Accounting Policies of Wisec Global Ltd. Company

Mar 31, 2024

1.2 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.

1.3 Basis of preparation

• 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) [Companies (Indian Accounting Standards) Rules, 2015] and other
relevant provisions of the Act.

The financial statements up to year ended March 31, 2016 were prepared in
accordance with the accounting standards notified under Companies
(Accounting Standards) Rules, 2006 (as amended) and other relevant
provisions of the Act.

• Historical cost convention

The financial statements have been prepared on a historical cost basis,
except for the following:

• certain financial assets and liabilities which have been measured at
fair value;

• assets held for sale — measured at lower of carrying value or fair
value less cost to sell; and

• defined benefit plans — plan assets measured at fair value

• The company has incurred net losses during the year and preceding years.
The company has separated all employees from October 2016 onwards, after
the company lost all the major contracts for provision of services. The
company''s management is making efforts to get new contracts based on their
past experience to recommence the operations. As on date, it is highly
contingent that the company will be able to discharge its assets or liabilities in
normal course of business. Hence, there remains a significant doubt in the
company''s ability to continue as a going concern. No adjustments to this effect
has been done in financial statements.

• Segment Reporting

The Company is engaged primarily providing all kinds of business support
services. However, in the context of Indian Accounting Standard 108 -
Operating Segments, these are considered to constitute single reportable
segment. Accordingly, no separate disclosure for primary or secondary
segments is given.

• Revenue Recognition

The Company recognizes revenue when the amount of revenue can be
reliably measured, it is probable that future economic benefits will flow to the
entity and specific criteria have been met for each of the Company''s activities
as described below. The Company bases its estimates on historical results,
taking into consideration the type of customer, the type of transaction and the
specifics of each arrangement.

Recognising revenue from major business activities:

Revenue from sale of services is recognized on transfer of all the significant
risk and rewards of ownership to the recipient of services.

Revenue in respect of interest on fixed deposit with banks is recognized on
accrual basis at the rate at which such entitlement accrue.

• Property, plant and equipment

Freehold land is carried at historical cost. All other items of property, plant and
equipment are stated at historical cost less depreciation. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognized
as a separate asset, as appropriate, only when 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 carrying amount of any
component accounted for as a separate asset is derecognized when
replaced. All other repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.

Transition to IndAS

On transition to Ind AS, the Company has elected to continue with the carrying
value of all of its property, plant and equipment recognized as at April 1,2016
measured as per the previous GAAP and use that carrying value as the
deemed cost of the property, plant and equipment.

Depreciation methods, estimated useful lives and residual value

The useful lives of property, plant and equipment are depreciated on pro-rata
basis on the Written-Down Value method over the estimated useful lives of the
assets prescribed in Schedule II to the Companies Act, 2013, which are as
follows:

The same represent the consumption pattern and is based on technical
evaluation done by management. The residual values are not more than 5%
of the original cost of the asset. The assets'' residual values and useful lives
are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset''s carrying amount is written down immediately to its recoverable
amount if the asset''s carrying amount is greater than its estimated
recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds
with the carrying amount and are recognized within ''Other (losses)/gains'' in
the statement of profit or loss.

Further, the company has not depreciated its tangible asset during the
reporting period.

Intangible Assets

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying
value of all of its intangible assets recognized as at April 1,2016 measured as
per the previous GAAP and use that carrying value as the deemed cost of the
intangible assets. Further the company has not any record or other
documentary evidence to verify the existence of its Intangible asset namely
Technical know-how as well as its carrying value on reporting date.

Impairment of assets

Intangible assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment, or more frequently if
events or changes in circumstances indicate that they might be impaired.

Other assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognized for the amount by which the asset''s carrying
amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset''s fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets (cash¬
generating units). Non-financial assets other than goodwill that suffered an
impairment are reviewed for possible reversal of the impairment at the end of
each reporting period.

Further, the company has not amortized its intangible asset namely
Technical know how.

• Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand and balance with banks.

• Employee benefits

Employee benefits includes stipend paid to trainees.

• Contributed equity

Equity shares are classified as equity.

• Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to
owners of the Company by the weighted average number of equity shares
outstanding during the financial year, adjusted for bonus elements in equity
shares, if any, issued during the year and excluding treasury shares.

