Accounting Policies of Magellanic Cloud Ltd. Company

Mar 31, 2025

2.1 Basis of preparation of standalone financial statements

Compliance with Ind AS: These financial statements have been prepared to comply, in all material aspects,
with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the
‘Act''), read with Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the Act.

Basis of preparation and presenation

These financial statements have been prepared on a historical cost convention and on an accrual basis of
accounting, except for certan finacial instruments and defined benefit plans which are measured at fair
valueat the end of each reporting period,as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and
services. 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.

All assets and liabilities have been classified as current and non-current as per the Company''s normal
operating cycle. Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realisation in cash and cash equivalents of the consideration for such
services rendered, the Company has considered an operating cycle of 12 months The statement of cash flows
have been prepared under the indirect method. All amounts included in the financial statements are reported
in lakhs of Indian rupees except share and per share data, unless otherwise stated. Due to rounding off, the
numbers presented throughout the document may not add up precisely to the totals and percentages may
not precisely reflect the absolute figures.

2. 2 Use of Estimate and Judgement

The preparation of the financial statements in conformity with Ind AS requires the Management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application
of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets
and liabilities at the date of the financial statements and reported amounts of revenues and expenses during
the period. The application of accounting policies that require critical accounting estimates involving complex
and subjective judgments and the use of assumptions in these financial statements have been disclosed.

Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates and judgments are reflected in the financial statements
in the period in which changes are made and, if material, their effects are disclosed in the notes to the
Standalone financial statements.

2. 3 Business combinations and goodwil

Business combinations are accounted for using the acquisition method. The cost of an acquisition is the
aggregate of the consideration transferred measured at fair value at the acquisition date. Acquisition
related costs are expensed as incurred.

Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition
date. Contingent consideration classified as financial liability is measured at fair value with changes in fair
value recognized in the statement of profit and loss.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and
any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of
the net assets acquired is in excess of the aggregate consideration transferred, the excess is recognized as
capital reserve after reassessing the fair values of the net assets.

Business Combination under common control are accounted under “the pooling of interest method” i.e. in
accor dance with Appendix C in Ind AS 103 Business combinations, at carrying amount of assets and liabilities
acquired and any excess of consideration issued over the net assets acquired is recognised as
capital reserve on common control business combination.

2. 4 The Effects of Changes in Foreign Exchange Rates

(i) Initial recognition

Transactions in foreign currencies entered into by the company are accounted at the exchange rates
prevailing on the date of transaction or at rates that closely approximate the rate at the date of the
transaction.

(ii) Measurement of monetary items denominated in foreign currency at the Balance Sheet date

Monetary items denominated in foreign currency (other than those related to acquisition of property
plant and equipment) of the Company outstanding at the Balance Sheet date are restated at the
year-end rates. Non monetary foreign currency items are carried at cost.

(iii) Treatment of exchange differences

Exchange differences arising on foreign currency transactions settled during the year are recognised in
the State ment of profit and loss. The translation differences on monetary assets and liabilities
denominated in foreign currencies are recognized in the Statement of profit and loss. Non-monetary
assets and liabilities are recorded at the rates prevailing on the date of the transaction. Transactions
with fixed Rupee exposure are not revalued at the balance sheet date as the Company''s exposure is
fixed in INR terms

The Company records certain financial assets and liabilities at fair value on a recurring basis. The Company
determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an
orderly transaction between market participants at the measurement date in the principal or most
advantageous market for that asset or liability.

The Company holds certain fixed income securities, equity securities, which must be measured using
the guidance for fair value hierarchy and related valuation methodologies. The guidance specifies a
hierarchy of valuation techniques based on whether the inputs to each measurement are observable or
unobservable. Observable inputs reflect market data obtained from independent sources, while
unobservable inputs reflect the Company''s assumptions about current market conditions. The fair value
hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value. The prescribed fair value hierarchy and related
valuation methodologies are as follows:

Level 1 - Quoted inputs that reflect quoted prices (unadjusted) for identical assets or liabilities
in active markets.

Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar
instruments in markets that are not active and model derived valuations, in which all significant inputs are
directly or indirectly observable in active markets.

Level 3 - Valuations derived from valuation techniques, in which one or more significant inputs are
unobservable inputs which are supported by little or no market activity.

In accordance with Ind AS 113, assets and liabilities at fair value are measured based on the following
valuation techniques:

(a) Market approach - Prices and other relevant information generated by market transactions involving
dentical or comparable assets or liabilities.

(b) Income approach - Converting the future amounts based on market expectations to its present
value using the discounting method.

(c) Cost approach - Replacement cost method.

Certain assets are measured at fair value on a non-recurring basis. These assets consist primarily of
non-financial assets such as goodwill and intangible assets. Goodwill and intangible assets recognized
in business combinations are measured at fair value initially and subsequently when there is an indicator
of impairment, the impairment is recognized.

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 who would use the asset in its highest and best use.

2. 6 Revenue Recognition

1. The Company derives from information technology services, staffing and related services. These include
revenue earned from services rendered on ‘time and material'' basis, time bound fixed price engagements
and fixed price development contracts.

(i) Revenue is recognized upon transfer of control of promised products or services to customers in an
amount that reflects the consideration the Company expect to receive in exchange for those products or
services. Revenue is measured based on transaction price, which is the consideration, net of indirect taxes,
discounts, rebates, credits, price concessions, incentives, performance bonus, penalties, or other similar item.

2. (i) Fixed-price maintenance revenue is recognized ratably on a straight-line basis when services are
performed through an indefinite number of repetitive acts over a specified period. Revenue from fixed price
maintenance contract is recognized ratably using a percentage-of-completion method when the pattern of
benefits from the services rendered to the customer and Company''s costs to fulfil the contract is not even
through the period of the contract because the services are generally discrete in nature and not repetitive.
The use of method to recognize the maintenance revenues requires judgment and is based on the promises
in the contract and nature of the deliverables.

