Accounting Policies of Modella Woollens Ltd. Company

Mar 31, 2024

B. Significant Accounting Policies

1. Basis of preparation and presentation

The financial statements of the Company have been prepared to comply in all material respects with the Indian
Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015.

The financial statements for all periods up to and including year ended 31 March 2017 were prepared in
accordance with the Companies (Accounting Standards) Rules, 2006 notified under Section 133 of the
Companies Act ("the Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended)
("previous GAAP").

The financial statements for the year ended 31 March 2018 are the first financial statements prepared by the
Company in accordance with Ind AS.

The financial statements have been prepared under the historical cost convention with the exception of certain
financial assets and liabilities which have been measured at fair value, on an accrual basis of accounting.

All the assets and liabilities have been classified as current and non-current as per normal operating cycle of
the Company and other criteria set out in as per the guidance set out in Schedule III to the Act. Based on nature
of services, the Company ascertained its operating cycle as 12 months for the purpose of current and non¬
current classification of asset and liabilities.

The Company''s financial statements are reported in Indian Rupees, which is also the Company’s functional
currency.

C. Use of Estimates:

The preparation of the financial statements, in conformity with the Ind AS, requires the management to make
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets
and liabilities and disclosure of contingent liabilities as at the date of financial statements and the results of
operation during the reported period. Although these estimates are based upon management’s best knowledge
of current events and actions, actual results could differ from these estimates which are recognised in the
period in which they are determined.

a) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year. The Company based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to the financial statements.

ii) Deferred tax assets

In view of uncertainty of income in future, deferred tax is not created.

iii) Provisions

Provisions and liabilities are recongnised in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events and the amount of cash flow can be realiably
estimated. The timing of recongnition and quantification of the liability require application of judgement to the

existing facts and circumstances which can be subject to change. The carrying amounts of provisions and
liabilities are reviewed regualarly and revised to take account of changing the facts and circumstances

D. Property, Plant and Equipment
Tangible Assets

Property, Plant and Equipment are stated at cost of acquisition including attributable interest and finance costs,
if any, till the date of acquisition/ installation of the assets less accumulated depreciation and accumulated
impairment losses, if any. Subsequent expenditure relating to Property, Plant and Equipment is capitalised only
when 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. All other repairs and maintenance costs are charged to the Statement
of Profit and Loss as incurred. The cost and related accumulated depreciation are eliminated from the financial
statements, either on disposal or when retired from active use and the resultant gain or loss are recognised in
the Statement of Profit and Loss.

On transition to Ind AS, the Company has opted to continue with the carrying values measured under the
previous GAAP as at 1 April 2016 of its Property, Plant and Equipment and use that carrying value as the
deemed cost except for certain class of assets which are measured at fair value as deemed cost on the date of
transition i.e. 1 April 2016.

E. Depreciation and Amortisation:

Depreciation on all fixed assets, Improvements and intangible assets, is provided on straight line method over
the useful life of Asset and in the manner as prescribed by Schedule II of the Act.

F. Financial Instruments

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

i) Financial Assets
Initial Recognition

In the case of financial assets not recorded at fair value through profit or loss (FVPL), financial assets are
recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the
financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

Financial Assets at Amortised Cost (AC)

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
model with an objective to hold these assets in order to collect contractual cash flows and the contractual terms
of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding. Interest income from these financial assets is included in finance income
using the effective interest rate ("EIR") method. Impairment gains or losses arising on these assets are
recognised in the Statement of Profit and Loss.

Financial Assets Measured at Fair Value

Financial assets are measured at fair value through OCI if these financial assets are held within a business
model with an objective to hold these assets in order to collect contractual cash flows or to sell these financial
assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are
taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign
exchange gains and losses which are recognised in the Statement of Profit and Loss.

On transition to Ind AS, the Company has opted to continue with the carrying values measured under the
previous GAAP as at 1 April 2016 of its equity investments in subsidiaries, Joint Ventures associates and
investment in partnership firm, if any, and used that carrying value as the deemed cost of these investments on
the date of transition i.e. 1 April 2016.

G. Impairment of Financial Assets:

In accordance with Ind AS 109, the Company applies the expected credit loss ("ECL") model for measurement
and recognition of impairment loss on financial assets and credit risk exposures.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables.
Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECL 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.

ECL is the difference between all contractual cash flows that are due to the group 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. 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 a portion of the lifetime ECL which results from
default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in
the Statement of Profit and Loss.

H. De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to
another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the Company recognizes its retained interest in the assets and an associated
liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the
Company continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.

b) Equity Instruments and Financial Liabilitie

Financial liabilities and equity instruments issued by the Company are classified according to the substance of
the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments which are issued for cash are recorded at the proceeds
received, net of direct issue costs. Equity instruments which are issued for consideration other than cash are
recorded at fair value of the equity instrument.

