Accounting Policies of Roselabs Finance Ltd. Company

Mar 31, 2016

1) Summary of Significant Accounting Policies

1 Basis of Accounting:

The financial statements have been prepared on an accrual basis under the historical cost convention and as a going concern in accordance with the Indian Generally Accepted Accounting Principles (GAAP) in compliance with the Accounting Standards as specified Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 (as amended). The accounting policies have been consistently applied by the Company.

2 Use of Estimates:

The preparation of financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities (including contingent liabilities) on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates.

3 Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation thereon. Cost includes all incidental expenses related to acquisition, construction, installation, other pre-operation expenses and borrowing costs in case of construction.

The carrying amount of cash generating units / assets is reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

4 Depreciation:

a) Depreciation on Tangible Assets is provided on Written Down Value basis, at the rates determined with reference to useful lives specified in Schedule II of the Companies Act, 2013 except for carrying value of Tangible Fixed Assets as on 1st April, 2014 depreciated equally over the remaining useful life of the asset.

b) Depreciation on Additions / Deletions of assets is provided on a pro-rata basis.

5 Investments:

Investments are classified into non-current and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognize a decline, other than of a temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

6 Inventories :

Shares / Debentures:

Valuation of stock in trade of Shares is carried out at lower of its cost and quoted market price, computed script wise. Cost is ascertained on First-in-First-out basis.

7 Equity Derivative Transactions:

Profit / (Loss) in respect of Equity / Index Futures / Options are accounted in the Statement of Profit and Loss on the expiry of the respective contract or on the same being settled.

In case of outstanding contracts as at the Balance Sheet date, mark to market difference is recognized in the case of losses and ignored in the case of profits, in accordance with the conservative principle of accounting.

8 Operating Cycle:

Assets and liabilities are classified into current and non-current based on the operating cycle.

9 Revenue Recognition:

a) Revenue from Sale of Shares I Debentures are recognized upon transfer of significant risks and rewards to the buyers / Customers.

b) Income of Contract / Support Services is recognized as per the terms of Contracts / Agreements.

10 Borrowing Costs:

Borrowing costs are recognized as an expense in the period in which they are incurred.

11 Foreign Exchange Transactions:

The transactions in foreign exchange are recorded at the exchange rates prevailing on the date of transactions. All monetary assets and liabilities in foreign currency are translated at the exchange rate prevailing at the date of the Balance Sheet. Any exchange gains or losses arising on the translation or settlement of such transaction are accounted for in the Statement of Profit and Loss.

12 Leases:

Where the Company is Lessee:

Lease arrangements where the risks and rewards incidental to ownership of assets substantially vest with the lessor are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

Where the Company is Lessor:

Assets representing operating lease arrangements are included in Fixed Assets / Inventory. Lease income is recognized in the Statement of Profit and Loss on a straight-line basis over the lease term. Cost, including depreciation is recognized as an expense in the Statement of Profit and Loss.

13 Taxation:

Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates and tax laws.

MAT asset is recognized when it is highly probable that future economic benefit associated with it will flow to the entity.

Deferred Tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized and carried forward only to the extent that there is a virtual I reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing difference at the year-end based on the tax rates and laws enacted or substantially enacted on the balance sheet date.

14 Provisions and Contingent Liabilities:

Provisions are recognized in the accounts in respect of present probable obligation, the amount of which can be reliably estimated. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

---

Mar 31, 2015

A Basis of Accounting :

The fnancial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards as notified under Companies (Accounting Standards) Rules, 2006, read with general circular 15/2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013, the Provisions of the Companies Act, 2013 and on the accounting principle of going concern. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

b Use of Estimates :

The preparation of fnancial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the fnancial statements and the reported amounts of revenues and expenses during the reporting period. The estimates are made to the best of the management's knowledge considering all necessary information. Differences, if any, between actual results and estimates are recognized in the period in which the results are ascertained.

c Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost includes all incidental expenses related to acquisition and installation, other pre-operative expenses and interest in case of construction.

The carrying amount of cash generating units / asset is reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

d Depreciation:

Depreciation on Tangible Assets is provided on WDV method at the rates and in the manner specified in Schedule II of the Companies Act, 2013.

The carrying value of Tangible Fixed Assets as on 1st April, 2014 is depreciated equally over the remaining useful life of the asset.

Depreciation on Additions / Deletions of assets during the year is provided on a pro-rata basis.

The depreciation on assets is treated as period cost.

e Investments:

Investments are classified into long term and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each Long Term investment is made to recognize a decline, other than of temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

f Inventories:

Valuation of stock in trade of Shares/Debentures is carried out at lower of its cost and quoted market price, computed scriptwise. Cost is assertained on First-in-First-out basis

g Operating Cycle

Assets and liabilities are classified into current and non- current based on the operating cycle.

h Equity Derivative Transactions :

Proft / (Loss) in respect of Equity / Index Futures / Options are accounted in the Statement of Proft and Loss on the expiry of the respective contract or on the same being squared - off.

