Accounting Policies of Kalpa Commercial Ltd. Company

Mar 31, 2024

ii) Basis of preparation of financial statements:

a) The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)
notified under the provisions of section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules, 2015 under historical cost convention on the accrual basis except for certain financial instruments
which are measured at fair value, the provision of Companies Act, 2013 (‘Act’) (to the extent notified) and guidelines
issued by the Securities and Exchange Board of India (SEBI).

For all periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in
accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with
paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b) Functional and Presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency. All
financial information presented in INR has been rounded to the nearest INR, except as stated otherwise.

iii) Use of Estimates

The preparation of the Financial Statements in conformity with Ind AS requires the management to make estimates,
judgments and assumptions. These estimates, judgment and assumptions affect the application of accounting policies
and the reported amount of Assets and Liabilities and disclosure of Contingent Liabilities on the date of the Financial
Statements and reported amounts of revenues and expenses for the year. Accounting estimate could change from year
to year. Actual results could differ from those estimates. Appropriate changes in estimates are made as the
Management becomes aware of the changes in estimates are reflected in the financial statements in the period in which
the changes are made and if material, their effects are disclosed in the notes to financial statements.

iv) Current and non-current classification

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

A li aisility is current when :

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

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

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

All other liabilities are classified as non-current.

vi) Property, Plant and Equipments

a) Initial recognition and measurement

An item of property, plant and equipments 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.

Property, plant and equipment are stated at cost, less accumulated depreciation/amortizaton and accumulated
impairment losses, if any. Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non¬
refundable taxes & duties. Costs directly attributable to acquisition are capitalized until the property, plant and
equipment are ready for use, as intended by management. The company depreciates property, plant and equipment
over their estimated useful lives using the straight-line method.

When parts of an item of property, plant and equipment have different useful lifes, they are recognized separately.

Stores and spare parts having life more than 12 months are capitalised at their respective carrying amount with the main
asset and are being depreciated over remaining life of main asset prospectively.

Property, Plant and Equipments which are not ready for intended use as on the date of Balance Sheet are disclosed as
''Capital Work-In-Progress''.

The Company assesses at each balance sheet date whether there is any indication that a Property, plant and equipment
may have been impaired. If any such indication exists, the Company estimates the recoverable amount of the Property,
plant and equipment. If such recoverable amount of the Property, plant and equipment or the recoverable amount of the
cash generating unit to which the Property, plant and equipment belongs 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 if 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 depreciated historical cost.

b) Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future
economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured
reliably.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if
it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be
measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of
Property, Plant and Equipment are recognized in profit or loss as incurred.

c) Derecognition

Property, Plant and Equipments are derecognized when no future economic benefits are expected from their use or
upon their disposal. Gains and losses on disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized in
the statement of profit and loss.

d) Depreciation/amortization

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lifes of each part of an item
of Property, Plant and Equipment . Leasehold lands are amortized over the lease term unless it is reasonably certain
that the Company will obtain ownership by the end of the lease term.

Depreciation on additions to/deductions from property, plant and equipment during the year is charged on pro-rata basis
from/up to the date on which the asset is available for use/disposed.

Depreciation on revalued Assets is calculated on their respective revalued amounts and is computed on the basis of
remaining useful life as estimated by the valuer on straight line method.

The company, based on technical assessment made by technical expert and management estimate, depreciates certain
items of property, plant and equipment over estimated useful lives which are different from the useful life prescribed in
Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and
reflect fair approximation of the period over which the assets are likely to be used.

¦ Leasehold Land Lease Period

¦ Plant Buildings 4 years (Rent Lease Period)

¦ Plant & Equipment 5 to 20 years

¦ Furniture 10 years

¦ Office Equipment 3 to 5 years

¦ Computers 3 to 6 years

¦ Motor Vehicles 8 to 10 years

The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the
shorter of the asset’s useful life and the lease term if there is no reasonable certainty to obtain ownership at the end of
the lease term.

vii) Intangible Assets

Intangible Assets are recorded at the consideration paid for acquisition less accumulated amortization and accumulated
impairment, if any. Amortization is recognized at Straight Line Basis over their estimated useful life. The estimated
useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquire
separately are carried at cost less accumulated impairment losses.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
Statement of profit and loss within other income/ expenses.

