Accounting Policies of Lerthai Finance Ltd. Company

Mar 31, 2018

1. Summary of significant accounting policies

a) Revenue Recognition

i. Dividend income

Revenue is recognised when the shareholders’ or unit holders’ right to receive payment is established, which is generally when shareholder approve the dividend.

ii. Interest income

Interest income from , if any is recognized in the books on time proportion basis taking into account the amount outstanding and the rates applicable. Interest income is included under the head “Interest income” in the statement of profit and loss. Other income is recognized in the books when the same is accrued to the company.

b) Current versus non-current classification

The Company presents assets and liabilities in balance sheet based on current/non-current classification. An asset is current when it is:

a. Expected to be realised or intended to sold or consumed in normal operating cycle

b. Held primarily for the purpose of trading

c. Expected to be realised within twelve months after the reporting period, or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All Other Assets are classified as non current

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The company has identified twelve months as its operating cycle.

A liability is current when it is:

a. Expected to be settled in normal operating cycle

b. It is held primarily for the purpose of trading

c. It is due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

c) Cash and Cash Equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks and on hand.

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

d) Impairment of Financial Assets

The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a Company of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’), has an impact on the estimated future cash flows of the financial asset or the Company of financial assets that can be reliably estimated.

The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

e) Retirement and other employee benefits

During the reporting period or as on the reporting date the company does not have any employees.

f) Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

g) Income Tax

Tax expense comprises of current and deferred tax.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax assets to the extent that it is probable that sufficient future taxable income will be available against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient future taxable income will be available against which deferred tax asset can be realised.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in eauitv.

Minimum Alternative tax (MAT) credit 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 recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown 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.

h) Provisions and Contingent Liability

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits 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 discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

i) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue.

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue.

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

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

j) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

k) Inventories

Related to contractual and real estate activity

Direct expenditure relating to construction activity is inventorised. Other expenditure (including borrowing costs) during construction period is inventorised to the extent the expenditure is directly attributable cost of bringing the asset to its working condition for its intended use. Other expenditure (including borrowing costs) incurred during the construction period which is not directly attributable for bringing the asset to its working condition for its intended use is charged to the statement of profit and loss. Direct and other expenditure is determined based on specific identification to the construction and real estate activity. Cost incurred/ items purchased specifically for projects are taken as consumed as and when incurred/ received.

i) Work-in-progress - Contractual: Cost of work yet to be certified/ billed, as it pertains to contract costs that relate to future activity on the contract, are recognised as contract work-in-progress provided it is probable that they will be recovered. Contractual work-in-progress is valued at lower of cost and net realisable value.

ii) Land inventory: Valued at lower of cost and net realisable value.

l) Land

Advances paid by the Company to the seller/ intermediary toward outright purchase of land is recognised as land advance under loans and advances during the course of obtaining clear and marketable title, free from all encumbrances and transfer of legal title to the Company, whereupon it is transferred to land stock under inventories.

Amounts paid by the Company to the land owners towards right for development of land in exchange of constructed area are recognized as land advance under loans and advances and on the launch of the project, the non-refundable amount is transferred as land cost to work-in-progress.

The Company has entered into agreements with land owners/ possessor to develop properties on such land in lieu of which, the Company has agreed to transfer certain percentage of constructed area. The Company measures development rights/ land received under these agreements at fair value of cost of construction transferred, as adjusted for other cash/ non-cash consideration on a net basis.

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Mar 31, 2016

1. Company Information

Marathwada Refractories Ltd (the company) is a company engaged in the activities relating to production, manufacture or trade Refractories of all kind and bricks of all types and varieties with different properties and components.

2. Basis of Preparation of Financial Statements

The financial statements of the company have been prepared under the historical cost convention on an accrual basis in accordance with the generally accepted accounting principles in India (Indian GAAP), The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

The Company is Non Small and Medium Sized Company (Non SMC) as defined in the Genera] Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable as such

3. Summary of significant accounting policies

3.1. Change in accounting policy Presentation and disclosure of financial statements

Financial Statements for the year ended 31st March 2016 has been prepared and presented under Schedule III notified under the Companies Act 2013. Previous year Figures has been reclassified to be in conformity with the requirements applicable in the current year.

