Accounting Policies of Munoth Communication Ltd. Company

Mar 31, 2024

1.2 Material Accounting Policies
1.2.1 Revenue Recognition

Revenue is measured at the fair value of the Consideration received or receivable. Amounts disclosed
as revenue are net of returns, trade allowances, rebates, volume discounts and Goods and Service Tax
(GST). Accumulated experience is used to estimate and provide for the sales returns.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the Company and specific criteria have been met for each of the
company''s revenue items. The company bases its estimates on historical results, taking into
consideration the type of customer, the type of transaction and the specifics of each arrangement.

(i) Sale of goods

Revenue is recognized upon transfer of control of promised goods to customers in an amount that
reflects the consideration expected to be received in exchange for those goods. The arrangements
with the customers generally create a single performance obligation which is satisfied at a point of
time when the obligation is discharged i.e. on sale of goods.

Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes and duties. Expected defective stock
returns, volume-based discounts, turnover based discounts and other pricing incentives are
accounted as reduction of revenue basis the estimate of customers'' future purchases / customers''
future sales to downstream customers in the value-chain. Any changes in the estimated amount of
obligations for discounts /incentives are recognized prospectively in the period in which the change
occurs.

The Contract with customers involves performance of a single obligation, the amount stated in the
contract is the transaction price allocated to the performance obligation.

Contract balances
Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the
customer when that right is conditioned on something other than the passage of time. If the
Company performs by transferring goods or services to a customer before the customer pays
consideration or before payment is due, a contract asset is recognised for the earned consideration
that is conditional.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Company transfers goods or services to the customer, a contract
liability is recognised when the payment is made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when the Company performs under the contract.

(ii) Dividend Income

Dividend income from investments is recognized when the Company''s right to receive payment has
been established.

(iii) Interest Income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that asset''s net carrying amount on initial
recognition.

(iv) Other operating Revenue

Other operating revenue comprises of income from ancillary activities incidental to the operations of
the Company and is recognized when the right to receive the income is established as per the terms
of the contract .

1.2.2 Employee benefits

Retirement benefit costs and termination benefits

> Defined Contribution Plans

Payments to defined contribution plans i.e., Company''s contribution to provident fund, employee
state insurance wherever applicable and other funds are determined under the relevant
schemes and/ or statute and charged to the Statement of Profit and Loss in the period of
incurrence when the services are rendered by the employees.

> Defined Benefit Plans

For defined benefit plans i.e. Company''s liability towards gratuity (funded), other retirement/
termination benefits, the cost of providing benefits is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period.
Defined benefit costs are comprised of:

• Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements);

• Net interest expense or income; and

• Remeasurement

The Company presents the first two components of defined benefit costs in Statement of profit and
loss in the line item ''Employee benefits expense''.

Re-measurement of net defined benefit liability/asset is reflected immediately in the balance sheet
with a charge or credit recognised in other comprehensive income in the period in which they occur.
Re-measurement recognised in other comprehensive income is reflected immediately in retained
earnings and is not reclassified to Statement of profit and loss.

The number of employees are below the minimum threshold for applicability of Payment of Gratuity
Act, 1972 and in such circumstances no additional liability is created and the cost will be determined
based on actuarial valuations only if the additional liability is required to be made.

1.2.3 Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of an asset (Qualifying Asset)
that necessarily takes a substantial period of time to get ready for its intended use are capitalized
as part of the cost of the asset until such time that the assets are substantially ready for their intended
use.

Where funds are borrowed specifically to finance a project, the amount capitalized represents the
actual borrowing costs incurred. Where surplus funds are available out of money borrowed
specifically to finance project, the income generated from such current investments is deducted from
the total capitalized borrowing cost.

Where the funds use to finance a project form part of general borrowings, the amount capitalized is
calculated using a weighted average of rates applicable to relevant general borrowings of the
company during the period/year. Capitalization of borrowing costs is suspended and charged to profit
and loss during the extended periods when the active development on the qualifying assets is
interrupted.

Borrowing cost includes interest expense as per Effective Interest Rate (EIR). Borrowing cost that are
not directly attributable to a qualifying asset is recognized in the statement of Profit-/Loss using the
EIR method.

EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected
life of the financial liability or a shorter period, where appropriate, to the amortized cost of a financial
liability after considering all the contractual terms of the financial instrument.

1.2.4 Income Taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are recognized in Statement of profit or loss, except
when they relate to items that are recognized in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognized in other comprehensive income or
directly in equity, respectively.

Current tax

Current Income Tax expenses comprise taxes on income from operations in India. Income tax
payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Current Tax expenses are accounted in the same period to which the revenue and expenses relate.
Provision for current income tax is made for the tax liability payable on taxable income after
considering tax allowances, deductions and exemptions determined in accordance with the applicable
tax rates and the prevailing tax laws.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to
set off the recognised amounts and there is an intention to settle the asset and the liability on a net
basis.

