Accounting Policies of Stellant Securities (India) Ltd. Company

Mar 31, 2013

A) Basis of Preparation of Financial Statement

The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting principles. GAAP comprises mandatory accounting standards as prescribed by the companies (Accounting Standards) Rules, 2006. The company follows mercantile system of accounting as required under section 209(3)(b) of the Companies Act, 1956.

The company adopts the accrual basis in the preparation of accounts except insurance claims and sales tax refunds.

b) Use of estimates

The preparation of financial statements in accordance with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of financial statements and the reported amount of expenses of the year. Actual results could differ from these estimates. Any revision to such accounting estimates is recognized in the accounting period in which such revision takes place.

c) Fixed Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation/ amortization and impairment loss, if any cost includes inward freight, duties, taxes and all incidental expenses incurred to bring the assets to their present location and condition.

d) Depreciation

Depreciation has been provided as per SLM as per the rates prescribed by Schedule XIV to the companies Act, 1956 on all the fixed assets. Depreciations on additions made to fixed assets during the year are provided on pro-rata basis from the .date of such additions.

e) Investments

Long Term Investments are carried at cost less provision recorded to recognize any decline, other than of a temporary nature, in the carrying value of each investment. Current investments are valued at cost or fair value whichever is lower and the resultant decline, if any, are charged to statement of Profit & Loss

f) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing cost are charged to revenue.

g) Revenue Recognition

Revenue/Income and Cost/ Expenditure are generally accounted on accrual as they are earned or incurred except in case of significant uncertainties.

- Dividend is accounted when the right to receive payment is established.

- Interest and other Income are accounted on accrual basis.

- Revenue figures excluded tax component.

- Provision of gratuity, if any, is accounted as and when the same arises and become payable.

h) Inventory

Items of inventory are measured at net realizable value at the time of finalisation of accounts and not as on the date of the balance sheet.

Cost of inventory comprises of all cost of purchases and direct cost incurred in bringing them to their respective present location and condition.

i) Income Taxes

In view of the losses incurred during the year, the company has not made any provision for Income Tax for current year.

Deffered Tax

Deffered Tax is recognised on timing difference between the accounting income & the taxable income for the year and quantified using the tax rates and loss enacted or substantively enacted as on the balance sheet date. However, there is no Deferred Tax Liability during the year. The provision of deferred tax assets has not been made in view of uncertainty.

j) Contingent liabilities

Contingent Liability nor provided for are disclosed in notes to the account.

---

Mar 31, 2012

A) Basis of Preparation of Financial Statement

The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting principles. GAAP comprises mandatory accounting standards as prescribed by the companies (Accounting Standards) Rules, 2006. The company follows mercantile system of accounting as required under section 209(3)(b) of the Companies Act, 1956.

The company adopts the accrual basis in the preparation of accounts except insurance claims and sales tax refunds.

b) Use of estimates

The preparation of financial statements in accordance with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of financial statements and the reported amount of expenses of the year. Actual results could differ from these estimates. Any revision to such accounting estimates is recognized in the accounting period in which such revision takes place.

b) Fixed Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation/ amortization and impairment loss, if any cost includes inward freight, duties, taxes and all incidental expenses incurred to bring the assets to their present location and condition.

c) Depreciation

Depreciation has been provided as per SLM as per the rates prescribed by Schedule XIV to the companies Act, 1956 on all the fixed assets. Depreciations on additions made to fixed assets during the year are provided on pro-rata basis from the date of such additions.

d) Investments

Long Term Investments are carried at cost less provision recorded to recognize any decline, other than of a temporary nature, in the carrying value of each investment. Current investments are valued at cost or fair value whichever is lower and the resultant decline, if any, are charged to statement of Profit & Loss

e) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing cost are charged to revenue.

f) Revenue Recognition

Revenue/Income and Cost/ Expenditure are generally accounted on accrual as they are earned or incurred except in case of significant uncertainties.

- Dividend is accounted when the right to receive payment is established.

- Interest and other Income are accounted on accrual basis.

- Revenue figures excluded tax component.

- Provision of gratuity, if any, is accounted as and when- the same -~: arises and become payable.

g) Inventory

Items of inventory are measured at net realizable value at the time of finalisation of accounts and not as on the date of the balance sheet.

Cost of inventory comprises of all cost of purchases and direct cost incurred in bringing them to tEeir respective present -location and condition.

h) Income Taxes

In view of the losses incurred during the year, the company has not made any provision for Income Tax for current year.

Differed Tax

Deferred Tax is recognised on timing difference between the accounting income & the taxable income for the year and quantified using the tax rates and loss enacted or substantively enacted as on the balance sheet date. However, there is no Deferred Tax Liability during the year. The provision of deferred tax assets has not been made in view of uncertainty.

i) Contingent liabilities

Contingent Liability nor provided for are disclosed in notes to the account.

---

Mar 31, 2010

A) Basis of Accounting

The company follows mercantile system of accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

b) Fixed Assets

Fixed assets are stated at cost of acquisition less accumulated depreciation

C) Investments

The investments of the company are stated at cost.

d) Inventories

Inventories are valued at cost or market value which ever is less.

e) Depreciation

Depreciation has been provided on straight line basis as per, the rates specified in schedule XIV to the companies Act, 1956. In respect of addition/ Deduction in the fixed assets during the year, depreciation is provided on pro-rata basis.

f) Amortisation of Expenses

The company has amortised Preliminary Expenditure and Public issue Expenditure over a period often years.