Accounting Policies of Rich Universe Network Ltd. Company

Mar 31, 2024

1(B) SIGNIFICANT ACCOUNT POLICIES:

1 Basis of preparation and presentation

i) Statement of Compliance with Ind AS:

The financial statements comply in all material aspects with Indian Accounting Standards (Ind
AS) notified under section 133 of the Companies Act, 2013 (the Act) read with the Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and relevant
amendment rules thereafter and accounting principles generally accepted in India. These
financial statements have been prepared on going concern basis using the significant accounting
policies and measurement bases summarized below. Accounting Policies have been consistently
applied except where a newly issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in accounting policy hitherto in use. In those
cases, the new accounting policy is adopted in accordance with the transitional provisions
stipulated in that Ind AS and in absence of such specific transitional provision, the same is
adopted retrospectively for all the periods presented in these financial statements.

ii) Basis of preparation the financial statements:

The financial statements have been prepared on the historical cost basis except for certain
financial assets and liabilities (refer accounting policy regarding financial instruments). The
methods used to measure fair values are discussed further in notes to financial statements.

iii) Functional and presentation currency:

These financial statements are presented in Indian rupees (INR), which is company’s functional
currency. All amounts have been rounded off to nearest lacs unless otherwise indicated.

iv) Operating Cycle:

All assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013
based on the nature of services rendered and time between the acquisition of asset for providing
services and their realization in cash and cash equivalents.

v) Current versus non-current classification:

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

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

• Held primarily for the purpose of trading.

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

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

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

• Held primarily for the purpose of trading;

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

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

• Terms of a liability that could, at the option of the counterparty, result in its settlement by
the issue of equity instruments does not affect its classification. Current liabilities include the
current portion of non-current financial liabilities. All other liabilities are classified as non¬
current. The Company has ascertained its operating cycle as twelve months for the purpose of
current and non-current classification of assets and liabilities.

vi. Use of Estimates and management judgements

The preparation of financial statements in conformity with Indian Accounting Standards (Ind
AS) requires management of the company to make judgements, estimates and assumptions that
affect the reported amount of revenues, expenses, assets, liabilities and related disclosures
concerning the items involved as well as contingent assets and liabilities at the balance sheet date.
The estimates and management’s judgements are based on previous experience and other factors
considered reasonable and prudent in the circumstances. Actual results may differ from these
estimates.

vii. Property, Plant & Equipment & Capital work in Progress

Recognition and measurement Property, plant and equipment are tangible items that are held
for use in the production or supply for goods and services, rental to others or for administrative
purposes and are expected to be used for more than one period. The cost of an item of property,
plant and equipment is being recognized as an asset if and only if it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item
can be measured reliably. The PPE has been stated at cost less accumulated depreciation.
Intangible assets are recognized when it is probable that the future benefits that are attributable
to the assets will flow to the Company and the cost of the assets can be measured reliably.
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortization and accumulated
impairment losses, if any.Depreciation has been provided on WDV Basis Method.

viii. Inventories:

The inventories of shares & securities have been valued at lower of cost price or market value
as at 31st March, 2024.

ix. Revenue recognition:

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

Interest -

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

Dividend Income -

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

x. Expenses: All expenses are accounted for on accrual basis.

xi. Financial Instruments

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

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

Equity Investments: All the investments have been valued at deemed cost. (Note No. 3 to the
financial statements

Loans: Loans have been carried at amortized cost. (Note No. 8 to the financial statements).

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

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

Loans: Other loans classified under financial liability have been carried at amortized cost. (Note
no. 13 to the financial statements).

xiii. Others:

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

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

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

d. During the year under consideration no borrowing cost has capitalized by the
company in accordance with the Indian Accounting Standard 23. ‘Borrowing Costs’

issued by the Institute of Chartered Accountants of India.

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

xiv. Taxes: Provision for tax on income for the year (i.e. Current tax) is made after considering the
various Deductions/relieves admissible under the Income Tax Act 1961 as per the normal
provisions of the act. Deferred tax assets are recognized as per the conservative approach.

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Mar 31, 2015

1. SYSTEM OF ACCOUNTING

The accounts are prepared on accrual basis under historical cost convention and to comply in all material aspects with applicable accounting standards in India, issued by the institute of chartered accountants of India and the relevant provisions of the companies act, 1956 & 2013.

2. INVENTORIES

The practice of the company is to value closing stock at lower of cost or net realizable value.