Deferred tax

Deferred Tax is recognized on temporary differences between the carrying amounts of assets and a
liability in the financial statements and the corresponding tax base used in the computation of taxable
profit and is accounted for using the balance sheet method. Deferred tax liabilities are generally
recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilized.

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period.

Minimum Alternative Tax (“MAT”) credit is recognized as an asset only when and to the extent there
is convincing evidence that the Company will pay normal income tax during the specified period. Such
asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is
written down to the extent there is no longer convincing evidence to the effect that the Company will
pay normal income tax during the specified period.

1.2.5 Property, Plant and Equipment.

Freehold land is carried at historical cost and not depreciated.

All other items of property, plant and equipment are stated at historical cost less accumulated
depreciation and accumulated impairment losses. Historical cost includes purchase price and any
attributable cost of bringing the asset for its intended use. It also includes expenditure that is directly
attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset,
as appropriate, 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. The carrying amount of any
component accounted for as a separate asset is derecognised when replaced. All other repairs and
maintenance are charged to profit or loss during the reporting period in which they are incurred.

On transition to Ind AS, the company has elected to continue with the carrying value of all of its
property, plant and equipment recognised as at 1 April 2016 measured as per the previous GAAP
and use that carrying value as the deemed cost of the property, plant and equipment.

Property, Plant and equipment which are not ready for intended use as on the balance sheet date
are disclosed as Capital Work in progress.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated on pro data basis using the Written down value method to allocate their
cost, net of their residual values, over their estimated useful lives or, in the case of certain leased
furniture, fittings and equipment, the shorter lease term.

The Company provides Depreciation based on the useful lives as prescribed under Schedule II of
companies Act, 2013.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s
carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals
are determined by comparing proceeds with carrying amount. These are included in profit or loss
within other gains/(losses).

De-recognition of assets

An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continuous use of the asset.

Any gain or loss arising from such disposal, retirement or de-recognition of an item of property, plant
and equipment is measured as the difference between the net disposal proceeds and the carrying
amount of the item. Such gain or loss is recognized in the statement of profit and loss.

In case of de-recognition of a revalued asset, the corresponding portion of the revaluation surplus
as is attributable to that asset is transferred to retained earnings on such de-recognition. Such
transfers to retained earnings are made through Other Comprehensive Income and not routed
through profit or loss.

Impairment of Property plant and equipment

The carrying values of assets/cash generating units are assessed for impairment at the end of every
reporting period. If the carrying amount of an asset exceeds the estimated recoverable amount, an
impairment is recognized as expense in the statement of profit and loss. The recoverable amount
is the higher of the fair value less costs of disposal and its value in use. Value in use is arrived at
by discounting the estimated future cash flows to their present value based on an appropriate
present value factor.

An impairment loss recognized in prior periods for an asset other than goodwill is reversed if, and
only if, there has been a change in the estimates used to determine the asset''s recoverable amount
since the last impairment loss was recognized. In that case, the carrying amount of the asset is
increased to its recoverable amount and reversal of an impairment loss is recognized immediately
in Statement of Profit and Loss.

1.2.6 Inventories

Cost of Materials, stores, spares and traded goods comprises cost of purchases and included taxes
and duties and is net of eligible Goods and Service Tax (GST) Input tax credits. Cost of inventories
also includes all other related costs incurred in bringing the inventories to their present location and
condition.

Net Realisable Value represents the estimated selling price for inventories less all estimated costs
of completion cost necessary to make the sale.

Cost of inventories are determined as follows:

Traded goods - Valued at moving average cost
Stores and Spares- Valued at moving average cost

Due allowance is estimated and made by Management for slow moving / non- Moving items of inventories,
wherever necessary, based on the technical assessment and such allowances are adjusted against the
closing inventory value.

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Mar 31, 2014

1.1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

1.2. REVENUE RECOGNITION:

Revenue from Sale of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, and sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established.

Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

1.3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.4.INTANGIBLE ASSETS:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortization for a period of three years and the company has completed amortising the entire asset during this year.

1.5. DEPRECIATION:

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by management which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

1.6. INVESTMENTS:

The Management has classified the Investment made in shares for more than a year as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

1.7. VALUATION OF INVENTORIES :

Stocks of mobile phones are valued at lower of cost and net realizable value.

1.8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity:

The Company has provided for gratuity during the year on an accrual basis and the company has not gone for any actuarial valuation for the same and remains unfunded.

b) Leave Salary:

In respect of Leave Salary, the company as such does not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund:

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.

1.9.SEGMENT REPORTING (AS - 17)

Segment Reporting is not applicable to this company as the Company has earned revenue, only from sale of mobile phones and hence this standard is not applicable.

