Accounting Policies of Wardwizard Innovations & Mobility Ltd. Company

Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

3.1 Revenue Recognition

Revenue is recognised upon transfer of control of promised
products or services to customers for an amount that
reflects the consideration which the Company expects
to receive in exchange for those products or services.
Revenue excludes taxes or duties collected on behalf of
the government.

Revenue from sale of goods is recognised when control of
goods are transferred to the buyer which is generally on
dispatch for domestic sales and on dispatch/delivery on
local port in India for export sales

Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume discounts,
performance bonuses, price concessions and incentives,
if any, as specified in the contract with the customer.
Revenue also excludes taxes collected from customers.

A liability is recognised where payments are received from

customers before transferring control of the goods being
sold or providing services to the customer.

Dividend income is recorded when the right to receive
payment is established.

Interest income is accrued on, time basis, by reference
to the principal outstanding and at the effective interest
rate applicable.Royalty income is recognised on accrual
basis in accordance with the substance of their relevant
agreements.

3.2 Lease:

A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration.

Company as a lessee

The Company accounts for each lease component
within the contract as a lease separately from non¬
lease components of the contract and allocates the
consideration in the contract to each lease component
on the basis of the relative stand-alone price of the lease
component and the aggregate stand-alone price of the
non-lease components.

The Company recognises right-of-use asset representing
its right to use the underlying asset for the lease term
at the lease commencement date. The cost of the right
of-use asset measured at inception shall comprise of the
amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before the
commencement date less any lease incentives received,
plus any initial direct costs incurred and an estimate of
costs to be incurred by the lessee in dismantling and
removing the underlying asset or restoring the underlying
asset or site on which it is located. The right-of-use assets
is subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any and
adjusted for any remeasurement of the lease liability. The
right-of-use assets is depreciated using the straight-line
method from the commencement date over the shorter of
lease term or useful life of right-of-use asse. The estimated
useful lives of right-of-use assets are determined on the
same basis as those of property, plant and equipment.
Right of-use assets are tested for impairment whenever
there is any indication that their carrying amounts may
not be recoverable. Impairment loss, if any, is recognised
in the statement of profit and loss.

The Company measures the lease liability at the present
value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are
discounted using the interest rate implicit in the lease if
that rate can be readily determined. If that rate cannot
be readily determined, the Company uses incremental
borrowing rate. For leases with reasonably similar
characteristics, the Company, on a lease by lease basis,
may adopt either the incremental borrowing rate specific
to the lease or the incremental borrowing rate for the
portfolio as a whole. The lease payments shall include
fixed payments, variable lease payments, residual value
guarantees, exercise price of a purchase option where the
Company s reasonably certain to exercise that option and
payments of penalties for terminating the lease, if the lease

term reflects the lessee exercising an option to terminate
the lease. The lease liability is subsequently remeasured
by increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to reflect
the lease payments made and remeasuring the carrying
amount to reflect any reassessment or lease modifications
or to reflect revised in-substance fixed lease payments. The
Company recognises the amount of the re-measurement
of lease liability due to modification as an adjustment to
the right-of-use asset and statement of profit and loss
depending upon the nature of modification. Where the
carrying amount of the right-of-use asset is reduced to
zero and there is a further reduction in the measurement of
the lease liability, the Company recognises any remaining
amount of the re-measurement in statement of profit and
loss.

The Company has elected not to apply the requirements
of Ind AS 116 Leases to short term leases of all assets
that have a lease term of 12 months or less and leases
for which the underlying asset is of low value. The lease
payments associated with these leases are recognised as
an expense on a straight-line basis over the lease term.

3.3 Foreign currencies

In preparing the financial statements of the Company,
transactions in currencies other than the Company''s
functional currency (foreign currencies) are recognised
at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary
items denominated in foreign currencies are retranslated
at the rates prevailing at that date. Non-monetary items
that are measured in terms of historical cost in a foreign
currency are not retranslated. Exchange differences on
monetary items are recognised in the Statement of profit
and loss in the period in which they arise.

3.4 Borrowing Cost

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.

All other borrowing costs are recognised in the Statement
of profit and loss in the period in which they are incurred.

3.5 Government grants

Government grants are not recognised until there is
reasonable assurance that the Company will comply with
the conditions attaching to them and that the grants will
be received. Government grants are recognised in the
Statement of profit and loss on a systematic basis over the
periods in which the Company recognises as expenses the
related costs, if any, for which the grants are intended to
compensate.

3.6 Employee Benefits:

Defined contribution plans

A defined contribution plan is a post-employment benefit
plan under which the Company pays fixed contributions
into a separate entity and will have no legal or constructive

obligation to pay further amounts. Payments to defined
contribution plans are recognised as an expense when
employees have rendered service entitling them to the
contributions.

Defined benefit plans

For defined benefit plans, the cost of providing benefits is
determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each
annual reporting period. Re-measurement, comprising
actuarial gains and losses and the return on plan assets
(excluding net interest), is reflected immediately in the
balance sheet with a charge or credit recognised in other
comprehensive income in the period in which they occur.
Re-measurement recognised in other comprehensive
income is reflected immediately in retained earnings and
is not reclassified to the Statement of profit and loss. Net
interest is calculated by applying the discount rate at the
beginning of the period to the net defined benefit liability
or asset. Defined benefit costs are categorised as follows:

• service cost (including current service cost, past service
cost, as well as gains and losses or curtailments and
settlements);

• net interest expense or income; and

• re-measurement.

