Accounting Policies of Checkpoint Trends Ltd. Company

Mar 31, 2025

1.1 Basis of preparation of financial statements

The financial statements are prepared on going concern basis in accordance with Generally Accepted
Accounting Principles in India (GAAP) and comply in all material respects with the Accounting
Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014, and Companies (Accounting Standards) Amendment Rules, 2016 and the
relevant provisions of the Companies Act, 2013.

1.2 Historical Cost Convention

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.

1.3 Use of estimates

The preparation of financial statements requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
liabilities as at the date of the financial statements and the reported amount of revenue and expenses
for the year. Actual results could differ from these estimates. Any revision to such accounting
estimates is recognized prospectively in current and future periods.

1.4 Property, plant and equipment

All items of PPE are stated at cost less depreciation and impairment, if any. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Cost includes its purchase price
including non-refundable taxes and duties, directly attributable costs of bringing the asset to its
present location and condition and initial estimate of costs of dismantling and removing the item and
restoring the site on which it is located.

Subsequent costs are included in the carrying amount of PPE or recognised as a separate PPE, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. The carrying amount of any
component accounted for as a separate asset is derecognised when replaced. All other repairs and
maintenance are charged to the Statement of Profit and Loss during the reporting period in which
they are incurred.

1.5 Depreciation

The Company depreciates its PPE over the useful life in the manner prescribed under Part C of
Schedule II to the Act. Depreciation commences when the assets are ready for their intended use and
is computed on pro-rata basis from the date of installation/ acquisition till the date of sale/ disposal.
Management believes that useful life of assets are same as those prescribed in Schedule II to the Act.

1.6 Inventories

Inventories are valued at lower of cost or estimated net realisable value. As on 31st March Company
does not have any inventory in its books.

1.7 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received or receivable net of discounts,
returns and rebates taking into account contractually defined terms and excluding taxes or duties
collected on behalf of the government.

a) Sales are recognised when substantial risk and rewards of ownership are transferred to
customer as per the terms of contract. No revenue is recognised if there are significant uncertainties
regarding recovery of the amount due, associated costs or the possible return of goods

b) Interest income is accrued on a time proportion basis, by reference to the principal
outstanding and the applicable effective interest rate.

c) Dividend income from investments is recognised when the shareholder''s rights to receive
payment have been established.

1.8 Investments

a) Company does not have any long term investment as on 31st March 2025.

b) Current investments are stated at lower of cost and fair market value determined on an
individual investment basis. Long-term investments are stated at cost less provision for diminution
other than temporary in the value of such investments.

1.9 Borrowing costs

Borrowing costs are interest and other costs that the Company incurs in connection with the
borrowing of funds and is measured with reference to the effective interest rate applicable to the
respective borrowing.

1.10 Employee benefits

Company does not provided any Employee benefit provision in financials as company does not cross
the required limit of no of Employees.

(i) Short-term Obligations

(ii) Post-employment Obligations

1.11 Accounting for taxes on income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the
year as per the provisions of the Income Tax Act, 1961.

b) Deferred tax is recognized, subject to consideration of prudence, on timing difference, being
the difference between taxable incomes and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

1.12 Operating lease A. Where Co is lessee

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor
are classified as operating leases. Lease payments under

operating leases are recognized as an expense on accrual basis in accordance with the respective lease
agreements.

B. Where Co is lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership
of an asset are classified as operating leases. Rental income from operating lease is recognised on a
straight line basis over the term of the relevant lease.

1.13 Foreign currency transactions

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction
dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the
Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end
exchange rates and the resultant exchange differences are recognised in the Statement of Profit and
Loss.

1.14 Earnings per share

Basic earnings per share are computed by dividing the profit / (loss) after tax by the weighted average
number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the year is adjusted for the events for bonus issue, bonus element in a rights issue
to existing shareholders, share split and reverse share split (consolidation of shares). Diluted earnings
per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and
other charges to expense or income (net off any attributable taxes) 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
conversion of all dilutive potential equity shares.

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Mar 31, 2024

Significant Accounting Policies

1.1 Basis of preparation of financial statements

s^th^e^ccou^0O,nJ^^{)ncem basis In} accordance with Generally Accepted Accounting Principles in India (GAAP) and comply m all mat«*nal

r,''* - - ~

1.2 Historical Cost Convention

finana^stetements''are^n^stert^h^raTof^re^ousyear.^baSlS ^ ^ ^h''^S,°^riCal “^{nventon The} accounting policies adopted in the preparation of

1.3 Use of estimates

disclosuref ^ rontingenMiab!li ti« ^Uhat^nf\h⁶ ™^anagem*^{nt to make estimates and} assumptions that affect the reported amounts of assets and liabilities

from these estates* Z* *" ''**** * ''^{1Â¥#rMJ# 3nd eXpcnses for me Actual resu,ts} <*"*

y uch accounting estimates is recognized prospectively in current and future periods.

1.4 Property, plant and equipment

c^dtld^te purd^M Historical cost includes expenditure that is directly attributable to the acquisition of the items.

“ of costal °'' h""⁹''"⁹ ^ ^a"^d ^

assoa^ed^^ftettem^M flwToTh^^OToanv^d^h^msf TZ?*"* Z '' ^PPE'' ^{35 appr}°^pda,e’ " ^ls

asset is derecognised when r^la^d AlZer reoa^n? T ^b* ^{meaSUred reliably The} “"*« ^{amount of any} component accounted for as a separate

incurred. * ^{P a}"^{d ma,ntenance are} barged to the Statement of Profit and Loss during the reporting penod in which they are

1.5 Depreciation

ready^oMheiMmendecTuse ^d^sramouted on n^'' "t ''h''h⁶ T''T ^{presciibe Schedule II to the Ad Depreciation commences when the assets are
of assets are same as those prescn““ch_edu''e ^to the" °'' aCqU''Si“°n““ da,e °f sale/ dlsdosal'' Ma™gement believes that useful We}

1.6 Inventories

Inventories are valued at lower of cost or estimated net realisable value. As on 31st March Company does not have any inventory in its books.

