Accounting Policies of Skyline Ventures India Ltd. Company

Mar 31, 2024

2. Summary of significant accounting policies

2.1 Foreign currency transactions and balances

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.

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).

2.2 Property plant and equipment

The cost of an item of property, plant and equipment are 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.

Items of property, plant and equipment (including capital-work-in progress) 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, non-refundable
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.

When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.
Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the company and the cost of the item can be measured reliably.

Depreciation

Depreciation on items of PPE is provided on straight line basis, computed on the basis of useful lives as
mentioned in Schedule II to the Companies Act, 2013. Depreciation on additions / disposals is provided on a
pro-rata basis i.e. from / up to the date on which asset is ready for use / disposed-off.

The residual values, useful lives and method of depreciation are reviewed at each financial year end and
adjusted prospectively, if appropriate.

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 stores and spares that meet the definition of Property, plant and equipment are capitalized at cost,
otherwise, such items are classified as inventories.

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

2.3 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.

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. 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 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 recognised 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. 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.

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/
losses 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

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.

Reclassification of financial assets and liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no re-classification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a re-classification is made only if there is a change in
the business model for managing those assets. A change in the business model occurs when the Company either
begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial
assets, it applies the re-classification prospectively from the re-classification date, which is the first day of the
immediately next reporting period following the change in business model. The Company does not restate any
previously recognised gains, losses (including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the 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 realise the assets and settle the liabilities simultaneously.

2.4 Cash & Cash Equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts with banks, and other short-term
deposits. For this purpose, "short-term" means investments having maturity of three months or less from the
date of investment, and which are subject to an insignificant risk of change in value. 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.

2.5 Impairment of non-financial assets

The carrying amounts of the Company''s non-financial assets, other than biological assets, investment property,
inventories, contract assets 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 goodwill and intangible assets that have indefinite lives or that are not yet available for use, an impairment
test is performed each year at March 31.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use
and its fair value less costs to sell.

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 or the cash-generating unit.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflow of other assets or
groups of assets (the "cash-generating unit").

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 in which the entity operates, or for the market in which the asset is used.

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.

Reversal of Impairment of Assets

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 had been recognized.

2.6 Employee benefits

Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized 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 plans

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

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 of high-
quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have
terms to maturity approximating to the terms of the related defined benefit obligation. In countries where there
is no deep market in such bonds, the market interest rates on government bonds are used. The current service
cost of the defined benefit plan, recognized 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 recognized immediately in the statement of profit
and Ioss.

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
for defined benefit obligation and plan assets are recognized in OCI in the period in which they arise. When
the benefits under a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to
past service or the gain or loss on curtailment is recognized immediately in the statement of profit and loss. The
Company recognizes gains or losses on the settlement of a defined benefit plan obligation when the settlement
occurs.

Termination benefits

Termination benefits are recognized as an expense in the statement of profit and loss 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 in the statement of profit and loss 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 current and previous periods. That benefit is
discounted to determine its present value. Re-measurements are recognised in the statement of profit and loss
in the period in which they arise.

Compensated absences

The Company''s current policies permit certain categories of its employees to accumulate and carry forward
a portion of their unutilised compensated absences and utilise them in future periods or receive cash in lieu
thereof in accordance with the terms of such policies. The Company measures the expected cost of accumulating
compensated absences as the additional amount that the Company incurs as a result of the unused entitlement
that has accumulated at the reporting date. Such measurement is based on actuarial valuation as at the reporting
date carried out by a qualified actuary.

---

Mar 31, 2015

I. Basis for Preparation of financial Statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act ) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notifed) and guidelines issued by the Securities and Exchange Board of India (SEBI). 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 the accounting policy hitherto in use.

II. Use of Estimates:

The preparation and presentation of financial statements requires estimates and assumptions and/or revised estimates and assumptions to be made that afect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Diferences between the actual results and estimates are recognized in the period in which the results are known/materialized.

