Accounting Policies of Axentra Corp Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES

A. Revenue recognition:

Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services.

Revenue from the sale of goods is recognized at the point in time when control of the asset is trans¬
ferred to the customer, generally on the delivery of the goods.

The Company satisfies the performance obligation and recognises revenue over time, if one of the
criteria prescribed under Ind AS 115 - "Revenue from Contracts with Customers" is satisfied. If a
performance obligation is not satisfied over time, then revenue is recognized at a point in time at
which the performance obligation is satisfied.

The Company recognises revenue for performance obligation satisfied over time only if it can
reasonably measure its progress towards complete satisfaction of the performance obligation. The
Company would not be able to reasonably measure its progress towards complete satisfaction of a
performance obligation if it lacks reliable information that would be required to apply an appropri¬
ate method of measuring progress. In those circumstances, the Company recognises revenue only to
the extent of cost incurred until it can reasonably measure outcome of the performance obligation.
The Company considers whether there are other promises in the contract that are separate perfor¬
mance obligations to which a portion of the transaction price needs to be allocated. In determining
the transaction price, the Company considers the effects of variable consideration, the existence of
significant financing component and consideration payable to the customer like return and trade
discounts.

Sales are disclosed excluding net of sales returns and Goods and Service Tax (GST).

Income from operations includes revenue earned on account of job work income which is accounted
as per the terms agreed with the customers. Export benefits available under prevalent schemes are
accounted to the extent considered receivable.

Other income is comprised primarily of interest income, gain / loss on investments and exchange
gain/loss on foreign currency transactions. Interest income is recognized using the effective interest
method.

Rental income from investment properties and subletting of properties is recognised on a straight
line basis over the term of the relevant leases.

B. Foreign Currency Transactions

i. Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the
primary economic environment in which the Company operates (“the functional currency”). The
financial statements are presented in Indian rupee, which is the Company’s functional and presenta¬
tion currency.

ii. Foreign currency transactions and balances

Foreign currency transactions are recorded in the functional currency by applying to the foreign
currency amount the exchange rate between the functional currency and the foreign currency on the
date of the transaction (spot exchange rate).

All monetary items denominated in foreign currency are converted into the functional currency at
the year-end exchange rate. The exchange differences arising on such conversion and on settlement
of the transactions are recognised in the statement of profit and loss.

C. Property, Plant and Equipment:

i. Recognition and measurement

All items of property, plant and equipment are measured at cost less accumulated depreciation and
any accumulated impairment losses. Cost includes expenditure that is directly attributable to the
acquisition of the items.

Income and expenses related to the incidental operations, not necessary to bring the item to the
location and condition necessary for it to be capable of operating in the manner intended by
management, are recognized in the Statement of Profit and Loss.

If significant parts of an item of property, plant and equipment have different useful life, then they
are accounted and depreciated for as separate items (major components) of property, plant and
equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in the
Statement of Profit and Loss.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipment recognized as at April 1, 2016 measured as per the Previous GAAP
and use that carrying value as the deemed cost (except to the extent of any adjustment permissible
under other accounting standard) of the property, plant and equipment.

ii. Subsequent Expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits
associated with the expenditure will flow to the Company.

iii. Depreciation

Depreciation or amortisation is provided from the date the assets are ready to be put to use, using
straight line method over the estimated useful life of the assets.

For determining the appropriate depreciation rates, plant and machinery falling under the category
of continuous process plant has been identified on the basis of technical opinion obtained.
Depreciation on additions to and disposals of the property, plant and equipment and intangible
assets during the period has been provided on pro-rata basis,

according to the period each such asset was used during the period except in case of low value items
not exceeding INR 10,000/- which are depreciated fully in the period of addition. Depreciation on
addition or extension to the existing property, plant and equipment which becomes integral part of
that asset is provided on pro-rata basis according to the remaining useful life of the existing asset.

D. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

a) Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognized when the Company becomes a party to the
contractual provisions of the financial instrument and are measured initially at fair value adjusted by
transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit and
loss) The transaction costs directly attributable to the acquisition of financial assets and financial
liabilities at fair value through profit and loss are immediately recognised in the statement of profit
and loss.