3. Revenue with respect to time-and-material, volume based and transaction based contracts is recognized
as the related services are performed through efforts expended, volume serviced transactions are
processed etc. that correspond with value transferred to customer till date which is related to the right to
invoice for services performed.

4. (i) Contracts assets are recognised when there is excess of revenue earned over billings on contracts.
Contract assets are classified as unbilled revenue for time and material and fixed price maintenance contracts,
when there is unconditional right to receive cash, and only passage of time is required, as per contractual
terms. Invoicing to the clients for other fixed-price contracts is based on milestones as defined in the contract
and, therefore, the timing of revenue recognition is different from the timing of invoicing to the customers.

The right to consideration in such cases depends on completion of contractual milestones.

(ii) Contract liability (“Unearned revenue”) arises when there are billing in excess of revenue.

2. 7 Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Company and the amount of income can be measured reliably.

2. 8 Income Tax

Income tax expense comprises current and deferred income tax.

Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to
items recognized directly in equity, in which case it is recognized in equity. Current income tax for current and
prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using
the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Provision for income tax includes the impact of provisions established for uncertain income tax positions.

Tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognized amounts,
and it is intended to realize the asset and settle the liability on a net basis or simultaneously.

Deferred income tax assets and liabilities recognized for all temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax
assets and liabilities are recognized for those temporary differences which originate during the tax holiday
period and are reversed after the tax holiday period. For this purpose, reversal of timing differences is
determined using first-in-first-out method.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized. Deferred income tax assets and liabilities are measured
using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and
are expected to apply to taxable income in the years in which those temporary differences are expected to
be recovered or settled.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

2. 9 Property, plant and equipment

At costs less accumulated depreciation (other than freehold land) and impairment loss, if any.

The cost includes purchase price net of any trade discounts and rebates, any import duties and other taxes
(other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on
making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable
to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. The cost of an
item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. Subsequent expenditure on fixed assets after its purchase/completion is capitalized only
if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed
standard of performance.

Derecognisation

An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use. Gains or losses arising from de¬
recognition of property, plant and equipment and intangible assets are measured as the difference between
the net disposal proceeds and the carrying amount of property, plant and equipment and are recognized in
the statement of profit and loss when the property, plant and equipment is derecognized.

Life of Assets

(ii) Depreciation/Amortisation:

Depreciation is provided on straight-line basis for property, plant and equipment so as to expense the
depreciable amount, i.e. the costless estimated residual value, over its estimated useful lives. The estimated
useful lives and residual values are reviewed annually and the effect of any changes in estimate is accounted
for on a prospective basis.

(iii) Derecognition:

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss on derecognition of an item of property, plant and
equip ment is measured as the difference between the net disposal proceeds and the carrying amount of the
item and is recognised in the statement of profit or loss in the year the asset is derecognised.

2. 10 Intangible Assets

Intangible assets purchased are measured at cost as of the date of acquisition, as applicable, less
accumulated amortization and accumulated impairment, if any. Intangible assets are amortized on a straight
line basis over their estimated useful lives from the date that they are available for use. The estimated usefu
lives of the intangible assets and the amortization period are reviewed at the end of each financial year and
the amortization period is revised to reflect the changed pattern, if any.

The estimated useful life on a straightline basis of amortization is mentioned below:

Type of Asset Useful Life

Softtware 3 Year

2. 11 Borrowing Cost

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

The Company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing
costs incurred on that borrowing during the year less any interest income earned on temporary investment
of specific bor rowings pending their expenditure on qualifying assets, to the extent that an entity borrows
funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally
and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined
by applying a capitalisation rate to the expenditures on that asset.

Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent they
are regard ed as an adjustment to the finance cost.

2.12 Lease

The Group evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116 and
this may require significant judgment. The Group also uses significant judgement in assessing the lease
term (including anticipated renewals) and the applicable discount rate.

The Group determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend or terminate the lease if the Group is reasonably certain based
on relevant facts and circumstances that the option to extend or terminate will be exercised. If there is
a change in facts and circumstances, the expected lease term is revised accordingly.

The discount rate is generally based on the interest rate specific to the lease being evaluated or if that
cannot be easily determined the incremental borrowing rate for similar term is used.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases of low-value assets. The Group recognises the
lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Company As Lessor

Leases in which the Company does not transfer substantially all the risks and benefits of ownership of
the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease
are added to the carrying amount of the leased asset and recognized over the lease term on the same
basis as rental income. Contingent rents are recognized as revenue in the year in which they are earned
or contingency is resolved.

Leases in which the Company transfers substantially all the risk and benefits of ownership of the asset
are classified as finance leases. Assets given under finance lease are recognized as a receivables at an
amount equal to the present value of lease receivables. After initial recognition, the Company apportions
lease rentals between the principal repayment and interest income so as to achieve a constant periodic
rate of return on the net investment outstanding in respect of the finance leases.

The interest income is recognized in the statement of profit and loss. Initial direct costs such as legal cost,
brokerage cost etc. are recognized immediately in the statement of profit and loss.

2. 13 Impairment of Non Financial Assets

Goodwill

Goodwill is tested annually on March 31, for impairment, or sooner whenever there is an indication that
goodwill may be impaired, relying on a number of factors including operating results, business plans and
future cash flows. For the purpose of impairment testing, goodwill acquired in a business combination is
allocated to the Company''s cash generating units (CGU) expected to benefit from the synergies arising from
the business combination. A CGU is the smallest identifiable group of assets that generates cash inflows that
are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when
the carrying amount of a CGU including the goodwill, exceeds the estimated recoverable amount of the CGU.
The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value-in-use. Value
in-use is the present value of future cash flows expected to be derived from the CGU. Total impairment loss
of a CGU is allocated first to reduce the carrying amount of goodwill allocated to the CGU and then to the
other assets of the CGU, pro-rata on the basis of the carrying amount of each asset in the CGU.

