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Accounting Policies of Vaarad Ventures Ltd. Company

Mar 31, 2016

1.1 Basis of Accounting:

The accounts have been prepared under the historical cost on an accrual basis as a going concern. Revenue recognition and expenses incurred are accounted on accrual basis and applicable mandatory standards and in accordance with the requirements of the Companies Act, 2013

1.2 Dividend and Interest:

Dividend income from investments is recognized when right to receive to payment is established. Interest income is accounted on its accrual on a time proportion.

1.3 Depreciation:

Depreciation is charged on Fixed Assets on Straight Line Method and in the manner prescribed in the Companies Act, 2013.

1.4 Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction, less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized and include financing costs relating to the borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets are put to use.

1.5 Investments:

Investments are classified as long term Investment and carried at cost. Provision for diminution in value of long term investments is made only, if such a decline is not temporary, in the opinion of the management.

1.6 Deferred Tax Assets I Liabilities:

Deferred Tax assets or liability for timing difference between the profits as per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted as at the Balance sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which it can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet Date and reduced if sufficient taxable profits are not like to be available to realize all or part of the deferred tax assets.

1.7 The Company has obtained the registration as a Non- Banking Finance Company from Reserve Bank of India duly approved through its letter dated 11th June, 2012 having registration number as N-13.02016

1.8 Managerial Remuneration to Directors 2015-16 2014-15

Salary 4,80,000 NIL

Profit/(loss)computed in accordance with section 198 of the Companies Act

Net profit/(loss)before Tax Rs.(34,47,844) Rs.(19,83,915)

1.9 Prior Period Expenses/ Income:

All identifiable items of income and expenditure pertaining to prior period are accounted as "Prior Period Adjustment".

1.10 Borrowing Cost:

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

1.11 Other Accounting Policies

These are consistent with generally accepted accounting practices. The figures have been regrouped for comparison purpose wherever applicable.

1.12 Grouping: Heads for the previous year have been regrouped to be comparable to figures from the current year.


Mar 31, 2015

1.1 Basis of Accounting:

The accounts have been prepared under the historical cost on an accrual basis as a going concern. Revenue recognition and expenses incurred are accounted on accrual basis and applicable mandatory standards and in accordance with the requirements of the Companies Act, 2013

1.2 Dividend and Interest:

Dividend income from investments is recognized when right to receive to payment is established. Interest income is accounted on its accrual on a time proportion.

1.3 Depreciation:

Depreciation is charged on Fixed Assets on Straight Line Method and in the manner prescribed in the Companies Act, 2013.

1.4 Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction, less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized and include financing costs relating to the borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets are put to use.

1.5 Investments:

Investments are classified as long term Investment and carried at cost. Provision for diminution in value of long term investments is made only, if such a decline is not temporary, in the opinion of the management.

1.6 Deferred Tax Assets I Liabilities:

Deferred Tax assets or liability for timing difference between the profits as per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted as at the Balance sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which it can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet Date and reduced if sufficient taxable profits are not like to be available to realize all or part of the deferred tax assets.

1.7 The Company has obtained the registration as a Non- Banking Finance Company from Reserve Bank of India duly approved through its letter dated 11th June, 2012 having registration number as N-13.02016

1.9 Prior Period Expenses/ Income:

All identifiable items of income and expenditure pertaining to prior period are accounted as "Prior Period Adjustment".

1.10 Borrowing Cost:

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

1.11 Other Accounting Policies

These are consistent with generally accepted accounting practices. The figures have been regrouped for comparison purpose wherever applicable.


Mar 31, 2013

1.1 Basis of Accounting:

The accounts have been prepared under the Stoical cost on an accrual basis as a going concern. Revenue recognition and expenses incurred are accounted on accrual basis and applicable mandatory standards and in accordance with the requirements of the Compares'' Act, 1956.

1.2 Revenue Recognition

Sales:

Income from Product Sales/Services Charges is recognized upon completion of sales and rendering of the services respectively. Sales are enclave of excise duty but accounted net of sales tax, whenever applicable.

1.3 Dividend and Interest:

Dividend income from Investments is recognized when right to receive to payment is established. Interest income is accounted on its accrual on a time. proportion.

14 Employees'' Remuneration:

The Company''s continuation state Provident Fund are charged to Profit & Loss for the period.

1.5 Depreciation:

Depreciation is charged on Fixed Assets on Straight Line Method and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1 6 Fixed Assist:

Fixed Assets are stated at cost of acquisition or construction, less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized and include, financing costs relating to the borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets are put to use

17 Impairment of Assets:

An is Set Is treated an impaired when the carrying cost of Assets exceeds s recoverable value. An impairment loss is charged to the Profit arid Loss Account In the year in which as asset Is identified as Impaired. The impairment loss recognized In prior accounting periods Is reversed if there has been a change In the estimate of recoverable amount.

