Accounting Policies of Tavernier Resources Ltd. Company

Mar 31, 2024

Note 1 : Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These
policies have been consistently applied to all the years presented, unless otherwise stated.

1 Basis of preparation and presentation

(i) Statement of compliance with Ind AS

The company’s 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
issued by Ministry of Corporate Affairs in respect of sections 133. In addition, the guidance notes/announcements issued by
the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory
promulgations require a different treatment. The financials for the year ended March 31, 2018 of the company were the first
financial statements prepared in compliance with Ind AS. The date of transition to Ind AS is April 1, 2016.

(ii) Basis of accounting

The Company maintains accounts on accrual basis following the historical cost convention, except for

- certain financial instruments that are measured at fair value in accordance with Ind AS.

(iii) Use of Estimates

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the
actual results. Management also needs to exercise judgement in applying the accounting policies.

This note provides an overview of the areas that involved a high degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than
those originally assessed.

(iv) Critical estimates and judgements

The areas involving critical estimates or judgements are:

- Estimation of current tax expense and payable

- Recognition of revenue

Ind AS 101 treats the information received after the date of transition to Ind AS as non-adjusting events. The entity shall not
reflect that new information in its opening Ind AS Balance Sheet (unless the estimates need adjustment for any differences in
accounting policies or there is objective evidence that the estimates were in error).

2 Summary of significant Accounting Policies

a Property, plant and equipment and intangible assets

AE items of property, plant and equipment and intangible assets are stated at cost (i.e. cost of acquisition or
construction) less accumulated depreciation/accumulated impairment. Such cost includes purchase price, including
import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its
working condition for its intended use.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
profit or loss within other gains/(losses).

Transition to Ind AS

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and
equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS,
measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary
adjustments for de-commissioning liabilities.

Hence, on transition to Ind AS, the company has elected to continue with the carrying value of all of its property, plant
and equipment and intangible assets recognised as at 1 April 2016 measured as per the previous GAAP and use that
carrying value as the deemed cost of the property, plant and equipment and intangible assets.

Depreciation and Amortisation:

Depreciation on Property, Plant and Equipment and Intangible Assets is provided using the Straight Line Method based
on the estimated useful lives of the assets and is charged to the Statement of Profit and Loss as per the requirement of
Schedule II of the Companies Act, 2013.

Impairment

At Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the
carrying amount of the Company’s assets. If any such indication exists, the asset’s recoverable amount is estimated. An
impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

An assessment is also done at each Balance Sheet date whether there is any indication that an impairment loss
recognised for an asset in prior accounting periods may no longer exist or may have decreased, if any such indication
exists the asset’s recoverable amount is estimated. The carrying amount of the fixed asset is increased to the revised
estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of
impairment loss is recognised in the Statement of Profit and Loss for the year.

After recognition of impairment loss or reversal of impairment loss as applicable, the depreciation charge for the fixed
asset is adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value (if any), on
Straight Line basis over its remaining useful life.

b Revenue Recognition

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The
amount recognised as sale is exclusive of sales tax/GST/VAT and is net of returns.

Income is accounted for on accrual basis,
c Inventory

Inventories are carried at the lower of cost and net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.

d Investments and other financial assets

(i) Classification

The company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through other comprehensive income, or through Profit or
loss), and

- those measured at amortised cost.

The classification depends on the company’s business model for managing the financial assets and the contractual
terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income. For investments in debt instruments, this will depend on the business model in which the investment is held.
For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the
time of initial recognition to account for the equity investment at fair value through other comprehensive income.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at
fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Debt instruments

Subsequent measurement of debt instruments depends on the company’s business model for managing the asset and the
cash flow characteristics of the asset. There arc three measurement categories into which the company classifies its debt
instruments:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is
subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when
the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using
the effective interest rate method.

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash
flows and Fot selling the financial assets, where the assets’ cash flows represent solely payments of principal and
interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount
are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange
gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain
or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses).
Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at
fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through
profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement
of profit and loss within other gains/(losses) in the period in which it arises. Interest income from these financial assets
is included in other income.

Equity instruments

A company can subsequently measure all equity investments at fair value through Profit or Loss or through Other
Comprehensive Income. As the company’s one of the object is to trade in shares and securities, the company
subsequently measures all equity investments at fair value through profit and loss. Dividends from such investments are
recognised in profit or loss as other income when the company’s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/ (losses) in
the statement of profit and loss.