III. Cash flow Statement:

Cash fows are reported using the indirect method, whereby Profit/ (loss) before tax is adjusted with Cash and cash equivalents (with an original maturity of three months or less) held for the purpose of meeting short-term cash commitments.

IV. Revenue Recognition:

Company generally follows the mercantile system of accounting and recognizes income and expenses on accrual basis, including provisions or adjustments for committed obligations and amounts demined as payable or receivable during the year.

V. fixed Assets & Method of Depreciation:

The company has only Land as a Fixed Asset as per AS-10 "Accounting for Fixed Assets". Land is valued at Historical Cost. As Land is not a depreciable asset, AS-6 "Accounting for Depreciation" is not applicable.

VI. foreign Currency Transactions:

There is no foreign currency transaction for the company during the year; hence AS-11 "Accounting for foreign exchange" is not applicable for this year.

VII. Employee Benefts:

Expenses and Liabilities in respect of employee benefts are recorded in accordance with Revised Accounting Standard 15 – Employee Benefts (Revised 2005) issued by the Institute of Chartered Accountants of India (the "ICAI").

VIII. Earnings per share:

Basic earnings per share is computed by dividing the Profit/ (loss) after tax (including the post-tax efect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

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 efects of all dilutive potential equity shares.

IX. Related Party Transactions:

During the Financial Year 2014-15, there is no transaction made with related party, therefore the Accounting standard-18 "Related Party disclosure" is not required.

X. Taxes on Income:

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the assessment year 2015-16.

---

Mar 31, 2013

The accounts have been prepared primarily on the historical cost convention and in accordance with the mandatory accounting standards Issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The significant accounting policies followed by the company are stated below:

i) Revenue recognition: The concern follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

ii) Fixed Assets: Fixed assets are stated at cost of acquisition. Cost comprises the purchase price and other attributable expenses. The company doesn''t have any fixed assets other than land.

iii) Inventories: Inventories have been valued at the least of its cost or its realizable value.

iv) Depreciation: The Company doesn''t have any fixed assets other than land, so the depreciation as per the provisions of the Companies Act, 1956 are not applicable.

Particulars FY 2012-13 FY 2011-12 (Amount in Rs.) (Amount in Rs.)

For Directors Remuneration 6,00,000.00 6,00,000.00

For Auditors

(I). Audit fees 40,000.00 35,000.00

(II). Tax Audit 20,000.00 15,000.00

(iii). Reimbursement of Expenses 4,500.00 5,150.00

1. Taxation:

Current tax: Since the Company has taxable income; Provision is made for Income Tax as per Income Tax Act, 1961.

2. Sundry debtors, sundry creditors and loans and advances are subject to confirmation from the parties.

3. Previous year figures are regrouped and rearranged wherever necessary.

4. The figures are rounded off to the nearest rupee.

As per our report of even date.

---

Mar 31, 2012

1. Accounting Policies:

The accounts have been prepared primarily on the historical cost convention and in accordance with the mandatory accounting standards Issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The significant accounting policies followed by the company are stated below:

i) Revenue recognition: The concern follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

ii) Fixed Assets: Fixed assets are stated at cost of acquisition. Cost comprises the purchase price and other attributable expenses. The company doesn''t have any fixed assets other than land.

iii) Inventories: Inventories have been valued at the least of its cost or its realizable value.

iv) Depreciation: The Company doesn''t have any fixed assets other than land, so the depreciation as per the provisions of the Companies Act, 1956 are not applicable.

---

Mar 31, 2011

1. Accounting Policies:

The accounts have been prepared primarily on the historical cost convention and in accordance with the mandatory accounting standards Issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The significant accounting policies followed by the company are stated below:

i) Revenue recognition: The concern follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

ii) Fixed Assets: Fixed assets are stated at cost of acquisition. Cost comprises the purchase price and other attributable expenses. The company doesn''t have any fixed assets other than land.

iii) Inventories: Inventories have been valued at the least of its cost or its realizable value.

iv) Depreciation: The Company doesn''t have any fixed assets other than land, so the depreciation as per the provisions of the Companies Act, 1956 are not applicable.