Accounting Policies of Nutricircle Ltd. Company

Mar 31, 2025

Summary of Material accounting policies

1.9 Revenue Recognition

Revenue is recognized upon transfer of control of promised goods or services to customers in an
amount that reflects the consideration the Company expects to receive in exchange for those
goods or services.

Sale of products

Revenue from the sale of products is recognised at the point in time when control is transferred
to the customer.

For contracts that permit the customer to return an item, revenue is recognised to the extent that
it is highly probable that a significant reversal in the amount of cumulative revenue recognised
will not occur. Therefore, the amount of revenue recognised is adjusted for expected returns,
which are estimated based on the historical data for specific types of products. In these
circumstances, a refund liability and a right to recover returned goods asset are recognised.

1.10 Other Income

Other Non-Operating revenue is recognized as and when accrued.

1.11 Borrowing Cost

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalised during the period of time that is
required to complete and prepare the asset for its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

1.12 Foreign Currency Transaction

Transactions in foreign currencies are initially recorded by the Company at their respective
functional currency spot rates at the date, the transaction first qualifies for recognition.
However, for practical reasons, the Company uses an average rate, if the average
approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the
functional currency spot rates of exchange at the reporting date. Exchange differences arising
on settlement or translation of monetary items are recognised in the statement of profit and
loss.

Non-monetary items that are measured based on historical cost in a foreign currency are
translated at the exchange rate at the date of the initial transaction.

Non-monetary items that are measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value was measured.

The gain or loss arising on translation of non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value gain or loss is recognised in other
comprehensive income ("OCI") or profit or loss are also recognised in OCI or profit or loss,
respectively).

1.13 Property Plant & Equipment
Recognition and measurement

Property, Plant and Equipment are stated at cost of acquisition or construction less
accumulated depreciation and impairment loss, if any. Cost includes expenditures that are
directly attributable to the acquisition of the asset i.e., freight, duties and taxes applicable and
other expenses related to acquisition and installation. The cost of self-constructed assets
includes the cost of materials and other costs directly attributable to bringing the asset to a
working condition for its intended use. Borrowing costs that are directly attributable to the
construction or production of a qualifying asset are capitalized as part of the cost of that asset.

Directly attributable costs include:

a. Cost of Employee Benefits arising directly from Construction or acquisition of PPE.

b. Cost of Site Preparation.

c. Initial Delivery & Handling costs.

d. Professional Fees and

e. Costs of testing whether the asset is functioning properly, after deducting the net
proceeds from selling any item produced while bringing the asset to that location and
condition (such as samples produced when testing equipment).

When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.

Gains and losses upon disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and
equipment and are recognized net within the statement of profit and loss.

The cost of replacing part of an item of property, plant and equipment is recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied within
the part will flow to the Company and its cost can be measured reliably. The carrying amount of
the replaced part will be derecognized. The costs of repairs and maintenance are recognized in
the statement of profit and loss as incurred.

Items of property, plant and equipment acquired through exchange of non-monetary assets are
measured at fair value, unless the exchange transaction lacks commercial substance or the fair
value of either the asset received or asset given up is not reliably measurable, in which case the
asset exchanged is recorded at the carrying amount of the asset given up.

Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits
associated with the expenditure will flow to the Company.

Depreciation

Depreciation is recognized in the statement of profit and loss on a straight line basis over the
estimated useful lives of property, plant and equipment based on the Companies Act, 2013
("Schedule II"), which prescribes the useful lives for various classes of tangible assets. For
assets acquired or disposed off during the year, depreciation is provided on pro rata basis.
Land is not depreciated.

Depreciation methods, useful lives and residual values are reviewed at each reporting date
and adjusted prospectively, if appropriate.

Advances paid towards the acquisition of property, plant and equipment outstanding at each
reporting date is disclosed as capital advances under other non-current assets. The cost of
property, plant and equipment not ready to use before such date are disclosed under capital
work-in-progress. Assets not ready for use are not depreciated.

The Company assesses at each balance sheet date, whether there is objective evidence that an
asset or a group of assets is impaired. 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. Recoverable amount is higher of the value in use or fair value less cost to
sell.