An impairment loss on goodwill recognized in the statement of profit and loss is not reversed in the
subsequent period

Intangible assets and property, plant and equipment.

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in¬
use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to
which the asset belongs. Impairment, if any, is measured by the amount by which the carrying value of the
asset exceeds the estimated recoverable amount of the asset. Subsequently if there is a change in the
estimates used to determine the recoverable amount, the impairment loss is reversed. Such reversal is made
only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have
been determined on the date of reversal, if no impairment loss had been recognized. Such impairment and
any subsequent reversal is recognized under the head "Depreciation and amortization expense” in the
statement of profit and loss.

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Mar 31, 2023

1 Background

Magellanic Cloud Limited, (formerly known as South India Projects Limited) ("the Company") incorporated on 04 December, 1981 is a domestic company, and is domiciled in Hyderabad, India. The registered office of the Company is at Dallas Centre, 6th & 7th Floor, 83/1, Knowledge City, Raidurg, Hyderabad, Talengana 500032. The Company is engaged in the business of IT solutions, E - Surveillance and Human Capital.

2 Summary of Significant accounting policies

2.1 Basis of preparation of financial statements

Compliance with Ind AS: The financial statements have been prepared to comply, in all material aspects, with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the ''Act''), read with Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the Act.

Classification of assets and liabilities : All assets and liabilities have been classified as current or non-current based on the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Deferred tax assets and liabilities are classified as non-current on net basis.

Measurement of fair values

A number of Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has established policies and procedures with respect to the measurement of fair values.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

2.2 Revenue Recognition:

Revenue from time and material contracts is recognised as the related services are performed and revenue from the end of the last invoicing to the reporting date is recognised as unbilled revenue. Revenue from contract with customers is is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is measured based on transaction price, which is the consideration, net of indirect taxes, discounts, rebates, credits, concessions, incentives, penalties, or other similar items. Fixed-price maintenance revenue is recognized ratably on a straight-line basis when services are performed through an indefinite number ofrepetitive acts over a specified period.Revenue from fixed-price maintenance contract is recognized ratably using a percentage of completion method when the pattern of benefits from the services rendered to the customer and the Company''s costs to fulfil the contract is not even through the period of the contract because the services are generally discrete in nature and not repetitive. The use of method to

recognize the maintenance revenues requires judgment and is based on the promises in the contract and nature of the deliverables.

Contracts assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled revenue when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Contract liability (“Unearned revenue”) arises when there are billing in excess of revenue.

Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount ofincome can be measured reliably.

2.3 Property plant and equipment

(i) Tangible property plant and equipment:

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment, if any.

Cost includes financing cost relating to borrowed funds attributable to the construction or acquisition of qualifying tangible assets up to the date the assets are ready for use.

When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Statement of Profit and Loss.

The management’s estimate of useful lives are in accordance with Schedule II to the Companies Act, 2013.

(ii) Depreciation/Amortisation:

Depreciation is provided on straight-line basis for property, plant and equipment so as to expense the depreciable amount, i.e. the costless estimated residual value, over its estimated useful lives.The estimated useful lives and residual values are reviewed annually and the effect of any changes in estimate is accounted for on a prospective basis.

(iii) Derecognition:

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognised in the statement of profit or loss in the year the asset is derecognised.

(iv) Impairment Testing of Property, Plant and Equipment, and Intangible Assets

The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses recognised in respect of cash generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis. Impairment losses are recognised in the statement of profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) earlier.

2.4 Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116 and this may require significantjudgment. The Company also uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend or terminate the lease if the Company is reasonably certain based on relevant facts and circumstances that the option to extend or terminate will be exercised. If there is a change in facts and circumstances, the expected lease term is revised accordingly.

The discount rate is generally based on the interest rate specific to the lease being evaluated or if that cannot be easily determined the incremental borrowing rate for similar term is used.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

The Company as a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and restoration cost, less any lease incentives received.

The right-of-use assets are subsequently depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. In addition, the right-of-use asset is reduced by impairment losses, if any.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. When a lease liability is remeasured, the corresponding adjustment of the lease liability is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

2.5 Foreign currency transactions

(i) Initial recognition

Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date of transaction or at rates that closely approximate the rate at the date of the transaction.

(ii) Measurement of monetary items denominated in foreign currency at the Balance Sheet date

Monetary items denominated in foreign currency (other than those related to acquisition of property plant and equipment) of the Company outstanding at the Balance Sheet date are restated at the year-end rates.

Non monetary foreign currency items are carried at cost.

(iii) Treatment of exchange differences

Exchange differences arising on foreign currency transactions settled during the year are recognised in the Statement of profit and loss.

The translation differences on monetary assets and liabilities denominated in foreign currencies are recognized in the Statement of profit and loss. Nonmonetary assets and liabilities are recorded at the rates prevailing on the date of the transaction.

Transactions with fixed Rupee exposure are not revalued at the balance sheet date as the Company''s exposure is fixed in INR terms.

2.6 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit / (loss) attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period.

Diluted EPS is computed by dividing the net profit / (loss) as adjusted for dividend, interest and other charges to expense or income (net off any attributable taxes) relating to the dilutive potential equity shares by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

2.7 Income taxes

(i) Current tax

Current tax is determined as the amount of tax payable in respect of taxable income for the year. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

(ii) Deferred tax

Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases. 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 realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against which the deductible temporary differences could be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. 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 it is probable that the Company will pay normal income tax against which the MAT paid will be adjusted. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

(iii) Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

2.8 Borrowing costs

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

The Company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the year less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on that asset.

Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the finance cost.

2.9 Provisions and contingencies:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When provision is measured using the cash flow estimated to settle the present obligation, its carrying amount is the present value of these cash flows (when the effect of the time value of money is material).

Contingent liabilities are not recognised in the financial statements and are disclosed in the notes forming part of the financial statements.

Contingent assets are neither recognized and disclosed in Financial statements.

2.10 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

A financial asset (unless it is a trade receivable without a significant financing component) is initially measured at fair value plus or minus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

Classification and subsequent measurement Financial assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets 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 at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset.

On initial recognition, a financial asset is classified as - measured at:

Amortised cost; or

Fair Value through Other Comprehensive Income (FVTOCI) - debt investment; or Fair Value through Other Comprehensive Income (FVTOCI) - equity investment; or Fair Value through Profit or Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

All financial assets not classified as measured at amortised cost or FVTOCI are measured at FVTPL. This includes all derivative financial assets unless designated as effective hedge instruments which are accounted as per hedge accounting requirements discussed below.

Financial assets at amortised cost are subsequently measured at amortised cost using effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment expenses are recognised in profit or loss. Any gain and loss on derecognition is also recognised in profit or loss.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Financial liabilities and equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company is recognised at the proceeds received, net of directly attributable transaction costs.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading or it is a derivative (that does not meet hedge accounting requirements) or it is designated as such on initial recognition. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all of the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for the amount it may have to pay.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised and the proceeds received are recognised as a collateralised borrowing.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Derivative financial instruments and hedge accounting

The Company enters into derivative financial instruments, primarily foreign exchange forward contracts and interest rate swaps, to manage its exposure to foreign exchange and interest rate risks. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of Ind AS 109 are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at FVTPL.

Derivatives are initially recognised at fair value at the date the contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedging relationship and the nature of the hedged item.

2.11 Impairment of financial assets

The Company applies the Expected Credit Loss (ECL) model for recognising impairment loss on financial assets. With respect to trade receivables and loans, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVTOCI, the loss allowance is recognised in OCI and is not reduced from the carrying amount of the financial asset in the balance sheet.

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write- off. However, financial assets that are written off could still be subject to enforcement activities under the Company’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.

2.12 Business Combination

Business Combination under common control are accounted under “the pooling of interest method” i.e. in accordance with Appendix C in Ind AS 103 - Business combinations, at carrying amount of assets and liabilities acquired and any excess of consideration issued over the net assets acquired is recognised as capital reserve on common control business combination.

2.13 Use of estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

Key sources of estimation uncertainty at the date of financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of useful lives of property, plant and equipment, fair value of financial assets/liabilities and impairment of investments.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(i) Useful lives of property, plant and equipment and intangible assets

The Company reviews the useful lives of property, plant and equipment and intangible assets at the end of each reporting period. This re-assessment may result in change in depreciation and amortisation expense in future periods.

(ii) Revenue Recoginition

The Company applies the percentage of completion method in accounting for its fixed price development contracts. Use of the percentage of completion method requires the Company to estimate the efforts or costs expended to date (input method) as a proportion of the total efforts or costs to be expended. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

The Company exercises judgments while determining the transaction price allocated to performance obligations using the expected cost plus margin approach.

(iii) Fair value of financial assets and liabilities

The Company measures certain financial assets and liabilities on fair value basis at each balance sheet date or at the time they are assessed for impairment. Fair value measurement that are based on significant unobservable inputs (Level 3) requires estimates of operating margin, discount rate, future growth rate, terminal values, etc. based on management’s best estimate about future developments.

2.14 Recent Accounting Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1st, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements

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Mar 31, 2022

1. Company overview

Magellanic Cloud Limited ("the Company") has its place of business is in Hyderabad and registered office is in Mumbai.

2. Basis of preparation of financial statements

a) Accounting convention

The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules,

2015 as amended by the companies (Indian Accounting Standards) Amendment Rules,

2016

b) Basis of measurement

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. All assets and liabilities are classified into current and non-current based on the operating cycle of less than twelve months or based on the criteria of realisation/settlement within twelve months period from the balance sheet date.

c) Key accounting judgement, estimates and assumptions

The preparation of the financial statements required the management to exercise judgment and to make estimates and assumptions. These estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period.

d) Functional and presentation currency

The functional and presentation currency of the Company is the Indian Rupee.

e) Foreign currency transaction

Foreign currency transactions are translated at the exchange rate that approximates the prevalent exchange rate on the transaction date. Monetary assets and liabilities in foreign currencies are translated at the year-end rate. Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

3. Significant Accounting Policies

The Company has applied the following accounting policies to all periods presented in the financial statements.

a) Revenue Recognition

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services, net of indirect taxes, discounts, rebates, credits, price concessions, incentives, performance bonuses, penalties, or other similar items, as described below.

Sale of Goods and services

Sales are recognised when the significant risks and rewards of ownership of the services are transferred to the buyer as per terms of contract. Income and fees from services are accounted as per terms of relevant contractual agreements/arrangements.

Interest Income

Interest income is recognised on accrual basis as per the terms of relevant contracts or by using the effective interest method, where applicable.