Diluted earnings per share adjusts the figures used in the determination of
basic earnings per share to take into account the after income tax effect of
interest and other financing costs associated with dilutive potential equity
shares and the weighted average number of additional equity shares that
would have been outstanding assuming the conversion of all dilutive potential
equity shares.

• Rounding of amounts

All amounts disclosed in the financial statements and notes have been
rounded off to the nearest rupees in thousands as per the requirement of
Schedule III, unless otherwise stated.

FOR MKRJ & CO.

CHARTERED ACCOUNTANTS For and on Behalf of the Board

Firm Registration No. 030311N

Sd/- Sd/- Sd/-

Mukesh Kumar Jain Rakesh Rampal Aliya

Partner Director Director

Membership No.073972 DIN: 01537696 DIN: 10461493

UDIN: 24073972BKFARB1488

Sd/-

Anuj Dixit

Date: 30.05.2024 Chief Financial Officer

Place: New Delhi PAN: EBJPD5698P

2.15 Ageing of Trade Receivables Schedule

The Company doesn''t have any Trade Receivable as at 31^st March 2024, therefore
disclosure regarding ageing of Trade Receivables is not applicable.

2.16 Compliance with approved scheme of arrangements

The company has not applied for any scheme of arrangements with any competent
authority in terms of sections 230 to 237 of the Companies Act, 2013, hence disclosure
relating to same are not applicable

2.17 Disclosure relation to utilisation of borrowed funds for specific purpose:

The company has not taken any borrowing from any Banks and/or Financial
institutions, hence disclosure relating to Utilization of borrowings for specific purpose
are not applicable.

i) Borrowings shall further be sub-classified as secured and unsecured. Nature of
security shall be specified separately in each case.

(ii) Where borrowings have been guaranteed by Directors or others, the aggregate
amount of such borrowings under each head shall be disclosed;

(iii) terms of repayment of term loans and other loans shall be stated; and

(iv) period and amount of default as on the balance sheet date in repayment of borrowings
and interest shall be specified separately in each case.

2.18 Ageing of Trade Payable Schedule

The management is not able to find out the ageing of the creditors due to the
constraints beyond their reach

2.19 Compliance with number of layers of companies

The company has complied with the number of layers prescribed under clause (87) of
section 2 of the Act read with Companies (Restriction on number of Layers) Rules,
2017.

2.20 Dividend distributions made and proposed

No dividend has been distributed and proposed to be declared.

2.21 Conversion of outstanding loans into equity after closure of the financial year
on 31^st March, 2024

No such event exists in the year ending 31^st March 2024.

2.22 Cost of Investment

No such event exists in the year ending 31^st March 2024.

2.23 Disclosure relating to Trade Payables:

There are no outstanding dues to Micro, Small and Medium Enterprises to the extent
information available with the company and the payments in respect of such suppliers
are made within the appointed day.

2.24 Capital work-in-progress ageing schedule:

Since Capital work-in-progress as on 31stMarch 2024 is NIL, hence disclosure
relating to its ageing schedule are not applicable to the company

2.26 Benami Property under the Benami Transactions (Prohibition) Act, 1988

No proceedings have been initiated or pending against the Company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 and rules
made thereunder, as at 31^st March 2024 and 31^st March 2023.

2.27 Crypto currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during
the year ended 31^st March 2024, and 31^st March 2023.

2.28 Reconciliation of Balances

In the absence of confirmation from all the parties and pending reconciliation the debit
and credit balances with regard to recoverable and payable have been taken as
reflected in the books. In the opinion of the Directors, Loans and Advances and
Current Assets, if realized in the ordinary course of business, have the value at which
they are stated in the Balance Sheet.

2.29 Undisclosed Income

There have been no transactions which have not been recorded in the books of

accounts that have been surrendered or disclosed as income during the year ended
31 March 2024 and 31 March 2023, in the tax assessments under the Income Tax Act,
1961. There have been no previously unrecorded income and related assets which
were to be properly recorded in the books of account during the year ended 31^st March
2024 and 31^st March 2023

2.30 Registration/Satisfaction of Charges with ROC

Since the company has not mortgaged any property / assets whether moveable or
immoveable, nor has taken any loan, hence the disclosure regarding registration and
satisfaction of Charges with Registrar of Companies is not applicable.

