Accounting Policies of Krishna Capital & Securities Ltd. Company

Mar 31, 2024

5. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

5.1. Financial Instruments

I. Classification of Financial Instruments

The Company classifies its financial assets into the following measurement categories:

• Financial assets to be measured at amortized cost.

• Financial assets to be measured at fair value through other comprehensive income.

• Financial assets to be measured at fair value through profit or loss account.

The classification depends on the contractual terms of the financial assets'' cash flows and the
Company''s business model for managing financial assets which are explained below:

Business Model Assessment

The Company determines its business model at the level that best reflects how it manages groups of
financial assets to achieve its business objective. The Company''s business model is not assessed on an
instrument by-instrument basis, but at a higher level of aggregated portfolios and is based on
observable factors such as:

• How the performance of the business model and the financial assets held within that business
model are evaluated and reported to the entity''s key management personnel.

• The risks that affect the performance of the business model (and the financial assets held within
that business model) and the way those risks are managed.

• How managers of the business are compensated (for example, whether the compensation is based
on the fair value of the assets managed or on the contractual cash flows collected).

• The expected frequency, value and timing of sales are also important aspects of the Company''s
assessment. The business model assessment is based on reasonably expected scenarios without
taking worst case'' or ''stress case'' scenarios into account. If cash flows after initial recognition are
realised in a way that is different from the Company''s original expectations, the Company does not
change the classification of the remaining financial assets held in that business model, but
incorporates such information when assessing newly originated or newly purchased financial
assets going forward.

The Solelu Payments of Principal and Interest (SPPI) Test

As a second step of its classification process the Company assesses the contractual terms of
financial assets to identify whether they meet the SPPI test. ''Principal'' for the purpose of this test is
defined as the fair value of the financial asset at initial recognition and may change over the life of the
financial asset (for example, if there are repayments of principal or Amortisation of the
premium/discount). In making this assessment, the Company considers whether the contractual cash
flows are consistent with a basic lending arrangement i.e. interest in dudes only consideration for the
time value of money, credit risk other basic lending risks and a profit margin that is consistent with
a basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that
are inconsistent with a basic lending arrangement, the related financial asset is classified and measured
at fair value through profit or loss. The Company classifies its financial liabilities at Amortised costs
unless it has designated liabilities at fair value through the profit and loss account or is required to
measure liabilities at fair value through profit or loss such as derivative liabilities.

II. Financial Assets Measured at Amortised Cost

Debt instruments- These financial assets comprise bank balances, Loans, investments and other financial
assets. Debt instruments are measured at Amortised cost where they have:

a. Contractual terms that give rise to cash flows on specified dates, that represent solely payments of
principal and interest on the principal amount outstanding and.

b. Are held within a business model where objective is achieved by holding to collect contractual cash
flows.

These debt instruments are initially recognized at fair value plus directly attributable transaction costs
and subsequently measured at amortized cost.

The company has not granted any loans or advances during the year to promoters, directors, KMPs
and the related parties either severally or jointly with any other person during the year.

III. Financial Assets Measured at fair value through other Comprehensive Income

Debt Instruments

Investments in debt instruments are measured at fair value through other comprehensive income where
they have:

a. Contractual terms that give rise to cash flows on specified dates, that represent solely payments of
principal and interest on the principal amount outstanding; and.

b. Are held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets.

As at reporting date, there are no debt instruments measured at FVOCI.

Equity Instruments

Investment in equity instruments that are neither held for trading nor contingent consideration
recognised by the Company in a business combination to which Ind AS 103 "Business Combination
applies, are measured at fair value through other comprehensive income, where an irrevocable election
has been made by management and when such instruments meet the definition of Equity under Ind

AS 32 Financial Instruments: Presentation. Such classification is determined on an instrument-by¬
instrument basis. As at reporting date, there are no equity instruments measured at FVOCI.

IV. Items at fair value through Profit or Loss.

Items at fair value through profit or loss comprise:

• Investments (including equity shares) held for trading;

• Items specifically designated as fair value through profit or loss on initial recognition; and

• Debt instruments with contractual terms that do not represent solely payments of principal and
interest.