The Company presents the first two components of defined
benefit costs in the Statement of profit and loss in the line
item Employee benefit expense. The retirement benefit
obligation recognised in the balance sheet represents the
actual deficit or surplus in the Company''s defined benefit
plans. Any surplus resulting from this calculation is limited
to the present value of any economic benefits available in
the form of refunds from the plan or reductions in future
contributions to the plans.

Short-term employee benefits

Liabilities recognised in respect of wages and salaries and
other short-term employee benefits are measured at the
undiscounted amount of the benefits expected to be paid
in exchange for the related service and are expensed as
the related services are provided.

Other long-term employee benefits

Liabilities recognised in respect of other long-term
employee benefits such as long-term service awards and
compensated absences are measured at the present value
of the estimated future cash outflows expected to be
made by the Company in respect of services provided by
employees up to the reporting date based on the actuarial
valuation using the projected unit credit method carried
out at the year-end. Re measurement gain or losses are
recognised in the statement of profit and loss in the period
in which they arise.

3.7 Taxation

Income tax expense represents the sum of the tax currently
payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the
year. Taxable profit differs from profit before tax as reported

in the statement of profit and loss because of items of
income or expense that are taxable or deductible in other
years and items that are never taxable or deductible. The
Company''s current tax is calculated using tax rates that
have been enacted by the end of the Reporting period.

Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases
used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent
that it is probable that taxable profits will be available
against which those deductible temporary differences can
be utilised. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the
asset to be recovered. 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 measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the
reporting period, to recover or settle the carrying amount
of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities and
assets and they are related to income taxes levied by the
same tax authority.

Current and deferred tax are recognised in the Statement
of profit and loss, except when they relate to items that
are recognised in other comprehensive income or directly
in equity, in which case, the current and deferred tax are
also recognised in other comprehensive income or directly
in equity respectively.

3.8 Property, plant and equipment

Property, plant and equipment (including furniture,
fixtures, vehicles, etc.) held for use in the production or
supply of goods or services, or for administrative purposes,
are stated in the balance sheet at cost less accumulated
depreciation and accumulated impairment losses, if any.
Cost of acquisition is inclusive of freight, duties, taxes
and other incidental expenses. Freehold land is not
depreciated.

Property, plant and equipment in the course of construction
for production, supply or administrative purposes are
carried at cost, less any recognised impairment loss. Cost
includes items directly attributable to the construction or
acquisition of the item of property, plant and equipment
and capitalised borrowing cost. Such properties are
classified to the appropriate categories of property, plant
and equipment when completed and ready for intended
use. When amounts are withheld for more than 1 year
due to protection and safety of the company''s interest ,

such delayed/deferred payment is not discounted , since
the intention is protection of the assets and no interest
component is intended.

Subsequent costs are included in the assets carrying
amount or recognised as a separate asset, as appropriate
only if it is probable that the future economic benefits
associated with the item will flow to the Company and
that the cost of the item can be reliably measured. The
carrying amount of any component accounted for as a
separate asset is derecognised when replaced. All other
repairs and maintenance are charged to statement of
profit and loss during the reporting period in which they
are incurred.

Depreciation of these assets, on the same basis as-other
property assets, commences when the assets are ready for
their intended use.

Depreciation is recognised on the cost of assets (other
than freehold land and properties under construction)
less their residual values over their useful lives, using the
written down value. The estimated useful lives, residual
values and depreciation method are reviewed at the end
of each reporting period, with the effect of any changes
in estimate accounted for on a prospective basis.

Depreciation is charged on a pro-rata basis at the WDV
as per the useful lives prescribed in Schedule II to the
Companies Act, 2013, other than moulds and dies which
are depreciated over a period of 3-8 years grouped under
property, plant and equipment.

An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any
gain or loss arising on the disposal or retirement of an item
of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying
amount of the asset and is recognised in the Statement of
Profit and loss.

Expenditure during construction period

Expenditure during construction period (including
financing cost related to borrowed funds for construction
or acquisition of qualifying PPE) is included under Capital
Work-in-Progress, and the same is allocated to the
respective PPE on the completion of their construction.
Advances given towards the acquisition or construction
of PPE outstanding at each reporting date are disclosed as
Capital Advances under "Other non-current Assets".

3.9 Intangible assets

Intangible assets acquired separately Intangible assets with
finite useful lives that are acquired separately are carried
at cost less accumulated amortisation and accumulated
impairment losses. Amortisation is recognised on a written
down value over their estimated 8 to 12 years of useful
lives. The estimated useful life and amortisation method
are reviewed at the end of each reporting period, with
the effect of any changes in estimate being accounted for
on a prospective basis. Intangible assets with indefinite
useful lives that are acquired separately are carried at cost
less accumulated impairment losses. Internally-generated
intangible assets - research and development expenditure.