2.31 Title deeds of immoveable property not held in the name of the company

The Company does not hold any immovable property either owned or leased as on 31^st
March 2024 and 31^st March 2023, hence disclosure relating to Title deeds of
immoveable property held in the name of the company and / or its revaluation are not
applicable.

2.32 Quarterly Returns of Current Assets

Since the company has not taken any borrowings from any banks and / or financial
institutions, hence disclosure relating to filing of quarterly returns or statement of
current assets are not applicable.

2.33 Wilful Defaulter

The Company is not a declared wilful defaulter by any bank or financial Institution or
other lender, in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India, during the year ended 31^st March 2024 and 31^st March 2023.

2.34 Transactions with Struck off Companies

The Company does not have any transactions with the companies struck off under
Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 during
the year ended 31^st March 2024 and 31^st March 2023.

2.35 Segment Reporting

Segment Reporting as defined in Accounting Standards 17 are not applicable as the
company is primarily engaged in Finance Activity

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Mar 31, 2015

A) Basis Of Preparation

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with the Generally Accepted" Accounting Principles ('GAAP'). These financial statements comply with the Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006, pronouncements of Institute of Chartered Accountants of India and presentation requirements of relevant provisions of the Companies Act, 2013 as adopted consistently by the company.

B) Preparation and disclosure of financial statements

During the previous year ended 31 march 2014, the Company had adopted Schedule III to the Companies Act, 2013 for the preparation of the financial statements of the Company. The Schedule III introduced some conceptual changes as well as new disclosures. These included classification of all assets and liabilities into current and non- current.

C) Use of estimates

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

D) Revenue Recognition

Revenue from sale of services is recognized on transfer of all the significant risk and rewards of ownership to the recipient of service.

E) Tangible fixed assets and intangible fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises original cost of acquisition and any directly attributable cost of bringing the asset to its working condition for the intended use. Intangible assets are stated at cost of acquisition including costs related to acquisition and installation, less accumulated amortization and impairment losses, if any.

F) Depreciation and amortization

Depreciation is provided on written down value basis at the rates specified in Schedule II to the Companies Act, 2013. Depreciation is charged on pro-rata basis for assets purchased/sold during the year. Assets costing less than Rs 5,000/- are fully depreciated in the year of purchase. The rates adopted reflect the estimate of useful lives of the fixed assets as provided in schedule II of the Companies Act, 2013.

Further the company had not amortized its intangible asset namely Technical Know How.

G) Impairment

The carrying values of assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the assets recoverable amount is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the Statement of Profit and Loss. 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.

The company has not provided for such impairment losses, if any, relating to Intangible asset (Technology Know How), the resultant impact, if any, is not recognized in the Statement of Profit & Loss account.

H) Foreign Currency Transactions

Monetary assets and liabilities denominated in foreign currency are not translated at the yearend rates and the resultant gain/losses on foreign exchange translations are not recognized in the Statement of Profit and Loss.

I) Retirements benefits

Gratuity and leave encashment are defined benefit schemes. The charge in the profit & loss account for gratuity and leave encashment is not based on the actuarial valuation by an independent actuary. The calculation of the same has been done by the management at their own.

J) Taxation

Income tax expense comprises current tax (i.e amount of tax for the year determined in accordance with the Income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax assets and liabilities are recognized using the tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is a reasonable certainty that the assets can be realized in future; however where there are unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognised only to the extent there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at the Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

In view of the continued losses of the company, deferred tax assest/liability has not been recognized in the books of accounts.

K) Earning Per Share

Basic earning/(loss) per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end, except where the results would be anti-dilutive.

L) Provisions. Contingent liabilities and contingent assets

A provision arising from claims, litigation, assessment, fines, penalties,'etc is recognized when the company has a present obligation as a result of a past event and is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.

M) Operating Lease

Lease payments under operating lease arrangements are recognized as an expense in the Statement of Profit & Loss account on a straight line basis over the lease term.

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Mar 31, 2014

A) Basis Of Preparation

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with the Generally Accepted Accounting Principles ("GAAP"). These financial statements comply with the Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006, pronouncements of Institute of Chartered Accountants of India and presentation requirements of relevant provisions of the Companies Act, 1956, to the extent applicable, as adopted consistently by the company.