Financial instruments held at fair value through profit or loss are initially recognised at fair value,
with transaction costs recognised in the statement of profit and loss as incurred. Subsequently, they
are measured at fair value and any gains or losses are recognised in the statement of profit and loss
as they arise.

Financial instruments held for Trading

A financial instrument is classified as held for trading if it is acquired or incurred principally for selling
or repurchasing in the near term, or forms part of a portfolio of financial instruments that are managed
together and for which there is evidence of short-term profit taking, or it is a derivative not in a
qualifying hedge relationship.

Trading derivatives and trading securities are classified as held for trading and recognised at fair value.
Financial instruments designated as measured at fair value through profit or loss. Upon initial
recognition, financial instruments may be designated as measured at fair value through profit or loss.
A financial asset may only be designated at fair value through profit or loss if doing so eliminates or
significantly reduces measurement or recognition inconsistencies (i.e. eliminates an accounting
mismatch) that would otherwise arise from measuring financial assets or liabilities on a different basis.

A financial liability may be designated at fair value through profit or loss if it eliminates or significantly
reduces an accounting mismatch or:

• If a host contract contains one or more embedded derivatives; or

• If financial assets and liabilities are both managed and their performance evaluated on a fair value
basis in accordance with a documented risk management or investment strategy.

Where a financial liability is designated at fair value through profit or loss, the movement in fair
value attributable to changes in the Company''s own credit quality is calculated by determining
the changes in credit spreads above observable market interest rates and is presented separately
in other comprehensive income. As at the reporting date, the Company has not designated any
financial instruments as measured at fair value through profit or loss.

V. Derivatives.

A derivative is a financial instrument or other contract with all three of the following characteristics:

• Its value changes in response to the change in a specified interest rate, financial instrument price,
commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or
other variable, provided that, in the case of a non-financial variable, it is not specific to a party to
the contract (i.e., the ''underlying'').

• It requires no initial net investment or an initial net investment that is smaller than would be
required for other types of contracts expected to have a similar response to changes in market
factors.

• It is settled at a future date.

Changes in the fair value of derivatives are included in net gain on fair value changes.

VI. Debt Securities and Other Borrowed Funds

After initial measurement, debt issued and other borrowed funds are subsequently measured at
amortised cost. Amortised cost is calculated by taking into account any discount or premium on issue
funds, and transaction costs that are an integral part of the Effective Interest Rate (EIR). There are no
Debt securities and borrowed funds in the company at the reporting date.

VII. Financial Guarantees

Financial guarantees are initially recognised in the financial statements (within Provisions) at fair value,
being the premium received. Subsequent to initial recognition, the company''s liability under each
guarantee is measured at the higher of the amount initially recognised less cumulative Amortisation
recognised in the statement of profit and loss.

• The premium is recognised in the statement of profit and loss on a straight-line basis over the life
of the guarantee.

VIII. Reclassification of Financial Assets and Liabilities

The Company does not reclassify its financial assets subsequent to their initial recognition. Financial
liabilities are never reclassified. The Company did not reclassify any of its financial assets or liabilities
in 2022-23 and until the year ended March 31, 2024.

IX. Recognition and Derecognition of Financial Assets and Liabilities

Recognition:

a. Loans and Advances are initially recognized when the funds are transferred to the customers''
account or delivery of assets by the dealer, whichever is earlier.

b. Investments are initially recognised on settlement date.

c. Debt securities, deposits and borrowings initially recognised when funds reach Company.

d. Other Financial assets and liabilities initially recognised on the trade date, i.e., the date that the
Company becomes a party to the contractual provisions of the instrument. This includes regular
way trades: purchases or sales of financial assets that require delivery of assets within the time
frame generally established by regulation or convention in the market place.

Derecognition of Financial Assets other than due to Substantial Modification

a. Financial Assets:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is derecognised when the rights to receive cash flows from the financial asset have
expired. The Company also derecognised the financial asset if it has both transferred the financial
asset and the transfer qualifies for Derecognition.

The Company has transferred the financial asset if, and only if, either:

i. The Company has transferred its contractual rights to receive cash flows from the financial
asset, or

ii. It retains the rights to the cash flows, but has assumed an obligation to pay the received cash
flows in full without material delay to a third party under a ''pass—through'' arrangement.