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows under an eligible transaction.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires.

b) Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets are classified into the following cate¬
gories upon initial recognition:

- Debt instruments at amortised cost

- Debt instruments at fair value through other comprehensive income (FVTOCI)

- Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

• Equity instruments measured at fair value profit or loss (FVTPL)

Debt instruments at amortised cost

A ‘debt instrument'' is measured at the amortised cost if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments
of principal and interest (“SPPI”) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using
the effective interest rate (the “EIR”) method. The effective interest rate is the rate that exactly
discounts future cash receipts or payments through the expected life of the financial instrument, or
where appropriate, a shorter period.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the
statement of profit and loss. The losses arising from impairment are recognised in the statement of
profit and loss.

Debt instruments at fair value through other comprehensive income

A ‘debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a. The objective of the business model is achieved both by collecting contractual cash flows and
selling the financial assets, and

b. The asset''s contractual cash flows represent SPPI.

The Company does not have any debt instruments classified in FVOCI category.

Debt instruments at fair value through profit or loss

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

The Company does not have any debt instruments classified in FVTPL category.

Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For all other equity instruments, the Company may
make an irrevocable election to present in the OCI subsequent changes in the fair value. The
Company makes such election on an instrument-by-instrument basis. The classification is made on
initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the statement of profit and loss.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in OCI. There is no recycling of the amounts
from the OCI to the statement of profit and loss, even on sale of the investment. However, the Compa¬
ny may transfer the cumulative gain or
loss within categories of equity.

c) Classification and subsequent measurement of financial liabilities

All financial liabilities are recognised initially at its fair value adjusted by directly attributable
transaction costs.

The measurement of financial liabilities depends on their classification, as described below:

- Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Finan¬
cial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in
the near term. The Company does not have any financial liabilities classified at fair value through
profit or loss.

- Financial liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amor¬
tised cost using the EIR method.

Gains and losses are recognised in the statement of profit and loss when the liabilities are
derecognised.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit and loss.

E. Impairment:

i. Non - financial assets

At each balance sheet date, the Company assesses whether there is any indication that any property,
plant and equipment and intangible assets with finite life may be impaired. If any such impairment
exists, the recoverable amount of an asset is estimated to determine the extent of impairment, if any.
Where it is not possible to estimate the recoverable amount of an individual asset, the Company esti¬
mates the recoverable amount of the cash-generating unit to which the asset belongs.

ii. Financial assets In accordance with Ind AS 109, the Company applies the expected credit loss
(“ECL”) model for measurement and recognition of impairment loss on financial assets and credit
risk exposures. The Company follows ‘simplified approach’ for recognition of impairment loss allow¬
ance on trade receivables. Simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting
date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company deter¬
mines 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, lifetime 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 since initial recognition, then the entity reverts to recognising impairment loss allowance based
on 12-month ECL. ECL is the difference between all contractual cash flows that are due to the Com¬
pany in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all
cash shortfalls),discounted at the EIR of the instrument. Lifetime 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 lifetime ECL which results from default events that are possible
within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/
expense in the statement of profit and loss.

F. Taxes on Income:

Income Tax expense comprises of current and deferred tax. Income Tax expense is recognized in net
profit in the Statement of Profit and Loss except to the extent that it relates to items recognized
directly in equity, in which case it is recognized in other comprehensive income.

(i) Current Tax

Current Tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax
loss) for a period. Current tax for current and prior periods is recognized at the amount expected to
be paid to or recovered from the tax authorities, using the tax rate and tax laws that have been enact¬
ed or substantively enacted by the Balance Sheet date
Current tax assets and liabilities are offset if, and only if, the Company:

a) has a legally enforceable right to set off the recognized amounts; and

b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible tempo¬
rary differences to the extent that it is probable that future taxable profits will be available against
which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realized; such reductions
are reversed when the probability of future taxable profits improves. Unrecognized deferred tax
assets are reassessed at each reporting date and recognized to the extent that it has become proba¬
ble that future taxable profits will be available against which they can be used.

The measurement of deferred tax reflects the tax consequences that would follow from the manner
in which the Company expects, at the reporting date, to recover or settle the carrying amount of its
assets and liabilities.

Deferred tax assets and liabilities are offset only if:

a) the entity has a legally enforceable right to set off current tax assets against current tax liabilities;
and

b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity.

G. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their econom¬
ic best interest. A fair value measurement of a non- financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly Observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

H. Inventories:

i. Finished and Semi-Finished Products produced and purchased by the company are carried at Cost
and net realizable value, whichever is lower.

ii. Work in Progress is carried at lower of cost and net realizable value.

iii. Raw Material is carried at lower of cost and net realizable value.

iv. Stores and Spares parts are carried at cost. Necessary provision is made and expensed in case of
identified obsolete and nonmoving items.