1 8 Investments:

Investments are disabled as long term Investment and carried at cost Provision for diminution in value of long term investments Is made only, if such a decline is not temporary, in the opinion of the management.

1.9 Foreign Currency Transaction:

Any income or expenses on account of exchange the difference Is either in settlement or on transaction Is recognized as per revenue gain/loss.

1.10 Income Tax:

Current Tax: Provision for income Tax Is determined in accordance with the provisions of Income tax Act. 1961.

1.11 Deferred Tax Assets I Liabilities:

Deferred Tax assets or liability for timing difference, between the profits per financial statements and the profit offered for Income tax. based on tax rates that have been enacted or substantively enacted as at the Balance sheet date. Deferred tax assets are recognized only if there is reasonable certainty that stuffiest future taxable income will be available, against which it can be realized. The carrying amount of deferred tax assets is reviewed ail each Balance Sheet Date and reduced if sufficient taxable profits arm, not link, to be available to realize an or part of the deferred tax assets,

1.12 The Company has obtained the registration as. Non Banking Finance Company from Reserve Bank of India duly approved through Its letter dated 1 t June, 2012 having registration number as N-13.02016

1 4 Prior Period Expenses/Income:

Aft Identifiable items of income and expenditure pertaining to prier period are accounts as per Prolix Period Adjustment".

1.15 Retirement Benefits:

Liability in respect of represent benefits Is provided and/or charged to profit & loss account as follows:

a) Gratuity: 4o prove ion is made in the. accounts en respect of Gratuity payable to staff These, are charged in the accounts as and when paid.

b Provident Fund: Annual contribution to Provident Fund is charged to the Profit arid Loss Account.

C) Lave Encashment: Provision for leave encashment has not been made in Accounts, as per the present service, rules the leave is required to be enovedor utilized. Hence no leave entitlement is permissible

1. 16 Leases

Assets taken on lease, under which less or effectively retain all the masks and rewards of ownership, are classified as operating lease.

Operating lease payments are recognized as expenses in the profit and loss account on a straight line basis over the lease term.

i.17 Borrowing Cost:

Borrowing costs that are attributable. to the acquisition or construction of qualifying assets are capitalized as part of cost of who assets.

A qualifying asset is one that necessarily takes substantial period of time to get ready for intended us.. All other borrowing costs are charged to revenue.

1.18 Other Accounting Polities

These are consistent with generally accepted accounting practice

1.19 Statement under section 217(ZA) of the Companies Act, 1956

There was no employee in receipt of remuneration at a rate of Rs.24,00,000/- per annum for the whole year, nor there was an employee in receipt of remuneration of Rs.2,00,000/- or more per month for any part of the year.


Mar 31, 2012

1.1Basis of Accounting:

The accounts have been prepared under the historical cost on an accrual basis as a going concern. Revenue recognition and expenses incurred are accounted on accrual basis and applicable mandatory standards and in accordance with the requirements of the Companies Act, 1956.

1.2 Revenue Recognition:

Sales: Income from Product Sales/Services Charges is recognized upon completion of sales and rendering of the services respectively. Sales are inclusive of excise duty but accounted net of sales tax, whenever applicable.

1.3Dividend and Interest:

Dividend income from investments is recognized when right to receive to payment is established. Interest income is accounted on its accrual on a time proportion.

1.4 Employees' Remuneration:

The Company's contributions to the Provident Fund are charged to Profit & Loss for the period.

1.5 Depreciation:

Depreciation is charged on Fixed Assets on Straight Line Method and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.6 Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction, less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized and include financing costs relating to the borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets are put to use.

1.7 Impairment of Assets:

An asset is treated an impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.8 Investments:

Investments are classified as long term Investment and carried at cost. Provision for diminution in value of long term investments is made only, if such a decline is not temporary, in the opinion of the management.

1.9 Foreign Currency Transaction:

Any income or expenses on account of exchange the difference is either in settlement or on transaction is recognized as per revenue gain/loss.

1.10 Income Tax:

Provision for Income Tax has been made against balance current year's profit.

1.11 Deferred Tax Assets I Liabilities:

Deferred Tax assets or liability for timing difference between the profits per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted as at the Balance sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which it can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet Date and reduced if sufficient taxable profits are not like to be available to realize all or part of the deferred tax assets.

1.12 Prior Period Expenses/ Income:

All identifiable items of income and expenditure pertaining to prior period are accounts as per "Prior Period Adjustment".

1.13 Retirement Benefits:

Liability in respect of retirement benefits is provided and/or charged to profit & loss account as follows:

a) Gratuity: No provision is made in the accounts in respect of Gratuity payable to staff. These are charged in the accounts as and when paid.

b) Provident Fund: Annual contribution to Provident Fund is charged to the Profit and Loss Account.

c) Leave Encashment: Provision for leave encashment has not been made in Accounts, as per the present service rules the leave is required to be enjoyed or utilized. Hence no leave entitlement is permissible.