Pass-through arrangements are transactions whereby the Company retains the contractual
rights to receive the cash flows of a financial asset (the ''original asset''), but assumes a
contractual obligation to pay those cash flows to one or more entities (the ''eventual
recipients''), when all of the following three conditions are met:

The Company has no obligation to pay amounts to the eventual recipients unless it has
collected equivalent amounts from the original asset, excluding short-term advances with the
right to full recovery of the amount lent plus accrued interest at market rates.

The Company cannot sell or pledge the original asset other than as security to the eventual
recipients.

The Company has to remit any cash flows it collects on behalf of the eventual recipients
without material delay. In addition, the Company is not entitled to reinvest such cash flows,
except for investments in cash or cash equivalents including interest earned, during the
period between the collection date and the date of required remittance to the eventual
recipients.

A transfer only qualifies for Derecognition if 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.

The Company considers control to be transferred if and only if, the transferee has
the practical ability to sell the asset in its entirety to an unrelated third party and
is able to exercise that ability unilaterally and without imposing additional
restrictions on the transfer.

When the Company has neither transferred nor retained substantially all the risks
and rewards and has retained control of the asset, the asset continues to be
recognised only to the extent of the Company''s continuing involvement, in which
case, the Company also recognised 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.

b. Financial Liabilities:

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 and loss. As at the reporting date the company does not have
any financial liabilities which have been derecognised.

X. Impairment of Financial Assets

Overview of the ECL principles

The Company records allowance for expected credit losses for all loans, other debt financial assets not
held at FVTPL, together with financial guarantee contracts, in this section all referred to as ''financial
instruments''. Equity instruments are not subject to impairment under Ind AS 109.

The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime
expected credit loss), unless there has been no significant increase in credit risk since origination,

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected
life of a financial instrument. The 12-month ECL is the portion of Lifetime ECL that represent the ECLs
that result from default events on a financial instrument that are possible within the 12 months after
the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on collective basis, depending on the nature of
the underlying portfolio of financial instruments.

The Company has established a policy to perform an assessment, at the end of each reporting period,
of whether a financial instrument''s credit risk has increased significantly since initial recognition, by
considering the change in the risk of default occurring over the remaining life of the financial
instrument. The Company does the assessment of significant increase in credit risk at a borrower level.

Based on the above, the Company categories its loans into Stage 1, Stage 2 and Stage 3 as described
below:

Stage: 1

All exposures where there has not been a significant increase in credit risk since initial recognition or
that has low credit risk at the reporting date and that are not credit impaired upon origination are
classified under this stage. The company classifies all standard advances and advances Upto 30 days’
default under this category. Stage 1 loans also include facilities where the credit risk has improved and
the loan has been reclassified from Stage 2.

Stage: 2

All exposures where there has been a significant increase in credit risk since initial recognition but are
not credit impaired are classified under this stage. 30 Days Past Due is considered as significant
increase in credit risk.

Stage: 3

All exposures assessed as credit impaired when one or more events that have a detrimental impact on
the estimated future cash flows of that asset have occurred are classified in this stage. For exposures
that have become credit impaired, a lifetime ECL is recognised and interest revenue is calculated by
applying the effective interest rate to the Amortised cost (net of provision) rather than the gross carrying
amount. 90 Days Past Due is considered as default for classifying a financial instrument as credit
impaired. If an event (for e.g., any natural calamity) warrants a provision higher than as mandated
under ECL methodology, the Company may classify the financial asset in Stage 3 accordingly.

Financial Guarantee Contracts

The Company''s liability under financial guarantee is measured at the higher of the amount initially
recognised less cumulative Amortisation recognized in the statement of profit and loss, and the ECL
provision. For this purpose, the Company estimates ECLs by applying a credit conversion factor. The
ECLs related to financial guarantee contracts are recognised within Provisions.

Currently, the company has not recognised any ECL in respect of financial guarantee based on estimate
of expected cash flows.