3.2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make judgment, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosures of contingent liabilities, at the end of the reporting period. 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 the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3.3. Cash and Cash equivalents

Cash flow statement has been prepared in accordance with the indirect method prescribed in Accounting Standard-3. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

3.4. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Assets are depreciated over the useful life of the assets as specified in Part C of Schedule II of Companies Act, 2013

3.5. Revenue Recognition

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the applicable interest rates.

Dividend Income is recognized in the books when it is declared by the company In which investments are held.

Dividend Income on Mutual Fund Investments are recognized in the books when it is declared and credited to Investment value or credited in the bank account

Other incomes, if any, are recognized in the books of accounts of the company as and when the same is accrued to the company.

3.6. Investments

Current investments are stated at cost or market value whichever is lower. Long-term Investments are stated at cost and provisions are made in the books for diminution in their value, other than temporary. Investments as shown in the books of accounts comprise of investment in the shares of entities under same management and control.

Cost comprises of purchase price and directly attributable acquisition charges.

Profit/ loss on sale of investments, if any, are computed with reference to the cost of the investments and provisions are made for the same in the books of account.

3.7. Retirement and other employee benefits

During the reporting period as on the reporting date the company has not recruited any employee & hence as AS-15 is not applicable.

3.8. Earning Per Share

In determining Earnings per Share the entity considers the net earnings after tax.

Basic Earnings per Share.

Basic earnings per share is computed by dividing the net profit or loss attributable to equity share holders by the weighted average number of equity shares outstanding during the period, after giving effect for events including bonus issue, share split, buy back of shares and rights issue to the share holders.

Diluted Earning s per Share

For computing diluted earnings per share, the net profit or loss attributable to equity share holders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period

3.9. Income Tax

Tax expense comprises current tax and deferred tax.

Current Tax

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

Deferred Tax

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period, based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Deferred Tax assets and Liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets relate to the same taxable entity and the same taxation authority

3.10. Provisions

The company has made provisions for all known liabilities and expenditures existing as on the date of balance sheet for which an outflow of resources are probable as a result of past events and for which reliable estimates can be made, as required as per the provisions of AS 29 - "Provisions, Contingent Liabilities and Contingent Assets".

Further in case of any possible obligation that may, but probably will not require an outflow of resources no provision is recognized but appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote.

Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

3.11. Contingent Liabilities

A Contingent Liability is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognizable because it is not probable that an outflow of resources will be required to settle the obligation. The company does not recognize a contingent liability but discloses its existence in the financial statements.

Terms/Rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year, the company has not proposed for any dividend payable to the share holders.

In the event of Liquidation, Equity Share holders are entitled to receive the assets of the company remaining after distribution of all preferential amount, in proportion to the number of shares held by them.

All Preference shares are redeemable at the end of 7th year from the date of issue. In the event of Liquidation of the company the Preference Share holders will have priority over equity share holders in the payment of dividend and repayment of capital.

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Mar 31, 2015

3.1. Change in accounting policy

Presentation and disclosure of financial statements

Financial Statements for the year ended 31st March 201S has been prepared and presented under Schedule III notified under the Companies Act 2013. Previous year Figures has been reclassified to be in conformity with the requirements applicable in the current year,

3.2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make judge ment, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosures of contingent liabilities, at the end of the reporting period. 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 the outcomes requiring a material adjsutment to the carrying amounts of assets or liabilities in future periods.

3.3. Cash and Cash equivalents

Cash flow statement has been prepared in accordance with the indirect method prescribed in Accounting Standard-3. The cash flowsfrom regular revenue generating, investingand financing activities of the company are segregated.

3.4. Fixed Assets

Fixed assets a re stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Assets are depreciated overthe useful life of the assets as specified in Part C of Schedule II of Companies Act, 2013

3.5. Revenue Recognition

I nterest Income is recognised on a time proportionate basis taking into account the amount outstanding and the applicable interest rates.

Dividend Income is recognised in the books when it is declared by the company in which in vestments are held.

Dividend Income on Mutual Fund Investments are recognised in the books when it is declared and credited to Investment value or credited in the bank account

Other incomes, if any, are recognized in the books of accounts of the company as and when the same is accrued to the company.