Investment income

Incomes from investments are accounted on an accrual basis.

b) Property, Plant and Equipment

i) Recognition and measurement: Property, plant and equipment are carried at cost of acquisition less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure related to an item of fixed asset are added to its book value only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All repairs and maintenance are charged to the Statement of Profit and Loss during the financial year in which they are incurred.

ii) Depreciation: Land is not depreciated. Depreciation of other items of Property, Plant and Equipment are provided on a straight line basis over the estimated useful life of the asset or as prescribed in Schedule II to the Companies Act, 2013 or based on technical evaluation of the asset. Estimated useful life of items of property, plant and equipment are as follows:

Type of Asset	Estimated Useful Life
Freehold Land	N.A
Furniture & Fittings	10 years
Computers & Printers	3 years
Motor Vehicles	8 years
Office Equipment''s	5 years

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.

The Company assesses at each balance sheet date whether there is objective evidence that an asset or a group of assets is impaired. An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the sale proceeds with the carrying amount and are recognised within operating profit in the Income statement.

c) Financial Instruments Financial Assets

The Company classifies its financial assets in the following categories:

i) Financial assets at amortised cost - Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost.

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Financial assets are measured initially at fair value which usually represents cost plus transaction costs and subsequently carried at amortised cost using the effective interest method, less any impairment loss if any.

Financial assets at amortised cost are represented by trade receivables, security and other deposits, cash and cash equivalent, employee and other advances.

ii) Equity investments - Investment in subsidiaries are stated at cost. All other equity investments are measured at fair value, except for certain unquoted equity investments which are carried at cost where the fair value of these investments cannot be reliably measured.

iii) Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI) -

For investments which are not held for trading purposes and where the company has exercised the option to classify the investment as at FVTOCI, all fair value changes on the investment are recognized in OCI. The accumulated gains or losses on such investments are not recycled to the Statement of Profit and Loss even on sale of such investment.

iv) Financial assets at Fair Value through Profit and loss (FVTPL) - Financial assets other than the equity investments and investment classified as FVTOCI are measured at FVTPL. These include surplus funds invested in mutual funds etc.

v) Impairment of financial assets - The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ''loss event'') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Financial liabilities

Initial recognition and measurement

Financial liabilities are measured at amortised cost using effective interest method. For trade and other payable maturing within one year from the Balance Sheet date, the carrying value approximates fair value due to short maturity.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

d) Inventories

Inventories are stated at the lower of cost and net realisable value, less any provision for obsolescence. Cost is determined on the following basis:

- purchased traded goods are recorded at cost on a first-in, first-out ("FIFO") basis.

- finished products are valued at raw material cost plus costs of conversion, comprising labour costs and an attributable proportion of manufacturing overheads based on normal levels of activity and are moved out of inventory on a FIFO basis.

Net realisable value is determined based on estimated selling price, less further costs expected to be incurred to completion and disposal

e) Employee benefits

The Company operates various post-employment schemes, including both defined benefit and defined contribution plans:

Defined contribution plan:

Contributions to defined contribution schemes such as contribution to Provident Fund, Employees'' State Insurance Corporation, National Pension Scheme and Labours Welfare Fund are charged as an expense to the Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered by the employees. The above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.

Defined benefit plan:

Gratuity:

Gratuity liability is a defined benefit obligation and is computed on the basis of an actuarial valuation by an actuary appointed for the purpose as per projected unit credit method at the end of each financial year. The liability or asset recognised in the Balance Sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The liability so provided is paid to a Trust administered by the Company, which in turn invests in eligible securities to meet the liability as and when it accrues for payment in future. Any shortfall in the value of assets over the defined benefit obligation is recognised as a liability with a corresponding charge to the Statement of Profit and Loss. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur directly in Other Comprehensive Income. They are included in retained earnings in the Statement of changes in equity and in the Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

f) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If the effect of the time value of money is material, provisions are discounted. The discount rate used to determine the present value is a pre- tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

g) Income Taxa) Current Income Tax

Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with local laws of various jurisdiction where the Company operates.

b) Deferred Tax:

Deferred tax is provided using the balance sheet approach on differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The tax rates and tax laws used to compute the tax are those that are enacted or substantively enacted at the reporting date.

Current and Deferred Tax are recognised in the Statement of Profit and Loss except to items recognised directly in Other Comprehensive income or equity, in which case the deferred tax is recognised in Other Comprehensive Income and equity respectively.

h) Leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the Company has concluded that no changes are required to lease period relating to the existing lease contracts.

i) Cash flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipt or payments and item of income or expense associated with investing or financing cash-flows. The cash flow from operating, investing and financing activities of the Company are segregated.

j) Earnings per share

The Company presents Basic and Diluted earnings per share data for its equity shares. Basic and Diluted earnings per share is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

k) Contingent Liabilities

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company, or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

l) Borrowing Costs

Borrowing costs directly relating to the acquisition, construction or production of a qualifying capital project under construction are capitalised and added to the project cost during construction until such time that the assets are substantially ready for their intended use i.e. when they are capable of commercial production. Where funds are borrowed specifically to finance a project, the amount capitalised represents the actual borrowing costs incurred. Where surplus funds are available out of money borrowed specifically to finance a project, the income generated from such current investments is deducted from the total capitalized borrowing cost. Where the funds used to finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the company during the year. Capitalisation of borrowing costs is suspended and charged to profit and loss during the extended periods when the active development on the qualifying assets is interrupted.

m) Useful economic lives and impairment of other assets

Property, plant and equipment other than mining rights are depreciated over their useful economic lives. Management reviews the useful economic lives at least once a year and any changes could affect the depreciation rates prospectively and hence the asset carrying values. The Company also reviews its property, plant and equipment, for possible impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be recoverable. In assessing the property, plant and equipment for impairment, factors leading to significant reduction in profits such as changes in prices, the Company''s business plans and changes in regulatory environment are taken into consideration.