XI. Write-offs

The Company reduces the gross carrying amount of a financial asset when the Company has no
reasonable expectations of recovering a financial asset in its entirety or a portion thereof. This is
generally the case when the Company determines that the borrower does not have assets or sources of
income that could generate sufficient cash flows to repay the amounts subjected to write-offs. Any
subsequent recoveries against such loans are credited to the statement of profit and loss.

XII. Fair Value Measurement:

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet
date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of
an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial
statements are categorized within the fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a whole:

Level: 1

Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level: 2

Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

Level: 3

Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

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

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair
value hierarchy as explained above.

5.2. Revenue from operations

i. Interest Income

Interest income is recognised by applying the Effective Interest Rate (EIR) to the gross carrying amount
of financial assets other than credit-impaired assets and financial assets classified as measured at
FVTPL.

The EIR in case of a financial asset is computed.

a. As the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to the gross carrying amount of a financial asset.

b. By considering all the contractual terms of the financial instrument in estimating the cash flows.

c. Including all fees received between parties to the contract that are an integral part of the effective
interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows are recognised in interest income
with the corresponding adjustment to the carrying amount of the assets.

Interest income on credit impaired assets is recognised by applying the effective interest rate to the
net Amortised cost (net of provision) of the financial asset.

ii. Dividend Income

Dividend income is recognised

a. When the right to receive the payment is established,

b. It is probable that the economic benefits associated with the dividend will flow to the entity
and.

c. The amount of the dividend can be measured reliably.

iii. Net gain on Fair value changes

Any differences between the fair values of financial assets classified as fair value through the profit or
loss, held by the Company on the balance sheet date is recognised as an unrealised gain / loss. In cases
there is a net gain in the aggregate, the same is recognised in "Net gains on fair value changes" under
Revenue from operations and if there is a net loss the same is disclosed under "Expenses" in the
statement of Profit and Loss.

Similarly, any realised gain or loss on sale of financial instruments measured at FVTPL and debt
instruments measured at FVOCI is recognized in net gain / loss on fair value changes. As at the
reporting date the Company does not have any financial instruments measured and debt instruments
measured at FVOCI.

5.3. Expenses

i. Finance Costs

Finance costs represents Interest expense recognize by applying the Effective Interest Rate (EIR) to the
gross carrying amount of financial liabilities other than financial liabilities classified as FVTPL.

The EIR in case of a financial liability is computed.

a. As the rate that exactly discounts estimated future cash payments through the expected life
of the financial liability to the gross carrying amount of the Amortised cost of a financial
liability.

b. By considering all the contractual terms of the financial instrument in estimating the cash
flows.

c. Including all fees paid between parties to the contract that are an integral part of the effective
interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows is recognised in interest
income with the corresponding adjustment to the carrying amount of the assets.

Interest expense includes issue costs that are initially recognized as part of the carrying value
of the financial liability and amortized over the expected life using the effective interest method.
These include fees and commissions payable to advisers and other expenses such as external
legal costs, Rating Fee etc., provided these are incremental costs that are directly related to
the issue of a financial liability.

ii. Other Income & Expenses.

All Other income and expense are recognized in the period they occur.

iii. Impairment of non-financial assets.

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of
impairment based on internal/external factors. An impairment loss is recognized wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets,
net selling price 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 risks specific to the asset.

In determining net selling price, recent market transactions are taken into account, if available. If no
such transactions can be identified, an appropriate valuation model is used. After impairment,
depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

iv. Taxes

Tax expense comprises of current income tax and deferred tax.

Current income tax:

Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognized outside the statement of Profit and Loss is recognized
outside the statement of Profit and Loss (either in other comprehensive income or in equity). Deferred
tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provision where appropriate.

Recognition of Deferred tax assets and liabilities.

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax
losses for which there is probability of utilisation against the future taxable profit. The Company uses
judgement to determine the amount of deferred tax that can be recognised, based upon the likely timing
and the level of future taxable profits and business developments.

5.4. Functional and presentational currency.

The standalone financial statements are presented in Indian Rupees which is also functional currency of the
Company and the currency of the primary economic environment in which the Company operates.

5.5. Cash and Cash Equivalent.

Cash and cash equivalent in the Balance Sheet comprise cash at banks and in hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of charges in value.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above.