In case of unsettled contracts as at the Balance Sheet date, mark to market difference is recognized in the case of losses and ignored in case of profits, considering conservative principal.

i Revenue Recognition :

Revenue on accounts of sale of shares/Debentures is recognized upon transfer of significant risk and rewards to the buyers.

Revenue from interest income is recognized using the time proportion method based on the rate implicit in the transaction.

Advisory Services Income is recognized as per the terms of Contracts / Agreements.

j Borrowing Costs :

Borrowing costs that are directly attributable to long term project development activities are inventoried as part of project cost. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Borrowing costs are inventoried as part of project cost when the activities that are necessary to prepare the asset for its intended use or sale are in progress. Inventorisation of Borrowing costs are suspended once development work on the project is interrupted for extended periods.

k Foreign Exchange Transactions :

The transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transactions. All monetary assets and liabilities in foreign currency are translated at the exchange rate prevailing at the date of the Balance Sheet. All exchange gains or losses arising on the translation or settlement of such transactions are accounted for in the Statement of Proft and Loss.

l Leases :

Lease arrangements where the risks and rewards incidental to ownership of assets substantially vest with the lessor are classifed as operating leases. Operating lease payments are recognized as an expense in the Statement of Proft and Loss on a straight-line basis over the lease term.

m Taxation :

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

MAT credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profts is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

n Provisions and Contingent Liabilities :

Provisions are recognised in the accounts in respect of present probable obligation, the amount of which can be reliably estimated. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confrmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

(d) Right and Preferences of Equity Share holders

Each shareholder is entitled for one vote per share. The shareholders have the right to receive interim dividends declared by the Board of Directors and final dividend proposed by the Board of Directors and approved by the shareholders.

In the event of liquidation by the Company, the shareholders will be entitled in proportion to the number of equity shares held by them to receive remaining assets of the Company, after distribution of all preferential amounts.

* 20% of Net Proft After Tax is transferred from Statement of Proft and Loss to Reserve Fund as required by Section 45-IC of the Reserve Bank of India Act, 1934.

Based on the information available with the Company, there are no dues outstanding in respect of Micro, Small and Medium Enterprises as of Balance Sheet date.

* The Company has made a provision of 0.25% on Standard Assets as required by the Reserve Bank of India guidelines.

---

Mar 31, 2014

A Basis of Accounting :

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards as notifed under Companies (Accounting Standards) Rules, 2006, read with general circular 15/2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013, the Provisions of the Companies Act, 1956 and 2013 and on the accounting principle of going concern. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

b Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates are made to the best of the management''s knowledge considering all necessary information. Differences, if any, between actual results and estimates are recognized in the period in which the results are ascertained.

c Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost includes all incidental expenses related to acquisition and installation, other pre-operative expenses and interest in case of construction.

The carrying amount of cash generating units / asset is reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

d Depreciation:

Depreciation on Fixed Assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation on Additions / Deletions of assets during the year is provided on a pro-rata basis.

e Investments :

Investments are classified into long term and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each Long Term investment is made to recognize a decline, other than of temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

f Inventories :

Valuation of stock in trade of Shares is carried out at lower of its cost and quoted market price, computed scriptwise. Cost is assertained on First-in-First-out basis

g Equity Derivative Transactions :

profit / (Loss) in respect of Equity / Index Futures / Options are accounted in the Statement of profit and Loss on the expiry of the respective contract or on the same being squared - off In case of unsettled contracts as at the Balance Sheet date, mark to market difference is recognised in the case of losses and ignored in case of profits, considering consetvative principal.

h Revenue Recognition :

Revenue on accounts of sale of shares is recognised upon transfer of significant risk and rewards to the buyers. Revenue from interest income is recognised using the time proportion method based on the rate implicit in the transaction.

i Employee benefit:

Expenses and liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employee benefits:

i) Earned Leave

Provision for leave encashment is made on the basis of eligible leave balances as on Balance Sheet date. An employee can avail accumulated leave at any time during the subsequent year, however, the Company has no scheme for encashment of the leave.

ii) Other Short Term benefits

Expense in respect of other short term benefits is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.

j Borrowing Costs :

Borrowing costs that are directly attributable to long term project development activities are inventorised as part of project cost. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Borrowing costs are inventorised as part of project cost when the activities that are necessary to prepare the asset for its intended use or sale are in progress. Inventorisation of Borrowing costs are suspended once development work on the project is interrupted for extended periods.

k Leases :

Lease arrangements where the risks and rewards incidental to ownership of assets substantially vest with the lessor are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of profit and Loss on a straight-line basis over the lease term.

l Taxation :

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

MAT credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period. Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

m Provisions and Contingent Liabilities :

Provisions are recognised in the accounts in respect of present probable obligation, the amount of which can be reliably estimated. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

---

Mar 31, 2012

A. Basis of accounting :

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards as notified under the Companies (Accounting Standards) Rules, 2006, the Provisions of the Companies Act, 1956 and on the accounting principle of going concern. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

b. Use of estimates :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates are made to the best of the management''s knowledge considering all necessary information. Differences, if any, between actual results and estimates are recognized in the period in which the results are ascertained,

c. Borrowing costs :

Borrowing costs attributable to a acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to Statement of Profit and Loss.

d. Fixed assets :

All Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost includes all incidental expenses related to acquisition and installation, other pre-operation expenses and interest in case of construction.