Depreciation

Intangible assets that are acquired by the company are measured initially at cost. After initial recognition, intangible
assets are carried at its cost less any accumulated amortization and any accumulated impairment loss. Intangible assets
are amortized on Straight Line Basis over a period of 5 years.

viii) Financial Instrument

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular
way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.

Financial Assets

I Initial recognition and measurement

All financial assets are recognized initially at fair value plus or minus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs are attributable to the acquisition or issue of the financial asset, otherwise
charged to Statement of Profit & Loss.

II Subsequent measurement

Financial assets are subsequently classified and measured at:

• Financial assets at amortised cost

• Financial assets at fair value through profit and loss (FVTPL)

• Financial assets at fair value through other comprehensive income (FVOCI).

a) Trade Receivables

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost, using the
effective interest rate (EIR) method net of any expected credit losses wherever applicable. The EIR is the rate that
discounts estimated future cash income through the expected life of financial instrument.

b) Debt instruments

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR method.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from
impairment are recognized in the profit or loss.

ii) Measured at FVTOCI (Fair Value through OCI)

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

(a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets, and

(b) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair
value. Fair value movements are recognized in the OCI. However, the Company recognizes interest income, impairment
losses & reversals and foreign exchange gain or loss in the profit and loss. On derecognition of the asset, cumulative
gain or loss previously recognized in OCI is reclassified from the equity to profit and loss. Interest earned while holding
FVTOCI debt instrument is reported as interest income using the EIR method.

iii) Measured at FVTPL (Fair value through profit or loss)

Debt instruments does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at
FVTPL.

The Company elects to classify the debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at
FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as ‘accounting mismatch’). Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the profit and loss.

III Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is
primarily derecognized (i.e. removed from the Company’s balance sheet) when:

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

• The Company has transferred its contratcual rights to receive cash flows from the asset.

IV Impairment of Financial Asset

Expected credit losses are recognized for all financial assets subsequent to initial recognition in Statement of Profit &
Loss other than financials assets in FVTPL category.

For recognition of impairment loss on financial assets other than Trade receivables, the company determines whether
there has been a sigificant increase in the credit risk since initial recogniton.

Financial liabilities

I Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring
nature are directly recognised in the Statement of Profit and Loss as finance cost.

II Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. Amortized cost is calculated by
taking into account any discount or premium on acquisition and any material transaction that are any integral part of the
EIR. 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.

Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value
recognised in the Statement of Profit and Loss.

III Derecognition

A financial liability is derecognized 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 recognized in
the statement of profit or loss.

Derivative financial instruments

The Company uses forwards to mitigate the risk of changes in exchange rates. Such derivative financial instruments are
initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently
measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are
taken directly to Statement of Profit and Loss.

ix) Revenue Recognition

Revenue from sale of products is recognized when the significant risks and rewards of ownership of the products are
transferred to the buyer, recovery of the consideration is reasonably assured and the amount of revenue can be
measured reliably. Revenues include excise duty and are shown net of sales tax, value added tax and discounts, if any.

Dividend income is recognized when the right to receive the income is established. Income from interest on deposits and
loans is recognized on time proportionate basis.

x) Employee Benefits

The company’s contribution to provident fund and pension fund, are charged on accrual basis to Statement of Profit &
Loss.

a) Expenses and Liabilities in respect of employee benefits are recorded in accordance with Indian Accounting Standard
24 - Employee Benefits issued by the ICAI.

b) Short-term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account
of the year in which the related service is rendered.

c) Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss account
for the year in which the employee has rendered services. The expense is recognised at the present value of the
amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to the Profit and Loss account.