5.6. Property, plant and equipment:

Property, plant and equipment are stated at cost, net of recoverable taxes less accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase price and borrowing costs if capitalization
criteria are met, the cost of replacing part of the fixed assets and directly attributable cost of bringing the asset
to its working condition for the intended use. Each part of an item of property, plant and equipment with a cost
that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to
components for machinery. When significantly parts of fixed assets are required to be replaced at intervals,
the company recognised such parts as individual assets with specific useful lives and depreciates them

accordingly. Likewise, when a major overhauling is performed, its cost is recognised in the carrying amount of
the Property, plant and equipment as a replacement if the recognition criteria are satisfied. Any trade discounts
and rebates are deducted in arriving at the purchase price.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if applicable. Company has only one fixed asset which is
office building having useful life of 60 years. The Company calculates depreciation on items of property, plant
and equipment on a Written down Value using the rates defined under Schedule II of the Companies Act 2013.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss arising on Derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement
of Profit and Loss when the asset is derecognized.

There has been no Revaluation during the financial year in any class of assets of the company, hence separate
disclosure is not required.

Company does not hold any immovable property not in the name of the company hence separate disclosure for
the same is not required

There has been no Capital Work in Progress as on balance sheet date for the financial year and company does
not hold any Benami property during the year.

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Mar 31, 2015

A). Basis of Preparation of Financial Statement

i). The Standalone Financial Statements of the company have been prepared and presented in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) under the historical cost convention on an accrual basis. The company has prepared these standalone financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those of previous year.

ii) Use of Estimates

The preparation of the standalone financial statements in conformity with Indian GAAP requires the management to make judgment, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of consolidated financial statements and reported amounts of revenues and expenses for the year. Although these estimates are based on Management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes different from the estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii). Current & Non-Current Classification

All the assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of activities and time between the activities performed and their subsequent realization in cash or cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current/ non -current classification of assets and liabilities.

b) Inventories

Inventories (Stock-In-Trade, if any) are valued at lower of Cost or Net Realisable Value by following FIFO Method.

c) Cash Flow Statement

i) Cash & cash Equivalents (for purpose of cash flow statement)

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

ii) Cash Flow Statement

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

d) Prior Period and Exceptional items

i) All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period items".

ii) Exceptional items are generally non-recurring items of income and expense within profit or loss from ordinary activities, which are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the year.

e) Fixed Assets

Tangible fixed assets.

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation and Impairment losses, if any. Cost comprises the purchase price, import duty and other non- refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing cost relating to acquisition /construction of fixed assets which take substantial period time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

f) Depreciation

Depreciation on fixed Assets is provided on written-down method taking useful lives and in the manner specified in Schedule II to the Companies Act, 2013 read with the relevant circulars issued by the Ministry of Corporate Affairs.

g) Revenue Recognition:

Revenue is recognised when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

i) Sales of Goods are recognised when the significant risk and rewards of ownership of the goods have been passed to the customer and net of Value added tax and return.

ii) Other Incomes are recognised on receipt of confirmation regarding acceptance of claim form the counterpart or when it is a part of oral expressed understanding.

iii) Interest Income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

h) Foreign Currency Transactions

There are no Foreign Currency Transactions in the company during the year,

i) Investments

i) Long term investments are stated at cost. Provisions for diminution in the value of long term investments are made only if such a decline is other than temporary in nature in the opinion of the management.

j) Employee Benefits Shortterm Employee Benefits

Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and loss of the year in which the related services is rendered.

k) Borrowing costs

Borrowing costs that are 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 substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and loss.

l) Segment Accounting

There is no requirement of Segment Reporting as Company doesn't have any other branch.

m) Related Party transactions

Disclosure of transactions with related parties, as required by Accounting Standard 18 "Related Party Disclosure" as specified in the Companies (Accounting Standard) Rules, 2006 (as amended), has been set out in a separate statement annexed to this note. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by the management and information available with the company.

n) Leases

There is no lease agreement from the Company's side during the year.

o) Earning Per Share

The company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 as specified in the Companies (Accounting Standard)Rules,2006 (as amended). The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. There are no dilutive potential equity shares so Diluted EPS is same as Basis EPS.

p) Provision for Tax

Tax expenses comprises of current tax and deferred tax.