Cost of Inventory is generally ascertained on the ‘Weighted average'' basis. Work in progress,
Finished and semi-finished products are valued at on full absorption cost basis.

Cost Comprises expenditure incurred in the normal course of business in bringing such inventories
to its location and includes, where applicable, appropriate overheads based on normal level of
activity. Packing Material is considered as finished goods. Consumable stores are written off in the
year of Purchase.

I. Cash and Cash Equivalents:

Cash and cash equivalents comprise cash on hand and demand deposits, together with other
short-term, highly liquid investments (original maturity less than 3 months) that are readily
convertible into known amounts of cash and which are subject to an insignificant risk of changes in
value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts and cash credits as they
are considered an integral part of the Company''s cash management.

J. Employee benefits:

A. Short term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as
short term employee benefits. Benefits such as salaries, wages, performance incentives, etc. are
recognized at actual amounts due in the period in which the employee renders the related service.

K. Borrowing costs:

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete
and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Other borrowing costs are expensed in the period in which they are incurred.

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Mar 31, 2014

A Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 except in the case of Revenue Recognition and Employee Benefits more fully explained in Notes 2 (d) and 2(I) below. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

c Depreciation and amortisation

Depreciation has been provided on the Written Down Value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

Assets costing less than Rs.5,000 each are fully depreciated in the year of capitalisation

d Revenue recognition

Property Development

In respect of Contract, the Company follows the Completed Contract of method of Accounting revenue and costs. Under the method, revenue is recognised only when the Project is completed or substantially completed.

Project Promotion fees is the fee charged to Customers on allotment of flats at a specific rate per Square Feet of Built up Area to be constructed in consideration of the various services rendered by the Company by promoting the respective projects. The same is recognised as Income upon signing the construction agreement with the Customers and is not linked to the status of completion of the Project.

e Other income

Other Income including Interest income is accounted on accrual basis.

f Fixed Assets

Fixed Assets are stated at Cost, less accumulated depreciation/amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

Fixed Assets individually costing Rs.5,000/- or less are fully depreciated during the year.

g Foreign currency transactions and translations

Initial recognition

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date

"Foreign currency monetary items of the Company outstanding at the Balance Sheet date are restated at the year-end rates.In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on the Balance Sheet date. Non-monetary items are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss."

h Investments

"Long-term investments, are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties. "

I Employee benefits

Employee benefits include provident fund, gratuity fund and compensated absences.

Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is not ascertainable as the Company is yet to evolve a scheme for the same.

Short-term employee benefits

"The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under :(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and(b) in case of non-accumulating compensated absences, when the absences occur."

Long-term employee benefits and post employment benefits

The Company does not have a Scheme for Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service. The Company does not have a scheme for providing Post Employment benefits to its employees.

j Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share, if any, is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.

k Taxes on income

"Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company."

Deferred tax is recognised 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 is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

l Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

m Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2013

"A 1.1 Significant accounting policies accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 except in the case of Revenue Recognition and Employee Benefits more fully explained in Notes 2 (d) and 2(l) below The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialize. Depreciation and amortization

Depreciation has been provided on the Written Down Value method as per the rates AS 26.63 prescribed in Schedule XIV to the Companies Act, 1956. AS 26.78

AS 26.90.a I I Assets costing less than Rs.5,000 each are fully depreciated in the year of igasa _

Revenue recognition _

AS7.38.P " Property Development

AS 7-38-c " In respect of Contract, the Company follows the Completed Contract of method

AS 9-12 of Accounting revenue and costs. Under the method, revenue is recognised only when the Project is completed or substantially completed.

Project Promotion fees is the fee charged to Customers on allotment of flats at a specific rate per Square Feet of Built up Area to be constructed in consideration of the various services rendered by the Company by promoting the respective projects. The same is recognised as Income upon signing the construction agreement with the Customers and is not linked to the status of completion of the Project.

AS 9.13 7 Other income

Other Income including Interest income is accounted on accrual basis.

T Fixed Assets

ASm20 Fixed Assets are stated at Cost, less accumulated depreciation / amortization. AS 10.23 Costs include all expenses incurred to bring the asset to its present location and AS

10.8. 2 condition.

Fixed Assets individually costing Rs.5,000/- or less are fully depreciated during the year.