The carrying amount of cash generating units / asset is reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at the net selling price or value in use, whichever is higher, impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

e. Depreciation :

Depreciation on Fixed Assets is provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

Depreciation on Additions / Deletions of assets during the year is provided on a pro-rata basis.

The depreciation on assets used for construction is treated as period cost.

f. Investments:

Investments are classified into long term and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognize a decline, other than of temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

g. Inventories:

Inventories are valued at lower of cost and net realisable value. It has been accepted as taken, valued and certified by the management of the Company.

h. Revenue recognition:

1 Revenue on accounts of sale of share is recognised upon transfer of significant risk and rewards to the buyers,

ii Interest income is recognised on a time proportion basis.

i. Taxation :

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

MAT is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the tax rate and tax laws enacted or substantively enacted at the balance sheet date, to the extent that the timing differences are expected to crystallize, Deferred tax assets are recognized and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

j. Provision and contingent liabilities :

Provisions are recognised in the accounts in respect of present probable obligation, the amount of which can be reliably estimated. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

---

Mar 31, 2011

1. SYSTEM OF ACCOUNTING:

The Financial statements are prepared on the basis of historical cost convention on accrual basis and on going concern basis.

2. REVENUE RECOGNITION:

All known expenditure and income to the extent payable or receivable respectively and quantifiable till the date of finalization of accounts are accounted on accrual basis.

3. FIXED ASSETS:

Fixed assets are carried at cost of acquisition or construction including incidental expenses related to acquisition and installation on concerned assets, loss accumulated depreciation and amortization

4. DEPRECIATION:

Depreciation has been provided on Written Down Value method in accordance with the provision of Section 205(2)(b) of the Companies Act,1956 at the rate prescribed in Schedule XIV of the Companies Act,1956 on prorate basis with reference to the date of acquisition installation...

5. INVESTMENTS:

Long term investments are stated at cost. No provision for diminution in the value of long tern investment is made.

6. SUNDRY DEBTORS:

No provision has been made for bad debts. Bad debts will be accounted for in the books and to be charged to revenue, as and when they arise.

7. CONTINGENT LIABILITIES:

There were no contingent liabilities. All liabilities were accounted forthwith.

8. RESEARCH & DEVELOPMENT:

No research and development expenditure has been incurred by the firm during the year.

9. FOREIGN CURRENCY TRANSACTION:

The Company has not made any foreign currency transaction during the year.

10. RETIREMENT BENEFITS:

No Provision for retirements benefits for employees has been made since the Gratuity Acts, Provident Fund Acts not applicable to the Company. And the Company has adopted PAY-AS-YOU-GO method for the payment of the payment of other retirement benefits if any payable to the employees.

---

Mar 31, 2010

The accounts are prepared in accordance with the accounting principles accepted in India. The Company follows accrual method of accounting. The Significant accounting policies to the extent applicable to the company are as under:

1. SYSTEM OF ACCOUNTING :

The Financial statements are prepared on the basis of historical cost convention on accrual basis and on going concern basis.

2. REVENUE RECOGNITION :

All known expenditure and income to the extent payable or receivable respectively and quantifiable till the date of finalisation of accounts are accounted on accrual basis.

3. FIXED ASSETS:

Fixed assets are carried at cost of acquisition or construction including incidental expenses related to acquisition and installation on concerned assets, loss accumulated depreciation and amortization.

4. DEPRECIATION:

Depreciation has been provided on Written Down Value method in accordance with the provision of Section 205(2)(b) of the Companies Act, 1956 at the rate prescribed in Schedule XIV of the Companies Act, 1956 on prorata basis with reference to the date of acquisition installation.

5. INVESTMENTS:

Long term investments are stated at cost. No provision for diminition in the value of long term investment is made.

6. SUNDRY DEBTORS

No provision has been made for the bad debts. Bad debts will be accounted for in the books and to be charged to revenue, as and when they arise.

7. CONTINGENT LIABILITIES

There were no contingent liabilities. All liabilities were accounted forthwith.

8. RESEARCH & DEVELOPMENT :

No research and development expenditure has been incurred by the firm during the year.

9. FOREIGN CURRENCY TRANSACTION

The company has not made any foreign currency transaction during the year.

10. RETIREMENT BENEFITS:

No provision for retirements benefits for employees has been made since the Gratuity Act. Provident Fund Act not applicable to the company. And the company has adopted PAY-AS- YOU-GO method for the payment of other retirement benefits if any payable to the employees.