Accounting Policies of Popular Estate Management Ltd. Company

Mar 31, 2024

4. Summary of significant accounting policies:

I) Use of estimates:

The preparation of these financial statements In conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of relevant far is and circumstances as at the date of the financial statements. Management believes that the estimates used In the preparation of financial statements are prudent and reasonable. Actual results could differ from estimates.

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Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected

Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities in coming financial years are specified here-m-after

a) Useful lives of property, plant ana equipment

The Company is providing depreciation at the rates derived based on the useful life specified under Schedule-ll to the Companies Act. 2013. The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change In depreciation expense in future periods.

b) Provisions and contingent liabilities

A provision is recognised when the Company has a present obligation as a result of past event and it Is probable than an outflow of resources will be required to settle the obligation, in respect of which the reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to Its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date, adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

Major provisions recognized in financial statement and related accounting policy are specified as under:

Current / Deferred tax liabilities ¦ Refer Note 4(xiv), 9 and 26

Other estimates:

The preparation of financial statements involves estimates and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses for the reporting period. Specifically, the Company estimates the probability of collection of accounts receivable by anatyring historical payment patterns, customer concentrations, customer credit worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

II) Revenue recognition: a I Revenue from operations

The Company derives revenues primarily from construction & development of buildings and infrastructure. Revenue is recognized upon transfer of control of land or units of the building constructed by the company, to the customers in an amount that reflects the consideration we expect to receive in exchange for.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. In case where there is no uncertainty as to measurment or collectability of consideration, revenue is recognised as soon as the control of the land or units of the building has been given. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty Is resolved.

The Company presents revenues net of indirect taxes in its statement of Profit and loss. b) Other income:

Other income is comprised primarily of interest income, income from sale of property, plant & equipments.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest Income is accrued on a time basis, bv 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

Income from sale of property, plant & equipments is recognised as when it arises i. e. on sale of property, plant & equipment.

iii) Property, Plant & Equipment:

a) Property, Plan t & Equipment

All Property, Plant and Equipments are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to getting the asset ready for intended use. 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. All other repairs-and maintenance are charged to profit or loss during the reporting period in which they are incurred.

An item of property, plant and equipment Is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an Item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised In profit or loss.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

b) Capitol Work-in-progress

Properties in the course of construction (CWIP| for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company''s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Iv) Depreciation on Property, Plant & fcqulpmenc

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives, using the straight-line method The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible property, plant and equipment is provided over the useful lives specified under Schedule II to the Companies Act, 2013.

. ... Useful life

Nature of Assets

(In Years)

Office Equipments 4

Furniture & Fixtures 8

Computers 1

Vehicles 6

v) Intangible Assets and Amortization:

Intangible assets purchased are measured at cost or fair value as on the date of acquisition, as applicable, less accumulated amortisation and accumulated impairment, if any.

Intangible assets are amortised on a straight line basis over their estimated useful lives, commencing trom the date the asset is available to the Company for its intended use.

Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated Impairment losses. If any Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected In the Statement of Profit and Loss in the year in which the expenditure is Incurred.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation period Is revised to reflect the changed pattern, if any

vi) Impairment of Property, Plant & Equipment and intangible assets:

At the end of each reporting period, the Company reviews the carrying amounts of its Property, Plant & Equipment and intangible assets to determine whether there Is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (If any). When It Is not possible to estimate the tecoverable amount of an individual asset, the Company estimates the recoverable amount of the Lash-generating unit to whirh the asset belongs When a reasonable and consistent basis of allocation can tie identified, corporate assets are also allocated to Individual cashgenerating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be Identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there Is an indication that the asset may be impaired

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use. the estimated future cash flows are 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 asset for which the estimates of future

casn nows have not been adjusted.

Carrying amount equals to cost less accumulated depreciation and accumulated impairment losses recognised previously.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An Impairment loss IS recognised Immediately In profit or loss.

vii) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their Intended use or sale.

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

All other borrowing costs are recognised In profit or loss in the period in which they are incurred, vili) Inventories:

Inventories includes land acquired for resale or construction purposes. The same is valued at cost or net realisable value whichever is less.

ix) Leases:

In respect of assets taken on lease, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards Incidental to the ownership of an asset to the Company. All other leases are classified as operating leases.

Operating lease payments for lands are recognized as prepayments and amortised on a straight-line basis over the term of the lease. Contingent rentals, if any, arising under operating leases are recognised as an expense in the period in which they are incurred.

x) Financial Instruments:

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

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1. Financial Assets

a) initial recognition and measurement

At initial recognition, the Company measures a financial asset (which are not measured at fair value) through profit or loss at its fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the

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b) Subsequent measurement

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

I) Financial assets measured at amortised cost:

ii) Financial assets at fair value through profit or loss (FVTPL) and

III) Financial assets at fair value through other comprehensive income (FVTOC1).

