Accounting Policies of Jeena Sikho Lifecare Ltd. Company

Mar 31, 2025

1. corporate information

Jeena Sikho Lifecare limited was incorporated in 2017. The
company deals in trading of Ayurvedic Medicines across the
PAN India basis and providing ayurvedic therapies through
its hospital network.

2. basis of preparation of financial
statements (significant accounting
policies & other explanatory notes)

2.1 basis of Preparation

The financial statements of the Company have been prepared
in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP), including the Accounting
Standards notified under section 133 of the Companies
Act, 2013. The financial statements have been prepared on
accrual basis under the historical cost convention.

2.2 Current versus non-current
classification

The Company presents assets and liabilities in the balance
sheet based on current/non- current classification. An asset
is treated as current when it is:

- Expected to be realized or intended to be sold or
consumed in normal operating cycle;

- Held primarily for purpose of trading;

- Expected to be realized within twelve months after the
reporting period; or

- 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.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for purpose of trading;

- It is due to be settled within twelve months after the
reporting period; or

- Thereisnounconditionalrighttodeferthesettlementofthe
liability for at least twelve monthsafter the reporting period
All other liabilities are classified as non current.

Deferred tax assets and deferred tax liabilities are classified
as non- current assets and liabilities.

The operating cycle is the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents. The Company has identified twelve months as
its operating cycle.

2.3 Use of estimates

The preparation of the financial statements 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.

2.4 Inventories

The inventory are valued at lower of cost or net realizable
value. The inventory costs are based on first in first out
method. Cost includes all charges in bringing the goods to
the point of sale, including octroi and other levies, transit
insurance and receiving charges.

2.5 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise
of cash at bank and in hand and short term investments
with an original maturity of three months or less. Earmarked
balances with bank, margin money or security against
borrowings, guarantees and other commitments, if any shall
be treated separately from cash and cash equivalent.

2.6 Cash flow statement

Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and
financing activities of the Company are segregated based
on the available information.

2.7 Property, plant and equipment

Property, Plant and equipment including capital work in
progress are stated at cost, less accumulated depreciation
and accumulated impairment losses, if any. The cost
comprises of purchase price, taxes, duties, freight and
other incidental expenses directly attributable and related
to acquisition and installation of the concerned assets
and are further adjusted by the amount of input tax credit
availed wherever applicable. Subsequent costs are included
in asset''s carrying amount or recognised as separate assets,
as appropriate, only when it is probable that future economic
benefit associated with the item will flow to the Company
and the cost of item can be measured reliably.

2.8 Depreciation and amortisation

Depreciation on property, plant and equipment is provided
on prorate basis on straight line method using the useful
lives of the assets estimated by the management and in
the manner prescribed in Schedule II of the Companies
Act 2013. The estimated life of various assets is as follows:

2.9 Intangible assets

Separately acqu ired intangible assets

Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible
assets are carried at cost less accumulated amortization and
accumulated impairment losses, if any. Internally generated
intangibles, excluding capitalized development cost, are
not capitalized and the related expenditure is reflected
in statement of Profit and Loss in the period in which the
expenditure is incurred. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use.

Internally Generated intangible assets

The cost of an internally generated intangible asset
comprises all expenditure that can be directly attributed, or
allocated on a reasonable and consistent basis, to creating,
producing and making the asset ready for its intended
use. No cost incurred in the Research Phase of the asset
is recognized. The cost incurred in the development phase
is recognized only if the company can demonstrate the
following conditions:

(a) the technical feasibility of completing the intangible
asset so that it will be available for use;

(b) its intention to complete the intangible asset and use or
sell it;

(c) its ability to use or sell the intangible asset;

(d) how the intangible asset will generate probable future
economic benefits. Among other things, the company
should demonstrate the existence of a market for the
output of the intangible asset or the intangible asset
itself or, if it is to be used internally, the usefulness of
the intangible asset;

(e) the availability of adequate technical, financial and
other resources to complete the development and to
use or sell the intangible asset; and

(f) its ability to measure the expenditure attributable to the
intangible asset during its development reliably.

Goodwill

Goodwill acquired on the purchase of business is recognized
as a difference between the purchase consideration and the
value of the net assets acquired. Goodwill is amortized over
the period over which the economic benefits are expected to
accrue to the Company.

2.10 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on
transfer of significant risks and rewards of ownership to the
buyer, which generally coincides with the delivery of goods
to customers. Sales exclude GST. The company follows
the mercantile system of accounting and recognizes the
income and expenditures on accrual basis except in case of
significant uncertainties.

Sale of service

Sales of services are recognized when the services are
rendered.

2.11 Other income

Interest income is recognised on time proportion basis.
Rental income is recognized on accrual basis.