Expenditure on research activities is recognised as an
expense in the period in which it is incurred.

An internally-generated intangible asset arising from
development (or from the development phase of an
internal project) is recognised if, and only if, all of the
following have been demonstrated:

• the technical feasibility of completing the intangible
asset so that it will be available for use or sale

• the intention to complete the intangible asset and
use or sell it;

• the ability to use or sell the intangible asset;

• how the intangible asset will generate probable
future economic benefits;

• the availability of adequate technical, financial and
other resources to complete the development and to
use or sell the intangible asset; and

• the ability to measure reliably the expenditure
attributable to the intangible asset during its
development.

The amount initially recognised for internally-generated
intangible assets is the sum of the expenditure incurred
from the date when the intangible asset first meets the
recognition criteria listed above. Where no internally-
generated intangible asset can be recognised, development
expenditure is recognised in the Statement of profit and
loss in the period in which it is incurred.

Subsequent to initial recognition, internally-generated
intangible assets are reported at cost less accumulated
amortisation and accumulated impairment losses, on
the same basis as intangible assets that are acquired
separately.

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of
an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the
asset, are recognised in the Statement of profit and loss
when the asset is derecognised.

Useful lives of intangible assets

Intangible assets, comprising of software, expenditure on
model fee, etc. incurred are amortised on a WDV method
over a period as stated below:

Software 10 years

Trademark 5 years

3.10 Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews
the carrying amounts of its tangible and intangible assets
to determine whether there is any indication that those
assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the
impairment loss (if any). Recoverable amount is the higher
of fair value less costs of disposal and value in use.

Intangible assets with indefinite useful lives and intangible
assets not yet available for use are tested for impairment

at least annually, and whenever there is an indication
that the asset may be impaired. 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 for which the estimates
of future cash flows have not been adjusted.

For impairment testing, assets that don''t generate
independent cash flows are grouped together into cash
generating units (CGU''s). Each CGU represents the
smallest group of assets that generate cash inflows that
are largely independent of the cash inflows of other assets
or CGU''s.

When it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the
recoverable amount of the cash- generating unit to which
the asset belongs. When a reasonable and consistent
basis of allocation can be identified, corporate assets
are also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group of cash¬
generating units for which a reasonable and consistent
allocation basis can be identified.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognised immediately in the Statement of profit and
loss. When an impairment loss subsequently reverses,
the carrying amount of the asset (or a cash-generating
unit) 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 (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately
in the Statement of profit and loss.

3.11 Inventories

Raw materials, stores & spare parts and packing
materials:

Inventories are stated at the lower of cost and net realisable
value. Cost of inventories includes expenditure incurred in
acquiring the inventories, production or conversion costs
and other costs incurred in bringing them to their present
location and condition. Costs of inventories are determined
on a moving weighted average. Finished goods and work-
in-progress include appropriate proportion of overheads.
Net realisable value represents the estimated selling price
for inventories less all estimated costs of completion and
costs necessary to make the sale.

Work-in-progress (WIP), finished goods, and stock-
in-trade:

Valued at lower cost and NRV Cost of Finished goods and
WIP includes cost of raw materials, cost of conversion, and
other costs incurred in bringing the inventories to their
present location and condition

3.12 Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise
cash at the bank and in hand and short-term deposits with

banks that are readily convertible into cash which is subject
to an insignificant risk of changes in value and is held for
the purpose of meeting short-term cash commitments.

3.12 Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation. The amount
recognised as a provision is the best estimate of the
consideration required to settle the present obligation at
the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the
time value of money is material).

Warranties

The estimated liability for product warranties is recorded
when products are sold. These estimates are established
using management estimates, in absence of adequate past
information, regarding possible future instances based on
corrective actions likely to be undertaken product faults/
failures. The timing of outflows will vary as and when
warranty claim will arise, being typically around one year,
hence its discounting is not proposed.

3.13 Financial Instrument

Financial assets and financial liabilities are recognised
when the Group becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities
at fair value through the statement of profit and loss) are
added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at
fair value through the statement of profit and loss are
recognised immediately in the statement of profit and
loss.

3.14 Financial Asset:

All recognised financial assets are subsequently measured
in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are
subsequently measured at amortised cost (except for debt
instruments that are designated as at fair value through
the statement of profit and loss on initial recognition):

• the asset is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instrument give rise on
specified dates to cash flows that are solely payments

of principal and interest on the principal amount
outstanding.

Debt instruments that meet the following conditions
are subsequently measured at fair value through other
comprehensive income ("FVTOCI") (except for debt
instruments that are designated as at fair value through
the statement of profit and loss on initial recognition):

• the asset is held within a business model whose
objective is achieved both by collecting contractual
cash flows and selling financial assets; and

• the contractual terms of the instrument give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.

Interest income is recognised in the Statement of
profit and loss for FVTOCI debt instruments.

All other financial assets are subsequently measured at fair
value.

> Effective interest method

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

Income is recognised on an effective interest basis for
debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised
in the Statement of profit and loss and is included in
the "Other income" line item.