.14 Financial Instruments

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

a. Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, 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. 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 recognized 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 four categories:

• Debt instruments at amortized cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit or loss
(FVTPL);

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)
Debt instruments at amortized cost

A ''debt instrument'' is measured at the amortized cost, if both of the following conditions are
met: (i) The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows; and (ii) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of principal and interest (SPPI) on the principal
amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost
using the effective interest rate (EIR) method. 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 amortization is included in finance income in the statement of profit and loss.
The losses arising from impairment are recognized in the statement of profit and loss. This
category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A ''debt instrument'' is classified as FVTOCI, if both of the following criteria are met: (i) The
objective of the business model is achieved both by collecting contractual cash flows and selling
the financial assets; and (ii) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in OCI. However, the
Company recognizes interest income, impairment losses and foreign exchange gain or loss in
the statement of profit and loss. On de-recognition of the asset, cumulative gain or loss
previously recognized in OCI is reclassified from the equity to statement of profit and loss.
Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the
EIR method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet
the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. Debt
instruments included within the FVTPL category are measured at fair value with all changes
recognized in the statement of profit and loss.

Equity Instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as FVTPL. If the Company decides to classify an equity
instrument as FVTOCI, then all fair value changes on the instrument, excluding dividends, are
recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and
loss, even on sale of investment. Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e., removed from the Company''s balance sheet)
when:

a. The rights to receive cash flows from the asset have expired, or

b. The Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party
under a ''pass-through'' arrangement; and either (a) the Company has transferred
substantially all the risks and rewards of the asset, or (b) the Company has neither
transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has
entered into a pass- through arrangement, it evaluates if and to what extent it has retained the
risks and rewards of ownership. When it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred control of the asset, the Company
continues to recognize the transferred asset to the extent of the Company''s continuing
involvement. In that case, the Company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Impairment of Financial Assets

The company assesses at each balance sheet date whether a financial asset or a group of
financial assets is impaired.

In accordance with Ind AS 109, the company uses "Expected Credit Loss" (ECL) model, for

evaluating impairment of Financial Assets other than those measured at Fair Value Through
Profit and Loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12 months expected credit losses (expected credit losses that result from those default

events on the financial instrument that are possible within 12 months after the reporting
date);

• Full lifetime expected credit losses (expected credit losses that result from all possible

default events over the life of the financial instrument)

The company follows simplified approach for recognition of impairment loss allowance on
trade receivables and under the simplified approach, the company does not track changes in
credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECL at each
reporting date right from its initial recognition. The company uses a provision matrix to
determine impairment loss allowance on trade receivables. The provision matrix is based on its
historically observed default rates over the expected life of trade receivable and is adjusted for
forward looking estimates. At every reporting date, the historical observed default rates are
updated

For other assets, the company uses 12-month ECL to provide for impairment loss where there is
no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL
is used.

b. Financial liabilities
Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value i.e., loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the
case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings

including bank overdrafts, financial guarantee contracts if any.

Subsequent measurement

The measurement of financial liabilities depends on their classification.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading

and financial liabilities designated upon initial recognition as fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments
entered into by the Company that are not designated as hedging instruments in hedge
relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held
for trading, unless they are designated as effective hedging instruments. Gains or losses on
liabilities held for trading are recognised in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in
own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to the
statement of profit and loss.

However, the Company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the statement of profit and loss.

Loans and borrowings

Borrowings is the category most relevant to the Company. After initial recognition, interest¬
bearing borrowings are subsequently measured at amortised cost using the EIR method. Gains
and losses are recognised in the statement of profit and loss when the liabilities are
derecognised as well as through the EIR amortization process. Amortized 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.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or
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 the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts
is recognised in the statement of profit and loss..

1.15 Inventories

Inventories consist of finished goods and are measured at the lower of cost and net realisable
value. The cost of all categories of inventories is based on the weighted average method. Cost
includes expenditures incurred in acquiring the inventories and other costs incurred in bringing
them to their existing location and condition..

1.16 Impairment of non-financial assets

''The Company''s non-financial assets, other than inventories and deferred tax assets, are
reviewed at each reporting date to determine whether there is any indication of impairment. If
any such indication exists, then the asset''s recoverable amount is estimated.

''For impairment testing, assets that do not generate independent cash inflows are grouped
together into cash-generating units (CGUs). Each CGU represents the smallest group of assets that
generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.