I) Financial Liabilities

i) Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and borrowings
and payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction costs.

ii) Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below
Financial liabilities at FVPL

Financial liabilities at FVPL include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at FVPL. Financial liabilities are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in
the Statement of Profit and Loss.

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

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the EIR method. Any difference between the proceeds (net of transaction costs) and the settlement or
redemption of borrowings is recognised over the term of the borrowings in the Statement of Profit and Loss.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit
and Loss.

iii) De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or
expired. 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 de-recognition of the original liability and recognition of a new liability. The
difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

iv) Offsetting Financial Instruments

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

J) Impairment of Non-Financial Assets

As at each Balance Sheet date, the Company assesses whether there is an indication that a non-financial asset
may be impaired and also whether there is an indication of reversal of impairment loss recognised in the
previous periods. If any indication exists, or when annual impairment testing for an asset is required, the
Company determines the recoverable amount and impairment loss is recognised when the carrying amount of
an asset exceeds its recoverable amount.

Recoverable amount is determined:

'' - In case of an individual asset, at the higher of the assets'' fair value less cost to sell and value in use; and
'' - In case of cash generating unit (a group of assets that generates identified, independent cash flows), at the
higher of cash generating unit''s fair value less cost to sell and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and risk specified to the asset.

In determining fair value less cost to sell, recent market transaction are taken into account. If no such
transaction can be identified, an appropriate valuation model is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the
Statement of Profit and Loss, except for properties previously revalued with the revaluation taken to OCI. For
such properties, the impairment is recognised in OCI up to the amount of any previous revaluation.

When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts
are written off. If the amount of impairment loss subsequently decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, then the previously recognised
impairment loss is reversed through the Statement of Profit and Loss.

K) Trade receivables

A receivable is classified as a ‘trade receivable’ if it is in respect of the amount due on account of goods sold or
services rendered in the normal course of business. Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost using the EIR method, less provision for impairment.

L) Trade payables

A payable is classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased
or services received in the normal course of business. These amounts represent liabilities for goods and
services provided to the Company prior to the end of the financial year which are unpaid. These amounts are
unsecured and are usually settled as per the payment terms stated in the contract. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after the reporting period. They are
recognised initially at their fair value and subsequently measured at amortised cost using the EIR method.

M) Earnings Per Share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity
shareholders of the Company by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period and for all periods presented is
adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have
changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per share is computed by dividing the net profit or loss for the period attributable to the equity
shareholders of the Company and weighted average number of equity shares considered for deriving basic
earnings per equity share and also the weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the
proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the
outstanding equity shares).

N) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprises of cash at banks and on hand and short-term
deposits with an original maturity of three month or less, which are subject to an insignificant risk of changes
in value.

O) Borrowing Costs

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing
of funds. Also, the EIR amortisation is included in finance costs.

Borrowing costs relating to acquisition, construction or production of a qualifying asset which takes substantial
period of time to get ready for its intended use are added to the cost of such asset to the extent they relate to the
period till such assets are ready to be put to use. All other borrowing costs are expensed in the Statement of
Profit and Loss in the period in which they occur.

P) Revenue Recognition:

i) Revenue is recognized when all significant risks and rewards of ownership of the goods are
passed on to the buyer and no significant uncertainty exists as to its realization or collection.

ii) Revenue from disposal of properties is recognised on legal completion of the contract. Where
properties are under development, revenue is recognised when significant risk and reward of
ownership and effective control of the real estate have been transferred to the buyer. If the
revenue recognition criteria have been met before construction is complete than obligation is
recognised for the cost of complete the construction at the same time as the sale is recognised.

iii) Rent income is recognised on the basis of term with lessee.

iv) Interest income is recognised on the time proportion basis by reference to the principle
outstanding and at the interest rate applicable. Share of profit / loss from partnership firm
recognised from the basis of confirmation from partnership firm.

Q) Foreign Currency Transactions:

a) Initial Recognition

Foreign currency transactions are initially recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at the date of the
transaction. However, for practical reasons, the Company uses a monthly average rate if the average rate
approximates the actual rate at the date of the transactions.

b) Conversion

Monetary assets and liabilities denominated in foreign currencies are reported using the closing rate at the
reporting date. 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.

c) Treatment of Exchange Difference

Exchange differences arising on settlement/ restatement of short-term foreign currency monetary assets and
liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss except
those arising from investment in Non Integral operations.

R) Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost of property under construction
held as inventory includes cost of purchases, construction cost, and other cost incurred in bringing the
properties to their present location and condition

---

Mar 31, 2015

(A) COMPANY OVERVIEW

Modella Woolens Ltd. is a public limited company domiciled in India and incorporated under the provisions of the Its shares are listed on BSE Ltd. The Company is engaged in trad.ng of tables.