> Financial assets at fair value through the
Statement of profit and loss (FVTPL)

Investments in equity instruments are classified as
at FVTPL, unless the Company irrevocably elects on
initial recognition to present subsequent changes
in fair value in other comprehensive income for
investments in equity instruments which are not held
for trading.

Debt instruments that do not meet the amortised
cost criteria or FVTOCI criteria are measured at
FVTPL. In addition, debt instruments that meet the
amortised cost criteria or the FVTOCI criteria but are
designated as at FVTPL are measured at FVTPL.

A financial asset that meets the amortised cost
criteria or debt instruments that meet the FVTOCI
criteria may be designated as at FVTPL upon initial
recognition if

such designation eliminates or significantly reduces
a measurement or recognition inconsistency that
would arise from measuring assets or liabilities or
recognising the gains and losses on them on different

bases. The Company has not designated any debt
instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains
or losses arising on re-measurement recognised in
the Statement of profit and loss. The net gain or loss
recognised in the

Statement of profit and loss incorporates any
dividend or interest earned on the financial asset
and is included in the ''Other income'' line item.
Dividend on financial assets at FVTPL is recognised
when the Company''s right to receive the dividends is
established, it is probable that the economic benefits
associated with the dividend will flow to the entity,
the dividend does not represent a recovery of part of
cost of the investment and the amount of dividend
can be measured reliably.

> Investments in subsidiaries

Investment in subsidiaries and associates are
carried at cost in thefinancial statements. Where an
indication of impairment exists, the carrying amount
of the investment is assessed and written down
immediately to its recoverable amount. On disposal of
investments in Subsidiaries, the difference between
net disposal proceeds and the carrying amounts are
recognised in the statement of profit and loss

> Impairment of financial assets

The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost, debt instruments at
FVTOCI, trade receivables, other contractual rights
to receive cash or other financial asset, and financial
guarantees not designated as at FVTPL.

> Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and it
intents either to settle them on net basis or to realise
the assets and settle the liabilities simultaneously.

> Derecognition of financial assets

The Company derecognises a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another party.

> Write-off

The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent
that there is no realistic prospect of recovery. This is
generally the case when the company determines
that the trade receivable does not have assets or
sources of income that could generate sufficient cash
flows to repay the amounts subject to the write- off.
However, financial assets that are written off could
still be subject to enforcement activities in order to

comply with the company''s procedures for recovery
of amounts due.

3.15 Financial liabilities and equity instrument

> Classification as debt or equity

Debt and equity instruments issued by Company are
classified as either financial liabilities or as equity in
accordance with the substance of the contractual
arrangements and the definitions of a financial
liability and an equity instrument.

> Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities.

> Financial liabilities

Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of
costs of an asset is included under ''Finance costs''.

The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability.

All financial liabilities are subsequently measured at
amortised cost using the effective interest method or
at FVTPL.

> Derecognition of financial liabilities

The Company derecognises financial liabilities when,
andonly when, the Company''s obligations are
discharged, cancelled or have expired.

3.16 Cash flow statement

Cash flows are reported using the indirect method,
whereby profit/(loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature
and any deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating, investing
and financing activities of the Company are segregated
based on the available information.

3.17 Earnings per share

Basic earnings per share is computed by dividing the profit
after tax by the weighted average number of equities
shares outstanding during the year/period. Diluted
earnings per share is computed by dividing the profit after
tax as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity
shares, by the weighted average number of equity shares

considered for deriving basic earnings per share and the
weighted average number of equity shares which could
have been issued on the conversion of all dilutive potential
equity shares.

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Mar 31, 2018

NOTE-19

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2018

COMPANY INFORMATION

Manvijay Development Company is Public Limited Company incorporated in India and listed at Bombay Stock Exchange Limited (BSE) & Calcutta Stock Exchange Limited (CSE). The Company is a Real Estate Development Company & is providing finance for infrastructure projects as joint venture/partners & operational aspect of infrastructure activities.

SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation of Financial Statements:

The Standalone Financial Statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016, the relevant provisions of the Companies Act, 2013 ("the Act") and guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.

The financial statements have been prepared and presented on the going concern basis and at historical cost

The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles in India (Indian GAAP) as prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Amendments Rules, 2014, which was the "Previous GAAP".

Authorization of Financial Statements: The Ind AS Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting held on May 29, 2018

b) Property, Plant & Equipment (PPE):

Property, plant and equipment are stated at acquisition or construction cost less accumulated depreciation and impairment loss. Cost comprises the purchase price and any attributable cost of bringing the asset to its location and working condition for its intended use, including relevant borrowing costs and any expected costs of decommissioning.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

The cost of an item of PPE is recognised as an asset if, and only if, it is probable that economic benefits associated with the item will flow to the Company in future periods and the cost of the item can be measured reliably. Expenditure incurred after the PPE have been put into operations, such as repairs and maintenance expenses are charged to the statement of profit and loss during the period in which they are incurred.

Items such as spare parts, standby equipment and servicing equipment are recognised as PPE when it is held for use in the production or supply of goods or services, or for administrative purpose and are expected to be used for more than one year. Otherwise such items are classified as inventory.

