the purpose of Statements of
Cash Flows, cash and cash equivalent consist of cash, demand deposits with bank, highly liquid
investments and bank balances net of outstanding bank overdrafts.

6. Revenue recognition

(a) Revenue from the sale of goods is recognised when the significant risks and rewards in respect of
ownership of products are transferred by the Company.

(b) Revenue from product sales is stated net of returns, Goods and Service Tax and applicable trade
discounts and allowances.

(c) Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or
collection. The Company recognizes revenue when the significant terms of the arrangement are
enforceable, services have been delivered and the collectability is reasonably assured.

(d) Interest income from financial assets is recognised when it is probable that economic benefits will
flow to the company and the amount of income can be measured reliably. Interest income is accrued
on a time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipt through the expected life of the
financial assets to the asset''s net carrying amount on the initial recognition.

(e) Dividend income from investments is recognised when the shareholder''s right to receive payment
has been established (provided that it is probable that the economic benefits will flow to the company
and the amount of income can be measured reliably.

7. Property, plant and equipment

(a) All items of property, plant and equipment are initially recorded at cost. Such cost includes the cost
of replaced part of the property, plant and equipment and borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying property, plant and
equipment. The cost of an item of property, plant and equipment is recognized as an asset if, and
only if, it is probable that future economic benefits associated with the item will flow to the company
and the cost of the item can be measured reliably.

(b) Properties in the course of construction for production, supply or administrative purposes are carried
at cost, less any recognized impairment loss. Cost includes professional fees and, for qualifying
assets, borrowing costs capitalized in accordance with the company''s accounting policy. Such
properties are classified to the appropriate categories of property, plant and equipment when
completed and ready for intended use. Depreciation of these assets, on the same basis as other
property assets, commences when the assets are ready for their intended use.

(c) Subsequent to recognition, property, plant and equipment (excluding freehold land) are measured
at cost less accumulated depreciation and accumulated impairment losses. When significant parts
of property, plant and equipment are required to be replaced in intervals, the company recognizes
such parts as individual assets with specific useful lives and depreciation respectively. Likewise,
when a major inspection is performed, its cost is recognized in the carrying amount of the plant and
equipment as a replacement cost only if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized in the Statement of Profit and Loss as incurred.

8. Depreciation / amortisation

(a) Depreciation is recognised to write off the cost of assets (other than freehold land and properties
under construction) less their residual values over the useful lives, using the straight- line method
(“SLM”). Management believes based on a technical evaluation that the useful lives of the assets
reflect the periods over which these assets are expected to be used.

(b) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and
similarly on deletion from assets is calculated pro rata up to the date of deletion.

(c) The carrying values of property, plant and equipment are reviewed for impairment when events or
changes in circumstances indicate that the carrying value may not be recoverable.

(d) The residual values, useful life and depreciation method are reviewed at each financial year-end to
ensure that the amount, method and period of depreciation are consistent with previous estimates
and the expected pattern of consumption of the future economic benefits embodied in the items of
property, plant and equipment.

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

9. Foreign currency transactions / translation

(a) Foreign currency transactions are recorded at the exchange rate in force at the time transactions
are effected. Exchange differences arising on settlement of all transactions are recognized in the
profit and loss account.

(b) Monetary items denominated in foreign currency are restated using the exchange rate prevailing at
the date of the Balance Sheet and resulting net exchange difference is recognized in the Profit and
Loss Account.

(c) 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.

(d) 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

10. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Diluted
earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account

• The after income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and

• Weighted average number of equity shares that would have been outstanding assuming the
conversion of all the dilutive potential equity

11. Cash and cash equivalents

Cash compromise cash on the hand and demand deposit with banks. Cash equivalents are short term
balances (with an original maturity of 3 months or less from the date of acquisition), and highly liquid time
deposits that are readily convertible into known amounts of cash and which are subject to the significant
risk of changes in the value

12. Employee benefits
Short-term employee benefits

(a) Short-term employee benefits such as Salaries, Wages, Bonus, Social security contributions and
other non-monetary benefits are provided on an accrual basis.

(b) The employees of the Company are not entitled to carry forward unutilized leaves.
Post-employment benefits

The Company is paying gratuity on monthly basis along with the Salary.