Foreign currency transactions and translations

" Initial mrnqnitinn

AS 11.9 Transactions in foreign currencies entered into by the Company and its integral AS 11.21 foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction._

Measurement of foreign currency monetary items at the Balance Sheet d^

AS 11.11 I Foreign currency monetary items of the Company outstanding at the Balance

AS 11 21 Sheet date are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on the Balance Sheet date. Non-monetary items are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss. _

Investments

ASm8 Long-term investments, are carried individually at cost less provision for diminution,

AS 13.31 other than temporary, in the value of such investments. Current investments are

AS 13 32 carried individually, at the lower of cost and fair value. Cost of investments include

AS 13.35.8 acquisition charges such as brokerage, fees and duties. Employee benefits

Employee benefits include provident fund, gratuity fund and compensated absences. AS 15.45 ~ Defined contribution plans

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

AS 15.55 Defined plan, _

AS 15-57 For defined benefit plans in the form of gratuity fund, the cost of providing benefits ascertainable as Company js yet to evo,ve a scneme for tne same.

AS 1 AS 15.120.a

AS 15.120.D

AS 15 10 " Short-term employee benefit.

AS 15.11 The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under :

b) in case of non-accumulating compensated absences, when the absences occur.

AS 15.129 I nng-ferm employee benefits and post employment benefits

The Company does not have a Scheme for Compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The Company does not have a scheme for providing Post Employment benefits to its employees.

Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax

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Mar 31, 2012

A Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 except in the case of Revenue Recognition and Employee Benefits more fully explained in Notes 2 (d) and 2(i) below. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year, b Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise, c Depreciation and amortisation

Depreciation has been provided on the Written Down Value method as per the rates prescribed in the Income Tax Act 1961.

Assets costing less than Rs.5,000 each are fully depreciated in the year of capitalisation d Revenue recognition Property Development

In respect of Contract, the Company follows the Completed Contract of method of Accounting revenue and costs. Under the method, revenue is recognised only when the Project is completed or substantially completed.

Project Promotion fees is the fee charged to Customers on allotment of flats at a specific rate per Square Feet of Built up Area to be constructed in consideration of the various services rendered by the Company by promoting the respective projects. The same is recognised as Income upon signing the construction agreement with the Customers and is not linked to the status of completion of the Project, e Other income

Other Income including Interest income is accounted on accrual basis, f Fixed Assets

Fixed Assets are stated at Cost, less accumulated depreciation/amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

Fixed Assets individually costing Rs.5,000/- or less are fully depreciated during the year, g Foreign currency transactions and translations Initial recognition

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date

"Foreign currency monetary items of the Company outstanding at the Balance Sheet date are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on the Balance Sheet date. Non-monetary items are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss." h Investments

"Long-term investments, are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties." i Employee benefits

Employee benefits include provident fund, gratuity fund and compensated absences.

Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as

defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is not ascertainable as the Company is yet to evolve a scheme for the same.

Short-term employee benefits

"The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under :(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and(b) in case of non-accumulating compensated absences, when the absences occur."

Long-term employee benefits and post employment benefits

The Company does not have a Scheme for Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service. The Company does not have a scheme for providing Post Employment benefits to its employees, j Earnings per share

Basic earnings per share is computed by dividing the profit I (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share, if any, is computed by dividing the profit/ (loss) aftertax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date,

k Taxes on income

"Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is

convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company."

Deferred tax is recognised 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 is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

I Impairment of assets

The carrying values of assets I cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

m Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2010

A) The financial accounts are prepared under the accrual method, unless otherwise stated and at historical cost.

b) Revenue Recognition

1) Property Development.

i) In respect of contract the company follows completed contract method of accounting revenue and costs. Under this method, revenue is recognized only when the project is completed or substantially completed.

c) Fixed Assets and Depreciation :

i) Fixed assets are stated at cost less depreciation

ii) Depreciation on all assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act 1956.

d) Current Assets.

i) Stock of shares is valued at cost. However in case of shares of Dugar Finance India Limited, the shares have been valued at a notional value of Rs.3/ Share.

ii) Real Estate debtors represent (i) values of sales less amount received and (ii) unrealized project promotion fees.

e) Deferred Taxation Liability

Deferred taxation Liability if any, has been determined as Rs. NIL in view of the continuous losses suffered by the Company and accordingly has not been provided for in the accounts.

* Quoted (Market value - Rs.344504) Previous year Rs.1,81,280 ^ ** Unquoted