Accounting Policies of Mideast Portfolio Management Ltd. Company

Mar 31, 2024

2. Summary of significant accounting policies

(A) Basis of Preparation of Financial Statements

During the year ended 31 March 2024, the Division II of Schedule III notified under the Companies
Act, 2013 has become applicable to the Company, for preparation and presentation of its financial
statements. The adoption of Division II of Schedule III does not impact recognition and measurement
principles followed for preparation of financial statements.

(B) Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards requires the
management to make judgments, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the
reporting period. Although these estimates are based on the management''s best knowledge of current
events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(C) Property plant and Equipment''s

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Cost comprises of purchase price inclusive of taxes etc. up to the date the
asset is ready for its intended use. Depreciation is provided under written down value method at the
rates and in the manner prescribed under Schedule II to the Companies Act, 2013.

(D) Depreciation Tangible Fixed Assets.

Depreciation on fixed assets is calculated on a Straight-Line method at based on the useful lives
estimated by the management, or those prescribed under the Schedule II of the Companies Act, 2013,
The company has used the following rates to provide depreciation on its fixed assets.

(E) Intangible Assets

The entity is not in possession of any intangible assets.

(F) Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are expensed in the period they
occur.

(G) Impairment of non-financial assets

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash generating units). As a result, some assets are tested
individually for impairment and some are tested at the cash generating unit level. All individual
assets or cash generating units are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.

The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any
indication of impairment based on external or internal factors. An impairment loss is recognised
wherever the carrying amount of an asset exceeds its recoverable amount which represents the
greater of the net selling price of assets and their ''value in use'' in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a significant
increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss
allowance based on 12-month ECL.

Life time 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 a portion of the lifetime ECL which
results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR. When estimating the cash flows, an entity is required to consider all
contractual terms of the financial instrument (including prepayment, extension, call and similar
options) over the expected life of the financial instrument. However, in rare cases when the expected
life of the financial instrument cannot be estimated reliably, then the entity is required to use the
remaining contractual term of the financial instrument.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the Statement of profit and loss. This amount is reflected under the head ''other expenses''
in the Statement of profit and loss.

For assessing increase in credit risk and impairment loss, the Company combines financial
instruments on the basis of shared credit risk characteristics with the objective of facilitating an
analysis that is designed to enable significant increases in credit risk to be identified on a timely basis

(H) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on risk exposure arising from financial assets like
debt instruments measured at amortised cost e.g., trade receivables and deposits.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade
receivables or contract revenue receivables. The application of simplified approach does not require
the Company to track changes Purchase price is assigned using a weighted average basis. Net
realizable value is defined as anticipated selling price or anticipated revenue less cost to completion.

(I) Inventories

The company is service entity and it does not have inventory on end of reporting period.

(J) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:

(a) Portfolio Management Services

Income from portfolio management services is recognised on accrual basis.

(b) Interest

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

(K) Accounting for Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Current and
deferred tax shall be recognized as income and expenses and included in profit and loss for the
period, except to the extent that the tax arises from (a) a transaction or event which is recognized in
the same or a different period, outside profit or loss, either in other comprehensive Income or directly
in equity or (b) a business combination. Deferred taxes recognized in respect of temporary differences
between the carrying amount of assets and liabilities for financial reporting purpose and
corresponding amounts used for taxation purpose except to the extent it relates to business
combination or to an item which is recognized directly in equity and in other comprehensive Income.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognized only to the extent that it is probable that
future taxable profit will be available against which the assets can be utilized. A deferred tax asset
shall be recognized for the carry-forward of unused tax losses and unused tax credits to the extent
that it is probable that future taxable profit will be available against which the unused tax losses and
unused tax credits can be utilized. Deferred tax assets are reviewed at each reporting date and
Reduced to the extent that it is no longer probable that the related tax benefit will be Realize. A
deferred tax liability is recognized based on the expected manner of realization or settlement of
carrying amount of assets and liabilities

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off
current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to
the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current
tax. The Company recognizes MAT credit available as an asset only to the extent that there is
convincing evidence that the Company will pay normal income tax during the specified period, i.e.,
the period for which MAT credit is allowed to be carried forward. In the year in which the Company
recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for credit
available in respect of Minimum Alternative Tax

under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit
and loss and shown as "MAT Credit Entitlement." The Company reviews the "MAT credit

entitlement" asset at each reporting date and writes down the asset to the extent the Company does
not have convincing evidence that it will pay normal tax during the specified period.