The Company bases its impairment calculation on detailed budgets and forecast calculations,
which are prepared separately for each of the Company''s CGUs to which the individual assets are
allocated. These budgets and forecast calculations generally cover a period of five years. For
longer periods, a long-term growth rate is calculated and applied to project future cash flows
after the fifth year. To estimate cash flow projections beyond periods covered by the most recent
budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady
or declining growth rate for subsequent years, unless an increasing rate can be justified. In any
case, this growth rate does not exceed the long-term average growth rate for the products,
industries, or country or countries in which the Company operates, or for the market in which the
asset is used.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its
fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognized in the statement of profit and loss if the estimated recoverable
amount of an asset or its cash-generating unit is lower than its carrying amount. Impairment
losses recognized in respect of cash-generating units are allocated first to reduce the carrying
amount of any goodwill allocated to the units and then to reduce the carrying amount of the
other assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognized in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only
to the extent that the asset''s carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortization, if no impairment loss has been
recognized.

1.17 Cash & Cash Equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts with banks,
demand deposit, short-term deposits. For this purpose, "short-term" means investments having
maturity of three months or less from the date of investment. Bank overdrafts that are repayable
on demand and form an integral part of our cash management are included as a component of
cash and cash equivalents for the purpose of the statement of cash flows.

1.18 Employee Benefits

Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Company has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.

Defined Contribution Plan

The Company''s contributions to defined contribution plans are charged to the statement of profit

and loss as and when the services are received from the employees.

Defined Benefit Plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The liability or asset recognised in the balance sheet in respect of defined benefit plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair
value of plan assets. The defined benefit obligation is calculated annually by a qualified actuary
using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss as past service cost.

The liability in respect of defined benefit plans and other post-employment benefits is calculated
using the projected unit credit method consistent with the advice of qualified actuaries. The
present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows using interest rates based on prevailing market yields of Indian Government Bonds
and that have terms to maturity approximating to the terms of the related defined benefit
obligation. The current service cost of the defined benefit plan, recognised in the statement of
profit and loss in employee benefit expense, reflects the increase in the defined benefit obligation
resulting from employee service in the current year, benefit changes, curtailments and
settlements. Past service costs are recognised immediately in income. The net interest cost is
calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expense in the statement of
profit and loss. Actuarial gains and losses arising from experience adjustments and changes in
actuarial assumptions are charged or credited to equity in other comprehensive income in the
period in which they arise.

Termination benefits

Termination benefits are recognized as an expense when the Company is demonstrably
committed, without realistic possibility of withdrawal, to a formal detailed plan to either
terminate employment before the normal retirement date, or to provide termination benefits as a
result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary
redundancies are recognized as an expense if the Company has made an offer encouraging
voluntary redundancy, it is probable that the offer will be accepted, and the number of
acceptances can be estimated reliably.

Other long-term employee benefits

The Company''s net obligation in respect of other long term employee benefits is the amount of

future benefit that employees have earned in return for their service in the curr ent and previous
periods. That benefit is discounted to determine its present value. Re-measurements are
recognized in the statement of profit and loss in the period in which they arise.

1.19 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if
the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.

Company as a Lessor:

Leases for which the Company is a lessor are classified as a finance or operating lease. When ever
the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee, the
contract is classified as a finance lease. All other leases are classified as operating leases. Rental
income from operating leases are recognized on straight line basis over the term of relevant
lease.

Company as a Lessee:

The Company applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Company recognises lease liabilities to
make lease payments and right-of-use assets representing the right to use the underlying assets.

The Company determines the lease term as the non-cancellable period of a lease, together with
both periods covered by an option to extend the lease if the Company is reasonably certain to
exercise that option; and periods covered by an option to terminate the lease if the Company is
reasonably certain not to exercise that option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it
considers all relevant facts and circumstances that create an economic incentive for the Company
to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The
Company revises the lease term if there is a change in the non-cancellable period of a lease.

Right of use asset

The Company recognises right-of-use asset representing its right to use the underlying asset for
the lease term at the lease commencement date. The cost of the right-of-use asset measured at
inception shall comprise of the amount of the initial measurement of the lease liability adjusted
for any lease payments made at or before the commencement date less any lease incentives
received, plus any initial direct costs incurred and an estimate of costs to be incurred by the
lessee in dismantling and removing the underlying asset or restoring the underlying asset or site
on which it is located. The right-of-use assets is subsequently measured at cost less any
accumulated depreciation, accumulated impairment losses, if any and adjusted for any
remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line
method from the commencement date over the shorter of lease term or useful life of right-of-use
asset. The estimated useful lives of right-of use assets are determined on the same basis as those
of property, plant and equipment. Right-of-use assets are tested for impairment whenever there
is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is
recognised in the statement of profit and loss.