An item of PPE is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any Gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.

c) Depreciation:

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life and is provided o written down value method, over the useful lives as prescribed in Schedule II to the Companies Act, 2013 or as per technical assessment.

Depreciable amount for PPE is the cost of PPE less its estimated residual value. The useful life of PPE is the period over which PPE is expected to be available for use by the Company, or the number of production or similar units expected to be obtained from the asset by the Company.

d) Intangible Assets acquired separately and Amortisation:

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

e) Impairment of Non- Financial Assets:

At the end of each reporting period, the Company reviews the carrying amounts of non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. 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 for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in Statement of Profit and Loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) 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 (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

f) Revenue Recognition:

Revenue has been recognized on accrual basis.Interest income is accounted on accrual basis. Dividend from Companies is accounted as income in the year in which they are received.

g) Provision for Current and Deferred Tax:

Current Tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and the rules framed thereunder.

Deferred tax is recognized using the Balance Sheet approach on the temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and these relate to income taxes levied by the same tax authority and are intended to settle current tax liabilities and assets on a net basis or such tax assets and liabilities will be realized simultaneously.

In the event of unabsorbed depreciation or carry forward of losses under tax laws, deferred tax assets are recognised to the extent that it is probable that sufficient future taxable income will be available to realise such assets.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered.

Current and deferred tax are recognised in the statement of profit and loss, except when the same relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax relating to such items are also recognised in other comprehensive income or directly in equity respectively.

h) Minimum Alternate Tax (MAT):

MAT is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised, it is credited to the Statement of Profit and Loss and is considered as (MAT Credit Entitlement). The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period. Minimum Alternate Tax (MAT) Credit are in the form of unused tax credits that are carried forward by the Company for a specified period of time, hence it is presented as Deferred Tax Asset.

i) Provisions and Contingent Liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.

j) Earnings Per Share (EPS):

The basic EPS is computed by dividing the profit after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted EPS, profit after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

k) Significant Accounting Judgements, Estimates and Assumptions:

The preparation of financial statements in conformity with the Ind AS requires judgements, estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and the disclosures relating to contingent liabilities as of the date of the financial statements. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes different from the estimates. Difference between actual results and estimates are recognized in the period in which the results are known or materialise. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the current and future periods.

l) Inventories

Finished Goods: Valued at lower of cost and NRV. Waste/Scrap:Waste / Scrap inventory is valued at NRV

20. Contingent Liabilities- Nil

21. Related Party Disclosure:

The disclosures of transaction with related parties as are given below: > List of related parties

Name	Relation
Preses Construction Solutions Pvt. Ltd.	Promoter company
Property Trading of India Limited	Subsidiary company
Nitin M Pradhan	Managing Director
Meghana Kulkarni	Sister of Managing Director
Prabhakar Patil	Director
Dolly Dhandhresha	Independent Director
Dilip M. Joshi	Independent Director
Mohammed Iqbal Ali Dholakia	CFO
Pradeep V Gupte	Independent Director

Related party transactions

Nature of Transaction	Current Year	Previous Year
1. Loan Recovered
Preses Construction Solutions Pvt. Ltd.	4,15,28,605	6,34,403
2. Interest Received
Preses Construction Solutions Pvt. Ltd.	23,98,000	27,78,935
3. Investment in Subsidiary
Property Trading of India Ltd	4,00,00,000	-
4. Sitting Fees- Independent Directors	20,000	5,000
5. Directors Remuneration
Nitin Pradhan	2,00,000	12,00,000
Prabhakar Patil	2,87,845	-
6. Loan taken
Nitin Pradhan	2,30,000	-
7. Salary to Relative of Related Party (Meghna Kulkarni)	73,100	2,90,000
8. Loan Given
Preses Construction Solutions Pvt. Ltd.	-	2,01,75,314

Closing balances of related parties

Name of Related Party	Current Year	Previous Year
Nitin Pradhan	2,30,000	-
Prabhakar Patil	15,000	-
Property Trading of India Ltd	4,00,00,000
Preses Construction Solutions Pvt. Ltd.	2,54,54,909	6,48,25,314

22. Classification of Financial Assets and Liabilities (Ind AS 107)

Particulars	As at 31st March 2018	As at 31st March 2017	As at 1st April 2016
Financial asset at amortised cost
Trade Receivables	-	-	1,87,22,300
Cash and Bank Balances	2,68,628	6,84,451	5,27,720
Total	2,68,628	6,84,451	5,27,720
Financial liabilities at amortised cost
Long Term Borrowing	2,30,000	-	-
Total	2,30,000	-	-

23. Auditors Remuneration (excluding GST)

Particulars	Current Year	Previous Year
Statutory Audit Fees	1,00,000	30,000

24. Earnings per Share (EPS) (Ind AS 33)

Particulars	Current Year	Previous Year
Basic/Diluted EPS
i. Net Profit Attributable to Equity Shareholders	97,011	60,215
ii. Wieghted Average No. of Equity Shares	64,80,000	64,80,000
Basic Earnings Per Share / Diluted Earnings Per Share (i) /(ii)	0.01	0.01

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Mar 31, 2016

Manvijay Development Company is Public Company domiciled in India and listed at Bombay Stock

Exchange Limited (BSE) & Calcutta Stock Exchange Limited (CSE). The principal business activity

of the company is mainly in the business of acquisition of properties and its related infrastructure.

SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards applicable under Section 133 of the Companies Act, 203, read with Paragraph 7 of the Companies (Accounts) Rules, 2014 (as amended) and the relevant provisions of the Companies Act, 203 (the 203 Act) as applicable. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b) Presentation and Disclosure of Financial Statements:

Assets & liabilities have been classified as current & non -current as per the Company’s normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 203. Based on the nature of activity carried out by the company and the period between the procurement and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 5 years for the purpose of Current -Non Current classification of assets & liabilities.

c) Revenue Recognition:

Revenue has been recognized on accrual basis. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Interest income is accounted on accrual basis. Dividend from Companies is accounted as income in the year in which they are received.

d) Expenditure:

Expenses are accounted on accrual basis.

e) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates.

f) Valuation of inventories:

Stock-in-trade are valued at cost.

g) Employee Retirement Benefits:

The provision of the payment of the Gratuity Act, 972 and the Employees Provident Fund and Miscellaneous Act, 1952 are not applicable to the Company during the year and hence no Provision has been made in the Account.

h) Current Tax and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, P61

Deferred tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax asset can be realized.

i) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

j) Fixed Assets:

Fixed Assets are recorded at their cost of acquisition, net of modat/ cenvat, less accumulated depreciation and impairment losses, if any. The Cost of an item of fixed asset comprises its purchase price, including import duties and other non refundable taxes or levies and any directly attributable cost for bringing the assets to its working condition for its intended use.

Depreciation and amortization:

Depreciation on tangible fixed assets has been provided on prorate basis, on a WDV method as per the useful life prescribed in Schedule II to the Companies Act, 203. Stamp Duty paid for increase in Authorized Capital & Expenses of preferential shares issue written off over a period of 5 years.

Intangible Assets

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment of losses, if any. Intangible assets are amortized over a period of five years.

k) Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted at the pre tax discount rate reflecting current market assessment of time value of money and risks specific to asset.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1) Borrowing Costs:

The company has not borrowed any fund.

m) Earnings per share:

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity equivalent shares outstanding during the year except where the results would be anti-dilutive.

n) Expenditure / Income in Foreign Currency: Rs. NIL (Previous Year R s. NIL)

o) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure

p) Provision, Contingent Liabilities and contingent assets:

Provision involving substantial degree of estimation in measurement is recognized 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 recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

q) Sundry Debtors, Creditors and Loans & advances are subject to reconciliation, verification and confirmation.

r) All payment made under contractual obligations or accordance with generally accepted business practice has not been considered as expenditure of personal nature however expenditure of personal nature cannot be discarded as some vouchers are missing at the time of audit was carried out.

s) Further the Board confirms that all transactions in which supporting evidence are missing have genuinely occurred for the purpose of business.

t) Segment Information:

The Company is considered to be a single segment company, engaged in business of Real Estate. Consequently, the Company has in its primary segment only one reportable business segment. As per Accounting Standard - 17 "Segment Reporting", if a Company is having single Segment the financial statement needed be presented only on the basis of financial statements. Accordingly, the information required to be presented under AS 17 "Segment Reporting" has been given in financial statements

u) Related Party Transactions that have been identified by the management:

As per the Accounting standard -18 issued by the Institute of Chartered Accountants of India, the disclosure of transaction with related parties as defined in the accounting standard are given below:

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Mar 31, 2015

a) Basis of preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards applicable under Section 133 of the Companies Act, 2013, read with Paragraph 7 of the Companies (Accounts) Rules, 2014 (as amended) and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") as applicable. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b) Presentation and Disclosure of Financial Statements:

Assets & liabilities have been classified as current & non ? current as per the Company''s normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of activity carried out by the company and the period between the procurement and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 5 years for the purpose of Current ? Non Current classification of assets & liabilities.

c) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates.

d) Valuation of Inventories:

Stock-in-trade are valued at cost.

e) Other Income:

Interest income is accounted on accrual basis. Dividend from Companies is accounted as income in the year in which they are received.

f) Employee Retirement Benefits:

The provision of the payment of the Gratuity Act, 1972 and the Employees Provident Fund and Miscellaneous Act, 1952 are not applicable to the Company during the year and hence no Provision has been made in the Account.

g) Current Tax and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961

Deferred tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax asset can be realized.

h) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

i) Fixed Assets:

Fixed Assets are recorded at their cost of acquisition, net of modat/ cenvat, less accumulated depreciation and impairment losses, if any. The Cost of an item of fixed asset comprises its purchase price, including import duties and other non refundable taxes or levies and any directly attributable cost for bringing the assets to its working condition for its intended use.