3.6. Investments

Current investments are stated at cost or market value whichever is lower. Long term Investments are stated at cost and provisions are made in the books for diminution in their value, other than temporary. n vestments asshowninthe books of accounts comprise of investment in the shares of entities under same management and control.

Cost comprises of purchase price and directly attributable acq uisition charges.

Profit/ loss on sale of investments, if any, are computed with reference to the cost of the investments and provisions are made for the same in the books of account.

3.7. Retirement and other employee benefits

Expenses a nd liabilities in respect of employee benefits are recorded in accorda nee with Accounting Standard IS (Revised) issued by the ICAI.

During the year the company has not made any provision for Gratuity or Leave Encashment benefits since there are no employees in the company.

3.8. Earning Per Share

In determining Earnings per Share the entity considers the net earnings after tax.

Basic Earnings per Share.

Basic earnings per share is computed by dividing the net profit or loss attributable to equity share holders by the weighted | average number of equity shares outstanding during the period, after giving effect for events including bonus issue, share split, buy back of shares and rights issue to the share holders.

Diluted Earnings per Share

For computing diluted earnings per share, the net profit or loss attributable to equity share holders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period

3.9. Income Tax

Tax expense comprises current tax and deferred tax.

Current Tax

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disaIlowances or other matters is probable.

Deferred Tax

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the diff erences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period, based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Deferred Tax assets and Liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets relate to the same taxable entity and the same taxation authority

3.10. Provisions

The company has made provisions for all known liabilities and expenditures existing as on the date of balance sheet for which an outflow of resources are probable as a result of past events and for which reliable estimates can be made, as required as per the provisions of AS 29 - "Provisions, Contingent Liabilities and Contingent Assets".

Further in case of any possible obligation that may, but probably will not require an outflow of resources no provision is recognized but appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote.

Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

3.11. Contingent Liabilities

A Contingent Liability is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognisable because it is not probable that an outflow of resources will be required to settle the obligation. The company does not recognise a contingent liability but discloses its existence in the financial statements.

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Mar 31, 2014

1.1. Change in accounting policy

Presentation and disclosure of financial statements

Financial Statements for the year ended 31st March 2014 has been prepared and presented under Revised the Schedule VI notified under the Companies Act 1956. Previous year Figures has been reclassified to be in conformity with the requirements applicable in the current year.

1.2. Use of estimates

The preparation of the financial statements in conformity with Accounting Standards requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include future obligations under employee retirement benefits, income taxes and the useful lives of fixed assets.

1.3. Cash and Cash equivalents

Cash and Cash Equivalents in the Balance Sheet comprise cash at bank and in hand and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

1.4. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Depreciation is provided at Written Down Value method and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, which management considers as being representative of the useful economic lives of such assets-

Furniture & Fixtures 18.1 %

Computers 40.0 %

1.5. Revenue Recognition

Interest Income is recognised on a time proportionate basis taking into account the amount outstanding and the applicable rates.

Dividend Income is recognised in the books when it is declared by the company in which investments are held.

Dividend Income on Mutual Fund Investments are recognised in the books when it is declared and credited to.

Investment value or credited in the bank account. Other incomes, if any, are recognized in the books of accounts of the company as and when the same is accrued to the company

1.6. Investments

Current investments are stated at cost or market value whichever is lower. Long term Investments are stated at cost and provisions are made in the books for diminution in their value, other than temporary. Investments as shown in the books of accounts comprise of investment in the shares of entities under same management and control.

Cost comprises of purchase price and directly attributable acquisition charges. Profit/loss on sale of investments, if any, are computed with reference to the cost of the investments and provisions are made for the same.

1.7. Retirement and other employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 (Revised) issued by the ICAI. During the year the company has not made any provision for Gratuity or Leave Encashment benefits since there are no employees in the company.

1.8. Earning Per Share .

In determining Earnings per Share the entity considers the net earnings after tax.

Basic Earnings per Share

Basic earnings per share is computed by dividing the net profit or loss attributable to equity share holders by the weighted average number of equity shares outstanding during the period, after giving effect for events including bonus issue, share split, buy back of shares and rights issue to the share holders.

Diluted Earnings per Share

For computing diluted earnings per share, the net profit or loss attributable to equity share holders and the weighted I average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period

1.9. Income Tax

Tax expense comprises curren t tax and deferred tax.

