Accounting Policies of Nikki Global Finance Ltd. Company

Mar 31, 2024

Summary of Significant Accounting Policies:

This note provides a comprehensive list of the significant accounting policies adopted in the preparation
of these financial statements. These policies have been consistently applied to all the years presented,
unless otherwise stated.

i) Revenue from Operations:

Revenue is recognized based on Ind AS 115, which involves identifying contracts with customers,
determining the transaction price, allocating it to performance obligations, and recognizing revenue upon
completion of these obligations. Revenue is recorded net of variable considerations like discounts and
schemes. Non-cash consideration is recognized at fair value.

Dividend income is recognized when the company''s right to receive payment is established.

Income on non-performing assets is recognized based on the Reserve Bank of India''s Prudential Norms and
accounted for in the year of realization.

ii) Current versus Non-current Classification:

The company presents assets and liabilities in the balance sheet based on current/ noncurrent
classification. An asset is treated as current when it satisfies any of the following criteria:

• Expected to be realized or intended to be sold or consumed within normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting date, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle liability for at least
twelve months after the reporting date. A liability is treated as current when it satisfies any of the
following criteria:

• Expected to be settled in the company’s normal operating cycle;

• Held primarily for the purpose of trading;

• Due to be settled within twelve months after the reporting date; or

• The Company does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting date.

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue
of equity instruments does not affect its classification. Current liabilities include the current portion
of non-current financial liabilities. All other liabilities are classified as noncurrent.

The Company has ascertained its operating cycle as twelve months for the purpose of current and non¬
current classification of assets and liabilities.

iii) Use of Estimates and Management Judgements:

The preparation of financial statements requires management to make judgements, estimates, and
assumptions affecting the reported amounts of revenues, expenses, assets, liabilities, and disclosures. These
are based on historical experience and other factors considered reasonable. Actual results may differ from
these estimates.

iv) Property, Plant & Equipment & Capital Work in Progress:

Recognition and measurement Property, plant and equipment are tangible items that are held for use in the
production or supply for goods and services, rental to others or for administrative purposes and are expected
to be used for more than one period. The cost of an item of property, plant and equipment is being
recognized as an asset if and only if it is probable that future economic benefits associated with the item
will flow to the Company and the cost of the item can be measured reliably. The PPE has been stated at
cost less accumulated depreciation.

Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets
will flow to the Company and the cost of the assets can be measured reliably. Intangible assets acquired
separately are measured on initial recognition at cost.

Following initial recognition, intangible assets are carried at cost less accumulated amortization and
accumulated impairment losses, if any.

Depreciation has been provided on WDV Basis Method

v) Inventories:

• Inventories of shares and securities are valued at the lower of cost or market value as of March 31,
2024.

vi) 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.

Interest -

Income Interest income from a financial asset is recognized when it is probable that the economic
benefit will flow to the Company and the amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the principal outstandingand 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.

Dividend Income -

Dividend income is recognized when the Company’s right to receive the dividend is established, it
is probable that the economic benefits associated with the dividend will flow to the entity and the
amount of the dividend can be measured reliably i.e. in case of interim dividend, on the date of
declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by
the shareholders..

vii) Expenses: All expenses are accounted for on an accrual basis.

viii) Financial Instruments:

Financial Asset Classification The company classifies financial assets as subsequently measured at
amortized cost, fair value through other comprehensive income or fair value through profit or loss on the
basis of its business model for managing the financial assets and contractual cash flow characteristics of
the financial asset

Initial Recognition and Measurement: All financial assets are recognized initially at fair value, in the case
of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to
the acquisition of the financial asset. The financial assets include equity and debt securities, trade and other
receivables, loans and advances, cash and bank balances and derivative financial instruments.

Equity Investments: All the investments have been valued at deemed cost. (Note No. 5 to the financial
statements

Loans: Loans have been carried at amortized cost. (Note No. 4 to the financial statements)

ix) Financial Liabilities:

Classification Debt and equity instruments issued by the company are classified as either financial liabilities
or as equity in accordance with the substance of the contractual agreements and the definitions of financial
liability and equity instrument.

Initial recognition and measurement: The company recognizes financial liability when it becomes a party
to the contractual provision of the instrument. All financial liabilities are recognized initially at fair value,
for financial liability not subsequently measured at FVTPL, at transaction costs that are directly attributable
to the issue of financial liability.

Loans: Other loans classified under financial liability have been carried at amortized cost.

(Note no. 13 to the financial statements).

x) Other:

a) Loans and advances are stated net of provisions for non-performing advances.

b) Balances of various parties are subject to confirmations.

c) The company has not entered into any lease agreement, therefore, provisions of Indian Accounting
Standard-116 on ‘Leases’ are not applicable.

d) To the extent information available, there were no outstanding dues towards small
scale or ancillary undertaking as on 31.03.2024.

e) During the year under consideration no borrowing cost’ has capitalized by the company in accordance with
the Indian Accounting Standard 23. ‘Borrowing Costs’ issued by the Institute of Chartered Accountants of
India.

f) The advance received or given is without any stipulation of board of directors regarding them in
nature and period for which they are given or received.

xi) Taxes:

Provision for tax on income for the year (i.e. Current tax) is made after considering the various
Deductions/relieves admissible under the Income Tax Act 1961 as per the normal provisions of the act.
Deferred tax assets are recognized as per the conservative approach. Keeping in view the current year
losses of the company, net deferred tax liabilities have not been recognized in accordance with Indian
Accounting Standard IND AS-12- “Accounting for taxes on income” issued by the Institute of Chartered
Accountants of India”.

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Mar 31, 2015

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards referred to in Section 133 of the Companies Act, 2013.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at market value as at 31st March,2015

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule II of the Companies Act, 2013 on pro-rata basis.

(d) Investments

(i) The investments is categorized into 'Non- Current'.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the Decline in value is of permanent nature.

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Mar 31, 2014

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at market value as at 31st March.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments is categorized into ''Non- Current''.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the Decline in value is of permanent nature.

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Mar 31, 2013

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at cost or market value which ever is lower.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments is categorized into ''Non-Current''.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the Decline in value is of permanent nature.

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Mar 31, 2012

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at cost or market value which ever is lower.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments is categorized into 'Non- Current'.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the decline in value is of permanent nature.

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Mar 31, 2009

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory accounting standards referred to in Section 211(3C) of the Companies Act, 1953.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit/(Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances.

(vi) Other Income and expenses are accounted for on accrual basis.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on straight line method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments are categorized into Current and Long Term.

(ii) Long Term Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the decline in value is of permanent nature.

(iii) Current Investments, i.e., the investments which are not intended to be held for more than one year, arecarried at lower of cost or market value determined by the category of investment. Resultant shortfall, if any, in the book value as compared to market value of investments in each category, is charged to revenue.