Accounting Policies of Alka India Ltd. Company

Mar 31, 2025

1. Significant accounting policies

i. Statement of compliance and basis of preparation

The financial statements of the company have been prepared are in accordance with
the applicable requirements of the Companies Act 2013 and comply in all material
aspects with the Indian Accounting Standards(hereinafter referred as to ''IND AS] as
notified by ministry of corporate affairs in pursuant to section 133 of Companies Act,
2013 read with Rule 3 of the Companies (Indian Accounting Standards] Rules, 2015
and Companies (Indian Accounting Standards] Amendment Rules 2016, The
Companies (Indian Accounting Standards] Rules, 2017 and other relevant provisions
of the Companies Act, 2013.

Accounting policies have been applied consistently to all periods presented in these
financial statements, except for new accounting standards adopted by the Company.
For clarity, various items are aggregated in the statement of profit and loss and
balance sheet. These items are disaggregated separately in the notes to the financial
statements, where applicable.

All amounts included in the financial statements are reported in INR in Lakhs unless
otherwise stated

ii. Basis of measurement

These financial statements have been prepared on a historical cost convention and
on an accrual basis, except for the following material items which have been
measured at fair value as required by relevant Ind AS:

a] Derivative financial instruments;

b] Financial instruments classified as fair value through other comprehensive
income or fair value through profit or loss; and

c] The defined benefit asset / (liability] are recognized as the present value of
defined benefit obligation less fair value of plan assets.

iii. Use of Estimates

The preparation of financial statements in conformity with Indian Accounting
Standards requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses assets and
liabilities and the disclosure 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.

iv. Property plant and Equipment''s

Property, Plant and equipment is a stated at cost, net of accumulated
depreciation and accumulated impairment losses, if any. Cost comprises of
purchase price inclusive of taxes etc. up to the date the asset is ready for its
intended use. Depreciation is provided underwritten down value method at the
rates and in the manner prescribed under Schedule II to the Companies Act,
2013.

v. Depreciation Tangible Fixed Assets

Depreciation on fixed assets is calculated on a Straight Line method at based on
the useful lives estimated by the management or those prescribed under the
Schedule Il of the Companies Act, 2013, The Company does not have any fixed
Asset.

vi. Intangible Assets

Intangible assets acquired by the Company are stated at cost less accumulated
amortization less impairment loss, if any. The determination of useful life is
based upon Management''s judgment and includes assumptions on the timing and
future estimated revenues to be generated by these assets

Other intangible assets, which comprise internally generated and acquired
software used within the Entity''s digital, home entertainment and internal
accounting activities are stated at cost less amortization less provision for
impairment. The amortization charge recognized in the Statement of profit and
loss

vii. Borrowing Costs

Borrowing cost includes interest, amortization ancillary costs incurred in
connection with the arrangement of borrowings and exchange differences arising
from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest 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 capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period they occur.

viii. Impairment of non-financial assets

For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash flows (cash generating units). As
a result, some assets are tested individually for impairment and some are tested
at the cash generating unit level. All individual assets or cash generating units are
tested for impairment whenever vents or changes in circumstances indicate that
the carrying amount may not be recoverable

The carrying amounts of assets are reviewed at each balance sheet date to
determine if there is any indication of impairment based on external or internal
factors. An impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount which represents the greater of the net
selling price of assets and their value in use in Credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at each reporting date night
from its initial recognition

For recognition of impairment loss on other financial assets and risk exposure,
the Company determines that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss However, if
credit risk has increased significantly life time ECL is used. If in a subsequent
period credit quality of the instrument improves such that there is no longer a
significant increase in credit risk then the entity reverts to recognizing
impairment loss allowance based on 12-month ECL.

Life time ECL are the expected credit losses resulting from all possible default
events over the expected life of a financial instrument. The 12 month ECL is a
portion of the life time ECL which results from default events that are possible
within 12 months after the reporting date

ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the entity
expects to receive (i.e all cash shortfalls], discounted at the original EIR When
estimating the cash flows, an entity is required to consider all contractual terms
of the financial instrument including prepayment, extension, call and similar
options] over the expected life of the financial instrument However in rare cases
when the expected life of the financial instrument cannot be estimated reliably
then the entity is required to use the remaining contractual term of the financial
instrument

ECL impairment loss allowance (or reversal] recognized during the period is
recognized as income/ expense in the Statement of profit and loss. This amount is
reflected under the head other expenses in the Statement of profit and loss.