13. Taxes on income
Current taxes

Income tax expense is recognized in net profit in the statement of profit and loss except to the extent that
it relates to items recognized directly in other comprehensive income or equity, in which case it is
recognized in other comprehensive income or equity respectively. Current income tax is recognized at
the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws
that have been enacted or substantively enacted by the balance sheet date. The Company offsets, on a
year to year basis, the current tax assets and liabilities, where it is has legally enforceable right to do so
and where it intends to settle such assets and liabilities on a net basis.

Deferred taxes

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit and are
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized
for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if
the temporary difference arises from goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.

Deferred tax relating to items recognised outside the profit and loss is recognised outside profit and loss
(either in other comprehensive income or in equity)

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.

14. Lease

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration. To assess whether a contract conveys the right to control the use
of an identified asset, the Company assess whether:

• The contract involves the use of an identified asset - this may be specified explicitly or implicitly and
should be physically distinct or represent substantially all of the capacity of a physically distinct asset.
If the supplier has a substantive substitution right, then the asset is not identified;

• The Company has the right to obtain substantially all of the economic benefits from the use of the
asset throughout the period of use; and

• The Company has the right to direct the use of the asset. The Company has the right when it has the
decision-making rights that are most relevant to changing how and for what purpose the asset is used.
In rare cases where the decision about how and for what purpose the asset is used is predetermined,
the Company has the right to direct the use of the asset either the Company has the right to operate
the asset; or the Company designed the asset in a way that predetermines how and for what purpose
it will be used. At inception or on reassessment of a contract that contains a lease component, the
Company allocates the consideration in the contract to each lease component on the basis of their
relative stand-alone prices.

Where the Company is the lessee

Right-of-use assets

The Company recognises a right-of-use asset and a lease liability at the lease commencement date
except for short-term leases which are less than 12 months and leases of low value assets. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability plus any
initial direct costs incurred less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the
lease term. If ownership of the leased asset transfers to the Company at the end of the lease term or the
cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life
of the asset. The estimated useful lives of right-of-use assets are determined on the same basis as those
of property. In addition, the right-of-use asset is periodically reduced by impairment losses, if any,
adjusted for certain remeasurements of the lease liability.

Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date. The lease payments are discounted using the interest rate implicit in the lease, if
that rate can be readily determined. If that rate cannot be readily determined, the Company uses
incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise
of fixed payments, including in-substance fixed payments. The lease liabilities are measured at amortised
cost using the effective interest method. In addition, the carrying amount of lease liabilities is re-measured
if there is a modification arising due to change in the lease term, change in the lease payments or a
change in the assessment of an option to purchase the underlying asset. When the lease liability is
remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to
zero.

The Company presents right-of-use assets that do not meet the definition of investment property, and
lease liabilities, separately in the Balance Sheet Short-term leases and leases of low value assets. The
Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption to leases that are considered
to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as
expense on a straightline basis over the lease term.

Where the Company is the lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of
an asset is classified as an operating lease. Assets subject to operating leases are included in the
property, plant and equipment. Rental income on an operating lease is recognised in the Standalone
Statement of Profit and Loss on a straight-line basis over the lease term. Costs, including depreciation,
are recognised as an expense in the Statement of Profit and Loss.

15. Fair Value measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to settle a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique

In estimating the fair value of an asset or liability, the Company takes into account the characteristics of
the asset or liability if market participants would use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole)
at the end of each reporting period.

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

16. Impairment of Non-Financial Assets

At the end of each reporting period, the company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of 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. When a reasonable and consistent basis of allocation can be identified,
corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to

the smallest group of cash-generating units for which a reasonable and consistent allocation basis can
be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment at least annually, and whenever there is an indication that the asset may be impaired.

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 recognized in the profit or 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 profit or loss.

17. Financial Instruments

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

Financial Assets

(a) Initial recognition and measurement

All financial assets 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. Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognised on the trade date,
i.e., the date that the Company commits to purchase or sell the asset.

(b) Subsequent measurement
Debt Instruments at amortised cost:

A financial asset is subsequently measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding. Interest income from these financial assets is included in finance
income using the effective interest rate method. A gain or loss on a debt investment that is subsequently
measured at amortised cost is recognized in profit or loss when the asset is derecognised or impaired.

Debt instrument at Fair Value through Other Comprehensive Income (OCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding. Interest income
from these financial assets is included in finance income using the effective interest rate method. Fair
value movements are recognized in the other comprehensive income (OCI). However, the Company
recognizes interest income, impairment gains or losses and foreign exchange gains and losses in the
statement of profit and loss. On derecognition of the asset, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to statement of profit and loss.