1) CurrentTax

Provision for taxation has been made in accordance with the direct tax laws prevailing for the relevant assessment years.

2) Deferred Tax

In accordance with the Accounting Standard 22- Accounting for Taxes on Income, as specified in the Companies (Accounting Standard) Rules 2006 (as amended), the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and Laws that have been enacted or substantively enacted as of the Balance Sheet Date.

Deferred tax assets arising from timing differences are recognised to the extent there is virtual certainty that the assets can be realized in future.

Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset. The deferred tax account is used solely for reversing timing difference as and when crystallized.

q) Impairment of Fixed Assets

1) The carrying amount of assets, other than inventories, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated.

2) The impairment loss is recognized whenever the carrying amount of an asset or its cash generation unit exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in the uses which is determined based on the estimated future cash flow discounted to their present values. All impairment losses are recognized in the statement of Profit and Loss.

3) An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and is recognised in the Statement of Profit and Loss.

r) Provision, Contingent Liabilities and Contingent Assets

Provision are recognized for when the company has at present, legal or contractual obligation as a result of Past events, Only if it is probable that an outflow of resources embodying economic outgo or loss will be required and if the amount involved can be measured reliably.

Contingent liabilities being a possible obligation as a result of Past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more future events not wholly in control of the company are not recognized in the accounts. The company doesn't have any Contingent Liability Contingent assets are neither recognized nor disclosed in the financial statements.

s) Expenditure

Expenses are net of taxes recoverable, where applicable.

t) Accounting of claims

Claims received are accounted at the time of lodgment depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

u) Doubtful debts. Advances

There are no doubtful debts in the books of company during the year

v) DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THECOMPANIES ACT, 2013

There are no Loans or Guarantees given by the company during the year.

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Mar 31, 2014

1 Basis of Accounting

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI

2 Inventories

Inventories are valued at cost or Market Value whichever is lower

3 Revenue Recognisation

All Income & Expenditures are accounted for on accrual basis

4 Fixed Assets

The Gross Block of Fixed Assets is stated at original cost of acquisition which includes any cost directly attributable to bringing the Assets to their working condition for their intended use.

5 Depreciation

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of the Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block value of Rs 5,000/- or less.

6 Investment

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7 Income Tax

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgment that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change.

8. Extraordinary Items

This year company has sold its Fixed Asset of Office Premises at Sahajanand Complex for profit of Rs. 1883675 which is not in the normal course of the business of company. Hence it is shown as an Extraordinary item in the Profit & Loss a/c.

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Mar 31, 2013

1 Basis of Accounting

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI

2 Inventories

Inventories are valued at cost or Market Value whichever is lower

3 Revenue Recognisation

All Income & Expenditures are accounted for on accrual basis

4 Fixed Assets

The Gross Block of Fixed Assets is stated at original cost of acquisition which includes any cost directly attributable to bringing the Assets to their working condition for their intended use.

5 Depreciation

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of the Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block value of Rs 5,000/- or less.

6 Investment

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7 Income Tax

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgment that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change.

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Mar 31, 2012

1 Basis of Accounting

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI

2 Inventories

Inventories are valued at cost or Market Value whichever is lower

3 Revenue Recognisation

All Income & Expenditures are accounted for on accrual basis

4 Fixed Assets

The Gross Block of Fixed Assets is stated at original cost of acquisition which includes any cost directly attributable to bringing the Assets to their working condition for their intended use.

5 Depreciation

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of th Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block vlue of Rs 5,000/- or less.

6 Investment

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7 Income Tax

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgement that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change

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Mar 31, 2011

1. BASIS OF ACCOUNTING :

The financial Statements are Prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI.

2. INVENTORIES:

Inventories are valued at cost or market price whichever is lower.

3. REVENUE RECOGNITION:

All Income & expenditures are accounted for on accrual basis.

4. FIXED ASSETS :

The Gross Block of Fixed Assets is stated at original cost of acquisition which including any cost directly attribution to brining the Assets to their working condition for their intended use.

5. DEPRECIATION:

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of the Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block value of Rs 5000/- or less.

6. INVESTMENT:

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7. INCOME TAX:

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgment that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change.