2.12 Foreign currency TRANSACTIONS AND
translations

Initial recognition

Transactions in foreign currencies entered into by the
Company 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 (other than derivative
contracts) of the Company outstanding at the Balance Sheet
date are restated at the year-end rates.

Exchange differences arising out of these translations are
charged to the Statement of Profit and Loss.

2.13 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.

2.14 Employee benefits

The Company has adopted the Accounting Standard
15- Employee Benefits prescribed under the Companies
(Accounting Standards) Rules, 2006. ''Employee benefits
include provident fund, bonus and gratuity benefits. The
Company''s obligation towards various employee benefits
has been recognized as follows:

Short Term Employee Benefits

All employee benefits payable wholly within twelve months
of rendering the service are short-term employee benefits.
Benefits such as salaries, wages and bonus wages, etc, are
recognized in the Profit and Loss statement in the period in
which the employee renders the related service.

Defined contribution plans

The Company''s contribution to provident 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 benefits plans

(i) For defined-benefit plans, the amount recognised in
the Balance Sheet is the present value of the defined-
benefit obligation less the fair value of any plan assets
and any past service costs not yet recognised. The
present value of the defined-benefit obligation is the
present value of expected future payments required to
settle the obligation resulting from employee service
in the current and prior periods. The discount rate
used is the market yields on government bonds at the
Balance Sheet date with remaining terms to maturity
approximating those of the Company''s obligations.

(ii) Actuarial gains and losses in respect of post
employment and other long-term benefits are charged
to the Statement of Profit and Loss.

Employee Stock Options

The Company measures compensation cost relating to
employee stock options using the Fair Value Method.
Compensation expense is amortised over the vesting period
of the option on a straight line basis.

2.15 Borrowing costs

Borrowing costs include interest, amortisation of ancillary
costs incurred and exchange differences arising from
foreign currency borrowings to the extent they are regarded
as an adjustment to the interest cost. Costs in connection
with the borrowing of funds to the extent not directly related
to the acquisition of qualifying assets are charged to the
Statement of Profit and Loss over the tenure of the loan.
Borrowing costs, allocated to and utilised for qualifying
assets, pertaining to the period from commencement
of activities relating to construction/development of the
qualifying asset up to the date of capitalisation of such
asset is added to the cost of the assets.

Borrowing cost attributable to the fixed assets during
construction/exploration, renovation and modernization are
capitalized. Such borrowing costs are apportioned on the
average balance of capital work in progress for the year.
Other borrowing costs are recognized as an expense in the
period in which they are incurred.

2.16 Segment reporting

The Company identifies primary segments based on the
dominant source, nature of risks and returns and the internal
organisation and management structure. The operating
segments are the segments for which separate financial
information is available and for which operating profit/loss
amounts are evaluated regularly by the executive.

2.17 Taxes on income

Tax expense comprises current and deferred tax. Current
income tax is measured at the amount expected to be paid
to the tax authorities in accordance with Income Tax Act,
1961. Deferred income tax reflects the impact of current year
timing differences between taxable income that originates
in one period and are capable of reversal in one or more
subsequent periods.

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.

2.18 Impairment of assets

The carrying values of assets/cash generating units are
reviewed at each Balance Sheet date 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.

---

Mar 31, 2024

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (SIGNIFICANT ACCOUNTING POLICIES & OTHER EXPLANATORY NOTES)

2.1 Basis of preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under Section 133 of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention.

2.2 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle;

- Held primarily for purpose of trading;

- Expected to be realized within twelve months after the reporting period; or

- 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.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

- There is 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.

Deferred tax assets and deferred tax liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

2.3 Use of estimates

The preparation of the financial statements 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.

2.4 Inventories

The inventory are valued at lower of cost or net realizable value. The inventory costs are based on first in first out method.Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges.

2.5 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term investments with an original maturity of three months or less. Earmarked balances with bank, margin money or security against borrowings, guarantees and other commitments, if any shall be treated separately from cash and cash equivalent

2.6 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.7 Property, plant and equipment

Property, Plant and equipment including capital work in progress are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. The cost comprises of purchase price, taxes, duties, freight and other incidental expenses directly attributable and related to acquisition and installation of the concerned assets and are further adjusted by the amount of input tax credit availed wherever applicable. Subsequent costs are included in asset''s carrying amount or recognised as separate assets, as appropriate, only when it

is probable that future economic benefit associated with the item will flow to the Company and the cost of item can be measured reliably.

