Notes to Accounts of KCD Industries India Ltd.

Mar 31, 2024

3.8 Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing

of recognition and quantification of the liability require the application of judgment to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed
regularly and adjusted to take account of changing facts and circumstances.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are
neither recognized nor disclosed in the financial statements.

3.9 Leases

The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the
contract conveys the right to control the use of an identified asset. The contract conveys the right to control the use of
an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic
benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset
shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at
or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any
remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the
commencement date over the shorter of lease term or useful life of right-of-use asset. The Company measures the
lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The
lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that
rate cannot be readily determined, the Company uses incremental borrowing rate. For short-term and low value leases,
the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term.

3.10 Borrowing Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as
part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready
for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss for the period for which
they are incurred.

3.11 Impairment of Non-Financial Assets

The Company assesses at each reporting date as to whether there is any indication that any Property, Plant and
Equipment and Intangible assets or group of assets, called Cash Generating Unit (‘CGU’) may be impaired. If any
such indication exists, the recoverable amount of assets or CGU is estimated to determine the extent of impairment,
if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the CGU to which the asset belongs. An impairment loss is recognized in the Statement of the
Profit and Loss to the extent, asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
higher of an asset’s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash
flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time
value of money and risk specific to the assets. The impairment loss, other than goodwill, recognised in prior accounting
period is reversed if there has been a change in the estimate of recoverable amount.

3.12 Employee Benefits

Employee benefits include provident fund and compensated absences.

- Defined contribution plans:

Contributions payable to recognized provident funds, which are defined contribution schemes, are charged to the
standalone statement of profit and loss.

-Short-term employee benefits:

Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. Compensated absences, which are expected to be utilised
within the next 12 months, are treated as short-term employee benefits. The Company measures the expected cost of
such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated
at the reporting date.

3.13 Tax Expenses

The tax expense for the period comprises of current and deferred tax. Tax is recognised in the Statement of Profit and
Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income. In which case, the
tax is also recognised in Other Comprehensive Income.

i. Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the Income tax
authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.

ii. Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred income tax
assets are reassessed at each reporting period and are recognised to the extent that it is probable that taxable profits
will be available against which the deductible temporary differences and the carry forward of unused tax credits and
unused tax losses can be utilised. The carrying amount of deferred income tax assets is reviewed at each reporting
date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all
or part of the deferred income tax assets to be utilised. Deferred tax liabilities and assets are measured at the tax rates
that are expected to apply in the period in which the liability is settled or the asset is realised, based on tax rates (and
tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of
deferred tax liabilities and assets are reviewed at the end of each reporting period.

3.14 Revenue recognition

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

Revenue from contracts with customers includes sale of goods and services. Revenue from rendering of services
includes advertisement revenue and subscription revenue. Revenue from rendering of services is recognised over time
where the Company satisfies the performance obligation over time or point in time where the Company satisfies the
performance obligation at a point in time.

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the
customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of
ownership or future obligations with respect to the goods shipped.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for
transferring distinct goods or services to a customer as specified in the contract, net of returns and allowances, trade
discounts and volume rebates and excluding amounts collected on behalf of third parties (for example taxes and duties
collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations
and the receivable is recognized when it becomes unconditional.

Interest income

Interest Income from Financial Assets is recognised using effective interest rate method.

Dividend income

Dividend Income is recognised when the Company’s right to receive the amount has been established.

Fair value measurement

The Company measures financial assets and financial liability 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, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

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

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

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

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

The Company’s Valuation team determines the policies and procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring
measurement.

Material uncertainty about going concern: In preparing financial statements, management has made an assessment of
Company''s ability to continue as a going concern. Financial statements are prepared on a going concern basis. The
Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast
significant doubt upon the Company''s ability to continue as a going concern.

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Mar 31, 1996

1. Debtors, Creditors, Loans & Advances are subject to confirmation.

2. Share call money stood at Rs. 121250/-. It should be transfered to share forfeiture account after going through forfeiture formalities.

3. Provision for doubtful debt should be provided for time bar ed debts.

4. During the year the depreciation has not been provided for as there was no production. Had it been provided it would have been Rs. 136685/- for 1995-96 and Rs.151872/- for 1994-95.

c) Earnings in foreign exchange & exp. in foreign currency on account of travelling is Nil.

d) There is no production during the year, imported and indigenous raw material consumed for production is Nil.

8. Previous year figures have been regrouped/rearranged/reclassified and given in brackets wherever necessary.

9. As pointed out to us no provision for gratuity is necessary as per the payment of gratuity act.

10. During the year no remuneration has been paid to Director of the Company. There is no employees who is entitled to remuneration, which is aggregate was not less than Rs. 12000/- per month.