The Company classifies its financial assets in the above mentioned categories based on:

a) The Company''s business model for managing the financial assets, and

b) The contractual cash flows characteristics of the financial asset.

I) Financial assets measured at amortised cost:

A financial asset is measured at amortised cost if both of the following conditions are met:

a) A financial asset is measured at amortised cost If the financial asset is held within a business model whose objective Is to hold financial assets in order to collect contractual cash flows and the Contractual terms of the financial assets give rise on specified dates to cash Flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

b) Financial assets are subsequently measured at amortised 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 amortisation is included in finance income In the profit or loss. The losses arising from Impairment are recognised In the profit or loss

ii) Financial assets at fair value through profit or loss (FVTPL):

Financial assets are measured at fair value through profit and loss unless It is measured at amortised cost or at fair value through other comprehensive income on Initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

ili) Financial assets at fair value through other comprehensive Income (FCTOCI):

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose objective is achieved by collecting both contractual cash flows that gives rise on specified dates to solely payments of principal and interest on the principal amount outstanding and by selling financial assets.

A financial asset is measured at fair value through profit or loss unless it Is measured at amortised cost or fair value through other comprehensive income In addition, The Company may elect to designate a financial asset, which otherwise meets amortised cost or FVTOCI criteria, as at FVTPL However, such election is allowed only If doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch'')

Cash and Cash Equivalents & other current financial assets etc. are classified for measurement at amortised cost.

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cl Derecognition

The Company derecognizes a financial asset when contractual rights to the cash flows from the asset expire, or when it tiansfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset in Its entirety, the difference between the assets''s carrying amount and the sum of the consideration received and receivable is recognized in the Statement of Profit and Loss.

d) Impairment

The Company applies expected credit losses (ECU) model tor measurement and recognition of loss allowance on the following:

i. Trade receivables,

H. Financial assets measured at amortized cost (other than trade receivables and lease receivables),

Hi. Financial assets measured at fair value through other comprehensive Income (FVTOCI).

ECL is the difference between all contractual cash flows that are due to the Company In accordance with the contract and all the cash flows that the entity expects to receive (I e., all cash shortfalls), discounted at the original effective interest rate.

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognized as loss allowance. As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on Its portfolio of trade receivables

In case of other assets (listed as li and Hi above), the Company determines if there has been a significant Increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not Increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there Is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12 month ECL

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date.

ECL Impairment loss allowance (or reversal) recognized during the period Is recognized as Income/ expense in the Statement of Profit and Loss under the head ''Other expenses''.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking Into account the time value of money and other reasonable Information available as a result of past events, current conditions and forecasts of future economic conditions.

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2. Financial Liabilities

a) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and subsequently carried at amortised cost using the effective interest method.

The company''s financial liabilities Include trade and other payables, loans and borrowings including bank overdrafts.

b) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below;

i) Financial liabilities measured at amortised cost.

ii) Financial liabilities at fair value through profit or loss.

i| Financial liabilities measured at amortised cost:

All financial liabilities are measured at amortised cost. Any discount or premium on redemption/ settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.

it) Financial assets at fair value through profit or loss (FVTPl):

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at 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. Gains or losses on liabilities held for trading are recognised in the profit or 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 P&L 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.

c) Derecognition

Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation 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 derecognition 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.

3. Equity Instruments

An equity instrument Is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

4. Offsetting of financial instruments .

Financial assets and financial liabilities are offset and the net amount is reported In the standalone balance sheet If there Is a currently enforceable legal right to offset the recognised amounts and there is an Intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

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5. Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Company categories assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed In their measurement which are described as follows:

(a) level 1 inputs are quoted prices (unadjusted) In active markets for identical assets or liabilities.

|b) level 2 Inputs are inputs that are observable, either directly or Indirectly, other than quoted prices Included within level 1 for the asset or liability.

(c) level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

xi) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes In value, and bank overdrafts.

xil) Foreign currency Transactions

The functional currency of the company is Indian rupee.

On initial recognition, all foreign currency transactions are translated Into the functional currency using the exchange rates prevailing on the date of the transaction. As at the reporting date, foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are recognised In the Statement of Profit and Loss

xiii) Employee benefits

a) Short term employee benefits

Short Term benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and loss of the year in which the related service Is rendered.

bl Post employment benefits

As the company doesn''t meet the employees'' threshold currently, the company is not required to contribute towards any plan (neither defined contribution plan nor defined benefit plan) under any law for the time being in force. The company shall start contributing as and when it Is required by the law.

xiv) Income Taxes:

Income tax expense represents the sum of the tax currently payable and deferred tax. a) Current fox

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

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bj Deferred tox

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding ta* bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised 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 utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it 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 realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting penod.

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

cl Current ond deferred tox for the period

Current and deferred tax are recognised In profit or loss, except when they relate to Items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect Is Included In the accounting for the business combination.