The carrying value of the assets of a cash generating unit (CGU) is compared with the recoverable amount of those assets, that is, the higher of fair value less costs of disposal and value in use. Recoverable value is based on the management estimates of prices, market demand and supply, economic and regulatory climates, long-term plan, discount rates and other factors. Any subsequent changes to cash flow due to changes in the above mentioned factors could impact the carrying value of the assets.

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Mar 31, 2018

1. Significant Accounting Policies

The Company has applied the following accounting policies to alt periods presented in the financial statements.

a) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts exclusive of excise duly receivable for goods supplied, stated net of discounts, returns and value added taxes. The company recognises revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Company''s activities, as described below.

Sale of Goods and services

Sales are recognised when the significant risks and rewards of ownership of the goods are transferred to the buyer as per terms of contract. Income and fees from services are accounted as per terms of relevant contractual agreements/arrangements.

Revenue from sale of power is recognised when delivered and measured based on rates as per bilateral contractual agreements with buyers and at rale arrived at based on the principles laid down under the relevant Tariff Regulations as notified by the regulatory bodies, as applicable.

Interest Income

Interest income is recognised on accrual basis as per the terms of relevant contracts or by using the effective interest method, where applicable.

Investment income

Incomes from investments are accounted on an accrual basis.

b) Property, Plant and Equipment

Transition to Ind AS:

The Company has elected to continue with the net carrying value of a II its property, plant and equipment recognized as of April 1, 2016 (transition date) as per the previous GAAP and use that carrying value as its deemed cost.

i) Recognition and measurement Property, plant and equipment are carried at cost of acquisition less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure related (o an item of fixed asset are added to its book value only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. Alt repairs and maintenance are charged to the Statement of Profit and Lass during the financial year in which they are incurred.

ii) Depreciation: Land is not depreciated. Depreciation of oilier items of Property, Plant and Equipment are provided on a straight tine basis over the retime bed useful life of the asset or as prescribed in Schedule II to the Companies Act, 2013 or based cm technical evaluation of the asset. Estimated useful life of items of property, plant and Equipment 8ne as follows:

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.

The Company assesses at each balance sheet date whether there is objective evidence that an asset or a group of assets is impaired. An asset''s carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the sale proceeds with the tarrying amount and are recognised within operating profit in the Income statement.

c) Financial Instruments

Financial Assets

The Company classifies its financial assets in the following categories:

i) Financial assets at amortised cost - Assets that are held For collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost.

They are presented as current assets, except for those maturing later than 12 months after the reporting daft? which are presented as non-current assets. Financial assets are measured initially at fair value which usually represents cost plus transaction costs and subsequently carried al amortised cost plus the effective interest method, less any impairment loss if any.

Financial assets at amortised cost are represented by trade receivables, security and other deposits, cash and Cash equivalent, employee and other advances.

ii) Equity investments/Investment in LLP - Investment in subsidiaries and LLP are stated at cost. All other equity investments are measured at fair value, except for Certain unquoted equity investments which are carried at cost where the fair value of these investments cannot be reliably measured.

iii) Financial Assets at Fair Value through Other Comprehensive Income (FVTOC1) -For investments which are not held for trading purposes and where the company has exercised the option to classify the investment as at FVTOCI, all fair value changes on the investment ire recognized in OCI. The accumulated gains or losses on such investments are net recycled to the Statement of Profit and Loss even on sale of such investment.

iv) Financial assets it Fair Value through Profit and loss (FVTFL) - Financial assets other than the equity investments and investment classified as FVTOCI are measured at FVTPL, These include surplus funds invested in mutual funds etc.

v) Impairment of financial assets - The Company assesses at each balance sheet date whether (here is objective evidence that a financial asset or a group of financial assets is impaired, A financial asset or a group of financial assets is impaired and impairment tosses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ''loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Financial liabilities

Initial recognition and measurement

Financial liabilities are measured at amortised cost using effective interest method. For trade and other payable maturing within one year from the Balance Sheet date, the carrying value approximates fair value duo to short maturity.

Offsetting financial instruments

Financial assets and liabilities are offset and the nut amount reported in the Balance Sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable tight must not be contingent on future events and must be enforceable in the normal course of business and in the event of default insolvency or bankruptcy of the company or the counterparty.

d) Employee benefits

The Company operates various post-employment schemes, including both defined benefit and defined contribution plans;

Defined contribution plan:

Contributions to defined contribution schemes Such as contribution to Provident Fund, Employees’ State Insurance Corporation, National Pension Scheme and Labours Welfare Fund are charged as an expense to (he Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered by the employees. The above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.

Defined benefit plan:

Gratuity:

Gratuity liability is a defined benefit obligation and is computed on the basis of an actuarial valuation by an actuary appointed for the purpose as per projected unit credit method at the end of each financial year. The Liability or asset recognised in the Balance Sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The liability so provided is paid to a Trust administered by the Company, which in turn invests in eligible securities to meet the liability as and when it accrues for payment in future. Arty shortfall in the value of assets over the defined benefit obligation U recognised as a liability with a corresponding charge to the Statement of Profit and Loss. The present value of the downed benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related

The net interest cost is calculated by applying the discount rate to the ret balance of the defined benefit obligation arid the fair value of plan assets. This cost is included ir employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains arid losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur directly in Other Comprehensive Income. They are included in retained earning in the Statement of changes in equity and in the Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or toss as past service cost.

e) Provisions

Provisions are recognised when the Company has a present obligation [legal or constructive) as a result of a past event, it is probable that an outflow of 4sonomic benefits will be required lo settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

These estimates are reviewed at each reporting date and adjusted lo reflect the current best estimates. If the effect of the time value of money is material, provisions are discounted. The discount rate used to determine the present value is a pre- tax rate that reflects current market assessments of the time value of money and the risks specific to the liability, The increase in the provision due to the passage of time is recognised as interested expense.

f) Income Tax

a) Current Income Tax

Current income Tax is measured at the amount expected to be paid to the tax authorities in accordance with local laws of various jurisdiction where the Company operates.

b) Deferred Tax

Deferred tax is provided using the balance sheet approach on differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting date.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The tax rates and tax laws used to compute the tax are those that are enacted or substantively enacted at the reporting date.