Defined benefit costs which are recognized in the statement of profit and loss are categorized as follows:

- Service cost (including current service cost, past service cost. as well as gains and losses on curtailments

- Net interest expense or income; and

Defined contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities and will have
no legal or constructive obligation to pay further amounts. Provident Fund and Employee State Insurance are Defined
Contribution Plans in which company pays a fixed contribution and will have no further obligation beyond the monthly
contributions and are recognised as an expenses in Statement of Profit & Loss.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

Company pays Gratuity as per provisions of the Gratuity Act, 1972. Leave Encashment payable at the end of the
employment is also a post employment defined benefit plan. The Company’s net obligation in respect of defined benefit
plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods; that benefit is discounted to determine its present value. The
discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have
maturity dates approximating the terms of the Company’s obligations and that are denominated in the same currency in
which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. The net interest cost
is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan
assets. This cost is included in employee benefit expense in the statement of profit and loss.

Any actuarial gains or losses pertaining to components of re-measurements of net defined benefit liability/(asset) are
recognized in OCI in the period in which they arise.

The retirement benefit obligation recognized in the standalone Balance Sheet represents the actual deficit or surplus in
the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any
economic benefits available in the form of refunds from the plans or reduction in future contributions to the plans.

The liability for termination benefit is recognized at the earlier of when the entity can no longer withdraw the offer of the
termination benefit and when the entity recognizes any related restructuring costs.

xi) Excise Duty, Custom Duty & Cenvat Credit

The excise duty liability in respect of closing inventory of finished goods is provided for and included as part of
inventory. The amount of CENVAT credits in respect of materials consumed for sales is deducted from cost of materials
consumed. Amount of custom duty paid on raw materials (including in transit) is included in the value thereof.

xii) Valuation of Inventories

Inventories are stated at lower of cost or net realisable value. The cost for the purpose of valuation is computed on the
basis of weighted average price. The cost of work-in-progress and finished goods comprises of raw materials, direct
labour, other direct costs, cost of conversion and appropriate portion of variable and fixed production overheads and
such other costs incurred as to bring the inventory to its present location and condition inclusive of excise duty wherever
applicable. Net realisable value is the estimate of the selling price in the ordinary course of business, less the estimated
costs of completion/reprocessing and the estimated cost necessary to make the sale.

xiii) Foreign Currency Transactions and Translations

a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency on/or closely approximating
to the date of the transaction.

b) Conversion: Foreign currency monetary items, if any are reported using the closing rate. 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; and 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.

c) Exchange Difference: Exchange differences arising on the settlement of monetary items, if any or on reporting such
monetary items of the Company at rates different from those at which they were initially recorded during the year or
reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

d) Foreign Exchange Forward Contracts: Monetary Assets and Liabilities, if any are restated at the rate prevailing at the

period end or at the spot rate at the inception of forward contract where forward cover for specific asset/liability has been
taken and in respect of such forward contracts the difference between the contract rate and the spot rate at the inception
of the forward contract is recognized as income or expense in Statement of Profit and Loss over the life of the contract.
All other outstanding forward contracts on the closing date are mark to market and resultant loss is recognized as
expense in the Statement of Profit and Loss. Mark to market gains, if any, are ignored. Any profit or loss arising on
cancellation or renewal of such a forward exchange contract is recognized as income or as expense for the period.

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Mar 31, 2016

A. Basis of preparation of financial statements

The financial statements of the Company have been prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles (''GAAP'') in India, to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable and other accounting requirements pronouncements of the Institute of Chartered Accountant of India. 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.

B. Use of estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the year. Example of such estimates includes future obligations under employee retirement benefit plans, estimated useful life of fixed assets, warranty on sales, provision for obsolete and slow moving inventory, etc. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

C. Current-Non-current classification

All assets and liabilities are classified into current and non-current.

Assets: An asset is classified as current when it satisfies any of the following criteria:

a. It is expected to be realized in, or is intended for sale or consumption in ,the company''s normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is expected to be realized within 12 months after the reporting date; or

d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities: liability is classified as current when it satisfies any of the following criteria:

a. It is expected to be settled in the company''s normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is due to be settled within 12 months after the reporting date; or

d. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at option of the counterparty, result in its settlement by the issue of equity instruments do not affects its classification.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

D. Revenue recognition

Revenue from sale of goods is recognized on the basis of terms and conditions with respective customers which coincide with the transfer of significant risks and rewards to the customer. Sales are stated at invoice value net of sales tax, turnover/trade discount, returns and claims, if any.