2.8 Depreciation and amortisation

Depreciation on property, plant and equipment is provided on prorate basis on straight line method using the useful lives of the assets estimated by the management and in the manner prescribed in Schedule II of the Companies Act 2013. The estimated life of various assets is as follows:

2.9 Intangible assets

Separately acquired intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Internally generated intangibles, excluding capitalized development cost, are not capitalized and the related expenditure is reflected in statement of Profit and Loss in the period in which the expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Internally Generated intangible assets

The cost of an internally generated intangible asset comprises all expenditure that can be directly attributed, or allocated on a reasonable and consistent basis, to creating, producing and making the asset ready for its intended use. No cost incurred in the Research Phase of the asset is recognized. The cost incurred in the development phase is recognized only if the Company can demonstrate the following conditions:

(a) the technical feasibility of completing the intangible asset so that it will be available for use;

(b) its intention to complete the intangible asset and use or sell it;

(c) its ability to use or sell the intangible asset;

(d) how the intangible asset will generate probable future economic benefits. Among other things, the Company should demonstrate the existence of a market for the output of the intangible asset or the intangible asset

itself or, if it is to be used internally, the usefulness of the intangible asset;

(e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

(f) its ability to measure the expenditure attributable to the intangible asset during its development reliably.

2.10 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales exclude GST. The Company follows the mercantile system of accounting and recognizes the income and expenditures on accrual basis except in case of significant uncertainties.

Sale of service

Sales of services are recognized when the services are rendered.

2.11 Other income

Interest income is recognised on time proportion basis. Rental income is recognized on accrual basis.

2.12 Foreign currency transactions and translations

Initial recognition

Transactions in foreign currencies entered into by the Company 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 (other than derivative contracts) of the Company outstanding at the Balance Sheet date are restated at the year-end rates.

Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

2.13 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.

2.14 Employee benefits

The Company has adopted the Accounting Standard 15 - Employee Benefits prescribed under the Companies (Accounting Standards) Rules, 2006. ''Employee benefits include provident fund, bonus and gratuity benefits. The Company''s obligation towards various employee benefits has been recognized as follows:

Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are short-term employee benefits. Benefits such as salaries, wages and bonus wages, etc, are recognized in the Profit and Loss statement in the period in which the employee renders the related service.

Defined contribution plans

The Company''s contribution to provident 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 benefits plans

(i) For defined-benefit plans, the amount recognised in the Balance Sheet is the present value of the defined-benefit obligation less the fair value of any plan assets and any past service costs not yet recognised. The present value of the defined-benefit obligation is the present value of expected future payments required to settle the obligation resulting from employee service in the current and prior periods. The discount rate used is the market yields on government bonds at the Balance Sheet date with remaining terms to maturity approximating those of the Company''s obligations.

(ii) Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Statement of Profit and Loss.

Employee Stock Options

The Company measures compensation cost relating to employee stock options using the Fair Value Method. Compensation expense is amortised over the vesting period of the option on a straight line basis.

2.15 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to

construction/development of the qualifying asset up to the date of capitalisation of such asset is added to the cost of the assets.

Borrowing cost attributable to the fixed assets during construction/exploration, renovation and modernization are capitalized. Such borrowing costs are apportioned on the average balance of capital work in progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.16 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive.

2.17 Taxes on income

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961. Deferred income tax reflects the impact of current year timing differences between taxable income that originates in one period and are capable of reversal in one or more subsequent periods.

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.

2.18 Impairment of assets

The carrying values of assets/cash generating units are reviewed at each Balance Sheet date 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.

---

Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation

The financial statements of the Company have been
prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP), including
the Accounting Standards notified under section 133
of the Companies Act, 2013. The financial statements
have been prepared on accrual basis under the historical
cost convention.

2.2 Current versus non-current classification

The Company presents assets and liabilities in the balance
sheet based on current/non- current classification. An
asset is treated as current when it is:

- Expected to be realized or intended to be sold or
consumed in normal operating cycle

- Held primarily for purpose of trading

- Expected to be realized within twelve months after
the reporting period, or

- 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.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for purpose of trading

- It is due to be settled within twelve months after the
reporting period, or

- There is 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.

Deferred tax assets and deferred tax liabilities are
classified as non- current assets and liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realization in cash and
cash equivalents. The Company has identified twelve
months as its operating cycle."

2.3 Use of estimates

The preparation of the financial statements 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.

2.4 Inventories

The inventory are valued at lower of cost or net realizable
value. The inventory costs are based on first in first out
method.Cost includes all charges in bringing the goods to
the point of sale, including octroi and other levies, transit
insurance and receiving charges. Finished goods include
appropriate proportion of overheads.

2.5 Cash and cash equivalents

Cash and cash equivalents in the balance sheet
comprise of cash at bank and in hand and short term
investments with an original maturity of three months
or less. Earmarked balances with bank, margin money
or security against borrowings, guarantees and other
commitments ,if any shall be treated separately from
cash and cash equivalent

2.6 Cash flow statement

Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating,
investing and financing activities of the Company are
segregated based on the available information.

2.7 Property, plant and equipment

Property, Plant and equipment including capital work in
progress are stated at cost, less accumulated depreciation
and accumulated impairment losses, if any. The cost
comprises of purchase price, taxes, duties, freight and
other incidental expenses directly attributable and related
to acquisition and installation of the concerned assets
and are further adjusted by the amount of input tax
credit availed wherever applicable. Subsequent costs
are included in asset''s carrying amount or recognised as
separate assets, as appropriate, only when it is probable

2.8 Depreciation and amortisation

Depreciation on property, plant and equipment is provided
on prorate basis on straight line method using the useful
lives of the assets estimated by the management and in
the manner prescribed in Schedule II of the Companies
Act 2013. The estimated life of various assets is
as follows:

2.9 Intangible assetsSeparately acquired intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any.
Internally generated intangibles, excluding capitalized
development cost, are not capitalized and the related
expenditure is reflected in statement of Profit and Loss
in the period in which the expenditure is incurred. Cost
comprises the purchase price and any attributable cost
of bringing the asset to its working condition for its
intended use.

2.10 Revenue recognition
Sale of goods

Sales are recognised, net of returns and trade discounts,
on transfer of significant risks and rewards of ownership
to the buyer, which generally coincides with the delivery
of goods to customers. Sales exclude GST. The
company follows the mercantile system of accounting
and recognizes the income and expenditures on accrual
basis except in case of significant uncertainties.

Sale of service

Sales of services are recognized when the services
are rendered.

2.11 Other income

Interest income is recognised on time proportion basis.
Rental income is recognized on accrual basis

2.12 Foreign currency transactions and
translationsInitial recognition

Transactions in foreign currencies entered into by the
Company 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 (other than derivative
contracts) of the Company outstanding at the Balance
Sheet date are restated at the year-end rates.

Exchange differences arising out of these translations are
charged to the Statement of Profit and Loss."

2.13 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.

2.14 Employee benefits

The Company has adopted the Accounting Standard
15- Employee Benefits prescribed under the Companies
(Accounting Standards) Rules, 2006. ''Employee benefits
include provident fund, bonus and gratuity benefits. The
Company’s obligation towards various employee benefits
has been recognized as follows:

Short Term Employee Benefits

All employee benefits payable wholly within twelve
months of rendering the service are short-term employee
benefits. Benefits such as salaries, wages and bonus
wages, etc, are recognized in the Profit and Loss
statement in the period in which the employee renders
the related service.

Defined contribution plans

The Company''s contribution to provident 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 benefits plans

(i) For defined-benefit plans, the amount recognised
in the Balance Sheet is the present value of the
defined-benefit obligation less the fair value of
any plan assets and any past service costs not

yet recognised. The present value of the defined-
benefit obligation is the present value of expected
future payments required to settle the obligation
resulting from employee service in the current and
prior periods. The discount rate used is the market
yields on government bonds at the Balance Sheet
date with remaining terms to maturity approximating
those of the Company’s obligations.

(ii) Actuarial gains and losses in respect of post
employment and other long-term benefits are
charged to the Statement of Profit and Loss.

2.15 Borrowing costs

Borrowing costs include interest, amortisation of ancillary
costs incurred and exchange differences arising from
foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Costs
in connection with the borrowing of funds to the extent
not directly related to the acquisition of qualifying assets
are charged to the Statement of Profit and Loss over
the tenure of the loan. Borrowing costs, allocated to and
utilised for qualifying assets, pertaining to the period
from commencement of activities relating to construction
/ development of the qualifying asset up to the date
of capitalisation of such asset is added to the cost of
the assets.

Borrowing cost attributable to the fixed assets during
construction/ exploration, renovation and modernization
are capitalized. Such borrowing costs are apportioned
on the average balance of capital work in progress for
the year. Other borrowing costs are recognized as an
expense in the period in which they are incurred."

2.16 Segment reporting

The Company identifies primary segments based on
the dominant source, nature of risks and returns and
the internal organisation and management structure.
The operating segments are the segments for which
separate financial information is available and for which
operating profit/loss amounts are evaluated regularly by
the executive.

2.17 Taxes on income

Tax expense comprises current and deferred tax. Current
income tax is measured at the amount expected to be
paid to the tax authorities in accordance with Income
Tax Act, 1961. Deferred income tax reflects the impact of
current year timing differences between taxable income
that originates in one period and are capable of reversal
in one or more subsequent periods.

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.

2.18 Impairment of assets

The carrying values of assets / cash generating units
are reviewed at each Balance Sheet date 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.