B) Preparation and disclosure of financial statements

During the previous year ended 31 march ''2014, the Company had adopted revised Schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the Company. The revised Schedule VI introduced some conceptual changes as well as new disclosures. These included classification of all assets and liabilities into current and non-current.

C) Use of estimates

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

D) Revenue Recognition

Revenue from sale of services is recognized on transfer of all the significant risk and

rewards of ownership to the recipient of service.

E) Tangible fixed assets and intangible fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises original cost of acquisition and any directly attributable cost of bringing the asset to its working condition for the intended use. Intangible assets are stated at cost of acquisition including costs related to acquisition and installation, less accumulated amortization and impairment losses, if any.

F) Depreciation and amortization

Depreciation is provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation is charged on pro-rata basis for assets purchased/sold during the year. Assets costing less than Rs 5,000/- are fully depreciated in the year of purchase. The rates adopted reflect the estimate of useful lives of the fixed assets.

Further the company had not amortized its intangible asset namely Technical Know How.

G) Impairment

The carrying values of assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the assets recoverable amount is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the Statement of Profit and Loss. 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.

The company has not provided for such impairment losses, if any, relating to Intangible asset (Technology Know How), the resultant impact, if any, is not recognized in the Statement of Profit & Loss account.

H) Foreign Currency Transactions

Monetary assets and liabilities denominated in foreign currency are not translated at the yearend rates and the resultant gain/losses on foreign exchange translations are not recognized in the Statement of Profit and Loss.

I) Retirements benefits

Gratuity and leave encashment are defined benefit schemes. The charge in the profit & loss account for gratuity and leave encashment is not based on the actuarial valuation by an independent actuary. The calculation of the same has been done by the management at their own.

J) Taxation

Income tax expense comprises current tax (i.e amount of tax for the year determined in accordance with the Income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax assets and liabilities are recognized using the tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is a reasonable certainty that the assets can be realized in future; however where there are unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognised only to the extent there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at the Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

K) Earning Per Share

Basic earning/(loss) per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end, except where the results would be anti-dilutive.

L) Provisions. Contingent liabilities and contingent assets

A provision arising from claims, litigation, assessment, fines, penalties, etc is recognized when the company has a present obligation as a result of a past event and is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.

M) Operating Lease

Lease payments under operating lease arrangements are recognized as an expense in the Statement of Profit & Loss account on a straight line basis over the lease term.

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Mar 31, 2013

1 System of Accounting:

The accounts and financial statements have been prepared on historical cost basis of accounting and on the basis of going concern.

2 Fixed Assets and Depreciation

a) AH fixed assets are carried at cost of construction or acquisition less depreciation. All expenses including financing costs on borrowed funds up to the date the assets is ready for use and attributable to the construction or acquisition of fixed assets are capitalized.

When an assets is scrapped, or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit (Including capital profit) or loss, if any, is reflected in Profit and Loss Account.

b) Depreciation on all the fixed assets is provided on Straight Line Method, pro - rata monthly rest, at the rates prescribed in Schedule XIV of the Companies Act, 1956

c) Assets individually costing up to Rs.5000/- are depreciated at 100% in the year of purchase.

3. Investment

All long - term investments are valued at cost less provisions as considered necessary Current investments are valued at the lower of cost and fair value, determined by category of investment, Investment have been reconciled during the year.

4 Stock In Trade

Stock in trade is valued at the cost or realizable value whichever_is less. The cost is computed on FIFO Basis.

5 Retirement Benefits

Contributions are made under the relevant rules for Provident Fund etc., which are charged to Profit & Loss Account on accrual basis. Liability on account of gratuity is as per actuarial valuation.

6 Income

(a) In respect of heads of income, the company follows the practice of accounting for such income on accrual basis.

7 Expenses

(a) Fine/penalty on late deposit of statutory dues have been accounted for on levied/paid basis.

(b) Interest expenses on unsecured loan have been accounted for on payment basis.

(c) All other expenses are accounted for on accrual basis.

8 Preliminary Expenses/Deferred Jlevenue Expenditure

Preliminary Expenses/Deferred Revenue Expenditure are amortized over a period of ten years or over the period of contract / agreement.

9 Taxes on Income

Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. In view of the continuing losses deferred assets has not been recognized during the year.

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Mar 31, 2010

1 System of Accounting:

The accounts and financial statements have been prepared on historical cost basis of accounting and on the basis of going concern.