Lease Liability

The Company measures the lease liability at present value of the future lease payments at the
commencement date of the lease. In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the lease commencement date because the
interest rate implicit in the lease is not readily determinable. The lease liability is subsequently
remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease payments made and remeasuring the carrying amount to
reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease
payments. The company recognises the amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset and statement of profit and loss
depending upon the nature of modification. Where the carrying amount of the right-of-use asset
is reduced to zero and there is a further reduction in the measurement of the lease liability, the

Company recognises any remaining amount of the re-measurement in statement of profit and
loss.

Short term leases and Lease of Low value assets

The Company applies the short-term lease recognition exemption to its short-term leases of
buildings, machinery and equipment (i.e., those leases that have a lease term of 12 months or less
from the commencement date and do not contain a purchase option). It also applies the lease of
low-value assets recognition exemption to leases of office equipment that are considered to be
low value. Lease payments on short-term leases and leases of low-value assets are recognised as
expense on a straight-line basis over the lease term.

1.20 Tax Expenses

Tax expense consists of current and deferred tax.

Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for
the year and any adjustment to the tax payable or receivable in respect of previous years. The
amount of current tax reflects the best estimate of the tax amount expected to be paid or received
after considering the uncertainty, if any, related to income taxes. It is measured using tax rates
(and tax laws) enacted or substantively enacted by the reporting date.

Management periodically evaluates positions taken in the tax returns with respect to situations
in which applicable tax regulations are subject to interpretations and considers whether it is
probable that a taxation authority will accept an uncertain tax treatment.

Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes. Deferred tax is not recognised for:

Temporary differences arising on the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting nor taxable profit or loss at
the time of the transaction; and

Deferred tax assets are recognised for deductible temporary differences, the carry forwards of
unused tax credits and unused tax losses. Deferred tax assets are recognised to the extent that it
is probable that future taxable profits will be available against which they can be used. The
existence of unused tax losses is strong evidence that future taxable profit may not be available.
Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only
to the extent that it has sufficient taxable temporary differences or there is convincing other
evidence that sufficient taxable profit will be available against which such deferred tax asset can
be realised. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting

date and are recognised/ reduced to the extent that it is probable/ no longer probable
respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on the laws that have been enacted or substantively
enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the
manner in which the Company expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities.

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Mar 31, 2015

A. Basis of preparation of financial statements:

The Net worth of the company almost eroded but the accounts are prepared on Historical cost basis and on accounting principles of a going concern as directors are confident of turning around the operations in near future

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Physical verification of Fixed assets have been carried out by the management. Management certify the correctness of the assets.

Depreciation on Fixed Assets provided on W.D.V Method at the rates prescribed by schedule II of the companies Act, 2013

d. Inventories: In respect of VAT goods it is valued at cost or net receivable value which ever is less, on FIFO basis

e. Transactions in Foreign Currencies are normally recorded at the exchange rate prevailing on the dates of transactions in case of purchase of materials and sale of goods /services , the exchange Gain/Losses on settlements during the year , are adjusted to Profit and Loss Account.

f. Deferred Tax resulting from the timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date.

g. Segment Reporting:

The company has no reportable segments under AS-17.

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Mar 31, 2014

A. Basis of preparation of financial statements:

The accounts are prepared on Historical cost basis and on accounting principles of a going concern.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Physical verification of Fixed assets have been carried out by the management. Management certify the correctness of the assets.

Depreciation on Fixed Assets provided on W.D.V Method at the rates prescribed by schedule XTV of the companies Act, 1956.

d. As on year ending 31-03-2014 there is no inventory.

e. Transactions in Foreign Currencies are normally recorded at the exchange rate prevailing on the dates of transactions in case of purchase of materials and sale of goods /services, the exchange Gain/Losses on settlements during the year, are adjusted to Profit and Loss Account.

f. Deferred Tax resulting from the timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date.

g. Segment Reporting:

The company has no reportable segments under AS-17.