Current Tax

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the | related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

Deferred Tax

The differences that result between the profit considered for income taxes and the profit as per the financial | statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of 1 an accounting period, based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Deferred Tax assets and Liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets relate to the same taxable entity and the same taxation authority

1.10. Provisions

The company has made provisions for all known liabilities and expenditures existing as on the date of balance sheet for which an outflow of resources are probable as a result of past events and for which reliable estimates can be made, as required as per the provisions of AS 29 - "Provisions, Contingent Liabilities and Contingent Assets". Further in case of any possible obligation that may, but probably will not require an outflow of resources no provision is recognized but appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.11. Contingent Liabilities -

A Contingent Liability is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognisable because it is not probable that an outflow of resources will be required to settle the obligation. The company does not recognise a contingent liability but discloses its existence in the financial statements.

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Mar 31, 2013

1.1. Change in accounting policy

Presentation and disclosure of financial statements

Financial Statements for the year ended 31st March 2013 has been prepared and presented under Revised the Schedule VI notified under the Companies Act 1956. Previous year Figures has been reclassified to be in conformity with the requirements applicable in the current year.

1.2 Use of estimates

The preparetion of the financial statements in conformity with Accounting Standards requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contigent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include future obligaions under employee retirement benefits, income taxes and the useful lives of fixed assets.

1.3. Cash and Cash equivalents

Cash and Cash Equivalents

Cash and Cash Equivalents in the Balance Sheet comprise cash at bank and in hand and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

1.4. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and attributable cost of bringing the asset to its working condition for its inteded use. Depreciation is provided at Written Down Value method and at the rates and in the manner prescribed in Schedule Xiv to the Companies Act, 1956, which management considers as being representative of the useful econimic lives of such assets-

Furniture & Fixtures 18.1%

Computers 40.0%

1.5, Revenue Recognition

Interest Income is recognised on a time proportionate basis taking into account the amount outstanding and the applicable rates.

Dividend Income is recognised in the books when it is declared by the company in which investments are held. *

Dividend Income on Mutual Fund Investments are recognised in the books when it is declared and credited to | I nvestment value or credited in the bank account. Other incomes, if any, are recognized in the books of accounts of the company as and when the same is accrued to the company

1.6. Investments

Current investments are stated at cost or market value whichever is lower. Long term Investments are stated at cost and provisions are made in the books for diminution in their value, other than temporary. Investments as shown in the books of accounts comprise of investment in the shares of entities undersame management and control.

Cost comprises of purchase price and directly attributable acquisition charges. Profit / loss on sale of investments, if any, are computed with reference to the cost of the investments and provisions are made for the same.

1.7 Retirement and other employee benefits |

Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 (Revised) issued by the ICAI. During the year the company has not made any provision for Gratuity or Leave Encashment benefits since there are no employees in the company.

1.8. Earning Per Share

In determining Earnings per Share the entity considers the net earnings aftertax.

Basic Earnings per Share

Basic earnings per share is computed by dividing the net profit or loss attributable to equity share holders by the weighted average number of equity shares outstanding during the period, after giving effect for events including bonus issue, share split, buy back of shares and rights issue to the share holders.

Diluted Earnings per Share

For computing diluted earnings per share, the net profit or loss attributable to equity share holders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share duringthe reporting period

1.9. Income Tax

Tax expense comprises currenttaxand deferred tax.

CurrentTax

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period thi related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

Deferred Tax

The differences that result between the profit considered for income taxes and the profit as per the financial ;. statements are identified,andthereaftera deferred tax asset or deferred tax liability is recordedfortimingdifferences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect an accounting period based on

1.10. Provisions

The company has made provisions for all known liabilities and expenditures existing as on the daet of balance sheet for which an outflow of resources are probable as a result of past events and for which reliable estimates can be made, as required as per the provisions of AS 29-"Provisions, Contigent Liabilities and Contigient Assets". Further in case of any possible obligation that may, but probably will not require an outflow of resources no provision is recognized but appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote.

Privisions are not discounted to its prevent value and are determined based on best estimate required to settle the obligation at the balabce sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2012

1.1. Change in accounting policy

Presentation and disclosure of financial statements

Financial Statements for the year ended 31st March, 2012 has been prepared and presented under Revised the Schedule VI notified under the Companies Act 1956, which becomes applicable for the Financial Year 2011-2012 onwards. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. Previous year Figures has been reclassified to be in conformity with the requirements applicable in the current year.