Security deposits

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease
term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair
value. Accordingly, the Company fair values these security deposits under ind AS. Difference between the fair value
and transaction value of the security deposit will be recognised as prepaid rent. Prepaid rent is recognised as an expense
over the period of lease with corresponding recognition of interest income on the outstanding amount.

(iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been
a significant increase in credit risk.

(iv) Derecognition of financial assets

A financial asset is derecognised only when:

- The company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.

Where the company has transferred an asset, the company evaluates whether it has transferred substantially all risks and
rewards of ownership of the financial asset In such cases, the financial asset is derecognised. Where the company has
not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not
derecognised.

e Transactions in Foreign Currency

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally
recognised in profit or loss.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of profit and
loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit and loss
on a net basis within other gains/(losses).

f Trade receivables

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision
against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing
of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

g Income tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction (in accordance with the Income Tax Act, 1961) adjusted by changes in
deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates
that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unabsorbed depreciation
(as per taxation laws) only if it is probable that future taxable amounts will be available to utilise those temporary differences
and losses.

Deferred income tax is provided on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.

The Company has thus disclosed the Income Tax Assets/ Liabilities on a net basis as the same is settled within the same tax
jurisdiction, which is in line with Ind AS 12.

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Mar 31, 2015

A) Basis of preparation of financial statements

The accompanying financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting, and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 ('the Rules') and the requirements of the Companies Act, 2013 ('the Act'), to the extent applicable to the Company. The financial statements are presented in Indian Rupees.

b) Use of Estimate

The preparation of the financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities on the date of the financial statement. Actual results could differ from the estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) Depreciation

The Assets are depreciated in accordance with the provisions of Schedule II of the Act. Schedule II of the act requires systematic allocation of the depreciable amount of an asset over its useful life. The said schedule also requires that the useful life of an asset should not be longer than the useful life prescribed in part C of the said schedule and the residual value of an asset should not be more than five percent of its original cost

d) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

e) Foreign Currency Transactions

Transaction in foreign currency is recorded at the exchange rates prevailing at the time of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in the determining net profit for the period in which the transaction is settled. Monetary items denominated in the foreign currencies at the year end are restated at year end rates.

f) Investments

All the Investments have been valued at cost less any provisions for permanent diminution in value.

g) Inventories

Inventories are valued at lower of cost or net realisable value after providing for obsolescence, if any.

h) Revenue recognition

Items of revenue have been recognised in accordance with the Accounting Standard (AS-9). Accordingly, wherever there are uncertainties in the ascertainment /realisation of income, the same is not accounted for.

Income is accounted for on accrual basis.

i) Employee Benefits

i. The company's contribution to provident fund in accordance with the Employee's Provident and Misc. Provision Act 1952 is not applicable.

ii. The liability for gratuity to be provided in according to the provisions of the Payment of Gratuity Act 1972 is not applicable.

j) Provision for Current and Deferred Tax

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961.

Deferred tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that the deferred tax assets will be adjusted in future.

k) Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities, if any are not recognised and are disclosed in the Notes on Accounts.

l) Segment Reporting

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Financial Statements.

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Mar 31, 2014

A) Basis of preparation of financial statements

The accompanying financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting, and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 (''the Rules'') and the requirements of the Companies Act, 1956 (''the Act''), to the extent applicable to the Company. The financial statements are presented in Indian Rupees.

b) Use of Estimate

The preparation of the financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities on the date of the financial statement. Actual results could differ from the estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) Depreciation

Depreciation on fixed assets has been provided on WDV method at the rates prescribed in schedule XIV of the Companies Act, 1956 on a pro rata basis from the date the asset is ready to use till the date of sale.

d) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

e) Foreign Currency Transactions

Transaction in foreign currency is recorded at the exchange rates prevailing at the time of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in the determining net profit for the period in which the transaction is settled. Monetary items denominated in the foreign currencies at the year end are restated at year end rates.

f) Investments

All the Investments have been valued at cost less any provisions for permanent diminution in value.

g) Inventories

Inventories are valued at lower of cost or net realisable value after providing for obsolescence, if any.

h) Revenue recognition

Items of revenue have been recognised in accordance with the Accounting Standard (AS-9). Accordingly, wherever there are uncertainties in the ascertainment /realisation of income, the same is not accounted for.