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Mar 31, 2015

A. use of Estimates

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

b. Tangible fixed assets

All Tangible Fixed Assets are valued at cost, he Cost comprises purchase- price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the Intended use,

c. Depreciation of tangible fixed assets

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM) or all Assets. Depreciation is provided based on Useful life of the assets as prescribed in Schedule It to the Companies Act, 2013.

d. Inventories

Inventories are stated at lower of Cost or Net Realisable Value

e. 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.

f. Retirement and other employee benefits:

Retiring Benefits, If any, are considered as Payable in the year in which paid.

g. Income Tax:

Tax expenses comprise current and deferred tax. Current income tax Is measurer, at the amount expected to he paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted In India and tax laws prevailing In the respective tax jurisdictions where the company Operates, The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date,

Deferred Income Tax

The Company has accounted for deferred lax in accordance with the Accounting Standard-22 "Accounting for Taxes on Income" Issued by the Institute of Chartered Accountants of India Consequently, deferred taxes have been recognized in respect of following Items of timing differences between accounting income and the taxable income.

h. Earning per Share:

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

For the purpose of calculating diluted if earning t per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period am adjusted for the effects or all dilutive potential equity shar

i. Provisions:

A provision Is recognized when the company has a present obligation as a result of past event. It is possible that an outflow of resources embodying benefits will be required to settle the obligation and a reliable estimate can tie made of the amount of the obligation on, Provisions are not discounted to their present value and are determined based on the beat estimate required to settle the obligation at the reporting date. These estimates me reviewed at each reporting date and adjusted to reflect the Current test estimates.

j. Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence win bo confirmed by the occurence or non occurence of one ur more uncertain future events beyond the control of the company or a present obligation that Is not recognized because It Is not probable that an outflow of resources will be required to settle the obligation, A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contigent liability but disclosed Its existence in the financial statements.

k. Cash and cash equivalents

Cash and cash equivalents for the Purposes of cash flow statement comprise cash at bank and cash In band.

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Mar 31, 2014

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

b. Tangible fixed assets : All Tangible Fixed Assets are valued at cost. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

c. Depreciation of tangible fixed assets : Company has provided depreciation on Straight Line Method on all Assets at the rates prescribed under Schedule XIV of the Companies Act, 1956.

d. 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.

e. Retirement and other employee benefits : Retiring Benefits, if any, are considered as Payable in the year in which paid.

f. Income Tax : Tax expenses comprise current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income Tax : The Company has accounted for deferred tax in accordance with the Accounting Standard-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. Consequently, deferred taxes have been recognized in respect of following items of timing differences between accounting income and the taxable income.

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

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

h. Provisions : A provision is recognized when the company has a present obligation as a result of past event. It is possible that an outflow of resources embodying benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

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

j. Cash and cash equivalents : Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and cash in hand.

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Mar 31, 2012

A. Change in accounting policy :

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 its 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 year figures in accordance with the requirements applicable in the current year.

b. Use of Estimates :

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

c. Tangible fixed assets :

All Tangible Fixed Assets are valued at cost. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

d. Depreciation of tangible fixed assets :

Company has provided depreciation on Straight Line Method on all Assets at the rates prescribed under Schedule XIV of the Companies Act, 1956.

e. 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.

f. Retirement and other employee benefits :

The Company has no obligation regarding retirement and other benefits payable to the Employee.

g. Income Tax :

Tax expenses comprise current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income Tax :

The Company has been advised that as there is no significant effect of timing difference based on estimated computation for a reasonable period, there is no provision for Deferred Tax in terms of Accounting Standard – 22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India.

h. Earning per Share :

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

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

i. Provisions :

A provision is recognized when the company has a present obligation as a result of past event. It is possible that an outflow of resources embodying benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

j. Contingent liabilities :

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

k. Cash and cash equivalents :

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand.

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Mar 31, 2010

(i) Basis of Accounting :

The Financial Statement are prepared on the basis of historical cost convention and in accordance with the normally accepted accounting principles.

(ii) Fixed Assets :

a) Fixed Assets are stated at cost of Acquisition less accumulated depreciation.

b) Depreciation on Fixed Assets have been provided on straight line method in accordanace with the rates and manners prescribed in schedule XIV to the Companies Act, 1956.

(iii) Income & Expenditure :

All income & Expenditure items having material bearing on the financial statements are recognised on accrual basis.

(iv) Retirement benefits :

Gratuity and superannuation benefits to the employees will be accounted for on cash basis.

(v) Investments:

Investments are considered as Long Term investments unless and otherwise specified . Investments are valued at cost. Dividend/Interest on Investments are recognised on receipt basis.

(vi) Contingent Liabilities :

Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantity of such liabilities.

(vii) Preliminery Expenses & Public Issue Expenses :

Preliminery Expenses & Public Issue Expenses have been written off over the period of five years.