Interest income is recognized on time proportion basis considering the amount outstanding and the rate applicable.

E. Inventories

The stock in trade is valued at the lower of cost and net realizable value. Cost includes purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from tax authorities) freight inward and other expenditure directly attributable to bring the inventory to the present location and condition. Cost is determined on first in first out basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

F. Fixed assets

There are no fixed assets in the company.

G. Foreign currency transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date. Gains/ (losses) arising on account of realisation/ settlement of foreign exchange transactions and on translation of foreign currency assets and liabilities are recognized in the statement of Profit and Loss.

During the year no foreign currency transactions had taken place.

H. Employee benefits Short term employee benefits

All employee benefits payable/available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the Profit and Loss Account in the period in which the employee renders the related service.

Defined benefit plan

Gratuity is a defined benefit plan. The present value of obligations under such defined benefit plans is determined based on actuarial valuation carried out by an independent actuary at the end of the year using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

I. Taxation

Income tax expenses comprise current tax (i.e. the amount of tax for the period determined in accordance with the income tax laws) and deferred tax charge or credit (reflecting the tax effects of timing differences between the accounting income and the taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using tax rates that have been enacted, or substantively enacted, by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future, however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realized.

J. Provisions and contingent liabilities

A provision is created 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. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. 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.

K. Earnings per share

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

L. Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposit with banks, other short term highly liquid investments with original maturities of three months or less.

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Mar 31, 2015

A. Basis of preparation of financial statements

The financial statements of the Company have been prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles ('GAAP') in India, to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable and other accounting requirements pronouncements of the Institute of Chartered Accountant of India. 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.

B. Use of estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the year. Example of such estimates includes future obligations under employee retirement benefit plans, estimated useful life of fixed assets, warranty on sales, provision for obsolete and slow moving inventory, etc. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

C. Current-Non-current classification

All assets and liabilities are classified into current and non-current. Assets

An asset is classified as current when it satisfies any of the following criteria:

a. It is expected to be realized in, or is intended for sale or consumption in ,the company's normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is expected to be realized within 12 months after the reporting date; or

d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a. It is expected to be settled in the company's normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is due to be settled within 12 months after the reporting date; or

d. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at option of the counterparty, result in its settlement by the issue of equity instruments do not affects its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

D. Revenue recognition

Revenue from sale of goods is recognized on the basis of terms and conditions with respective customers which coincides with the transfer of significant risks and rewards to the customer. Sales are stated at invoice value net of sales tax, turnover/trade discount, returns and claims, if any.

Interest income is recognized on time proportion basis considering the amount outstanding and the rate applicable.

E. Inventories

The stock in trade is valued at the lower of cost and net realizable value. Cost includes purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from tax authorities) freight inward and other expenditure directly attributable to bring the inventory to the present location and condition. Cost is determined on first in first out basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

F. Fixed assets

Tangible fixed assets

Tangible fixed assets are recorded at cost of acquisition less accumulated depreciation and less accumulated impairment loss, if any. Cost is inclusive of inward freight, duties, taxes and incidental expenses related to acquisition and installation expenses incurred to bring the assets to their working condition for intended use. Tangible fixed assets under construction and cost of assets not put to use before the year end are disclosed as capital work in progress.

Subsequent expenditures related to an item of tangible fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014,the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Further, assets individually costing Rs. 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets.

Assets individually costing Rs. 5,000 or less are fully depreciated in the year of the purchase.

Depreciation on additions is being provided on pro rata basis from the date of such additions. Similarly, depreciation on assets sold/disposed off during the year is being provided up to the dates on which such assets are sold/disposed off. Modification or extension to an existing asset, which is of capital nature and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset.

Intangible fixed assets

Intangible assets which are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortization and/or less accumulated impairment loss, if any. Subsequent expenditure is capitalized only when it increases the future economic benefits from the specific asset to which it relates.