Income is accounted for on accrual basis.

i) Employee Benefits

i. The company''s contribution to provident fund in accordance with the Employee''s Provident and Misc.

Provision Act 1952 is not applicable.

ii. The liability for gratuity to be provided in according to the provisions of the Payment of Gratuity Act 1972

is not applicable.

j) Provision for Current and Deferred Tax

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961.

Deferred tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that the deferred tax assets will be adjusted in future.

k) Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities, if any are not recognised and are disclosed in the Notes on Accounts.

l) Segment Reporting

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Financial Statements.

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Mar 31, 2013

A) Basis of preparation of financial statements

The accompanying financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting, and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules 2006 {''the Rules'') and the requirements of the Companies Act, 1956 (''the Act''), to the extent applicable to the Company. The financial statements are presented in Indian Rupees.

b) Use of Estimate

The preparation of the financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities on the date of the financial statement. Actual results could differ from the estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) Depreciation

Depreciation on fixed assets has been provided on WDV method at the rates prescribed in schedule XIV of the Companies Act, 1956 on a pro rata basis from the date the asset is ready to use till the date of sale.

d) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

e) Foreign Currency Transactions

Transaction in foreign currency is recorded at the exchange rates prevailing at the time of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in the determining net profit for the period in which the transaction is settled. Monetary items denominated in the foreign currencies attheyearend are restated atyearend rates.

f) Investments

All the Investments have been valued at cost less any provisions for permanent diminution in value.

g) Inventories

Inventories are valued at lower of cost or net realisable value after providing for obsolescence, if any.

As at the end of reported year company did not hold any inventory and hence valuation process has not been carried out.

h) Revenue recognition

Items of revenue have been recognised in accordance with the Accounting Standard (AS-9). Accordingly wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for

Income is accounted foron accrual basis.

i) Employee Benefits

i. The company''s contribution to provident fund in accordance with the Employee''s Provident and Misc. Provision Act 1952 is not applicable.

ii. The liability for gratuity to be provided in according to the provisions ofthe Payment of GratuityAct 1972is not applicable.

j) Provision for Current and Deferred Tax

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961.

Deferred tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that the deferred tax assets will be adjusted in future.

k) Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities, if any are not recognised and are disclosed in the Notes on Accounts.

I) Segment Reporting

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Financial Statements.

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Mar 31, 2012

A) Basis of preparation of financial statements

The accompanying financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting, and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 ('the Rules') and the requirements of the Companies Act, 1956 ('the Act'), to the extent applicable to the Company. The financial statements are presented in Indian Rupees.

b) Use of Estimate

The preparation of the financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities on the date of the financial statement. Actual results could differ from the estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) Depreciation

Depreciation on fixed assets has been provided on WDV method at the rates prescribed in schedule XIV of the Companies Act, 1956 on a pro rata basis from the date the asset is ready to use till the date of sale.

d) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

e) Foreign Currency Transactions

Transaction in foreign currency is recorded at the exchange rates prevailing at the time of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in the determining net profit for the period in which the transaction is settled. Monetary items denominated in the foreign currencies at the year end are restated at year end rates.

f) Investments

All the Investments have been valued at cost less any provisions for permanent diminution in value.

g) Inventories

Inventories are valued at lower of cost or net realisable value after providing for obsolescence, if any.

As at the end of reported year company did not hold any inventory and hence valuation process has not been carried out.

h) Revenue recognition

Items of revenue have been recognised in accordance with the Accounting Standard (AS-9). Accordingly wherever there are uncertainties in the ascertainment/realisation of income, the same is not accounted for.

Income is accounted for on accrual basis.

i) Employee Benefits

i. The company's contribution to provident fund in accordance with the Employee's Provident and Misc.

Provision Act 1952 is not applicable.

ii. The liability for gratuity to be provided in according to the provisions of the Payment of Gratuity Act 1972 is not applicable.

j) Provision for Current and Deferred Tax

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961.

Deferred tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that the deferred tax assets will be adjusted in future.

k) Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities, if any are not recognised and are disclosed in the Notes on Accounts.

