Accounting Policies of Purshottam Investofin Ltd. Company

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

a. Basis of preparation of financial statements

The financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the
Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as
amended from time to time) issued by the Ministry of Corporate Affairs in exercise of the powers conferred by section
133 of the Companies Act, 2013. In addition, the guidance notes/announcements issued by the Institute of Chartered
Accountants of India (ICAI) are also applied along with compliance with other statutory promulgations which require a
different treatment. Any directions issued by the RBI or other regulators are implemented as and when they become
applicable.

b. Presentation of Financial Statement

The Financial Statement are prepared and presented in the format prescribed in the Division III to Schedule III to the
Companies Act, 2013 ("the Act") applicable for Non-Banking Financial Companies ("NBFC"). The Statement of Cash
Flows has been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash Flows". The disclosure
requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule
III to the Act, are presented by way of notes forming part of the financial statements along with the other notes
required to be disclosed under the notified accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

c. Functional and presentation currency

These financial statements are presented in Indian rupees in lakhs (INR or Rs.) which is also the Company''s functional
currency. All values are rounded-off to the nearest lakhs with two decimals, unless otherwise stated.

d. Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make estimates,
judgements and assumptions that affect the application of accounting policies and the reported amounts of assets and
liabilities (including contingent liabilities) and disclosures as of the date of the financial statements and the reported
amounts of revenue and expenses for the reporting period. Actual results could differ from these estimates. Accounting
estimates and underlying assumptions are reviewed on an ongoing basis and could change from period to period.
Appropriate changes in estimates are recognized in the periods in which the Company becomes aware of the changes
in circumstances surrounding the estimates. Any revisions to accounting estimates are recognized prospectively in the
period in which the estimate is revised and future periods and, if material, their effect are disclosed in the notes to the
financial statements.

e. Income and Expenditure

Income and Expenditure are accounted for on accrual basis except bank charges and interest Income on bad & doubtful
debts which is recognized as per IRAC norms of RBI guidelines.

f. Property Plant & Equipment

Property Plant & Equipment are stated at cost of acquisition less accumulated depreciation and impairment losses, if
any. The cost of property, Plant and Equipments comprises purchase price and any attributable cost of bringing the

asset to its working condition for its intended use.

The Company has not acquired any Property, Plant and Equipment in a businesscombination. The Company has not
revalued its Property, Plant and Equipment.

g. Intangible Assets

Company doesn''t have any intangible assets during the year 2023-24.

h. Depreciation

Depreciation is provided on a written down value on the basis useful life specified in Schedule II to the Companies Act,
2013. Depreciation is charged on a pro-rata basis for assets purchased/ sold during the year. Depreciation is charged
from the date the asset is ready to use or put to use, whichever is earlier. In respect of assets sold, depreciation is
provided up to the date of disposal.

i. Finance Costs

Finance costs include interest and other ancillary borrowing costs. Ancillary costs include issue costs such as loan
processing fee, arranger fee and stamping expense etc. Finance costs are charged to the Statement of Profit and Loss.

j. Investments

Investment has been valued and bifurcated in accordance with the Indian Accounting Standards (Ind''AS). However, No
provision is required on account of permanent diminution in the value of investment held.

k. Inventories

Inventories are valued at fair market value through comprehensive income in accordance with Ind-AS. Changes in
inventory recognized in profit and loss account is based on cost. The cost of inventories includes all purchase costs and
other expenses incurred to acquire the inventories. Additionally, inventories are valued using the FIFO (First-In, First-
Out) method.

l. Income Tax Expense

Provision for Income tax expense is determined as the amount of tax payable in respect of taxable income for the year
and in accordance with the Income-tax Act, 1961.

m. Taxation

i) Provision for current tax is made with reference to taxable income computed for the accounting period for which the
financial statements are prepared by applying the tax rates and laws that are enacted or substantively enacted at the
Balance sheet date. The tax is recognized in statement of profit and loss, except to the extent that it related to items
recognized in the other comprehensive income (OCI) or in other equity.

ii) Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.

n. Employee Benefits

i) Short term employee benefits:

All employee benefits payable wholly within twelve months of rendering service are classified as short term employee
benefits. Benefits such as salaries, allowances, short term compensated absences and expected cost of other benefits
is recognised in the period in which the employee renders the related service.

ii) Post-employment benefits:

Company has not made any Provision for liability of future payment of gratuity in the current year as well as in previous
year and has not obtained actuarial valuation report as the number of employees is less than 10. Further, no provision
has been made for leave encashment benefits, as the company does not have a policy of encasing leaves of employees.

o. Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are
classified as operating leases. Operating lease charges are recognised as an expense in the Statement of Profit and Loss
in the financial year to which it relates.

p. Earnings per share

The basic earnings per share are computed by dividing the net profit/ (loss) after tax attributable to equity shareholders
for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share
are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding
during the year, except where the results would be anti-dilutive.

q. Impairment of non-financial Assets:

The carrying amount of any property, plant and equipment with finite lives are reviewed at each balance sheet date, if
there is any indication of impairment based on internal / external factors. An asset is impaired when the carrying
amount of the asset exceeds the recoverable amount. There are no indicators for impairment of any property, plant
and equipment during the year.