Debt instrument at Fair Value through Profit or Loss (FVTPL)

A financial asset which does not meet the criteria for categorization as at amortized cost or as fair value
through other comprehensive income is classified as fair value through profit or loss. Debt instruments
subsequently measured at fair value through profit or loss are measured at fair value with all changes
recognized in the statement of profit and loss.

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are
held for trading are classified as at FVTPL. For all other equity instruments, the Company may make an
irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such
election on an instrument-by-instrument basis. The classification is made on initial recognition and is
irrevocable.

Dividends from such investments are recognized in profit or loss as other income. There is no recycling
of the amounts from OCI to Profit and Loss, even on sale of investment. However, the Company may
transfer the cumulative gain or loss within equity.

Equity instruments subsequently measured at fair value through profit or loss are measured at fair value
with all changes recognized in the statement of profit and loss.

Investment in subsidiaries is carried at cost in the financial statements.

(c) De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the company balance sheet) when:

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

The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ''pass-through''
arrangement; and either

i. the company has transferred substantially all the risks and rewards of the asset, or

ii. the company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset

When the Company has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the company continues to recognise the transferred asset to
the extent of the company''s continuing involvement. In that case, the company also recognises an
associated liability. The transferred asset and the associated liability are measured on a basis that reflects
the rights and obligations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
company could be required to repay.

(d) Impairment of financial assets

The Company recognises impairment loss applying the expected credit loss (ECL) model on the financial
assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade receivables,
other contractual right to receive cash or other financial asset and financial guarantee not designated as
at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default
occurring as the weights.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since initial
recognition. If the credit risk on a financial instrument has not increased significantly since initial
recognition, the Company measures the loss allowance for that financial instrument at an amount equal
to 12 months expected credit losses.

For trade receivables or any contractual right to receive cash or other financial assets that result from
transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the
loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the
Company applies ''simplified approach'' permitted by Ind AS 109 Financial Instruments. This expected
credit loss allowance is computed based on a provision matrix which takes into account historical credit
loss experience and adjusted for forward-looking information.

Financial Liabilities

(a) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

(b) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial instruments entered into by the company that are
not designated as hedging instruments in hedge relationships as defined by Ind-AS 109. Separated
embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at
the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated
as FVTPL, fair value gains/ losses attributable to changes in own credit risk is recognized in OCI. These
gains/loss are not subsequently transferred to P&L. However, the company may transfer the cumulative
gain or loss within equity. All other changes in fair value of such liability are recognised in the statement
of profit or loss. The Company has not designated any financial liability as at fair value through profit and
loss.

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except
for contingent consideration recognized in a business combination which is subsequently measured at
fair value through profit and loss. For trade and other payables maturing within one year from the Balance
Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the effective interest rate amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the effective interest rate. Such amortisation is included as finance costs
in the statement of profit and loss.

Financial guarantee contracts

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

(c) Derecognition

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

(d) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.

18. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets that
necessarily takes a substantial period of time to get ready for their intended use or sale are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in statement of profit and loss in the period in which they are
incurred.

19. Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.

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Mar 31, 2024

Note -1 Company Information and Significant accounting policies CORPORATE INFORMATION

IB Infotech Enterprises Limited (hereinafter referred to as “the Company” is a public limited company domiciled in India and incorporated under the provisions of the Companies Act,1956. The registered office of the Company is situated at 428, Kailash Plaza, Vallabh Baug lane, Ghatkopar ( E), Mumbai - 400 075, India.

The Company''s shares are listed on Bombay Stock Exchange (BSE) in India.

SIGNIFICANT ACCOUNTING POLICIES

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

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared as per the provisions of the Companies Act, 2013 and the applicable Indian Accounting Standard (Ind AS). The financial statements have been prepared on historical cost / accrual basis.

2. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognised in the period in which the same are known / materialized.

3. CURRENT VERSUS NON CURRENT CLASSIFICATIONS

The Company presents assets and liabilities in the balance sheet based on current / non current classifications. An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting date, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets are classified as non current.

A liability is current when:

• It is expected to be settled in normal operating cycle.

• It is due to be settled within twelve months after the reporting date, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting date.

All other liabilities are classified as non current.