(1) Basis of preparation

(i) The financial statements of the Company have been prepared and presented in accordance with the generally accepted Accounting Principles in India under them. stoical cost convent on an accrual basis. The Company has prepared these Financial Statements to comply in all material respects with the mandatory accounting standards. (ii) The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(2) Fixed-Assets and Depreciation

m Fixed assets are stated at cost of acquisition or construction or at revalued amount, net of impairment loss if any, less accumulated depreciation/amortization. Costs include financing costs of borrowed funds attributable to acquisition or construction of fixed assets, up to the date the assets are put to use. Assessment of indication of impairment of an asset is made at the period end and impairment loss if any, recognized.

(ii) The Carrying cost (after retaining residual value) of the asset existing on April 1, 2014 is depreciated on Straight Line Method (SLM) over a period of remaining useful life of an asset as per Schedule II of the Companies Act, 2013.

In case where the remaining useful life of an asset as on April 1, 2014 is nil, the carrying amount of such asset after retaining its residual value is recognized in the opening balance of retained earnings as per Schedule II of the Companies Act,2013.

Depreciation on addition / deletion to any asset during the period is calculated torpor rata basis from / up to the date of such addition / deletion respectively as per Schedule II of the Companies Act, 2013.

(3) Current investments are valued at cost or market value whichever is less.

(4) 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 '-e reliably measured.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer.

(Interest and Dividend Income Interest income is recognized on a time proportion basis taking into account the amount outstanding and the, rate aft fester Dividend income is recognized when the Company's night to receive dividend is established by the Balance Sheet Date.

(5) (i) Gratuity is provided on the basis of premium computed by the Life insurance Corporation of India.

(,i) Under the LIC Scheme, the Company has to bear a part of actual payment to an employee except on death or retirement at sixty. The liability cannot be ascertained.

(iii) In the case of employees not covered by the Scheme, provision of liability for gratuity is estimated and based on the assumption that the amount is payable to employees at the end of the year,

(iv) Provision of liability for earned leave estimated and based on the assumption that the accumulated leave to the credit of the employees is payable at the end of the year.

(6) Rentals under operating leases are charged to the Profit and Loss account on the straight line basis over the term of the lease.

(7) Legal expenses are provided only on receipt of lawyer's memo of fees as the same cannot be estimated. Advance given to lawyer is adjusted on receipt of final memo of fees.

(8) Use of estimates

The preparation of financial statements requires the management to make judgments, estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. Although these estimates are based on the management's best knowledge of current event 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.

(9) Cash and Cash Equivalents

Cash and Cash equivalents for the purpose of cash flow statement comprise cash in hand, demand deposits with bank and other short term highly liquid investment/ deposits with an original maturity of three months or less.

(10)income Taxes

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.

Deferred income taxes reflect the impact of current year's timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

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 there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each Balance Sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which deferred tax asset can be realized. Army sole write-down is reversed to the extent that it becomes reasonably certain that sufficient future taxable income will be available.

(11) Provisions and contingent liabilities

A provision is recognized when the Company has a present obligation as a result of past events if it is probable that an outflow of resources embodying economic benefits will be required to set* the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined based on the best estimate required to settle the obligation at the reporting date.

A contingent liability is a possible obligation that arises from past events whose existence will but confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond tin control of the company or a present obligation that is not recognized because it is not prebake that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

(12) Earnings per share

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

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

---

Mar 31, 2014

1. The accounts have been prepared under the historical cost convention on accrual basis of accounting and comply with the accounting standards made mandatory by the Institute of Chartered Accountants of India

2. Fixed Assets are stated at cost of acquisition less accumulated depreciation. Depreciation is charged on written down value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

3. Current investments are valued at cost or market value whichever is less.

4. Other income is recognized on accrual basis.

---

Mar 31, 2013

1 The accounts have been prepared under the historical cost convention on accrual basis of accounting and comply with the accounting standards made mandatory by the Institute of Chartered Accountants of India

2 Fixed Assets are stated at cost of acquisition less accumulated depreciation. Depreciation is charged on written down value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

3 Current investments are valued at cost or market value whichever is less.

4 Other income is recognized on accrual basis.

5. 1) Gratuity is provided on the basis of premium computed by the Life- Insurance Corporation of India.

2) Under the LIC Scheme, the Company has to bear a part of actual payment to an employee except on death or retirement at sixty. The liability cannot be ascertained.

3) in the case of employees not covered by the Scheme, provision of liability for gratuity is estimated and based on the assumption that the amount is payable to employees at the end of the year.

4) Provision of liability for earned leave estimated and based on the assumption that the accumulated leave to the credit of the employees is payable at the end of the year.

6. Rentals under operating leases are charged to the Profit and Loss account on the straight line basis over the term of the lease,

7 Legal expenses are provided only on receipt of lawyer''s memo of fees as the same cannot be estimated. Advances given to lawyer is adjusted on receipt of final memo of fees.