For assessing increase in credit risk and impairment loss, the Company combines
financial instruments on the basis of shared credit risk characteristics with the
objective of facilitating an analysis that is designed to enable significant increases
in credit risk to be identified on a timely basis

ix. Impairment of financial assets

In accordance with IND AS 109 the Company applies expected credit loss (ECL]
model for measurement and recognition of impairment loss on risk exposure
arising from financial assets like debt instruments measured at amortized cost
e.g. trade receivables and deposits.

The Company follows simplified approach tor recognition of impairment loss
allowance on Trade receivables or contract revenue receivables The application
of simplified approach does not require the Company to track changes Purchase
price is assigned using a weighted average basis. Net realizable value is defined
as anticipated selling price or anticipated revenue less cost to completion.

x. Investments in subsidiaries, Associates and Joint Ventures

Investments in subsidiaries, associates and joint ventures are carried at cost less
accumulated impairment losses, if any. Where an indication of impairment exists,
the carrying amount of the investment is assessed and written down immediately
to its recoverable amount. On disposal of investments in subsidiaries, associates
and joint venture, the difference between net disposal proceeds and the carrying
amounts are recognized in the Statement of Profit and Loss.

xi. Inventories

Inventories comprise of traded goods stores and spares are valued at cost or at
net realizable value whichever is lower. Cost of traded goods, stores and spares is
determined on weighted average basis. Stores and spares, which do not meet the
definition of property plant and equipment, are accounted as inventories Net
realizable value is the estimated selling price in the ordinary course of business
and estimated costs necessary to make the sale

xii. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits
will flow to the company and the revenue can be reliably measured. The
following specific recognition criteria must also be met before revenue is
recognized

xiii. Accounting for Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in accordance
with the Income Tax Act 1961. Current and deferred tax shall be recognized as
income and expenses are included in profit and loss for the period, except to the
extent that the tax arises from (a) a transaction or event which is recognized in
the same or different period, outside profit or loss, either in other comprehensive
Income or directly in equity or (b) a business combination. Deferred taxes
recognized in respect of temporary differences between the carrying amount of
assets and liabilities for financial reporting purpose and corresponding amounts
used for taxation purpose except to the extent it relates to business Combination
or to an item which is recognized directly in equity and in other comprehensive
Income.

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
recognized only to the extent that it is probable that future taxable profit will be
available against which the assets can be utilized. A deferred tax assets shall be
recognized for the carry-forward of unused tax losses and unused tax credits to
the extent that it is probable that future taxable profit will be available against
which the unused tax losses and use tax credits can be utilized Deferred tax
assets are reviewed at each reporting date and Reduced to the extent that it is no
longer probable that the related tax benefit will be Realized. A deferred tax
liability is recognized based on the expected manner of realization or settlement
of carrying amount of assets and liabilities.

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

Minimum alternate tax (MAT paid in a year is charged to the statement of profit
and loss as current tax. The Company recognizes MAT credit available as an asset
only to the extent that there is convincing evidence that the Company will pay
normal income tax during the specified period. 1o the period for which MAT
credit is allowed to be carried forward In the year in which the Company
recognizes MAT credit as an asset in accordance with the Guidance Note on
Accounting for credit available in respect of Minimum Alternative Tax under the
Income tax Act 1961 the said asset is created by way of credit to the statement of
profit and loss and how is MAT Credit Entitlement The Company reviews the
"MAT credit entitlement" asset at each reporting date and write down the asset
to the extent the Company does not have convincing evidence that it will pay
normal tax dung the specified period.

xiv. Foreign Currency Translation

Transactions in foreign currencies are translated at the rates of exchange
prevailing on the dates of the transactions. Monetary and liabilities in foreign
currencies are translated at the prevailing rates of exchange at the balance sheet
date. Non-monetary items that are measured at historical cost in a foreign
currency are translated at the exchange rate at the date of the transaction Non¬
monetary items that are measured at fair value a foreign currency are translated
using the exchange rates at the date when the fair value was determined.

Any exchange differences arising on the settlement of monetary items or on
translating monetary items at rates different from those at which they were
usually recorded are translated at rates prevailing at the date when the fair value
was determined Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.