1.10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

1.11. TAXES ON INCOME: (AS-22)

Current Income Tax expenses comprise taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act, 1956 and appropriate adjustment has been made in the books of accounts.

1.12. CASH FLOW STATEMENT:(AS-3)

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

1.13. FOREIGN CURRENCY TRANSLATION:

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Foreign currency monetary items are reported using the closing rate. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction and non monetary items which are carried at fair value or other similar valuation denomination in a foreign currency are reported using the exchange rates that existed when the values were determined.

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Mar 31, 2013

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Revenue from Sales of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, and Sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established. Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Revaluation of the part of the Block of the Assets being Land and two of the Buildings has been taken up by the Company in the Current year.

Intangible Assets:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortisation. The company has started to amortise this over the period of three years.

4. DEPRECIATION:

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by management which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

(iii) Depreciation on the Revaluation of the Land and Building has been transferred to the Revaluation Reserve created on account of the Revaluation done.

5. INVESTMENTS:

The Management has classified the Investment made in shares for more than a year as shown in Schedule-V as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

The Company has undertaken the Conversion of the Stock in Trade into Investments in the Current year and these investments are recorded at Cost in the Financial Statements.

6. VALUATION OF INVENTORIES : (i) Mobile Phones:

Stocks of mobile phones are valued at lower of cost and net realizable value. (ii) Stock of Shares & Debentures:

During the Year the Company has undertaken the Conversion of the Stock in Trade in to Investments. These Investments are stated at cost.

7. DEFERRED REVENUE EXPENDITURE

Costs incurred for brand building are recognized as intangible assets and amortised on a straight line basis over a period of three years.

8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES:

a) Gratuity:

The Company has provided for gratuity during the year.

b) Leave Salary:

In respect of Leave Salary, the company as such does not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund:

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.

9. SEGMENT REPORTING (AS -17)

This standard is not applicable to the Company for the Year.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

11. TAXES ON INCOME: (AS-22)

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act, 1956 and appropriate adjustment has been made in the books of accounts.

12. CASH FLOW STATEMENT: (AS-3)

Cash flows are reported using indirect method ,whereby profit before tax is adjusted for the effects transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments

The cash flow from regular revenue generating, financing and investing activities of the company are segregated.

13. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign Currency transactions entered into by the Company.

14. REVALUATION RESERVE:

During the year the Company has revalued Land and two of the buildings and any Consequent adjustment from the Block have been credited to Revaluation reserve.

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Mar 31, 2012

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Revenue from Sales of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established. Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortisation. The company amortises this over the period of three years.

4. DEPRECIATION :

(i) Depreciation on owned assets is provided on Written down value method at the rates in the manner specified in Schedule XIV to the Companies Act, 1956.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

5. INVESTMENTS :

The Management has classified the Investment made in shares for more than a year as shown in Notes 10 as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

6. VALUATION OF INVENTORIES :

(i) Mobile Phones

Stocks of mobile phones are valued at lower of cost and net realizable value.

(ii) Shares & Debentures :

Share and Securities which are quoted are valued at lower of cost and market value.

7. DEFERRED REVENUE EXPENDITURE

Costs incurred for brand building are recognized as intangible assets and amortised on a straight line basis over a period of three years.

8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity :

The Company has provided for gratuity during the year on accrual basis and is unfunded.

b) Leave Salary :

In respect of Leave Salary, the company does not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund :

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.The employers contribution to provident fund is provided on accrual basis.

9. SEGMENT REPORTING (AS - 17)

This standard is not applicable to the company for the year.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise.

11. TAXES ON INCOME : (AS-22)

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act,1956 and appropriate adjustment have been made in the books of accounts.

12. CASH FLOW STATEMENT:(AS-3)

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

13. FOREIGN CURRENCY TRANSLATION:

Foreign currency transactions are accounted at the exchange rates prevailing on the date of the transaction. Gains and losses arising out of fluctuations in the exchange rates are recognized in the Profit and Loss at the year end rates in the period in which they arise.

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Mar 31, 2011

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting as a going concern with revenues recognized and provision made for all known and ascertained liabilities and losses to comply in all material respects with the applicable accounting principles in India, the applicable Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Revenue from Sales of goods is recognised when the significant risks and rewards of ownership of the goods are transferred to the customer and are recorded net of trade discounts, rebates, sales tax, VAT and excise duties.

Lease income is recognized on accrual basis.

Dividend income is accounted for in the year in which the right to receive the same is established.

Interest on investments is booked on a time-proportion basis taking into account the amounts invested and the rate of interest.

3. FIXED ASSETS:

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any . Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets:

Intangible assets consisting of software under development, for senior citizen mobiles, are stated at cost less accumulated amortisation. The company proposes to amortise this over the period of three years.