(M) Retirement and Other Employee Benefits

The Group has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

(O) Segment reporting

The company''s business activity falls within a single primary segment the disclosure requirements of
Indian Accounting Standard (''Ind AS-108'') "Operating segment is not applicable.

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

The financial statement have been prepared in accordance with the Generally Accepted Accounting Principles in India ("GAAP") under the historical cost convention on an accrual basis to comply in all material aspects the mandatory Accounting Standards notified under the Companies Act, 1956 read with General Circular 15/2013 dated 13th September, 2013 of the Ministry of the Minstry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

2.2 Use of Estimates

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

2.3 Fixed Assets

Fixed Assets are stated at their cost of acquisition/ construction including incidental expenses related to acquisition, construction and installation of the concerned assets.

2.4 Impairment of Assets

Pursuant to Accounting Standard AS 28 Impairment of Assets, the company assessed its fixed assets for impairment as at March 31, 2014 and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

2.5 Depreciation :

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956. Depreciation is provided upto 95% of gross block value.

2.6 Revenue recognition

a) Portfolio Management Services:

Income from Portfolio Management Services is recoginsed on accrual basis.

b) Interest

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

2.7 Borrowing Cost:

Borrowing Cost which have a direct nexus and are directly attributable to the project are charged to the project and other borrowing costs are expensed out as a period cost as specified in Accounting Standard 16 on "Borrowing Cost".

2.8 Investments

Investments held by the Company are of long term in nature and are stated at cost less provision for diminution in the value is made to recognise a decline other than temporary in the value of the investments.

2.9 Employee Benefit

a. Defined Contribution Plan:

The company''s Contribution paid/payable for the period to defined contribution retirement benefit plan is charged to the Statement of Profit and Loss.

b. Defined Benefit Plan and other long term benefit:

The company''s liability towards defined benefit schemes viz gratuity benefits and other long term benefit viz leave encashment are determined using the ''Project Unit Credit Method''. Actuarial Valuations under the project unit credit method are carried out at a balance sheet date. Actuarial gain and losses are recognised in the statement of Profit and Loss in the period of occurance of such gain and losses. Past service cost is recognised immediately to the extent of benefits are vested, otherwise it is amortised on the straight line basis over the remaining average period until the benefit become vested.

b. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for services rendered by the employees are recognised undiscounted during the period employee renders services.

2.10 Prior period adjustments, extra ordinary items and changes in accounting policies

Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

2.11 Taxes on income

Current tax is determined on the amount of tax payable in respect of taxable income for the year.

The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.

2.12 Contingent Liabilities

Contingent Liabilities are not provided for in the accounts and if any the same is reflected in notes to accounts.

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Mar 31, 2010

BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements have been prepared under the historical cost convention on the accrual basis, in accordance with the generally accepted accounting principles and materially comply with the Accounting Standards specified by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

USE OF ESTIMATES

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

FIXED ASSETS

Fixed Assets are stated at their cost of acquisition/ construction including incidental expenses related to acquisition, construction and installation of the concerned assets.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956.

INVESTMENTS

Investments held by the Company are of long term in nature and are stated at cost.

REVENUE RECOGNITION

Profit or losses from investment are recognized on trade dates generally following the "first in first out" basis.

RETIREMENT BENEFIT

Gratuity and Leave encashment benefit is accounted for on cash basis.

PRIOR PERIOD ADJUSTMENTS, EXTRA ORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

TAXES ON INCOME

Current tax is determined on the amount of tax payable in respect of taxable income for the year.

The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.

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Jun 30, 2009

BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements have been prepared under the historical cost convention on the accrual basis, in accordance with the generally accepted accounting principles and materially comply with the Accounting Standards specified by the Institute of Chartered Accountants of India.

USE OF ESTIMATES

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

FIXED ASSETS

Fixed Assets are stated at their cost of acquisition/ construction including incidental expenses related to acquisition, construction and installation of the concerned assets.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956.

INVESTMENTS

Investments held by the Company are of long term in nature and are stated at cost.

REVENUE RECOGNITION

Profit or losses from investment are recognized on trade dates generally following the "first in first out" basis.

RETIREMENT BENEFIT

Gratuity and Leave encashment benefit is accounted for on cash basis.

PRIOR PERIOD ADJUSTMENTS, EXTRA ORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

TAXES ON INCOME

Current tax is determined on the amount of tax payable in respect of taxable income for the year.

The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.