The Company''s functional currency and the presentation currency is an Indian
Rupee

xv. Retirement and Other Employee Benefits

Company doesn''t have any employee who has completed 5 year of continues
services for provision for gratuity and other benefits. And Contributions payable
by the Company to the concerned government authorities in respect of provident
fund family pension fund and employee state insurance are charged to the profit
and loss account it any

xvi. Segment reporting

The company''s business activity falls within angle primary segment the
disclosure requirements of Indian Accounting Standards IND AS 105] "Operating
segment is not applicable

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Sep 30, 2014

(a) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended September 30, 2014, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure 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.

(c) Tangible fixed assets

Fixed assets are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and

maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred.

(d) Depreciation Tangible fixed assets.

Depreciation on fixed assets is calculated on a straight line method based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

Rates (WDV)

Furniture and fixtures 6.33%

Computers 16.21%

Vehicles 9.50%

Residential House 1.63 %

(e) Leases

Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, 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.

(f) Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest 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 capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(g) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Investments are not physically verified by us.

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 and finance charges of brokers, if an investment is acquired, or partly acquired, by the issue of shares or other securities.

Company has not making any provision for dimluatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same because it is temporary in nature

(h) Inventories

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(i) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured as per AS-9 Revenue recognitions issued by ICAI.

(j) Accounting for taxes on income

Tax expense comprises of current and deferred taxes. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. 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. 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 recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. 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 reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(k) Retirement and other employee benefits

Company doesn''t have any employee whose completed 5 year of continues services for provision for gratuity and other benefits. And Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the profit and loss account if any.

(l) Provisions

A provision is recognized when the company has a present obligation as a result of 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. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

(m) Contingent liabilities

Provisions are recognized when the Company has present legal or constructive obligation, a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Contingent liabilities, if any, are disclosed by way of notes to the Balance Sheet

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Sep 30, 2013

1. Background

Basis of the preparations of financial statements are prepared accordance with "GAAP "un- der the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with 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 the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

2.1 Summary of significant accounting policies

(a) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended 30 September 2013, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and pre- sentation of its financial statements. The adoption of revised Schedule VI does not im- pact recognition and measurement principles followed for preparation of financial state- ments. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in ac- cordance with the requirements applicable in the current year.

(b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure 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.

(c) Tangible fixed assets

Fixed assets are stated at cost net of accumulated depreciation and accumulated impair- ment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condi- tion for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to- day repair and maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred.

(d) Depreciation Tangible fixed assets.

Depreciation on fixed assets is calculated on a straight line method based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

Rates (SLM) Furniture and fixtures 6.33%

Computers 16.21%

Vehicles 9.50%

Residential House 1.63%

Office Equipment 6.33%

(e) Leases

Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease pay- ments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

(f) Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign cur- rency borrowings to the extent they are regarded as an adjustment to the interest 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 capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(g) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current invest- ments. All other investments are classified as long-term investments. Investments are not physically verified by us.

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 and finance charges of brokers, if an investment is acquired, or partly acquired, by the issue of shares or other securities.

Company has not making any provision for dimulatation in the value of shares and securities. And as per management opinion there is no requirements to make any provi- sions for the same because it is temporary in nature.

(h) Inventories

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(i) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured as per AS-9 Revenue recognitions issued by ICAI.

(j) Accounting for taxes on income

Tax expense comprises of current and deferred taxes. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and re- versal of timing differences of earlier years. 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 recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. 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 reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write- down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(k) Retirement and other employee benefits

Company doesn''t have any employee who completed 5 year of continous services for provision for gratuity and other benefits. And Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the profit and loss account if any.

(l) Provisions

A provision is recognized when the company has a present obligation as a result of 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. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These esti- mates are reviewed at each reporting date and adjusted to reflect the current best esti- mates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

(m) Contingent liabilities

Provisions are recognized when the Company has present legal or constructive obliga- tion, a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Contingent liabilities, if any, are disclosed by way of notes to the Bal- ance Sheet.

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Sep 30, 2012

(a) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended 30 September 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure 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.

(c) Tangible fixed assets

Fixed assets are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred.

(d) Depreciation Tangible fixed assets.

Depreciation on fixed assets is calculated on a straight line method based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

(e) Leases

Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, 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.

(f) Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest 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 capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(g) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, 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.

Company has not making any provision for dimulation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same because it is temporary in nature

(h) Inventories

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(i) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. As per AS-9 Revenue recognitions issued by ICAI.

(j) Accounting for taxes on income

Tax expense comprises of current and deferred taxes. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. 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. 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 recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. 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 reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(k) Retirement and other employee benefits

Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the profit and loss account.