3. INVESTMENTS

Long term investments are carried at cost price

4. FIXED ASSETS

FIXED Assets are stated at cost of acquisition less depreciation as per Companies Act 1956.

5. DEPRECIATION

On Assets acquired and put to, is provided on Written Down Value Method.

6. REVENUE RECOGNITION Revenue is recognized on accrual basis.

7. PROVISIONS, CONTINGENT LIABILITY & CONTIGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events in the Notes. Contingent Assets are neither recognized not disclosed in the financial statements.

8. BORROWING COST

Borrowing costs that are attributable to the acquisition/construction of qualifying assets are capitalized as part of cost of such assets. A quality asset is an asset that requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

9. TAXES ON NCOME

Provision for tax on income for the year (i.e. Current tax) is made after considering the various Deductions/relieves admissible under the income Tax Act 1961 as per the normal provisions of the act. Deferred tax assets are not recognized as per the conservative approach.

10. IMPAIRMENT OF ASSETS

The company assess at each Balance sheet date whether there is any indication that an asset mat be impaired. It any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to the recoverable amount. The reduction is treated as an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

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Mar 31, 2014

A) The company follows the Mercantile system of accounting in accordance with the applicable mandatory.

i) The company follows the Mercantile system of accounting with the applicable mandatory accounting standard referred to in section 211(3C) of the companies act 1956.

ii) Income on performing assets is recognized in accordance with the provision of prudential.

iii) Divided on shares in accounted for as and when received.

Other income and expenses are accounted for on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation.

c) Depreciation:

Depreciation has been provided on pro-rata basis with reference to the date of installation and calculated as per Schedule XIV the provisions of Companies Act 1956.

d) Valuation of Stock:

The Stocks have been valued at cost or market price whichever is less as at year ended.

e) Preliminary Expenses:

The Company has not amortized any preliminary Expenses during the financial year 2013-14

f) Provision for Income Tax:

Provision for Income Tax is made and retained in the accounts on the basis Of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and considering any pending - litigation and orders in Company''s Case.

g) Contingent Liabilities

i) Estimated amount of contract remaining to be executed on Capital Accounts and not provided for: NIL

(Previous Year NIL)

ii) Claims against the company not acknowledged as debts: NIL

(Previous Year NIL)

iii) Uncalled liability on partly paid investment: NIL

(Previous Year NIL)

h) The company has not entered into any lease agreement after 31.03.1999 therefore provision of ''Accounting Standard -19 on lease'' are not applicable.

i) To the extent information available, there were no outstanding dues towards small scale or ancillary undertaking as on 31.03.2014.

j) Reportable segment in respect of business operations of the Company has been identified on the basis of nature of activities attached to the segment. There are no secondary reportable segments considering the business operation of the company. Therefore, no disclosure for secondary segment has been made.

k) The advances received or given are without any stipulation of board of directors regarding their nature and the period for which they have been given or received but as certified by the Board of Directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in Balance Sheet and outstanding balances in the accounts of parties are subject to confirmation.

l) However, in compliance with Prudential norms of income recognition, provisioning for Bad and Doubtful Debts etc. issued by Reserve Bank of India vide guidelines dated 13.06.1994, the company has, not accrued income in respect of Loans and Advances which are non performing assets as defined therein in terms of set guidelines.

m) The particulars as required in terms of Paragraph 9BB of NBFC Prudential Norms (Reserve Bank) directions 1998 given in Schedule l-(i) are not applicable.

n) Payment of Gratuity Act, 1972 and Provident Fund Act 1952 are not presently applicable to the Company. The Company do not have a policy of encashment of unavailed leaves.

o) Earnings in Foreign Currency : NIL

(Previous Year: Rs. NIL)

p) Expenses in Foreign Currency : NIL

(Previous Year: Rs. NIL)

q) The company has identified that there is no impairment of assets and as such no provision is required for the same in terms of accounting standard 28 issued by Institute of Chartered Accountants of India.

r) Previous year figures have been regrouped/rearranged wherever considered necessary.

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Mar 31, 2013

A) The company follows the Mercantile system of accounting in accordance with the applicable mandatory.

I) The company follows the Mercantile system of accounting with the applicable mandatory accounting standard referred to in section 211(3C] of the companies 1955.

ii) Income on performing assets is recognised in accordance with the provision of prudential.

