Accounting Policies of ISL Consulting Ltd. Company

Mar 31, 2018

[ A ] BASIS OF PREPERATION AND PRESENTATION OF FINANCIAL STATEMENT

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India ( Indian gaap ) to comply with the accounting standards notified under section 133 of the companies act , 2013. ( '' the 2013 act ) In terms of general circular 15/2013 dated 13 September, 2013 of the ministry of corporate affairs ) and the relevent provisions of the 1956 act / 2013 act, as applicable. Further the Company follows the Securities Exchange Board of India ("SEBI") issued for Non-Banking Financial Companies ("NBFC")

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 subject to the changes applicable as per the companies act, 2013.

[ B ] PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

Schedule iii notified under the companies act, 2013 has become applicable to the company, for preparation and presentation of its financial statements. The adoption of schedule iii does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements.

[ C ] USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (''gaap'') requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual result could differ from those estimates. That effect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period.

Although these estimates are based on the management''s best knowledge of current events and actions, the actual outcome may be different from the estimates. Difference between actual results and estimates are recognised in the period in which the results are known or materialise. Any revision of accounting estimates is recognized prospectively in current & future periods.

[ D ] REVENUE RECOGNISITION

Revenue from security services recognized as per agreements entered on accrual basis. Interest income is accounted on accrual basis.

[ E ] INVENTORIES

Inventories are valued in accordance with the method of valuation prescribed by the institute of chartered accountants of India at lower of cost or net realizable value.

[ F ] FIXED ASSETS

Fixed assets are valued at cost of acquisition net of tax / duty credits availed, if any and finance cost during acquisition/ construction period and other attributable costs to bring the assets to their working condition and impairment losses.

[ G ] DEPRECIATION

Depreciation is charged over the estimated useful life of the fixed assets on a written down basis. The useful life of the fixed asset for the company is as prescribed in schedule ii of the companies act, 2013.

Assets purchased / sold during the period are depreciated on a pro - rata basis for the actual number of days the asset has been put to use.

Assets costing less than Rs.5000/- are depreciated fully in the year of acquisition.

[ H ] CASH FLOW

Cash flow statement is prepared under "Indirect method" and the same is annexed.

[ I ] IMPAIRMENT OF ASSETS

As per accounting standard 28, the company assesses at each balance sheet date whether there is any indication that an asset is impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than the carrying amount then carrying amount is reduced to recoverable amount. The reduction is treated as impairment and recognized in profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. During the year no such impairment has occurred.

[ J ] INVESTMENTS

Current investment are carried at lower of cost or quoted / fair market value.

Long term investments are accounted at the cost of acquisition. Diminution in the value of long term investment is provided for only when there is a permanent diminution in the value of such investments.

[ K ] EMPLOYEE BENEFITS

Short term employee benefits and leave encashment is recognised as an expenses as per the scheme of the company.

[ L ] ACCOUNTING FOR TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

[ M ] PROVISIONS AND CONTINGENCIES

Provisions are recognised when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when the company has possible or present obligation where it is not probable that an outflow of resources will be required to settle it. The same are not provided for in the books of accounts and are neither separately disclosed in the notes forming part of accounts.

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Mar 31, 2016

NOTE 1: SIGNIFICANT ACCOUTING POLICIES [ A ] BASIS OF PREPERATION AND PRESENTATION OF FINANCIAL STATEMENT

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in india ( indian gaap ) to comply with the accounting standards notified under section 133 of the companies act , 2013. ( '' the 2013 act ) In terms of general circular 15/2013 dated 13 September, 2013 of the ministry of corporate affairs ) and the relevant provisions of the 1956 act / 2013 act, as applicable.

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 subject to the changes applicable as per the companies act, 2013.

[ B ] PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

Schedule iii notified under the companies act, 2013 has become applicable to the company, for preparation and presentation of its financial statements. The adoption of schedule iii does not impact recognition and measurement principles followed for preparation of financial statements. however, it has significant impact on presentation and disclosure made in the financial statements.

[ B ] USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (''gaap'') requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual result could differ from those estimates. That effect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period.

Although these estimates are based on the management''s best knowledge of current events and actions, the actual outcome may be different from the estimates. Difference between actual results and estimates are recognized in the period in which the results are known or materialize. Any revision of accounting estimates is recognized prospectively in current & future periods.

[ C ] REVENUE RECOGNISITION

Revenue from security services recognized as per agreements entered on accrual basis. Revenue from any other services has been accounted on accrual basis. Interest income is accounted on accrual basis.

[ D ] INVENTORIES

Inventories are valued in accordance with the method of valuation prescribed by the institute of chartered accountants of India at lower of cost or net realizable value.

[ E ] FIXED ASSETS

Fixed assets are valued at cost of acquisition net of tax / duty credits availed, if any and finance cost during acquisition/ construction period and other attributable costs to bring the assets to their working condition and impairment losses.

[ F ] DEPRECIATION

Depreciation is charged over the estimated useful life of the fixed assets on a straight line basis the useful life of the fixed asset for the company is as prescribed in schedule ii of the companies act, 2013.

Assets purchased / sold during the period are depreciated on a pro - rata basis for the actual number of days the asset has been put to use.

Assets costing less than rs.5000/- are depreciated fully in the year of acquisition.

[ G ] CASH FLOW

Cash flow statement is prepared under "indirect method" and the same is annexed.

[ H ] IMPAIRMENT OF ASSETS

As per accounting standard 28, the company assesses at each balance sheet date whether there is any indication that an asset is impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than the carrying amount then carrying amount is reduced to recoverable amount. The reduction is treated as impairment and recognized in profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. During the year no such impairment has occurred.

During the year there is no impairment of assets accounted.

[ I ] INVESTMENTS

Current investment are carried at lower of cost or quoted / fair market value.

Long term investments are accounted at the cost of acquisition. Diminution in the value of long term investment is provided for only when there is a permanent diminution in the value of such investments.

[ J ] EMPLOYEE BENEFITS

Short term employee benefits and leave encashment is recognized as an expenses as per the scheme of the company.

[ K ] ACCOUNTING FOR TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

[ L ] PROVISIONS AND CONTINGENCIES

Provisions are recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when the company has possible or present obligation where it is not probable that an outflow of resources will be required to settle it. The same are not provided for in the books of accounts and are neither separately disclosed in the notes forming part of accounts.

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Mar 31, 2015

1. Basis of preparation of financial statements:-

The financial statements are prepared under the historical cost conversion, in accordance with Indian generally accepted accounting principles (GAAP), the accounting standards issued by the Institute of Chartered Accountants of India (ICAI), the provisions of the Companies Act, 2013 as adopted consistently by the company except where a newly issued accounting standard requires a change in the accounting policy hither to in use.

The management evaluates all recently issued or revised accounting standards on an ongoing basis. All income and expenditure are recognized on accrual basis.

2. Use of Estimates:-

The preparation of the financial statements in conformity with Indian GAAP requires that the management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities as on the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

3. Valuation of Stock (AS 2):-

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants of India at lower of cost or net realizable value.

4. Cash Flow Statement (AS 3):-

Cash flow statement is prepared under "Indirect Method" and the same is annexed.

5. Fixed Assets:-

Fixed assets are stated at the cost of acquisition and the value of acquired business assets less accumulated depreciation. Assets costing less than Rs.5,000/- are fully depreciated.

6. Impairment of Assets:-

As per accounting standard 28, the company assesses at each balance sheet date whether there is any indication that an asset is impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than the carrying amount then carrying amount is reduced to recoverable amount. The reduction is treated as impairment and recognized in profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. During the year no such impairment has occurred.

7. Revenue recognition:-

Revenue from security services recognized as per agreements entered on accrual basis. Revenue from any other services has been accounted on accrual basis. Interest income is accounted on accrual basis.

8. Expenditure:-

Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities.

9. Depreciation:-

The depreciation has been provided on the basis of Straight Line Method adopting the rates and the manner as provided in Schedule II of the Companies Act, 2013 as amended.

10. Retirement Benefits:-

The company is regular in depositing provident fund. The provision for Gratuity is provided based on Actuarial certificate.

11. Taxes on Income:-

Provision is made for income tax on an annual basis, under the tax payable method, based on the tax liability as computed after taking credit for allowances and exemptions. Sufficient future taxable income will be available against which such deferred tax assets can be realized as per AS-22 "Accounting for taxes on income" issued by the Institute of Chartered Accountants of India.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, 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.

Deferred tax assets are recognized on carry forward of losses since there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized as per AS-22 "Accounting for taxes on income" issued by the Institute of Chartered Accountants of India.

12. Related Party Transaction Disclosure (AS-18):-

Name of the Related Party Relationship

Hitesh C. Kothari Managing Director Terra Reserves Determination Technologies Limited Associate Company

Nature of Transaction Managing Director Associate Company

Directors Remuneration 3,91,400 -

Investment in Share Capital - 15,00,000

Share Capital 76,59,000

13. Dues to SSI, Micro, Small and Medium Enterprises:-

Sundry Creditors includes amount due to SSI, micro, small and medium enterprises as on 31.03.2015: Rs. NIL (NIL) with available information from Micro, Small and Medium Enterprises regarding their registration with Central/State Government authorities the disclosure as per Section 23 of The Micro Small Medium Enterprises Development Act, 2006 is made.

14. Segment Reporting:-

The company is operating in a single segment and the risk and reward is same for the segment in all the location and hence the segment reporting is not applicable to the company.

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Mar 31, 2014

1. Basis of Preparation:

Accounts have been prepared in accordance with the standards approved by the ICAI and relevant provisions of the Companies Act 1956.

2. Revenue Recognition:

A sale is recognized when the security is sold and delivery effected. Dividend income is recognized as and when declared and made unconditionally available.

3. Depreciation:

Depreciation is provided on the Straight Line Method and at the rates as specified in Schedule XIV of the Companies Act 1956, pro-rata on the number of the days the assets is put to use.

4. Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

5. Investments:

Investments considered as Long Term Investments and are stated at cost. Investments considered under current investments (classified as inventory) is stated at cost or market price whichever is lower.

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Mar 31, 2013

1. Basis of Preparation:

Accounts have been prepared in accordance with the standards approved by the ICAI and relevant provisions of the Companies Act 1956.

2. Revenue Recognition:

A sale is recognized when the security is sold and delivery effected. Dividend income is recognized as and when declared and made unconditionally available.

3. Depreciation:

Depreciation is provided on the Straight Line Method and at the rates as specified in Schedule XIV of the Companies Act 1956, pro-rata on the number of the days the assets is put to use.

4. Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

5. Investments:

Investments considered as Long Term Investments and are stated at cost. Investments considered under current investments (classified as inventory) is stated at cost or market price whichever is lower.