Current and Deferred Tan are recognised In the Statement of Profit and Loss except to items recognised directly in Other Comprehensive income or equity, in which ease the deferred tax is recognised in Other Comprehensive Income and equity respectively.

g) Leases

As a lesses

Lease of assets, where the Company, as a lessee, has substantially assumed all the risks and rewards of ownership are classified as finance leases. Assets acquired on finance lease are capitalised and depreciated as per Company''s policy on Property, Plant and Equipment finance lease are measured at the lease''s inception at the lower of fair value of the based properly and the present value of the minimum lease payments. The corresponding lease rental obligations, net of finance charges, are included in borrowings of other financial liabilities as.- appropriate. Each lease payment is allocated between the liability and financial cost. The finance cost is charged lo the profit or loss over the tease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each year.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to Statement of profit or loss on a straight-line basis over the period of the lease unless ihe payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

As a lessor

Lease income from operating leases where the Company is a lessor is recognised as income in the Statement of profit or loss 011 a straight- line basis over the lease term unless the receipts are structured in increase in line with expected general inflation to compensate for the expected Inflationary cost increases.

h) Cash flow Statement

Cash flows are reported using the Indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipt or payments and item of income or expense associated with investing or financing cash-flows. The cash flow from operating, investing and financing activities of the Company are segregated.

i) Earnings per share

The Company presents Basic and Diluted earnings per share data for its equity shares-Basic and Diluted earnings per share is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

j) Contingent Liabilities

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one nr more uncertain future events not wholly within the control of the Company, Or a present obligation that arises from past events where it is either not probable that an outflow'' of resources will be required or the amount cannot be reliably estimated.

Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

k) Borrowing Costs

Borrowing cost^s directly relating to the acquisition, construction or production of a qualifying capital project under construction art capitalised and ad Jed to the project cost during construction until such time that the assets are substantial^ ready for their intended use i.e. when they are capable of commercial production. Where funds are borrowed specifically to finance a project the amount capitalised represents the actual borrowing costs incurred. Where surplus funds and available Out of money borrowed specifically to finance a project, the income generated from such current investments is deducted from the total capitalized borrowing cost. Where the funds used to finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the company during the year. Capitalisation of borrowing costs is suspended and charged to profit and loss during the extended periods when the active development on the qualifying assets is interrupted.

l) Useful economic lives and impairment of other assets

Property, plant and equipment other than mining rights are depreciated over their useful economic lives, Management reviews the useful economic fives at least once a year and any changes could affect the depreciation rates prospectively and hence the asset carrying values. The Company also reviews its property, plant and equipment, for possible impairment if there arc events or changes in circumstances that indicate that carrying values of the assets may not be recoverable In assessing the property, plant and equipment for impairment, factors leading to significant reduction in profits such as changes in prices, the Company''s business plans and changes in regulatory environment are taken into consideration.

The carrying value of the assets of a cash generating unit (CGU) is compared with the recoverable amount of those assets, that is, the higher of fair value less costs of disposal and value in use. Recoverable value is based on the management estimates of prices, market demand and supply, economic and regulatory climate, long-term plan, discount rates and other factors. Any subsequent changes to cash flow due to changes in the above mentioned factors could impact the carrying value of the assets.

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Mar 31, 2017

1. Significant accounting policies

a) Basis of preparation of financial statements

The financial statement have been prepared and preserved under the historical cost convention, on the accrual basis of fating in accordance with the accounting principles generally accepted in India (GAAP) and comply with the Actuating Standards as per Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act 2013 to the extent applicable.

b) List of estimates

The preparation of financial statements is in conformity with Generally Adapted Accounting Principles (GAAP) and require management lo make estimates and assumptions that affect the reported amounts of asset* and Liabilities and the disclosure contingent liabilities on the date of the financial Statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements, Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and fixture periods.

c) Revenue recognition

a) Sates are recorded net of trade discounts, sales tax/ value added tax, rebates and excise duly Revenue from sale of products is recognised when the significant risk and rewards of ownership of the goods have passed to the buyer. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and tan be reliably measured.

b) Incomes from services are recognised us they are rendered based on agreements/arrangements with the concerned patties.

c) Interest income is recognised on time proportion basis. Dividend income on investment is considered when right to receive is established.

d) Investments

Investments are classified info non current investments and current investments, Investment) which are intended to he held for more than one year are classified as non current investments and investments which are Intended to be held for less than one year, are classified as current investment. Non current investments are stated at cost and a provision for diminution in value of non current investments is made only if the decline is other than temporary in the opinion of the management Current investments aw valued at cost or market/fair value whichever is lower. In case of investments in mutual funds, the net asset value of units is considered as market/fair value.

e) Fixed assets and depreciation

i. Tangible & Intangible: Fixed Assets are stated at cost; which comprises of purchase consideration anti other directly attributable cost of bringing, the assets to its working condition for the intended use.

ii. Intangible assets are amortized over a period of Five years or as considered appropriate by the management, Depreciation on fixed assets is provided on SLM method at the rates and in the manner as prescribed in Schedule II to the Companies Act, 2013.

f) Provisions, Contingent Liabilities, and Contingent Asset

The Company crates a provision when there is present obligation as a result of a past went that probably requires an out flow of resources and it reliable estimate can be made of the amount of the obligation.