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

Based on the nature of products and services offered by the Company, operating cycles determined is 12 months for the purpose of current and non current classification of assets and liabilities.

Note -1 Company Information and Significant accounting policies

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

4. INVENTORIES

Stock-in-trade is valued at lower of cost and net realizable value. Cost is computed based on First in First out (FIFO) basis in respect of procured materials. Cost also includes all charges incurred for bringing the inventories to their present location and condition.

5. CASH FLOW STATEMENTS

Cash Flows are reported using the indirect method, whereby net profit before tax is adjusted for the effect of transactions of non cash nature, any deferral or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities is segregated. For the purpose of Statements of Cash Flows, cash and cash equivalent consist of cash, demand deposits with bank, highly liquid investments and bank balances net of outstanding bank overdrafts.

6. REVENUE RECOGNITION

(a) Revenue from the sale of goods is recognised when the significant risks and rewards in respect of ownership of products are transferred by the Company.

(b) Revenue from product sales is stated net of returns, Goods and Service Tax and applicable trade discounts and allowances.

(c) Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. The Company recognizes revenue when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured.

(d) Interest income from financial assets is recognised when it is probable that economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipt through the expected life of the financial assets to the asset''s net carrying amount on the initial recognition.

7. PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment are recorded at cost less depreciation and impairment. The Company capitalizes all costs relating to Property, Plant and Equipment acquisition and installation of the same and necessary incidental costs.

8. DEPRECIATION / AMORTISATION

(a) Depreciation on additions to Assets is calculated Pro-rata from the date of such additions and similarly on deletion from assets is calculated pro rata up to the date of deletion.

(b) Depreciation on assets except to the extent stated in (a) above, has been provided at the rates and in the manner prescribed in schedule II to the Companies Act, 2013 on Straight Line Method.

9. FOREIGN CURRENCY TRANSACTIONS / TRANSLATION

(a) Foreign currency transactions are recorded at the exchange rate in force at the time transactions are effected. Exchange differences arising on settlement of all transactions are recognized in the profit and loss account.

(b) Monetary items denominated in foreign currency are restated using the exchange rate prevailing at the date of the Balance Sheet and resulting net exchange difference is recognized in the Profit and Loss Account.

(c) 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.

(d) 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

10. EARNING PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account

• The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• Weighted average number of equity shares that would have been outstanding assuming the conversion of all the dilutive potential equity

11. CASH AND CASH EQUIVALENTS

Cash compromise cash on the hand and demand deposit with banks. Cash equivalents are short term balances (with an original maturity of 3 months or less from the date of acquisition), and highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to the significant risk of changes in the value

12. EMPLOYEE BENEFITS Short-term employee benefits

(a) Short-term employee benefits such as Salaries, Wages, Bonus, Social security contributions and other non-monetary benefits are provided on an accrual basis.

(b) The employees of the Company are not entitled to carry forward unutilized leaves.

Post-employment benefits

The Company is paying gratuity on monthly basis along with the Salary.

13. BORROWING COSTS

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

14. TAXES ON INCOME

Income Taxes are accounted for in accordance with Indian Accounting Standard 12 (Ind AS 12) “Income Taxes”. Tax expense comprises both current tax and deferred tax. Current tax is measured at the amount expected to be paid or recovered from the tax authorities using the applicable tax rates.

Deferred Income taxes are recognized for the future tax consequences attributable to temporary differences between financial statement carrying amounts of existing assets and liabilities and their tax bases in the financial statements. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which temporary differences can be utilized. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority.

15. IMPAIRMENT OF ASSETS

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

16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes to Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

17. LEASE

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assess whether:

• The contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

• The Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and

• The Company has the right to direct the use of the asset. The Company has the right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset either the Company has the right to operate the asset; or the Company designed the asset in a way that predetermines how and for what purpose it will be used. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Where the Company is the lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date except for short-term leases which are less than 12 months and leases of low value assets. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability plus any initial direct costs incurred less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, adjusted for certain remeasurements of the lease liability.

Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.Lease payments included in the measurement of the lease liability comprise of fixed payments, including in-substance fixed payments. The lease liabilities are measured at amortised cost using the effective interest method.In addition, the carrying amount of lease liabilities is re-measured if there is a modification arising due to change in the lease term, change in the lease payments or a change in the assessment of an option to purchase the underlying asset. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company presents right-of-use assets that do not meet the definition of investment property, and lease liabilities, separately in the Balance Sheet Short-term leases and leases of low value assets. The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straightline basis over the lease term.