(l) Provisions

A provision is recognized when the company has a present obligation as a result of 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. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

(m) Contingent liabilities

Provisions are recognized when the Company has present legal or constructive obligation, a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Contingent liabilities, if any, are disclosed by way of notes to the Balance Sheet

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Sep 30, 2011

(a) BASIS OF ACCOUNTING

Basis of the preparations of financial statements are prepared accordance with "GAAP " under the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

(b) FIXED ASSETS AND DEPRECIATION.

Fixed assets are stated at cost inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation.

Depreciation is provided on the SLM method at the rates specified in the Schedule XIV to the Companies Act, 1956.

Depreciation is provided on pro-rata basis on the additions/ deductions, if any.

(c) INVENTORIES.

Stock - In - Trade is valued at cost or realizable value whichever is lower.

(d) INVESTMENT.

I. Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments.

II. Company has not making any provision for dimluatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same because it is temporary in nature.

(e) MISCELLANEOUS EXPENDITURE.

Preliminary Expenses are being written off over a period of Ten Years.

(f) Employee Benefits.

i. Encashment of leave is accounted in the year in which option of encashment is exercised by employees.

ii. Liability for Gratuity will be provided as when accrued.

(g) REVENUE RECOGNITION.

Expenses and income considered payable and receivable respectively are accounted on accrual basis except liability for Leave encashment, if any, which shall be accounted for as and when paid.

(h) TAXES ON INCOME.

Current tax, if any, is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Sep 30, 2010

(a) BASIS OF ACCOUNTING.

Basis of the preparations of financial statements are prepared accordance with "GAAP " under the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

(b) FIXED ASSETS AND DEPRECIATION.

Fixed assets are stated at cost inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation.

Depreciation is provided on the SLM method at the rates specified in the Schedule XIV to the Companies Act, 1956.

Depreciation is provided on pro-rata basis on the additions/ deductions, if any.

(c) INVENTORIES.

Stock - In - Trade is valued at cost or realizable value whichever is lower.

(d) INVESTMENT.

I. Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments.

II. Company has not making any provision for dimluatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same.

(e) MISCELLANEOUS EXPENDITURE.

Preliminary Expenses are being written off over a period of Ten Years.

(f) Employee Benefits.

i. Encashment of leave is accounted in the year in which option of encashment is exercised by employees.

ii. Liability for Gratuity will be provided as when accrued.

(g) REVENUE RECOGNITION.

Expenses and income considered payable and receivable respectively are accounted on accrual basis except liability for Leave encashment, if any, which shall be accounted for as and when paid.

(h) TAXES ON INCOME.

Current tax, if any, is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Sep 30, 2009

(a) BASIS OF ACCOUNTING.

Basis of the preparations of financial statements arc prepared accordance with "GAAP " under the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise arc consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

(b) FIXED ASSETS AND DEPRECIATION.

(i) Fixed assets arc stated at cost inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation.

(ii) Depreciation is provided on the SLM method at the rates specified in the Schedule XIV to the Companies Act, 1956.

(iii) Depreciation is provided on pro-rata basis on the additions/ deductions, if any.

(iv) Company sale its land and building in last year but not booked at the same lime due to possession of the assets so during the year company booked same as sale of assets. And loss booked as prior period items during the year.

(c) INVENTORIES.

Stock -In - Trade is valued at cost or realizable value whichever is lower.

(d) INVESTMENT.

I. Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments. II. Company has not making any provision for dimluatation in the value of shares and securities. And whole the as per management opinion there is no requirements to make any provisions for the same. III. Some investments of the company are stated a market value at the end of the last year so this year we take them at cost and difference arise due to same accounting policy for all investments arc below the line item during the year.

(e) MISCELLANEOUS EXPENDITURE.

Preliminary Expenses are being written off over a period of Ten Years.

Employee Benefits.

i. Encashment of leave is accounted in the year in which option of encashment is exercised by employees.

ii. Liability for Gratuity will be provided as when accrued.

(g) REVENUE RECOGNITION,

Expenses and income considered payable and receivable respectively are accounted on accrual basis except liability for Leave encashment, if any, which shall be accounted for as and when paid.

(h) TAXES ON INCOME

Current tax, if any, is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on liming difference, being the difference between taxable income and accounting income that originate in one period and arc capable of reversal in one or more subsequent periods.