1.2. Use of estimates

The preparation of the financial statements in conformity with Accounting Standards requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include future obligations under employee retirement benefits, income taxes and the useful lives of fixed assets.

1.3. Revenue Recognition

Interest Income is recognised on a time proportionate basis taking into account the amount outstanding and the applicable rates.

Dividend Income is recognised in the books when it is declared by the company in which investments are held. Dividend Income on Mutual Fund Investments are recognised in the books when it is declared and credited to Investment value or credited in the bank account. Other incomes, if any, are recognized in the books of accounts of the company as and when the same is accrued to the company

1.4. Investments

Current investments are stated at cost or market value whichever is lower. Long term Investments are stated at cost and provisions are made in the books for diminution in their value, other than temporary. Investments as shown in the books of accounts comprise of investment in the shares of entities under same management and control. Cost comprises of purchase price and directly attributable acquisition charges. Profit/loss on sale of investments/if any, are computed with reference to the cost of the investments and provisions are made for the same.

1.5. Retirement and other employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 (Revised) issued by the ICAI. During the year the company has not made any provision for Gratuity or Leave Encashment benefits since there are no employees in the company.

1.6. Earnings Per Share

In determining Earnings per Share the entity considers the net earnings after tax. Basic Earnings per Share Basic earnings per share is computed by dividing the net profit or loss attributable to equity share holders by the weighted average number of equity shares outstanding during the period, after giving effect for events including bonus issue, share split buy back of shares and rights issue to the share holders. Diluted Earnings per Share For computing diluted earnings per share, the net profit or loss attributable to equity share holders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a full

1.7. Income Tax

Tax expense comprises current tax and deferred tax.

Current Tax

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable- Deferred Tax

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period, based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Deferred Tax assets and Liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities

1.8. Provisions

The company has made provisions for all known liabilities and expenditures existing as on the date of balance sheet for which an outflow of resources are probable as a result of past events and for which reliable estimates can be made, as required as per the provisions of AS 29 - "Provisions, Contingent Liabilities and Contingent Assets". Further in case of any possible obligation that may, but probably will not require an outflow of resources no provision is recognized but appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote.

Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date.

1.9. Contingent Liabilities

A Contingent Liability is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or nonoccurence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognisable because it is not probable that an outflow of resources will be required to settle the obligation. The company does not recognise a contingent liability but discloses its existence in the financial statements.

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Mar 31, 2011

A) Accounting Convention:

The financial statements are prepared under the historical cost convention on an accrual basis of accounting and in accordance with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in section 211(3C) of the Companies Act,1956.

B) Fixed Assets:

Fixed Assets are stated at historical cost. Historical cost is inclusive of pre-operative expenses, installation cost, duties and taxes and other incidental expenses incurred towards acquisition and installation of Fixed Assets reduced by CENVAT of excise duty available.

C) Depreciation:

i) The company follows the written down value method of depreciation.

ii)The rates of depreciation charged on all fixed assets are in accordance with the notification dated 16th December,1993 issued under Companies Act,1956

iii) On assets sold, discarded etc. during the year depreciation is not provided during the year of sale/discarded.

D) Investments: Investments are stated at cost of acquisition

E) Deferred Tax Liability: The Deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates have been enacted or substantively enacted by the balance sheet date. The company recognized the deferred tax liability on date of balance sheet as per Accounting Standards 22 issued by the Institute of Chartered accountants of India.

F) Contingencies and Events Occurring After the Date Of Balance Sheet:

i) Accounting for contingencies(gains and losses) arising out of contractual obligation are made only on the basis of mutual acceptance.

ii) Material events occurring after the date of balance sheet are considered up to the date of adoption of the Accounts.

G) Gratuity:

Provision for gratuity is made on accrual basis for one employee presently working with the company.

H) Leave Encashment: There is only one employee. As per terms of appointment there is no entitlement of Leave encashment. I) Other Accounting Policies:

i) These are consistent with generally accepted accounting practices.

ii) The outstanding balance of Debtors, Creditors, Deposits and advance are subject to confirmation.

iii) In the opinion of the Board and to the best of their knowledge and belief the value on realization on current assets, loans and advances in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

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Mar 31, 2010

A) Accounting Convention:

The financial statements are prepared under the historical cost convention on an accrual basis of accounting and in accordance with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in section 211 (3C) of the Companies Act, 1956.