Where the Company is the lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset is classified as an operating lease. Assets subject to operating leases are included in the property, plant and equipment. Rental income on an operating lease is recognised in the Standalone Statement of Profit and Loss on a straight-line basis over the lease term. Costs, including depreciation, are recognised as an expense in the Statement of Profit and Loss.

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Mar 31, 2014

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 under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Inventories

Stock in trade is valued scrip wise, at cost or net realisable value whichever is lower in case of listed shares. Whereas in case of unquoted shares, valuation is at cost. Cost is calculated on the basis of first- in- first- out method.

1.3 Cash & Cash Equivalents

In the cash flow statement, cash and cash equivalents includes cash on hand, demand deposites with banks, other short term highly liquid investments with original maturities of three months or less.

1.4 Tangible Fixed Assets:

Fixed Assets have been stated at historical cost inclusive of incidental expenses, less accumulated depreciation.

1.5 Depreciation:

Depreciation has been provided on Straight line Method on prorata-basis and in some cases to the extent available at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

1.6 Revenue Recognition

Sales are recognised on transfer of significant risks and rewards of the ownership of the goods to the buyer and are reported net of turnover / trade discounts, returns and claims if any. Revenue from services are accounted as and when incurred.

Dividend income on investments is accounted for when the right to receive the payment is established.

Interest income is accounted on time proportion basis taking into account the amount outstanding and applicable

1.7 Investments

Long term investments are stated at cost, less provision for diminution in the value other than temporary, if any.

1.8 Employee benefits

The Company does not have any employee to whom gratuity or any retirement benefits are payable.

1.9 Earning per Share:

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

1.10 Taxation

Tax liability is estimated considering the provision of the Income Tax, 1961. Deferred tax is recognised on 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. On prudent basis, deferred tax assets are recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future.

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Mar 31, 2012

1. General

i) The Accounts have been prepared on historical cost basis ignoring Changes, if any in the purchasing power of money.

ii) All revenue and expenses are accounted on accrual basis.

2. Taxation

i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates and law that have been enacted as on the Balance Sheet Date. Deferred Tax Asset, if any, is recognized and carried forward only to the extent that there is a reasonable certainly that the assets will be realized in future.

3. Borrowing Cost.

Borrowing cost directly attributable to the acquisition or construction of fixed asset are capitalized as part of the cost of the asset, up to the date the asset is put to use. Other borrowing costs are changed to the profit & loss account in the year in which they arc incurred.

4. Investment

Long term investments arc stated at cost. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

5. Income Recognition

Income earned during the year is from Consultancy fees and is shown in the Profit & Loss Account.

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Mar 31, 2011

1. General

i) The Accounts have been prepared on historical cost basis ignoring Changes, if any in the purchasing power of money. ii) All revenue and expenses are accounted on accrual basis.

2. Taxation

i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates and law that have been enacted as on the Balance Sheet Date. Deferred Tax Asset, if any, is recognized and carried forward only to the extent that there is a reasonable certainly that the assets will be realized in future.

3. Borrowing Cost.

Borrowing cost directly attributable to the acquisition or construction of fixed asset are capitalized as part of the cost of the asset, up to the date the asset is put to use, Other borrowing costs are changed to the profit & loss account in the year in which they are incurred.

4. Investment

Long term investments are stated at cost. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

5. Income Recognition

Income earned during the year is from Consultancy fees and is shown in the Profit & Loss Account.

6. REVENUE RECOGNITION

Accrual basis of accounting has been adopted in preparation of the accounts.

7. PRELIMINARY EXPENSES/PUBLIC ISSUE EXPENSES

Preliminary expenses/Public Issue expenses are being written off over a period of 10 years.

8. FIXED ASSETS/DEPRECIATION

a) The gross block of Fixed Assets is stated at cost of acquisition or construction including any cost attributed in bringing the assets to their working condition for their intended use.

b) Depreciation on assets has been provided on W.D.V. basis at the rate specified in Schedule XIV of the Companies Act, 1956.

c) Depreciation is provided on pro-rata basis from the date of addition.

9. INVENTORIES

The basis of valuation of inventories is as under :- Raw Material/Stores & Spares/ - Cost or net realizable value Packing Material & Finished goods whichever is lower.