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Mar 31, 2015

1. BACKGROUND

M/S Purshottam Invest of in Limited ("The Company") was incorporated in India on 04TH day of November 1988 under the company's act 1956. The company is registered with Reserve Bank of India (RBI) as a Non-Banking Financial Company vide certificate No.B-14-01044 dated 14th May 2003. The company is primarily engaged in the business of NBFC (Non-Accepting Public Deposits).

a. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention method, on the accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles ("GAAP") in India, and Accounting Standards Specified under Section 133 of the companies act 2013 (the 'act'), read with rule 7 of the companies (Accounts) Rules ,2014 (as amended). The accounting policies have been consistently applied by the company.

Previous year figures have been regrouped/ recast to make them comparable with figures of current year.

b. Use of estimates

The preparation of financial statements in conformity with the Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any change in the accounting estimates is recognized prospectively in the current and future periods.

c. Revenue Recognition

Revenue is recognized on accrual basis

d. Fixed assets

Tangible Assets

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

Intangible Assets

Internally generated intangible asset arising from development activity are recognized only on demonstration of its feasibility, the intention and ability of the company to complete, use or sell it. The intangible assets (if any) are eroded at cost and are carried at cost less accumulated amortization.

e. Depreciation

Depreciation on fixed assets ought to be in accordance with the enactment of the Companies Act 2013 (the 'Act'), the Company, effective 1st April 2014, had to review the estimated useful lives of its fixed assets, generally in accordance with the provisions of Schedule II to the Act, as follows:

However, depreciation has been charged for the first 9 months of the year according to Schedule XIV of the Companies Act, 1956 in the absence of clarity on the application of Schedule II of Companies Act, 2013 and the fixed assets has been disposed off at scrap value on 01.01.2015 resulting in NIL fixed assets as on 31.03.2015 and NIL depreciation for the 4th quarter of the FY 2014-15.

Moreover, the amount of depreciation charged during the year is not material which could affect the true and fair view of the state of affairs of the company for the current financial year

f. Investments

Investments held for maturity (Long term) are stated at cost & any decline other than temporary, in the value of such investments is charged to the statements of Profit & Loss. The carrying amount for Investment held for trade is the lower of cost and fair value.

g. Inventories

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all cost of purchase, and other costs incurred in acquiring the inventories. Further the inventories are valued on FIFO basis.

h. Income Tax Expense

Provision for Income tax expense is determined as the amount of tax payable in respect of estimated taxable income for the year and in accordance with the Income-tax Act, 1961. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future.

i. Employee Benefits:

Company has not made any Provision for liability of future payment of gratuity as the company does not fulfill the criteria of its provisions.

No provision has been made for leave encashment benefits, as the company does not have a policy of encasing leaves of employees.

j. Leases

Lease rentals (if any) in respect of operating lease arrangements are recognized as an expense in the profit & loss account on accrual basis.

k. Earnings per share

The earnings considered in ascertaining the Company's earnings per equity share comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of equity shares outstanding during the year.

l. Provisions & Contingencies

A provision is recognized when the company has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. Contingent liabilities and contingent assets are neither recognized nor disclosed in the financial statements.

m. Foreign exchange transactions

Foreign currency transactions (if any) are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on foreign currency transactions settled during the year are recognised in the Profit and Loss Account. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at year end rates. The resultant exchange differences are recognised in the profit and loss account. Non monetary assets are recorded at the rates prevailing on the date of transaction.

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Mar 31, 2014

1.1. Basis of preparation of Accounts

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting policies in India. The accounting standards notified by the Companies Act 1956 and the provisions of the Companies Act 1956, as adopted consistently by the Company.

The company follows the mercantile system of accounting and recognizes items of incomes and expenditure on accrual basis.

1.2. Presentation and disclosure of financial statements

The financials have been prepared and presented as per the revised Schedule VI notified under the companies Act 1956.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.

1.3 Use of Estimates

The preparation of financial statements is in conformity with general accepted accounting principles which require the management of the company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Actual results could differ from those estimates.

1.4. Taxation

Provision for current tax is determined as the amount of tax payable in respect of estimated taxable income for the year and in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized using the enacted tax rates and laws as on the Balance Sheet date, subject to the consideration of prudence in respect of deferred tax assets on all timing differences, between taxable income and accounting income that originate in one period and are capable of reversal in one of more subsequent periods.

1.5. Earnings per share

The earnings considered in ascertaining the Company''s EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period.

1.6. Investments

Investments are stated at cost.

1.7. Revenue Recognition

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

1.8. Provisions & Contingencies

A provision is recognized when the company has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements.