Accounting Policies of Ecofinity Atomix Ltd. Company

Mar 31, 2025

I BASIS OF PREPARATION OF STANDALONE FINANCIAL STATEMENTS

A. Accounting Conventions:

The Standalone financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015
and with Companies (Indian Accounting Standards) (Amendment) Rules, 2017 and comply in all material
aspects with the relevant provisions of the Companies Act’2013 to the extent applicable to it.

The Financial Statements have been prepared on a historical cost basis except the following assets and
liabilities which have been measured at fair values:

• Certain Financial Assets and Liabilities that are measured at Fair Value
The accounting policies are applied consistently to all the periods reported in the financial statements
unless otherwise stated.

B. Use of Estimates:

The preparation of Standalone financial statements requires management to make estimates and
assumptions that are believed to be reasonable under the circumstances and such estimates and
assumptions may affect the reported amount of assets and liabilities, classification of assets and
liabilities into non-current and current and disclosures relating to contingent liabilities as at the date of
financial statements and the reported amounts of income and expenses during the reporting period.
Although the Standalone financial statements have been prepared based on the management’s best

knowledge of current events and procedures/actions, the actual results may differ on the final outcome
of the matter/transaction to which the estimates relate.

C. Assumptions and estimation of uncertainties:

Information about assumptions and estimation uncertainties that have a significant impact on the
Standalone financial statements are as mentioned below:

• Recognition and measurement of provisions and contingencies: key assumptions about the
likelihood and magnitude of an outflow of resources.

• Impairment test of non-financial assets: key assumptions underlying recoverable amounts

• Impairment of financial assets

• Fair value measurement

• Recognition of deferred tax assets: Availability of future taxable profits against which such
Deferred tax assets can be adjusted

D. Property, Plant and Equipment (PPE):

Initial recognition:

The cost of an item of property, plant and equipment is recognized as an asset if, and only if:

(a) It is probable that future economic benefits associated with the item will flow to the entity; and

(b) The cost of the item can be measured reliably.

Property, plant and equipment held for use in the supply of goods or services, or for administrative
purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated
impairment losses.

The Company capitalized its Property, Plant and Equipment at a value net of GST/ Other Tax Credits
received/receivable during the year in respect of eligible item of Property, Plant and Equipment.
Subsequent costs are included in the carrying amount of respective Property, Plant and Equipment or
recognized as separate assets as appropriate, only if such costs increase the future benefits from the
existing items beyond their previously assessed standard of performance and cost of such items can be
measured reliably.

The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying
amount of the item of property, plant and equipment, if it is probable that the future economic
benefits embodied within the part will flow to the Company and its cost can be measured reliably with
the carrying amount of the replaced part getting derecognised. The cost for day-to-day servicing of
property, plant and equipment are recognised in Statement of Profit and Loss as and when incurred.
Gains or losses arising from de-recognition of property, plant and equipment are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are recognized
in the statement of profit and loss when the asset is derecognized.

Derecognition of Property, Plant and Equipment:

An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and are recognised net within “other
income / other expenses” in the Statement of profit and loss. The residual values, useful lives and
methods of depreciation of property, plant and equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate.

Depreciation & Amortization:

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful
lives as prescribed under Part C of Schedule II to the Companies Act 2013, using the straight-line
method. The estimated useful lives, residual values and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Depreciation for assets purchased/sold during a period is proportionately charged for the period of use.
Derecognition of Property, Plant and Equipment:

An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and are recognised net within “other

income / other expenses” in the Statement of profit and loss.

E. Inventories:

Inventories are measured at the lower of cost and net realisable value. The cost of inventories includes
expenditure incurred in acquiring the inventories, production or conversion costs and other costs
incurred in bringing them to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.

The company is in business of trading of Goods so it does not hold any inventory, the inventory
reflecting in the financial statement are either goods in transit or the risk and reward of ownership of
the goods are not transferred to the buyer of the goods.

F. Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable from the
customers/parties net of returns, rebates, taxes and discount to the customers and amounts collected
on behalf of third parties. The Revenue is recognised to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be measured reliably, regardless of when the
payment is being made.

Sale of Goods:

The revenue from the sale of goods is recognized at transaction price when the company had
transferred the property in Goods to the buyer for a price and all significant risks and rewards of
ownership had been transferred to the buyer and no significant uncertainty existed as to the amount of
consideration that would be derived from such sale. The recognition event is usually the dispatch of
goods to the buyer such that the Company retains no effective control over the goods dispatched.

Interest Income:

Income from investments and deposits, where appropriate, is taken into revenue in full on declaration
or accrual on time basis and tax deducted at source thereon is treated as advance tax. The interest
income from a financial asset is recognized when it is probable that the economic benefits will flow to
the company and the amount interest income can be measured reliably.

G. Employee Benefits:

1. Short Term Obligations:

Liabilities for salaries, including other monetary and non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the related
service are recognised in respect of employees’ services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled.

2. Post-Employment and Other Long-Term Employee Benefits:

Post-Employment and Other Long-Term Employee Benefits schemes are not applicable to the company.

H. Borrowing Costs:

There is no present balance outstanding of borrowings hence no borrowing costs incurred during the
year.

Borrowing costs include

(i) Interest expense calculated using the effective interest rate method,

(ii) Finance charges in respect of finance leases, and

(iii) Exchange differences arising from foreign currency borrowings to the extent that they are regarded
as an adjustment to interest costs.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All borrowing costs are recognised in the statement of profit and loss in the period in which they are
incurred.

I. Exceptional Items:

Exceptional items refer to items of income or expense within the income statement from ordinary
activities which are non-recurring and are of such size, nature or incidence that their separate
disclosure is considered necessary to explain the performance of the company.

J. Operating Segment:

Since the Company engages in trading operations, which by their very nature are all subject to the same
risks and rewards, these activities have been combined into a single segment, the results of which are
shown in the standalone financial statements.

So, the disclosure requirements pursuant to Ind AS-108- “Operating Segments” are not applicable.

K. Taxes On Income:

1. Current Tax:

The provision for current tax is made as per the provisions of the Income Tax Act, 1961.

Taxes on income have been determined based on the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. The current tax liabilities and assets are measured at
the amounts expected to be paid or to be recovered from the taxation authorities as at the balance
sheet date.

The current income tax relating to items recognized outside profit or loss is recognized either in the
Other Comprehensive Income or in Other Equity Directly.

2. Deferred Tax:

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities as per
the provisions of the Income Tax Act, 1961 and their carrying amounts for financial reporting purposes
as at the balance sheet date.

Deferred tax liabilities are recognized for all taxable temporary timing differences. Deferred tax assets
are recognized for all deductible taxable temporary timing differences, the carry forward of unused tax
losses and unused tax credits to the extent to which future taxable profits are expected to be available
against which the deductible temporary differences and the carry forward of unused tax losses and
unused tax credits can be utilized/set-off.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset is realised based on the tax rates and tax laws that have been enacted or
substantially enacted by the end of the reporting period.

A deferred tax asset is not recognised for the carry forward of unused tax losses to the extent that it is
not probable that future taxable profit will be available against which the unused tax losses will be
utilised.

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an
asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets.

Impairment loss is recognized when the carrying amount of an asset exceeds recoverable amount

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Mar 31, 2024

NOTE 1: MATERIAL ACCOUNTING POLICIES:
I	BASIS OF PREPARATION OF FINANCIAL STATEMENTS
A.	Accounting Conventions:
	The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and with Companies (Indian Accounting Standards) (Amendment) Rules, 2017 and comply in all material aspects with the relevant provisions of the Companies Act’2013 to the extent applicable to it. The Financial Statements have been prepared on a historical cost basis except the following assets and liabilities which have been measured at fair values: • Certain Financial Assets and Liabilities that are measured at Fair Value The accounting policies are applied consistently to all the periods reported in the financial statements unless otherwise stated.
B.	Use of Estimates:
	The preparation of financial statements requires management to make estimates and assumptions that are believed to be reasonable under the circumstances and such estimates and assumptions may affect the reported amount of assets and liabilities, classification of assets and liabilities into non-current and current and disclosures relating to contingent liabilities as at the date of financial statements and the reported amounts of income and expenses during the reporting period. Although the financial statements have been prepared based on the management’s best knowledge of current events and procedures/actions, the actual results may differ on the final outcome of the matter/transaction to which the estimates relate.
C.	Property, Plant and Equipment (PPE):
	The company did not hold any Property, Plant and Equipment (PPE) at any time during the year. The cost of an item of property, plant and equipment is recognized as an asset if, and only if: (a) It is probable that future economic benefits associated with the item will flow to the entity; and (b) The cost of the item can be measured reliably. Property, plant and equipment held for use in the supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. The Company capitalized its Property, Plant and Equipment at a value net of GST/ Other Tax Credits received/receivable during the year in respect of eligible item of Property, Plant and Equipment. Subsequent costs are included in the carrying amount of respective Property, Plant and Equipment or recognized as separate assets as appropriate, only if such costs increase the future benefits from the existing items beyond their previously assessed standard of performance and cost of such items can be measured reliably.

	Depreciation & Amortization: Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives as prescribed under Part C of Schedule II to the Companies Act 2013, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Depreciation for assets purchased/sold during a period is proportionately charged for the period of use. Derecognition of Property, Plant and Equipment: An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and are recognised net within “other income / other expenses” in the Statement of profit and loss.
D.	Inventories:
	Inventories are measured at the lower of cost and net realisable value. The cost of inventories includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The company is in business of trading of Goods so it does not hold any inventory, the inventory reflecting in the financial statement are either goods in transit or the risk and reward of ownership of the goods are not transferred to the buyer of the goods.
E.	Revenue Recognition:
	Revenue is measured at the fair value of the consideration received or receivable from the customers/parties net of returns, rebates, taxes and discount to the customers and amounts collected on behalf of third parties. The Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably, regardless of when the payment is being made.
	Sale of Goods: The revenue from the sale of goods is recognized at transaction price when the company had transferred the property in Goods to the buyer for a price and all significant risks and rewards of ownership had been transferred to the buyer and no significant uncertainty existed as to the amount of consideration that would be derived from such sale. The recognition event is usually the dispatch of goods to the buyer such that the Company retains no effective control over the goods dispatched. Interest Income: Income from investments and deposits, where appropriate, is taken into revenue in full on declaration or accrual on time basis and tax deducted at source thereon is treated as advance tax. The interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the company and the amount interest income can be measured reliably.

F.	Employee Benefits:
	1. Short Term Obligations:
	Liabilities for salaries, including other monetary and non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
	2. Post-Employment and Other Long-Term Employee Benefits:
	Post-Employment and Other Long-Term Employee Benefits schemes are not applicable to the company.
G.	Borrowing Costs:
	There is no present balance outstanding of borrowings hence no borrowing costs incurred during the year. Borrowing costs include (i) Interest expense calculated using the effective interest rate method, (ii) Finance charges in respect of finance leases, and (iii) Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.
H.	Operating Segment:
	Since the Company engages in trading operations, which by their very nature are all subject to the same risks and rewards, these activities have been combined into a single segment, the results of which are shown in the financial statements. So, the disclosure requirements pursuant to Ind AS-108- “Operating Segments” are not applicable.
I.	Taxes On Income:
	1. Current Tax: The provision for current tax is made as per the provisions of the Income Tax Act, 1961. Taxes on income have been determined based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The current tax liabilities and assets are measured at the amounts expected to be paid or to be recovered from the taxation authorities as at the balance sheet date. The current income tax relating to items recognized outside profit or loss is recognized either in the Other Comprehensive Income or in Other Equity Directly.

	2. Deferred Tax: Deferred tax is provided on temporary differences between the tax bases of assets and liabilities as per the provisions of the Income Tax Act, 1961 and their carrying amounts for financial reporting purposes as at the balance sheet date. Deferred tax liabilities are recognized for all taxable temporary timing differences. Deferred tax assets are recognized for all deductible taxable temporary timing differences, the carry forward of unused tax losses and unused tax credits to the extent to which future taxable profits are expected to be available against which the deductible temporary differences and the carry forward of unused tax losses and unused tax credits can be utilized/set-off. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted by the end of the reporting period. A deferred tax asset is not recognised for the carry forward of unused tax losses to the extent that it is not probable that future taxable profit will be available against which the unused tax losses will be utilised. In previous year the Company has closed its manufacturing operations and sold/disposed off land, plant & machinery and other fixed assets in earlier years and since then not resumed the manufacturing activities and there is no sound business plan made by the management to revive its business operations. Hence, in view of the management of the company there is no convincing other evidence that sufficient taxable profit will be available against which the unused tax losses or unused tax credits can be utilised by the entity. However, from current year, company has started business operation via trading of goods so that company provide the deferred tax impact without considering unused tax losses.
J.	Impairment of Non-Financial Assets:
	The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Impairment loss is recognized when the carrying amount of an asset exceeds recoverable amount
K.	Provisions, Contingent Liabilities and Contingent Assets
	The Company recognises a provision when it has a present obligation as a result of a past event that probably requires an outflow of the Company''s resources embodying economic benefits at the time of settlement and a reliable estimate can be made of the amount of the obligation. The provisions are measured at the best estimate of the amounts required to settle the present obligation as at the balance sheet date and are not discounted to its present value. Contingent liabilities is a possible obligation arising from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more future uncertain events not wholly or substantially within the control of the Company or a present obligation that arises from the past

	events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. The company does not recognize a contingent liability but discloses its existence in the financial statements. When demand notices are issued by the Government Authorities and demand is disputed by the company and it is probable that the company will not be required to settle/pay such demands then these are classified as disputed obligations. Contingent Assets, if any, are not recognised in the financial statements. If it becomes certain that inflow of economic benefit will arise then such asset and the relative income are recognised in financial statements.
L.	Current/Non-Current Classifications:
	The Company presents assets and liabilities in the balance sheet on the basis of their classifications into current and non-current based on the assessment made by the management of the company.
	Assets:
	An asset is treated as current when it is: • Expected to be realised or intended to be sold or consumed in normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.
	Liabilities:
	A liability is treated as current when it is: • Expected to be settled in normal operating cycle • Held primarily for the purpose of trading • Due to be settled within twelve months after the reporting period • No unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.
M.	Financial Instruments, Financial Assets, Financial liabilities and Equity Instruments
	The financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets or financial liabilities. A. Financial Assets: Initial Recognition: Financial Assets include Investments, Cash and Cash Equivalents and eligible current and non-current assets. The financial assets are initially recognized at the transaction price when the Company becomes

	party to contractual obligations. The transaction price includes transaction costs unless the asset is being value at fair value through the Statement of Profit and Loss. Subsequent Measurement: The subsequent measurement of financial assets depends upon the initial classification of financial assets. For the purpose of subsequent measurement, financial assets are classified as under: i. Financial Assets at Amortized Cost where the financial assets are held solely for collection of cash flows and contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principal and interest on principal amount outstanding. ii. Fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise. Security Deposits, Loans and Advances, Cash and Cash Equivalents where reliable data for fair value is not available then such eligible current and non-current assets are classified for measurement at amortized cost. Impairment: If the recoverable amount of an asset (or cash-generating unit/Fixed Assets) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a re-valued amount if any, in which case the impairment loss is treated as a revaluation decrease. Financial assets, other than those at Fair Value through Profit and Loss (FVTPL), are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. The company recognises impairment loss on trade receivables using expected credit loss model. B. Financial Liabilities: Financial liabilities, which include trade payables and eligible current and non-current liabilities. The trade payables and other financial liabilities are recognised at the value of the respective contractual obligations. Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged, cancelled and on expiry of the terms.
N.	Fair Value Measurement:
	The Company measures financial instruments, such as investments at fair value at each balance sheet date. 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 economic 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, maximizing the use of relevant observable inputs and minimizing 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. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
O.	Cash and Cash Equivalents-For the Purpose of Cash Flow Statements:
	Cash and cash equivalent in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
P.	Operating Cycle:
	Based on the activities of the company and normal time between incurring of liabilities and their settlement in cash or cash equivalents and acquisition/right to assets and their realization in cash or cash equivalents, the company has considered its operating cycle as 12 months for the purpose of classification of its liabilities and assets as current and non-current.

Q.

Earnings Per Share:

The Company presents basic and diluted earnings per share details for its ordinary shares. Basic earning per share is calculated by dividing the total comprehensive income after tax for the year attributable to the ordinary shareholders of the company by weighted number of ordinary shares outstanding for applicable period during the year. Diluted earning per share is calculated considering the effect of dilution if any to ordinary share during the year.

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Mar 31, 2015

1. BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956/2013.

2. FIXED ASSETS:

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicable. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

3. REVENUE RECOGNITION:

Sales exclusive of Vat & WCT and exclusive of Service Tax are recognized on dispatch. Price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

4. FOREIGN CURRENCY TRANSACTIONS:

During the year, the company has not entered any foreign transaction.

5. WARRANTY:

Product warranty costs are guaranteed by Performances Bank Guarantee.

6. INVENTORIES:

Inventories are stated at cost. 'Cost' is arrived at using weighted average methods and includes appropriate overheads in case of work in progress.

7. RESEARCH AND DEVELOPMENT EXPENDITURE:

During the year, The Company has not made any expenditure towards Research and development expenditure.

8. TAXATION :

Provision for Income Tax, comprising current tax and deferred tax is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax

Profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax Liabilities arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.

The accumulated deferred tax liability as on March 31, 2014 has been recognized with a corresponding charge to the General Reserve.

9. SEGMENTAL REPORTING :

The accounting policies applicable to the reportable segment are the same as those used in the preparation of the financial statements as set out above.

Segment revenue expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets, segment liabilities include all operating liabilities and consist primarily of creditors and statutory liabilities.

10. Debtors

Debtors are stated at book value after making provisions for doubtful debts.

11. The figures for the previous year have been regrouped / rearranged wherever necessary.

12. The Figures are rounded off to nearest rupee.

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Mar 31, 2014

1. BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

2. FIXED ASSETS:

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicable. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

3. DEPRECIATION:

Depreciation on fixed assets is provided using the S.L.M. method. Depreciation is charged on a pro-rata basis for assets purchased/sold during the year. Individual assets costing less than Rs. 5,000 are depreciated in full in the year of purchase.

4. REVENUE RECOGNITION:

Sales exclusive of Vat & WCT and exclusive of Service Tax are recognized on dispatch. Price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

5. FOREIGN CURRENCY TRANSACTIONS:

During the year, the company has not entered any foreign transaction.

6. WARRANTY:

Product warranty costs are guaranteed by Performances Bank Guarantee.

7. INVENTORIES:

Inventories are stated at cost. 'Cost' is arrived at using weighted average methods and includes appropriate overheads in case of work in progress.

8. RESEARCH AND DEVELOPMENT EXPENDITURE ;

During the year, The Company has not made any expenditure towards Research and development expenditure,

9. TAXATION ;

Provision for Income Tax, comprising current tax and deferred tax is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax

profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax Liabilities arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future

The accumulated deferred tax liability as on 31st March, 2014 has been recognized with a corresponding charge to the General Reserve.

10. SEGMENTAL REPORTING :

The accounting policies applicable to the reportable segment are the same as those used in the preparation of the financial statements as set out above.

Segment revenue expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets, segment liabilities include all operating liabilities and consist primarily of creditors and statutory liabilities.

11. Debtors ;

Debtors are stated at book value after making provisions for doubtful debts.

12. The figures for the previous year have been regrouped / rearranged wherever necessary.

13. The Figures are rounded off to nearest rupee .