Depreciation and amortisation:

Depreciation on tangible fixed assets has been provided on prorata basis, on a WDVmethod as per the useful life prescribed in Schedule II to the Companies Act, 2013. Stamp Duty paid for increase in Authorized Capital & Expenses of preferential shares issue written off over a period of 5 years. Office Renovation Expenses written off over a period of 2years (i.e. locked in lease agreement period)

j) Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted at the pre tax discount rate reflecting current market assessment of time value of money and risks specific to asset.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

k) Borrowing Costs:

The company has not borrowed any fund.

l) Earnings per share:

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity equivalent shares outstanding during the year except where the results would be anti-dilutive.

m) Expenditure / Income in Foreign Currency: Rs. NIL (Previous Year Rs. NIL)

n) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure

o) Revenue Recognition:

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

p) Provision, Contingent Liabilities and contingent assets:

Provision involving substantial degree of estimation in measurement is recognized 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 recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

q) Sundry Debtors, Creditors and Loans & advances are subject to reconciliation, verification and confirmation.

r) All payment made under contractual obligations or accordance with generally accepted business practice has not been considered as expenditure of personal nature however expenditure of personal nature cannot be discarded as some vouchers are missing at the time of audit was carried out.

s) Further the Board confirms that all transactions in which supporting evidence are missing have genuinely occurred for the purpose of business.

t) Segment Information:

The Company is considered to be a single segment company, engaged in business of Real Estate. Consequently, the Company has in its primary segment only one reportable business segment. As per Accounting Standard - 17 "Segment Reporting", if a Company is having single Segment the financial statement needed be presented only on the basis of financial statements. Accordingly, the information required to be presented under AS 17 "Segment Reporting" has been given in financial statements

u) Related Party Transactions that have been identified by the management:

As per the Accounting standard -18 issued by the Institute of Chartered Accountants of India, the disclosure of transaction with related parties as defined in the accounting standard are given below:

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Mar 31, 2014

1.1 Basis of preparation of Financial Statements :

The financial statements are prepared under the historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,1956.

1.2 Use of estimates

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise

1.3 Valuation of Inventories :

Stock-in-trade are valued at cost.

1.4 Other Income

Interest income is accounted on accrual basis. Dividend from Companies is accounted as income in the year in which they are received.

1.5 Employee Retirement Benefits :

The provision of the payment of the Gratuity Act, 1972 and the Employees Provident Fund and Miscellaneous Act, 1952 are not applicable to the Company during the year and hence no Provision has been made in the Account.

1.6 Current Tax and Deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961

Deferred tax is recognised, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax asset can be realised.

Cash flow statement :

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.7 Fixed Assets :

Fixed Assets are recorded at their cost of acquisition, net of modat/ cenvat, less accumlated depreciation and impairment losses, if any. The Cost of an item of fixed asset comprises its purchase price, including import duties and other non refundable taxes or levies and any directly attributable cost for bringing the assets to its working condition for its intended use.

Depreciation and amortisation :

Depreciation has been provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Stamp Duty paid for increase in Authorised Capital and expenses of preferencial shares issue written off over a period of 5 years.

1.8 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted at the pre tax discount rate reflecting current market assessment of time value of money and risks specific to asset.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.9 Borrowing Costs:

The company has not borrowed any fund.

1.10 Earnings per share :

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity equivalent shares outstanding during the year except where the results would be anti-dilutive.

1.11 Expenditure / Income in Foreign Currency : Rs. NIL (Previous Year Rs. NIL)

1.12 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure

1.13 Revenue Recognition:

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

1.14 Provision, Contingent Liabilities and contingent assets :

Provision involving substantial degree of estimation in measurement is recognized 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 recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

1.15 Sundry Debtors, Creditors and Loans & advances are subject to reconciliation, verification and confirmation.

1.16 All payment made under contractual obligations or accordance with generally accepted business practice has not been considered as expenditure of personal nature however expenditure of personal nature cannot be discarded as some vouchers are missing at the time of audit was carried out.

1.17 Further the Board confirms that all transactions in which supporting evidence are missing have genuinely occurred for the purpose of business.

1.18 Segment Information:

The Company is considered to be a single segment company, engaged in business of Real Estate. Consequently, the Company has in its primary segment only one reportable business segment. As per Accounting Standard - 17 "Segment Reporting", if a Company is having single Segment the financial statement needed be presented only on the basis of financial statements. Accordingly, the information required to be presented under AS 17 "Segment Reporting" has been given in financial statements

1.19 Related Party Transactions that have been identified by the management:

As per the Accounting standard -18 issued by the Institute of Chartered Accountants of India, the disclosure of transaction with related parties as defined in the accounting standard are given below: Amount

Name of the parties Nature of Transaction (Rs. in Lacs) Relationship Preses Constructions Promoter Company Advance 400 Solutions Pvt Ltd against Property

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Mar 31, 2013

1.1 Basis of preparation of Financial Statements: convention in accordance with applicable mandatory Act, 1956.

1.2 Valuation of Inventories: as stock-in-trade are valued at cost During the year there is no Closing inventories.

1.03 Dividend :

Dividend from Companies is accounted as income in the year in which they are received.

1.4 Employee Retirement Benefits: 972 and the Employes provident fund and Miscellaneous Act,1952 are not applicable to the Company during the year and hence no Provision has been made in the AcT.