4. DEPRECIATION :

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by management which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956, under the W.D.V. Method.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition /disposal.

5. INVESTMENTS:

The Management has classified the Investment made in shares for more than a year as shown in Schedule-V as long term investments and the investment are stated at Cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

6. VALUATION OF INVENTORIES :

(i) Mobile Phones

Stocks of mobile phones are valued at lower of cost and net realizable value.

(ii) Shares & Debentures :

Share and Securities which are quoted are valued at lower of cost and market value .

7. DEFERRED REVENUE EXPENDITURE

Costs incurred for brand building are recognized as intangible assets and amortised on a straight line basis over a period of three years.

8. RETIRMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity :

The Company has provided for gratuity during the year.

b) Leave Salary:

In respect of Leave Salary, the company as such do not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund :

Though the employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, the company has complied with the provisions voluntarily.

9. SEGMENT REPORTING (AS - 17)

(a) Segment accounting policies

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

(i) Segment revenue includes sales and other income directly identifiable with/allocable to the segment.

(ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the Segment Result. Expenses which relate to the Company as a whole and not allocable to segments are included under "Unallocable Corporate Expenditure".

(iii) Income which relates to the Company as a whole and not allocable to segments is included in "Unallocable Corporate Income".

(iv) Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the Company.

(v) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS - 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

11. TAXES ON INCOME : (AS-22)

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax liability is provided and recognized on timing differences between taxable income and accounting income subject to the consideration of prudence.

Deferred tax assets are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. The Company has complied with the Accounting Standard of Taxes on Income issued under provisions of companies act, 1956 and appropriate adjustment have been made in the books of accounts.

12. CASH FLOW STATEMENT:(AS-3)

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

13. FOREIGN CURRENCY TRANSLATION:

Foreign currency transactions are accounted at the exchange rates prevailing on the date of the transaction. Gains and losses arising out of fluctuations in the exchange rates are recognized in the Profit and Loss at the year end rates in the period in which they arise.

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Mar 31, 2010

1. ACCOUNTING CONVENTIONS :

The financial statements have been prepared to comply in all material respects with the notified accounting standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. Financial statements have been prepared under historical cost convention on accrual basis as a going concern, with revenues recognized and provision made for all known and ascertained liabilities and losses.

2. INCOME AND EXPENDITURE RECOGNITION : INCOME

(i) LEASE INCOME :

Lease income is recognized on accrual basis.

EXPENDITURE :

The expenditure are generally accounted on accrual basis.

3. FIXED ASSETS :

Fixed Assets are stated at Cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4. DEPRECIATION :

(i) Depreciation on owned assets is provided on Written down value method at the rates based on the estimated useful life of the assets estimated by managment which is in accordance with the rates and also in the manner specified in Schedule XIV to the Companies Act, 1956, under the W.D.V. Method.

(ii) Depreciation on fixed assets added/disposed off during the year is provided on prorata basis with respect to date of acquisition / disposal.

5. INVESTMENTS :

The Management has classified the Investment made in shares for more than a year as shown in Schedule-5 as long term investments and the investments are stated at Cost. Provision for diminution in value is made to recognize a decline other that temporary in the value of long term investments.

6. VALUATION OF INVENTORIES :

(i) Share & Debentures :

Shares and Securities which are quoted are valued at lower of cost and market value.

7. RETIREMENT AND OTHER BENEFITS TO THE EMPLOYEES :

a) Gratuity :

The Company has not provided for gratuity during the year as, the Company did not have any employee eligible for gratuity.

b) Leave Salary : In respect of Leave Salary, the company as such do not have any scheme and the same will be accounted for as and when the liability for the same is admitted.

c) Provident Fund :

Though the Employees Provident Fund & Miscellaneous Provisions Act, 1952 is not applicable to the company, during the year, the company has complied with the provisions voluntarily.

8. SEGMENT REPORTING (AS-17)

During the year the Company is engaged only in the activity of Trading and Investments in shares & securities. Hence segment wise reporting in accordance with Accounting Standards 17 does not arise.

10. CONSOLIDATED FINANCIAL STATEMENTS : (AS – 21)

As the Company has no subsidiary the question of preparation of Consolidated Financial Statements does not arise. Accordingly there is nothing to report with respect to AS-21 relating to Consolidated Financial Statements.

11. TAXES ON INCOME : (AS -22)

Tax expense comprises of Current income tax, which is measured at the amount expected to be paid to the authorities in accordance with Income Tax Act, 1961.

Deferred income taxes reflect the impact of current year timing differences between the 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 tax laws enacted at the Balance sheet date.

12. CASH FLOW STATEMENT : (AS-3)

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activties of the company are segregated.