B) Fixed Assets:

Fixed Assets are stated at historical cost. Historical cost is inclusive of pre-operative expenses, installation cost, duties and taxes and other incidental expenses incurred towards acquisition and installation of Fixed Assets reduced by CENVAT of excise duty available.

C) Depreciation:

i) The Company follows the written down value method of depreciation.

ii) The rates of depreciation charged on all fixed assets are in accordance with the notification dated 16th December, 1993 issued under Companies Act., 1956.

iii) On assets sold, discarded etc. during the year depreciation is not provided during the year of sale/ discarded

D) Investments:

Investments are stated at cost of acquisition

E) Deferred Tax Liability:

The Deferred tax charge or credit and the corresponding deferred tax liability or asset are recognised using the tax rates have been enacted or substantively enacted by the balance sheet date. The company recog- nized the deferred tax liability on date of balance sheet as per Accounting Standard 22 issued by the Institute of Chartered accountants of India.

As per Accounting Standard (AS) 22 being mandatory an amount of Rs. 1,73,386/- (Previous year 23578/-) has been credited (Previous Year debited) to profit and Loss Account as deferred tax liability.

F) Contingencies and Events Occurring After the Date Of Balance Sheet:

i) Accounting for contingencies (gains and losses) arising out of contractual obligation are made only on the basis of mutual acceptance.

ii) Material events occurring after the date of balance sheet are considered up to the date of adoption of the Accounts.

G) Gratuity:

Provision for gratuity is made on accrual basis for one employee presently working with the company. H) Leave Encashment:

There is only one employee. As per terms of appointment there is no entitlement of Leave encashment.

H) Other Accounting Policies:

i) These are consistent with the generally accepted accounting practices.

ii) The outstanding balance of Debtors, Creditors, Deposits and advances are subject to confirmation.

iii) In the opinion of the Board and to the best of their knowledge and belief the value on realisation on current assets, loans and advances in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

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Mar 31, 2009

A) Accounting Convention:

The financial statements are prepared under the historical cost convention on an accrual basis of accounting and in accordance with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in section 211 (3C) of the Companies Act, 1956.

B) Fixed Assets:

Fixed Assets are stated at historical cost. Historical cost is inclusive of pre-operative expenses, installation cost, duties and taxes and other incidental expenses incurred towards acquisition and installation of Fixed Assets reduced by CEN VAT of excise duty available.

C) Depreciation:

i) The Company follows the written down value method of depreciation.

ii) The rates of depreciation charged on all fixed assets are in accordance with the notification dated 16th December, 1993 issued under Companies Act., 1956.

iii) On assets sold, discarded etc. during the year depreciation is not provided during the year of sale/discarded

D) Investments:

Investments are stated at cost of acquisition

E) Deferred Tax Liability:

The Deferred tax charge or credit and the corresponding deferred tax liability or asset are recognised using the tax rates have been enacted or substantively enacted by the balance sheet date. The company recognized the deferred tax liability on date of balance sheet as per Accounting Standard 22 issued by the Institute of Chartered accountants of India.

As per Accounting Standard (AS) 22 being mandatory an amount of Rs.23578/- (Previous year 21271 /-) has been debited to profit and Loss Account as deferred tax liability.

F) Contingencies and Events Occurring After the Date Of Balance Sheet:

i) Accounting for contingencies (gains and losses) arising out of contractual obligation are made only on the basis of mutual acceptance.

ii) Material events occurring after the date of balance sheet are considered up to the date of adoption of the Accounts.

G) Gratuity:

Provision for gratuity is made on accrual basis for one employee presently working with the company.

H) Leave Encashment:

There is only one employee. As per terms of appointment there is no entitlement of Leave encashment.

I) Other Accounting Policies:

i) These are consistent with the generally accepted accounting practices.

ii) The outstanding balance of Debtors, Creditors, Deposits and advances are subject to confirmation.

iii) In the opinion of the Board and to the best of their knowledge and belief the value on realisation on current assets, loans and advances in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.