Ill) Divided on shares in accounted for as and when received. Other income and expenses an accounted fnr on accrual basis.

b) Fiaed Assets:

Fixed Assets are stated at cost less accumulated depreciation.

c} Depreciation -

Depreciation lias been provided on pro-rata basis with reference to the date of installation and calculated as per Schedule XIV the provisions of Companies Act 1956.

d) Valuatiun of Stock:

The Stocks have been valued at cost or market price whichever is less as at year ended.

e) Preliminary Expenses:

The Company has riot amortized any preliminary Expenses during the financial year 2012-13

f} Provision for Income Tan:

Wo Provision for Income Ta* has been made as the T.D.5. was already deducted to cover the Income Tax Payable vt the net profit shown by the company,

g) Contingent Liabilities

i) Estimated amount of contract remaining to be executed on Capital Accounts and not provided for: NIL (Previous Year NIL}

ii} Claims against the company mot acknowledged as debts, NIL (Previous Year NIL)

iii) Uncalled liability on partly paid investment: NIL (Previous Year NIL)

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Mar 31, 2012

A) The company follows the Mercantile system of accounting in accordance with the applicable mandatory.

i) The company follows the Mercantile system of accounting with the applicable mandatory accounting standard referred to in section 211(3C) of the companies act 1956.

ii) Income on performing assets is recognized in accordance with the provision of prudential.

iii) Divided on shares in accounted for as and when received.

Other income and expenses are accounted for on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation.

c) Depreciation :

Depreciation has been provided on pro-rata basis with reference to the date of installation and calculated as per Schedule XIV the provisions of Companies Act 1956.

d) Valuation of Stock:

The Stocks have been valued at cost or market price whichever is less as at year ended.

e) Preliminary Expenses:

The Company has not amortized any preliminary Expenses during the financial year 2011-12

f) Provision for Income Tax:

No Provision for Income Tax has been made as the T.D.S. was already deducted to cover the Income Tax Payable on the net profit shown by the company.

g) Contingent Liabilities

i) Estimated amount of contract remaining to be executed on Capital Accounts and not provided for: NIL

(Previous Year NIL)

ii) Claims against the company not acknowledged as debts: NIL (Previous Year NIL & 4i ii) Uncalled liability on partly paid investment: NIL (Previous Year NIL)

h) The company has not entered into any lease agreement after 31.03.1999 therefore provision of 'Accounting Standard -19 on lease' are not applicable.

i) To the extent information available, there were no outstanding dues towards small scale or ancillary undertaking as on 31.03.2012.

j) Reportable segment in respect of business operations of the Company has been identified on the basis of nature of activities attached to the segment. There are no secondary reportable segments considering the business operation of the company.

Therefore, no disclosure for secondary segment has been made, k) The advances received or given are without any stipulation of board of directors regarding their nature and the period for which they have been given or received but as certified by the Board of Directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in Balance Sheet and outstanding balances in the accounts of parties are subject to confirmation.

I) However, in compliance with Prudential norms of income recognition, provisioning for Bad and Doubtful Debts etc. issued by Reserve Bank of India vide guidelines dated 13.06.1994, the company has, not accrued income in respect of Loans and Advances which are non performing assets as defined therein in terms of set guidelines, m) The particulars as required in terms of Paragraph 9BB of NBFC Prudential Norms (Reserve Bank) directions 1998 given in Schedule l-(i) are not applicable, n) Payment of Gratuity Act, 1972 and Provident Fund Act 1952 are not presently applicable to the Company. The Company do not have a policy of encashment of unavailed leaves, o) Earnings in Foreign Currency : NIL (Previous Year: Rs. NIL) p) Expenses in Foreign Currency : NIL (Previous Year: Rs. NIL)

q) The company has identified that, there is no impairment of assets and as such no provision is required for the same in terms of accounting standard 28 issued by Institute of Chartered Accountants of India, r) Previous year figures have been regrouped/rearranged wherever considered necessary.

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Mar 31, 2010

A) Basis of Accounting:

The company follows the Mercantile system of accounting.

b) Revenue Recognition

Revenue is being recognized as and when there is reasonable certainty of its ultimate realization.

c) Fixed Assets:

Fixed Assets are show at w.d.v. less depreciation.

d) Depreciation:

Depreciation has bean provided on pro-rata basis. with reference to the date of installation and calculated as per the provison of schedule XIV of Companies Act 1956.

e) Valuation of Investments:

The Investment are valued at cost.

f) Preliminary Expenses:

Preliminary Expenses are amoritized over a period of ten year.

g) Provision for Income Tax:

No provision for Income-Tax has been made as the T.D.S. was already deducted to cover the Income-Tax payable on the net profit shown by the company.