1.7 Revenue recognition

^l^^r®!°⁹™^{Sedt0 the e}j^rte"^{t that rt is} Potable that the economic benefits will flow to the Company and the revenue can be reliably measured regardless of
aa»unt awtradually ^AneiHems^nd^xdudir^ptoeTo^duties^liKted on^eh^dlh^govem^mh ^ ^rec8''^wab^^{e ne(} 01 discounts, returns a *d rebate^talun^muj

sLnffiSnt un^nti^r^ing^ery^''ih^s^^ °^f “"*** ^N° ^{revenue is recognised ,f there are}

b) Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the applicable effective interest rate.

c) Dividend income from investments is recognised when the shareholder''s rights to receive payment have been established.

1.8 Investments

a) Company does not have any long term investment as on 31st March 2024.

b) Current investments are stated at lower of cost and fair market value determined on an individual investment basis Lonn term ^

provision for diminution other than temporary in the value of such investments. investment basis. Long-term investments are stated at cost less

1.9 Borrowing costs

r^7c,r_to^ar^ⁿe^d^r ^{that me COmPany inCUrS in <}“⁰ⁿ ^ ^the °'' ^ ^and * <° ». effect interest

1.10 Employee benefits

Company does not provided any Employee benefit provision in financials as company does not cross the required limit of no of Employees.

(fl) Post-employment Obligations
(I) Short-term Obligations

1.11 Accounting for taxes on income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year as per the provisions of the Income Tax Act, 1961

b) Deferred tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable incomes and accountina income that

onginate in one penod and are capable of reversal in one or more subsequent penods and measured using relevant enacted tax rates. ⁹

1.12 Operating lease

A. Where Co is lessee

tT* ^{aSSeta under wtlich a}" ^{the risk and rewards} °^f ownership are effectively retained by the lessor are classified as operating leases. Lease payments under
operating leases are recognized as an expense on accrual basis in accordance with the respective lease agreements. ^V

B. Where Co It lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases Rental income from
operating lease is recognised on a straight line basis over the term of the relevant lease.

1.13 Foreign currency transactions

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency
transactions are recognised in the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in
the Statement of Profit and Loss.

1.14 Eamlngs per share

Basic eamlngs per share are computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year The
weighted average number of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of shares): Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for
dividend, interest and other charges to expense or income (net off any attributable taxes) 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 conversion of all
dilutive potential equity shares.

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Mar 31, 2014

A. Accounting Conventions

The accompanying financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

All Income & Expenditure items having material bearing on the financial statements are recognized on accrual basis except material uncertainty.

b. Fixed Assets

Fixed Assets are disclosed at historical cost of acquisition.

c. Depreciation

Depreciation on fixed assets is provided on Straight line method at the rates prescribed in schedule XIV to the Companies Act, 1956. Depreciation on additions during the years have been provided on pro-rata basis.

d. Taxation

The provision for taxation is ascertained profit computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference taxable income & accounting income that originate in one period and are capable of reversal in one or more subsequent period.

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Mar 31, 2013

A. Accounting Conventions

The accompanying financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

All Income & Expenditure items having material bearing on the financial statements are recognized on accrual basis except material uncertainty.

b. Fixed Assets

Fixed Assets are disclosed at historical cost of acquisition.

c. Depreciation

Depreciation on fixed assets is provided on Straight line method at the rates prescribed in schedule XIV to the Companies Act, 1956. Depreciation on additions during the years have been provided on pro-rata basis.

d. Taxation

The provision for taxation is ascertained profit computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference taxable income & accounting income that originate in one period and are capable of reversal in one or more subsequent period.

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Mar 31, 2012

A. Accounting Conventions

The accompanying financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

All Income & Expenditure items having material bearing on the financial statements are recognized on accrual basis except material uncertainty.

b. Fixed Assets

Fixed Assets are disclosed at historical cost of acquisition.

c. Depreciation

Depreciation on fixed assets is provided on Straight line method at the rates prescribed in schedule XIV to the Companies Act, 1956. Depreciation on additions during the years have been provided on pro-rata basis.

d. Taxation

The provision for taxation is ascertained profit computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference taxable income & accounting income that originate in one period and are capable of reversal in one or more subsequent period.

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Mar 31, 2010

1. Balance Sheet and Profit and Loss Account are prepared in conformity with accounting standards under sub-section (3C) of Section 211 of the Companies Act, 1956.

2. The accounts have been drawn up on historical cost convention in accordance with generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

3. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

B. FIXED ASSETS:

1. Fixed assets revalued are disclosed at values arrived by the approved valuer.

2. Fixed assets for which values is not changed are disclosed at historical cost of acquisition.

C. DEPRECIATION;

1. Depreciation is charged at the rates and the manner specifiedin Schedule XIV of the Companies Act, 1956 under the Straight Line Method in respect of tangible assets.

2. No Depreciation is provided on intangible assets, since in the opinion of the management no diminishing in their value is estimated.

D. INVESTMENTS:

Company has no investments

F. TERMINAL BENEFITS TO EMPLOYEES:

No provision for gratuity and leave encashment has been made. The company intends to account for the same on cash basis.

G. PRIOR PERIOD / PRE-PAID EXPENSES:

Expenditure less than Rs. 10000/- are not classified into Prior period Expenditure or Prepaid Expenses in view of the fact that they are not material in nature.