---

Mar 31, 2012

1. The accounts have been prepared under the historical cost convention on accrual basis of accounting and comply with the accounting standards made mandatory by the Institute of Chartered Accountants of India

2. Fixed Assets are stated at cost of acquisition less accumulated depreciation. Depreciation is charged on written down value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

3. Current investments are valued at cost or market value whichever is less.

4. Other income is recognized on accrual basis.

5. 1. Gratuity is provided on the basis of premium computed by the Life Insurance Corporation of India.

2. Under the LIC Scheme, the Company has to bear a part of actual payment to an employee except on death or retirement at sixty. The liability cannot be ascertained.

3. In the case of employees not covered by the Scheme, provision of liability for gratuity is estimated and based on the assumption that the amount is payable to employees at the end of the year.

4. Provision of liability for earned leave estimated and based on the assumption that the accumulated leave to the credit of the employees is payable at the end of the year.

6. Rentals under operating leases are charged to the Profit and Loss account on the straight line basis over the term of the lease.

7. Legal expenses are provided only on receipt of lawyer's memo of fees as the same cannot be estimated. Advances given to lawyer is adjusted on receipt of final memo of fees.

1. Rent including society charges for office premises debited to the profit & loss account for the period is Rs.2,41,544/- (Rs.2,42,544/-) also includes Rs.11,000/- (Rs.12,000/-) paid as lease rent for office premises to the Modella Textile Industries Pvt. Ltd.

2. Provision for rent payable upto 31st March, 2012 Rs. 28,05,020/- (Rs.26,08,016/-) includes cheques paid but not cashed by the landlord.

3. The Company has not created deferred tax asset on tax losses and depreciation, that are available for set off against future taxable income, in view of significant uncertainty regarding reliability of the same.

4. There are no dues to enterprises as defined under the Micro & Small Enterprises Development Act, 2006, which are outstanding for more than 45 days as at March 31st, 2012 which is on the basis of such party having been identified by the management & relied upon by the auditor.

7. In the opinion of the Board, current assets, loans and advances other than those disclosed as doubtful, have a value at least equal to the amounts as shown in the Balance Sheet if realized in ordinary course of the business. The provision for all the liabilities except legal cost is adequate and not in excess of the amount reasonably necessary.

8. The Company has not accepted any "Public Deposit" as defined in para 2(1)(xi) of Non-Banking Financial Companies Acceptance of Public Deposits(Reserve Bank) Direction, 1998 as at March 31st, 2012.

9. Figures of previous period have been re-grouped/rearranged wherever necessary to confirm to current period.

---

Mar 31, 2011

1. The accounts have been prepared under the historical cost convention on accrual basis of accounting and comply with the accounting standards made mandatory by the Institute of Chartered Accountants of India.

2. Fixed Assets are stated at cost of acquisition less accumulated depreciation. Depreciation is charged on written down value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

3. Current investments are valued at cost or market value whichever is less.

4. Other income is recognised on accrual basis.

5. 1. Gratuity is provided on the basis of premium computed by the Life Insurance Corporation of India.

2. Under the LIC Scheme, the Company has to bear a part of actual payment to an employee except on death or retirement at sixty. This liability cannot be ascertained.

3. In the case of employees not covered by the scheme, provision of liability for gratuity is estimated and based on the assumption that the amount is payable to employees at the end of the year.

4. Provision of liability for earned leave is estimated and based on the assumption that the accumulated leave to the credit of the employees is payable at the end of the year.

6. Rentals under operating leases are charged to the Profit and Loss account on a straight line basis over the term of the lease.

7. Legal expenses are provided only on receipt of lawyer's memo of fees as the same cannot be estimated. Advances given to lawyer is adjusted on receipt of final memo of fees.

---

Mar 31, 2010

1. The accounts have been prepared under the historical cost convention on accrual basis of accounting and comply with the accounting standards made mandatory by the Institute of Chartered Accountants of India.

2. Fixed Assets are stated at cost of acquisition less accumulated depreciation. Depreciation is charged on written down value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

3. Other income is recognised on accrual basis.

4. 1. Gratuity is provided on the basis of premium computed by the Life Insurance Corporation of India.

2. Under the LIC Scheme, the Company has to bear a part of actual payment to an employee except on death or retirement at sixty. This liability cannot be ascertained.

3. In the case of employees not covered by the scheme, provision of liability for gratuity is estimated and based on the assumption that the amount is payable to employees at the end of the year.

4. Provision of liability for earned leave is estimated and based on the assumption that the accumulated leave to the credit of the employees is payable at the end of the year.

5. Rentals under operating leases are charged to the Profit and Loss account on a straight line basis over the term of the lease.

6. Legal expenses are provided only on receipt of lawyers memo of fees as the same cannot be estimated.