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Mar 31, 2013

BASIS OF PREPARATION

The Financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the companies (Accounting standards) Rules 2006, (as amended) and the relevant provisions of the companies act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The company is a small and medium sized company (SMC) as defined in the general instructions in respect of Accounting standards notified under the companies Act 1956. Accordingly the Company has compiled with Accounting standards as applicable to an SMC.

CHANGE IN ACCOUNTING POLICIES

Presentation and Disclosure of Financial Statements during the year ended 31st March 2012, the revised schedule VI notified under the Companies Act, 1956 has become applicable to the company, for preparation and presentation of Financial statements. The adoption of Revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous years figures in accordance with the requirements applicable in the current year.

TANGIBLE FIXED ASSETS

Fixed assets are started at cost, net of accumulated depreciation and accumulated impairment of losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and Rebates are deducted in arriving at the purchase price. Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognized in the statement of profit and loss when the asset is derecognized.

DEPRECIATION OF TANGIBLE FIXED ASSETS

Depreciation on fixed assets is calculated on a written down value basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the schedule XIV to the Companies Act, 1956, whichever is higher.

INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at coat. The carrying value of Intangible asset is revived for impairment annually when the asset is not in use or otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable.

RESEARCH AND DEVELOPMENT COSTS

Research costs are expensed as incurred

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

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Mar 31, 2012

1. FIXED ASSETS:

To state Fixed Assets at cost of acquisition inclusive of inward freight duties, taxes and incidental expenses related to acquisition.

2. VALUATION OF INVENTORY:

Cost or Market value whichever is lower and certified by the management.

3. DEPRECIATION:

The Depreciation is calculated on Written down method under Schedule xiv of the Companies Act, 1956.

4. RECOGNITION OF INCOME & EXPENDITURE:

Revenues/Incomes and Costs/Expenditures are generally accounted on the basis of as they are earned or incurred.

5. REVENUE RECOGNITION:

All the Expenses and income is recognized on accrual basis and provision is made for all known losses and liabilities. Revenue is recognized as per billings made to customers.

6. BASIS OF PREPARATION

The Finacial statements of the company have been prepared in accordance with the generally accepted accounting principles in india (indian GAAP).The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the companies (Accounting standards) Rules 2006,(as amended)and the relevant provisons of the companies act ,1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The company is a small and medium sized company (SMC) as defined in the general instructions in respect of Accounting standards notified under the companies Act 1956. Accordingly the Company has compiled with Accounting standards as applicable to an SMC.

7. CHANGE IN ACCUNTING POLICIES

Presentation and Disclosure of Finacial Statements

During the year ended 31st March 2012, the revised shedule VI notified under the Companies Act, 1956 has become applicable to the company , for preparation and presentation of Finacial statements. The adoption of Revised shedule VI does not impact recognition and measurment principles followed for preparation of financial statements . However it has significant impact on presentation and disclosures made in the financial statements.The company has also reclassified the previous years figures in accordance with the requirements applicable in the current year.

8. TANGIBLE FIXED ASSETS

Fixed assets are started at cost, net of accumulated depreciation and accumulated impairment of losses, ,if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and Rebates are deducted in arriving at the purchase price.Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognized in the statement of profit and loss when the asset is derecognized.

9. DEPRECIATION ON TANGIBLE FIXED ASSETS

Depreciation on fixed assets is calculated on a written down value basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the shedule XIV to the Companies Act, 1956, whichever is higer.

10. INTANGIBLE ASSETS

Intangible assets acquired seperately are measured on initial recognition at coat.The carrying value of Intangible asset is reviewd for impairment annually when the asset is not in use or otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable.

11. RESEARCH AND DEVELOPMENT COSTS

Research costs are expensed as incurred

12. REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenuecan be reliably measured.

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Mar 31, 2010

1. BASIS OF ACCOUNTING:

The Financial statements are prepared under Historical costs convention on actual method of accounting and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS:

To state Fixed Assets at cost of acquisition inclusive of inward freight duties, taxes and incidental expenses related to acquisition.

3. VALUATION OF INVENTORY:

Cost or Market value which ever is Lower and certified by the management.

4. DEPRECIATION:

The Depreciation is calculated on Straight-line method under Schedule xiv of the Companies Act, 1956.During the year no operations exist, hence no depreciation is calculated.