Accounting Policies of Varun Mercantile Ltd. Company

Mar 31, 2024

B MATERIAL ACCOUNTING POLICIES INFORMATION
B.l BASIS OF PREPARATION AND PRESENTATION

The financial statements have been prepared on the historical cost basis except for the following assets and liabilities which have been
measured at fair value amount:

Certain financial assets measured at fair value.

The financial statements of the company have been prepared to comply with the Indian Accounting standard ("Ind AS") including the
Accounting Standard notified under the relevant provisions of the Companies Act, 2013.

Company''s financial statements are presented in Indian Rupees (''), which is also its functional currency.

B.2 USE OF ESTIMATES

The preparation of the financial statements requires the management to make judgements, estimates and assumptions that affect the reported
amounts of revenue, expenses, assets & liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.

B.3 SUMMARY OF MATRIAL ACCOUNTING POLICIES

(a) Provision, Contingent Liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes.
Contingent Assets are neither recognised nor disclosed in the financial statements.

(b) Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to
items recognised in the comprehensive income or in equity. In this case, the tax is also recognised in other comprehensive income and equity.

Current Tax

Current Tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax
rates and laws that are enacted or substantively enacted at the Balance sheet date.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the
corresnondina tax bases used in the comnutation of taxable Drofit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the
asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The
carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(c) Revenue recognition

The Company follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

Interest income from a financial asset is recognised using effective interest rate method.

Dividend is recognised when the Company''s right to receive the payment has been established.

(d) Earning Per Share:

Basic earnings per share is calculaled by dividing the net profit or loss lor the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year For the purpose of calculating diluted earning per share, the net profit or loss
for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.

(e) Cash and Cash Equivalents:

Cash and Cash equivalents comprise cash and cash deposit with banks. The company considers all highly liquid investments with remaining
maturity of the date of purchase a three months or less and lhat are readily convertible to the known amount or cash to be cash equivalent.

(!) Cash Flow Statement

Cash flows are reported using the indirect -method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature,
any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or
financing cashflows.The cash flows from operating, investing and Financing activities of the company are segregated.

(g) Financial instruments

1. Financial Assets

A. Initial recognition and measurement :

All financial assets and liabilities are initially recognised at fair value as and when acquired. Transaction costs that are directly attributable
to the acquisatjon or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair
value on initial recognition.

B. Subsequent measurement:

a) Financial assets carried at amortised cost (AC)

A financial asset is subsequently measured at cost if it is held within a business model whose objective is to hold the asset in order to collect
contractual cash flow and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose
objective is achived by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

d) Other equity instruments

All equity investments are measured at fair value, with value changes recognised in statement of profit and loss, except for those equity
investments for which the company has elected to present the value changes in "Other Comprehensive Income¹''.

2. Financial Liabilities

A. Initial recognition and measurement :

All financial liabilities are recognised at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly
recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement:

Financial liabilities are carried at amortised cost using the effective interest method. For trade and other payables maturing within one year
from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

C CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY :

The preparation of the Company''s financial statements requires management to make judgment, estimates and assumptions that affect the
reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

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Mar 31, 2014

A. BASIS OF ACCOUNTING

These financial statements have been prepared to comply with the Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rule,2006 and the relevant provisions of the Companies Act, 1956 .

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialized.

C. RECOGNITION OF INCOME & EXPENDITURE

The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis. Interest income is recognized on the time proportion basis taking into account the amount outstanding and rate applicable.

D. FIXED ASSETS

Fixed assets are stated at cost as reduced by depreciation .

E. DEPRECIATION:-

Depreciation on Fixed Assets was charged to the Profit & Loss Account in the manner prescribed in Schedule XIV read with Section 350 of the Companies Act, 1956 on the w.d.v. of fixed assets.

F. IMPAIRMENT OF ASSETS

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

G. INVESTMENTS

Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

H. PROVISION FOR CURRENT AND DEFFERED TAX

Provision for currant tax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income-tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit wherever material, is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet date. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

I. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2013

A. BASIS OF ACCOUNTING

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

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialized.

C. RECOGNITION OF INCOME & EXPENDITURE

The Company follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

D. FIXED ASSETS

Fixed assets are stated at cost as reduced by depreciation .

E. DEPRECIATION:-

Depreciation on Fixed Assess was charged to the Profit & Loss Account in the manner prescribed in Schedule XIV read with Section 350 of the Companies Act, 1956 on the w.d.v. of fixed assets.

F. IMPAIRMENT OF ASSETS

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

G. INVESTMENTS

Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

H. PROVISION FOR CURRENT AND DEFFERED TAX

Provision for currant tax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income-tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit wherever material, is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet date. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

I. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2010

The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principals and the provisions of the companies Act, 1956 as adopted consistently by the company.

(B) RECOGNITION OF INCOME & EXPENDITURE:

All items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

(C) FIXED ASSETS.

Fixed assets are stated at cost as reduced by depreciation.

(D) DEPRECIATION:

Depreciation on Fixed Assets is charged to the Profit & Loss Account on written down value method, in the manner prescribed in Schedule XIV read with Section 350 of the Companies Act, 1956 on historical cost.

(E) IMPAIRMENT OF ASSETS:

An assets is treated as impaired when the carrying cost of assets 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 periods is reversed if there has been a change in the estimate of recoverable amount.

(F) VALUATION OF INVESTMENTS :

Long term investments are carried at cost, less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at lower of cost and fair value.

(G) ACCOUNITNG FOR TAX ON INCOME:

Provision for current ax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income-tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit wherever material, is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet date. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(H) PROVISION. CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resource. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.