G. Impairment

The carrying value of assets is reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the amount recoverable towards such assets is estimated. An impairment loss is recognised whenever the carrying amount of an asset, or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the Profit and Loss Account. An impairment loss is reversed if there is a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to the extent the carrying amount of the asset that does not exceed the carrying amount that would have been determined net off depreciation or amortisation, if no impairment loss had been recognised.

H. Foreign currency transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date. Gains/ (losses) arising on account of realisation/ settlement of foreign exchange transactions and on translation of foreign currency assets and liabilities are recognised in the statement of Profit and Loss. During the year no foreign currency transactions had taken place.

I. Leases

Where the lesser effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease charges are recognised as an expense in the statement of Profit and Loss.

J. Employee benefits

Short term employee benefits

All employee benefits payable/available within twelve months of rendering the service are classified as short- term employee benefits. Benefits such as salaries, wages and bonus etc., are recognised in the Profit and Loss Account in the period in which the employee renders the related service, if any.

Defined benefit plan

Gratuity is a defined benefit plan. The present value of obligations under such defined benefit plans is determined based on actuarial valuation carried out by an independent actuary at the end of the year using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations. Actuarial gains and losses are recognised immediately in the Profit and Loss Account.

K. Taxation

Income tax expenses comprise current tax (i.e. the amount of tax for the period determined in accordance with the income tax laws) and deferred tax charge or credit (reflecting the tax effects of timing differences between the accounting income and the taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using tax rates that have been enacted, or substantively enacted, by the Balance Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in the future, however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realised.

L. Provisions and contingent liabilities

A provision is created 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. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. 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.

M. Earnings per share

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

N. Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposit with banks, other short term highly liquid investments with original maturities of three months or less.

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Mar 31, 2013

1. The above Cash Flow Statement has been prepared under theindirect method as set out in Accounting Standard-3 on "Cash Flow Statement" notified under Section 211(3C) of the Companies Act, 1956.

2. Figures in brackets represents Cash Outflow.

1.1 Accounting Convention

The financial statements of the Company have been prepared and presented under the historical cost convention on the accrual basis of accounting principles generally accepted in India ("GAAP") and comply with the mandatory Accounting Standards ("AS") issued by the Institute of Chartered Accountants of India ("The ICAI") to the extent applicable and relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian Rupees rounded off to the nearest rupees.

The Company follows the mercantile system of accounting and recognize items of income and expenditure on accrual basis.

1.2 Revenue Recognition

Revenue is recognized at the time of delivery of goods or services.

1.3 Depreciation

Depreciation on all fixed assets is provided on written down value method at the rates specified in Schedule XIV to the CompaniesAct,1956.

1.4 Investments

Long Term investments are stated at cost, less provision for diminution in value of investments, which is considered to be Current investments are stated at lower of cost or fair market value. Cost Includes original cost of acquisition, including brokerage Unquoted investments are valued at cost.

1.5 Taxation

Provision for taxation is ascertained on the basis of assessable profits computed in accordance with provisions of Income TaxAct, 1961.

1.6 Provisions and Contingent liabilities

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

Contingent Liability is disclosed in case of

a) a present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a present obligation when no reliable estimate is possible, and

c) a possible obligation arising from past events where the probability of outflow of resources is not remote.

Provision, Contingent Liabilities and ContingentAssets are reviewed at each Balance Sheet date.

1.7 Inventories

Inventories are valued at the lower of cost or net realisable value after providing for obsolescence, if any. Cost of inventory comprises of cost of purchase and other cost incurred to bring them to their respective present location and condition.

The scheme of amalgamation , as approved by the Hon''ble High Court of Delhi, has become effective on 1st April 2011 on completion of all the required formalities. Consequently, 10,000,000 equity shares of Rs.10 each, issued in pursuant to the scheme of amalgamation of Freesia Construction Private Limited with the Company have been given effect under''Shares outstanding at the beginning of the financial year ended 31st March, 2012. However, theAuthorised Share Capital of the Company has been increased to Rs. 150,000,000 by the members ofthe Company in theirmeeting held on 08.06.2013. (For Scheme ofAmalgamation- Refer Note 20).