A disclosure fur a contingent liability- is made when there is a possible obligation or present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or present obligation m respect of which the likelihood of null Low of resource is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted lo reflect [he current best estimate, If It is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. Hoover, contingent assets are assessed continually a bid if it is virtually certain that an economic benefit will arise, the assets and related income are recognized in the period in which the change occurs.

g) taxation

a. Current Tax:

Provision for tax is based on the taxable profit for the accounting year after taking into consideration the relevant provisions of the Income Tax Act, 1961.

b. Deterred Tax;

Deferred tax resulting from timing difference between accounting and taxable income is accounted for using |h£ rates and laws that are enacted or substantively enacted on the balance sheet date. the deferred tax asset is recognized and carried forward only to the extent there Ls a virtual certainty that the asset will hr realised in future.

h) Borrowing Cost:

Interest and other costs Incurred in connection with the throwing of the funds are charged Lo revenue on accrual basis except those borrowing costs which are directly attributable to the acquisition or construction of those fixed assets, which necessarily take a substantial period of time to get ready for their intended use. Such costs are capitalized with the fixed assets.

i) Impairment of assets

The Company assesses at each balance sheet date whether [here is any Indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced lo its recoverable amount and the amount of such impairment loss is changed to profit and loss account, If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

j) Earnings per share

The basic earnings per share is computed by dividing the net profit / loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises I lie weighted average number of shares considered for deriving earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per Share, only potential shares In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit / per share are included.

k) Preliminary Expenses:

Preliminary expenses are charged to Profit and Loss Account in the year in which it is incurred.

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Mar 31, 2016

i) Basis of Preparation of Financial Statements -

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (“the Act).

The financial statements have been prepared on the accrual basis under the historical cost convention. The accounting policies adopted in the preparation of then financial statements are consistent with those followed in the previous year.

ii) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income recognition, Accounting standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

iii) Long-term Investment is stated at Cost less Provision for diminution in value other than temporary, if any.

iv) Provision for Current Income-tax is made in accordance with the Income-tax Act, 1961.

Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realization of such deferred assets.

2. OTHER NOTES -

i) There is no contingent Liabilities as on 31.03.2016.

ii) Sundry Creditors, Debtors and Advances are subject to confirmation.

iii) Segment Reporting:

The Company is engaged primarily in the business of Financing / Investment in Shares and Securities accordingly there are no separate reportable segments

iv) Related Party Discloser-

There is no transaction with the related Parties, hence no disclosure desired or applicable.

v) Foreign Exchange transactions -There is no such transactions

vi) There is no amount due to Micro, Small and Medium Enterprise as on 31.03.2016.

vii) Previous year figures have been regrouped / reclassified to conform to this year''s classification.

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Mar 31, 2015

(a) Use of estimates

The preparation of financial statements in conformity with Indian Generally Accepted Accounting Principles ("IGAAP") requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(b) Cash and cash equivalents

Cash and cash equivalents for the purpose of the Cash Flow Statement comprise cash on hand and cash in bank.

(c) Cash flow statement

Cash flows are reported using the indirect method whereby cash flows from operating, investing and financing activities of the Company are segregated and profit before 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.

(d) Investments

Investments which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long- term investments. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

Current investments are carried in the financial statements at fair value determined on an individual investment basis.

Unquoted investments in units of mutual funds are stated at net asset value.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss."

(e) Tangible fixed assets

Fixed assets are stated at cost of acquisition, including any cost attributable for bringing the asset to its working condition, less accumulated depreciation. Profit or loss arising from de-recognition of fixed assets are measured as difference between the net disposal proceeds and the cost of the assets less accumulated depreciation upto the date of disposal and are recognised in the Statement of Profit and Loss.

(f) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Internally generated intangible assets, excluding capitalised development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred. Intangible assets are amortized on a straight-line basis over the estimated useful economic life.

(g) Depreciation on Tangible asset/Amortization of Intangible asset

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management.

(h) Loans

Loans are stated at the amount advanced, as reduced by the amounts received up to the balance sheet date and loans assigned.

(i) Impairment of tangible and intangible assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted at the pre tax discount rate reflecting current market assessment of time value of money and risks specific to asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(j) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(k) Borrowing costs

Borrowing costs consists of interest and other ancillary cost that an entity incurs in connection with borrowing of funds.

Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the tenor of borrowings.

(l) Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with applicable tax rates and the provisions of the Income-tax Act, 1961.

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 Balance Sheet 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. Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Statement of Profit and Loss.

(m) Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(n) Provisions

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(o) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

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Mar 31, 2014

I) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred.The financial statements have been prepared under the historical cost convention, in accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act,1956.

ii) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

iii) Fixed Assets are stated at cost less Depreciation.

iv) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

v) Investment is stated at Cost and classified as Long-term Investment.

vi) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961. (ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets.

vii) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.

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Mar 31, 2013

I) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred. The financial statements have been prepared under the historical cost convention, In accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act, 1956.

ii) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

iii) Fixed Assets are stated at cost less Depreciation.

iv) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956,

v) Investment is stated at Cost and classified as Long-term Investment.

vi) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961.

(ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets.

vii) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.

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Mar 31, 2012

I) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred. The financial statements have been prepared under the historical cost convention, in accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act, 1956.

ii) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

iii) Fixed Assets are stated at cost less Depreciation.

iv) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

v) Investment is stated at Cost and classified as Long-term Investment.

vi) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961.

(ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets,

vii) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.

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Mar 31, 2011

A) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred. The financial statements have been prepared under the historical cost convention, in accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act,1956.

b) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

c) Fixed Assets are stated at cost less Depreciation.

d) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

e) Investment is stated at Cost and classified as Long-term Investment.

f) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961.

(ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets.

g) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.