2 Fixed Assets and Depreciation

a) All fixed assets are carried at cost of construction or acquisition less depreciation. All expenses including financing costs on borrowed funds up to the date the assets is ready for use and attributable to the construction or acquisition of fixed assets are capitalized.

When an assets is scrapped, or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit (Including capital profit) or loss, if any, is reflected in Profit and Loss Account.

b) Depreciation on all the fixed assets is provided on Straight Line Method, pro – rata monthly rest, at the rates prescribed in Schedule XIV of the Companies Act, 1956

c) Assets individually costing up to Rs.5000/- are depreciated at 100% in the year of purchase.

3. Investment

All long - term investments are valued at cost. Current investments are valued at the lower of cost and fair value, determined by category of investment, Investment have reconciled during the year.

4 Stock In Trade

Stock in trade is valued at the cost or realizable value whichever is less. The cost is computed on FIFO Basis.

5 Foreign currency transactions

Foreign currency transactions are recorded at rates of exchange prevailing on the date of transaction. All exchange differences during the year are accounted for in the Profit and Loss account

6 Retirement Benefits

Contributions are made under the relevant rules for Provident Fund etc., which are charged to Profit & Loss Account on accrual basis. Liability on account of gratuity is as per actuarial valuation.

7 Income

(a) Sales are net of Sales Tax. Material returned / rejected are accounted for in the year of return / rejection. Sales are recognized at the time of dispatches to customers.

(b) Dividends on investments are accounted for on receipt basis.

(c) In respect of other heads of income, the company follows the practice of accounting for such income on accrual basis.

8 Expenses

(a) Fine/penalty on late deposit of statutory dues have been accounted for on levied/paid basis.

(b) Interest expenses on unsecured loan have been accounted for on payment basis.

(c) All other expenses are accounted for on accrual basis.

9 Preliminary Expenses/Deferred Revenue Expenditure

Preliminary Expenses/Deferred Revenue Expenditure are amortized over a period of ten years or over the period of contract / agreement.

10. Taxes on Income

Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2009

1 System of Accounting:

The accounts and financial statements have been prepared on historical cost basis of accounting and on the basis of going concern.

2 Fixed Assets and Depreciation

a) All fixed assets are carried at cost of construction or acquisition less depreciation. All expenses including financing costs on borrowed funds up to the date the assets is ready for use and attributable to the construction or acquisition of fixed assets are capitalized.

When an assets is scrapped, or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit (Including capital profit) or loss, if any, is reflected in Profit and Loss Account.

b) Depreciation on all the fixed assets is provided on Straight Line Method, pro - rata monthly rest, at the rates prescribed in Schedule XIV of the Companies Act, 1956

c) Assets individually costing up to Rs.5000/- are depreciated at 100% in the year of purchase.

3. Investment

All long - term investments are valued at cost. Current investments are valued at the lower of cost and fair value, determined by category of investment

4 Stock In Trade

Stock in trade is valued at the cost or realizable value whichever is less. The cost is computed on FIFO Basis.

5 Foreign currency transactions

Foreign currency transactions are recorded at rates of exchange prevailing on the date of transaction. All exchange differences during the year are accounted for in the Profit and Loss account

6 Retirement Benefits

Contributions are made under the relevant rules for Provident Fund etc., which are charged to Profit & Loss Account on accrual basis. Liability on account of gratuity is provided for the person who is covered under the payment of Gratuity Act. Leave encashment is provided on accrual basis. Retirement benefit cost for the period has been determined by the management on the basis of mere estimation and is not as per Actuarial valuation.

7 Income

(a) Sales are net of Sales Tax. Material relumed / rejected are accounted for in the year of return i rejection. Sales are recognized at the time of dispatches to customers.

(b) Dividends on investments are accounted for on receipt basis.

(c) In respect of other heads of income, the company follows the practice of accounting for such income on accrual basis.

8 Expenses

(a) Fine/penalty on late deposit of statutory dues have been accounted for on levied/paid basis.

(b) Interest expenses on unsecured loan have been accounted for on payment basis.

(c) All other expenses are accounted for on accrual basis.

9 Preliminary Expenses/Deferred Revenue Expenditure

Preliminary Expenses/Deferred Revenue Expenditure are amortized over a period of ten years or over the period of contract / agreement.

10. Taxes on Income

Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.