I) Segment Reporting

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements,

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Mar 31, 2011

A) ACCOUNTING CONVENTIONS

The financial statements are prepared on accrual basis under historical cost convention on the basis of going concern and materially comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act 1956.

b) DEPRECIATION

Depreciation on fixed assets has been provided on WDV method at the rates prescribed in schedule XIV of the Companies Act, 1956 and on additions/deletions during the year is on prorata basis with reference to the month of additions/deletions thereof.

c) INVESTMENTS

All the Investments have been valued at cost less any provisions for permanent diminution in value.

d) VALUATION OF INVENTORIES

As a policy Valuation of Inventory considered on following basis:

i. Raw Materials, Packing Materials, Finished Goods and Trading Goods - At Cost or Net Realizable Value whichever is lower.

ii. Work-In-Progress - At direct Cost plus related overheads up to the stage of completion

As at the end of reported year company did not hold any inventory and hence valuation process has not been carried out.

e) CURRENT ASSETS

Debtors and Loan & advances are valued on net realisation basis.

f) RETIREMENT BENEFITS

i. The company's contribution to provident fund in accordance with the Employee's Provident & Misc. Provision Act 1952 is not applicable.

ii. The liability for gratuity to be provided in according to the provisions of the Payment of Gratuity Act 1972 is not applicable.

g) FOREIGN EXCHANGE TRANSACTION

Transaction (if any) in foreign currency is recorded at the exchange rates prevailing at the time of the transaction. No Foreign currency transaction has been entered into by the company during the current financial year.

h) PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961. Deferred tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that the deferred tax assets will be adjusted in future.

i) REVENUE RECOGNITION

Items of revenue have been recognised in accordance with the Accounting Standard (AS-9). Accordingly wherever there are uncertainties in the ascertainment /realisation of income, the same is not accounted for. Expenditure and other income are accounted for on accrual basis. Other Income shown in Profit & Loss A/c is net of brokerage, STT and other charges on shares.

j) PROVISIONS/ CONTINGENCIES

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities (If any) are not recognised and are disclosed in the Notes on Accounts.

k) SEGMENT REPORTING

The Company operates in a single business segment viz. "Yarn" in Maharashtra. Hence, Segment Reporting is not applicable as per Accounting Standard on Segment Reporting (AS-17).

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Mar 31, 2010

A) ACCOUNTING CONVENTIONS

The financial statements are prepared on accrual basis under historical cost convention on the basis of going concern and materially comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act 1956.

b) DEPRECIATION

Depreciation on fixed assets has been provided on WDV method at the rates prescribed in schedule XIV of the Companies Act, 1956 and on additions/deletions during the year is on prorata basis with reference to the month of additions/deletions thereof.

Depreciation method has been changed during the year from SLM to WDV. There are no retrospective effects in the books of accounts of the change in method of Depreciation because all assets, on which depreciation had been provided as per SLM method, were sold before 1st April, 2009.

c) INVESTMENTS

All the Investments have been valued at cost less any provisions for permanent diminution in value.

d) VALUATION OF INVENTORIES

As a policy Valuation of Inventory considered on following basis: i. Raw Materials, Packing Materials, Finished Goods and Trading Goods - At Cost or Net

Realizable Value whichever is lower. ii. Work-in-Progress - At direct Cost plus related overheads up to the stage of completion

As at the end of reported year company did not hold any inventory and hence valuation process has not been carried out.

e) CURRENT ASSETS

Debtors and Loan & advances are valued on net realisation basis.

f) RETIREMENT BENEFITS

i. The companys contribution to provident fund in accordance with the Employees

Provident & Misc. Provision Act 1952 is not applicable. ii. The liability for gratuity to be provided in according to the provisions of the Payment of Gratuity Act 1972 is not applicable.

g) FOREIGN EXCHANGE TRANSACTION

Transaction (if any) in foreign currency is recorded at the exchange rates prevailing at the time of the transaction. No Foreign currency transaction has been entered into by the company during the current financial year.

h) PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of Income tax Act, 1961. Deferred tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that the deferred tax assets will be adjusted in future.

i) REVENUE RECOGNITION

Items of revenue have been recognised in accordance with the Accounting Standard (AS-9). Accordingly wherever there are uncertainties in the ascertainment /realisation of income, the same is not accounted for.

Expenditure and other income are accounted for on accrual basis.

J) PROVISIONS/ CONTINGENCIES

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities (If any) are not recognised and are disclosed in the Notes on Accounts.

k) SEGMENT REPORTING

The Company operates in a single business segment viz. "Yarn" in Maharashtra. Hence, Segment Reporting is not applicable as per Accounting Standard on Segment Reporting (AS-17).