1.14 Leases:

Assets taken on lease, under which lessor effectively retain all the risks and rewards of ownership, are classified as operating lease. Operating lease payments are recognized as expenses in the profit and loss account on a straight line basis over the lease term.

1.15 Borrowing Cost:

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

1.16 Other Accounting Policies

These are consistent with generally accepted accounting practice

During the year the company has issued 1,65,00,000 equity share of Rs.2/- each against the conversion of share warrants, increasing total Issued and Paid up capital to 12,49,51,500 equity share of Rs.2/- each. The said 12,49,51,500 equity shares of Rs.2/-each have been subdivided into 24,99,03,000 equity share of Rs.1/- each fully paid during the year.


Mar 31, 2010

Basis of Accounting:

The accounts have been prepared under the historical cost on an accrual basis as a going concern. Revenue recognition and expenses incurred are accounted on accrual basis and applicable mandatory standards and in accordance with the requirements of the Companies Act, 1956.

Revenue Recognition: Sales:

Income from Product Sales/Services Charges is recognized upon completion of sales and rendering of the services respectively. Sales are inclusive of excise duty but accounted net of sales tax, whenever applicable. Income includes inter-divisional transfer at market price. The value of such inter divisional transfer is included in the value of materials purchase & sales.

Dividend and Interest:

Dividend income from investments is recognized when right to receive to paymenThis established. Interest income is accounted on its accrual on a time proportion.

Employees Remuneration:

The Companys contributions to the Provident Fund are charged to Profit & Loss for the period.

Depreciation :

i) Depreciation is charged on Fixed Assets (other than Goodwill) on Straight Line Method and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Goodwill is amortized over its estimated useful life commencing from the year in which iThis determined.

Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction, less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized and include f nancing costs relating to the borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets are put to use.

Impairment of Assets:

An asseThis treated an impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which as asseThis identif ed as impaired. The impairment loss recognized in prior accounting periods is reversed ifithere has been a change in the estimate of recoverable amount.

Investments :

Investments are classif ed as long term Investment.

As per the revised policy management has decided to value all investments at lower of cost or market value and accordingly diminution in value of investments as at year end is suitably adjusted in the accounts as per Accounting Standards issued by the Institute of Chartered Accountants of India.

Inventories:

i) Finished Goods : At lower of cost or estimated net realizable value. ii) Service Components are valued at cost. iii) Raw materials are valued at cost.

Foreign Currency Transaction:

Any income or expenses on account of exchange the dif erence is either in settlement or on transaction is recognized as per revenue gain/loss.

Income Tax:

In view of the carried forward losses, it has been adjusted against current years profit. Provision for Income Tax has been made against balance current years profit.

Deferred Tax Assets I Liabilities:

Deferred Tax assets or liability for timing dif erence between the prof ts per financial statements and the profit of ered for income tax, based on tax rates that have been enacted or substantively enacted as at the Balance sheet date. Deferred tax assets are recognized only if there is reasonable certainty that suf cient future taxable income will be available, against which it can be realized. The carrying amount of deferred tax assets is reviewed aTheach Balance Sheet Date and reduced if suf cient taxable profits are not like to be available to realize all or part of the deferred tax assets.

Prior Period Expenses/ Income:

All identif able items of income and expenditure pertaining to prior period are accounts as per "Prior Period Adjustment".

Retirement Benefits:

Liability in respect of retirement benefits is provided and/or charged to profit & loss account as follows:

a) Gratuity: : No provision is made in the accounts in respect of Gratuity payable to staf . These are charged in the accounts as and when paid. The management believes that the amount involved is not so signif cant.

b) Provident Fund: Annual contribution to Provident Fund is charged to the Profit and Loss Account.

c) Leave EncashmenThis not applicable.

Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such assets. A qualifying asseThis one that necessarily takes substantial period ofitime to get ready for intended use. All other borrowing costs are charged to revenue

Going Concern Assumption:

The accounts are prepared on the going concern assumption. Amount payable/receivable in respect of sundry creditors, sundry debtors, loans given, unsecured loan obtained, advances recoverable, bank balance etc. are subject to reconciliation and conf rmation.

Contingent Liabilities:

Contingent Liabilities not provided for in respect of:

a) Income Tax Demand aggregating to Rs. 2.31 Lacs which has been disputed by company and appeal has been f led by company. (Previous year Rs. 2.31 Lacs)

b) Sales Tax Liability in respect of disputed cases amounting to Rs.25,94,078/- (Previous Year Rs.25,94,078/-).

c) Central Excise Liability in respect of disputed case amounting to Rs.25,00,000/- (Previous Year Rs.25,00,000/-)

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