1.5 Current Tax and Deferred Tax: is made after taking Into consideration benefits admissiable under the proptaion of fire Income Tax is recognised. subject to consideration of prudence. on timingdifference,being the difference between taxable income and accounting originate.

1.6 Future tax income will be avallabla against Mtlctt such deferred tax aiset can be tealisal. use. All other borrowing costs are charged to revenue.

1.7 Earning per share shares outstanding during the year. Diluted EPS is computed using the weighted and diluted equity equivalent shares outstanding during the year except where the results would be anti-dilutive.

1.8 Deferred Tax : is no virtual certainty of future taxable income Deferred Tax Assets / Liabilities have not been recognized since there is no virtual certainty of future taxable available to realize such assets.

1.9 Expenditure / Income in Foreign Currency: Rs. NIL (Previous Year Rs. NIL)

1.10 Figures of the previous year have been regrouped and / or rearranged wherever necessary.

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Mar 31, 2012

1 . Statement of Sionificant Accounting Policies: (Rs in "00)

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

b. Valuation of Inventories: Shares/Securities held as stock-in-trade are valued at cost.

c. Dividend: Dividend from Companies is accounted as income in the year in which they are received.

d. Retirement benefits: The Company is presently not having any permanent employee and there is no liability towards gratuity and leave pay.

e. Provisions for Taxation: in the absence of Taxable income under Income tax Act 1961 for the period, provision for income tax has been made having regard to the provisions of Sec 115JB of the Income Tax Act 1961.

2. There is dimunition of Rs 90.08 (Previous Year Rs 121.15 )in Market value of Quoted Shares held as closing stock for which no provision has made.

3. Segment wise Reporting: Present year's activities cannot be related to any segment Hence reporting on revenue, profit or capital employed by segments as required by Accounting Standard - 17, in the opinion of the management is not applicable for the year.

4. The company was earlier engaged in production and sale of Laminated Jute Bags.

Due to adverse and irreversible market conditions, the company had to suspend these activities. Therefore, the assets of the company have been invested to earn reasonable return. However, the management rs actively considering to diversify in other business activities.

5. Earning per share (Rs. 0.95) Previous Year (- Rs. 0.46)

6. Related Party Disclosure; Related party disclosures as required under Accounting Standard -18 issued by the Institute of Chartered Accountants of India are given below;

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Mar 31, 2011

1. Statement of Significant Accounting Policies:

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

b. Valuation of Investments:

The investments made by the Company are shown in the Balance Sheet at cost.

c. Valuation of Inventories: Shares/Securities held as stock-in-trade are valued at cost.

d. Dividend: Dividend from Companies is accounted as income in the year in which they are received.

e. Retirement benefits: The Company is presently not having any permanent employee and there is no liability towards gratuity and leave pay.

f. Provisions for Taxation: No provision for Taxation has been made, as the company is not having any taxable profit.

2. There is no dimunition in Market value of Quoted Shares held as closing stock.

3. Segment wise Reporting: Present year's activities cannot be related to any segment. Hence reporting on revenue, profit or capital employed by segments as required by Accounting Standard - 17, in the opinion of the management is not applicable for the year.

4. The company was earlier engaged in production and sale of Laminated Jute Bags.

Due to adverse and irreversible market conditions, the company had to suspend these activities. Therefore, the assets of the company have been invested to earn reasonable return. However, the management is actively considering to diversify in other business activities.

5. Earning per share (- Rs. 0.464) Previous Year (- Rs. 0.386)

6. Related Party Disclosure: Related party disclosures as required under Accounting Standard - 18 issued by the Institute of Chartered Accountants of India are given below:

(i).

SI. Key Management Personnel Relatives to Key Management No. Personnel

1. Mr. Girdhar Gopal Dalmia, Director Mrs. Bhagwati Devi Dalmia

2. Mr. Manish Dalmia , Director Mrs. Nirmala Dalmia

3. Mr. Vijay Dalmia , Director Mrs. Radhika Dalmia Mrs. Punita Dalmia

(ii) Entities over which Key Management Personnel / their Relatives are able to exercise significant influence.

Dalmia Laminators Ltd. Dalmia Tea Plantation & Industries Ltd. Dalmia Polypack Ltd. Manish Co. (P) Ltd. Oracle Trades & Properties (P) Ltd. M.M. Industries. Motilal Girdhar Gopal (HUF) Girdhar Gopal Manish Kumat (HUF) Manish Dalmia (HUF) Vijay Dalmia (HUF) Dhapa Devi Dalmia Charitable Trust.

(iii) Unsecured Loans include due to Manish Co. (P) Ltd., a company under the same management Rs. 3,88,000.00. (Previous year Rs. 338000.00) Maximum amount due at any time during the year Rs. 3,88,000.00. (Previous year Rs. 338000.00)

7. Deferred Tax (AS 22)

Deferred Tax Assets / Liabilities have not been recognized since there is no virtual certainty of future taxable income available to realize such assets.

8. Expenditure / Income in Foreign Currency: Rs. NIL (Previous Year Rs. NIL)

9. Payments to Statutory Auditors represent (In Rs.)

10. Figures of the previous year have been regrouped and / or rearranged wherever necessary.