Accounting Policies of Mideast Portfolio Management Ltd. Company

Mar 31, 2025

1. Summary of significant accounting policies : -

(A) Basis of Preparation of Financial Statements:

• The financial statements have been prepared under the historical cost convention on an
accrual basis and going concern basis. The accounting policies have been consistently
applied by the company and are consistent with those used in the previous year.
Accounting policies not specifically referred to otherwise are consistent and in
consonance with generally accepted accounting principles in India.

• All assets and liabilities have been classified as current or non-current as per the
Company''s normal operating cycle and other criteria set out in Schedule III to the
Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the
Company has determined its operating cycle as twelve months for the purpose of current
- non-current classification of assets and liabilities.

(B) Use of Estimates

• The preparation of financial statements in conformity with Indian Accounting Standards
requires the management to make judgments, 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.

(C) Tangible Fixed Assets

• Fixed assets are stated at cost less accumulated depreciation and impairment losses, if
any. Cost comprises the purchase price and directly attributable cost of bringing the asset
to its working condition for its intended use. Any trade discounts and rebates are
deducted in arriving at the purchase price.

• Borrowing costs relating to the acquisition of tangible assets that take a substantial period
of time to get ready for its intended use are also included to the extent they relate to the

• period till such assets are ready to be put to use. Assets under installation or under
construction as at the Balance Sheet date are shown as Capital Work in Progress.

(D) Depreciation and Amortization:

• Depreciation on fixed assets is calculated on a Straight-Line method at based on the
useful lives estimated by the management, or those prescribed under the Schedule II of
the Companies Act, 2013,The company has used the following rates to provide
depreciation on its fixed assets.

(E) Intangible Fixed Assets:

• Intangible assets are recognized when it is probable that the future economic benefits that
are attributable to the asset will flow to the enterprise and the cost of the asset can be
measured reliably. The entity is not in possession of any intangible assets.

(F) Borrowing Costs:

• Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest, exchange
differences arising from foreign currency borrowings to the extent they are regarded as
an adjustment to the interest cost and other costs that an entity incurs in connection with
the borrowing of funds.

(G) Impairment of 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 to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and risks specific to the asset. Net selling price is the amount obtainable
from the sale of an asset in an arm''s length transaction between knowledgeable, willing
parties, less the costs of disposal.

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

Non-Financial Assets :

• For non-financial assets, including property, plant and equipment, goodwill, and other
intangible assets, impairment testing involves estimating the recoverable amount of the
assets or the cash-generating units to which they belong. The recoverable amount is the
higher of fair value less costs of disposal and value-in-use. Key assumptions, such as
future cash flows, growth rates, and discount rates, are considered in this assessment.

Financial Assets:

• For financial assets, including trade receivables, investments, and loans, impairment
assessment is performed using the expected credit loss (ECL) model. This approach
considers historical trends, forward-looking information, and other relevant factors to
estimate potential losses.

(H) Inventories:

• The company is service entity and it does not have inventory on end of reporting period.

(I) Revenue Recognition:

Revenue from Operations

• 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. The following specific
recognition criteria must also be met before revenue is recognized:

Portfolio Management Services:

Income from portfolio management services is recognized on accrual basis.

- Other income

• Interest income, If any is recognized on time proportion basis taking into account the
amount outstanding and the rate applicable.

• Dividend income, If any is recognized when right to receive is established.

(J) Taxation:

• Tax expense comprises current and deferred tax. Current income tax expense comprises
taxes on income from operations in India and in foreign jurisdictions. Income tax payable
in India is determined in accordance with the provisions of the Income Tax Act, 1961.

• Deferred tax expense or benefit is recognized on timing differences being the difference
between taxable income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.

• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have
been enacted or substantively enacted by the balance sheet date. Deferred income tax
relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss. 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 tax assets and deferred tax liabilities relate to the taxes on income levied
by the same governing taxation laws.

• Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax
assets are recognized only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be
realized. In situations where the Company has unabsorbed depreciation or carry forward
tax losses, all deferred tax assets are recognized only if there is virtual certainty

supported by convincing evidence that they can be realized against future taxable
profits. In the situations where the Company is entitled to a tax holiday under the Income
realized against future taxable profits. In the situations where the Company is entitled to
a tax holiday under the Income tax Act, 1961 enacted in India, no deferred tax (asset or
liability) is recognized in respect of timing differences which reverse during the tax
holiday period, to the extent the Company''s gross total income is subject to the deduction
during the tax holiday period. Deferred tax in respect of timing differences which reverse
after the tax holiday period is recognized in the year in which the timing differences
originate.

• At each balance sheet date the Company re-assesses recognized and unrecognized
deferred tax assets. The Company writes-down the carrying amount of a deferred tax
asset to the extent that it is no longer reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will be available against which the deferred
tax asset can be realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available. The Company recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain, as the case may be,
that sufficient future taxable income will be available against which such deferred tax
assets can be realized.

• Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the
extent there is convincing evidence that the Company will pay normal income tax during
the specified period. In the year in which the MAT Credit becomes eligible to be
recognized as an asset in accordance with the recommendations contained in guidance
note issued by the Institute of Chartered Accountants of India, the said asset is created by
way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement.
The Company reviews the MAT Credit Entitlement at each balance sheet date and writes
down the carrying amount of the MAT Credit Entitlement to the extent there is no longer
convincing evidence to the effect that Company will pay normal income tax during the
specified period.

(K) Employee Benefits:

• The Group has a defined benefit gratuity plan. Every employee who has completed five
years or more of service gets a gratuity on departure at 15 days salary (last drawn salary)
for each completed year of service.

(L) Segment reporting :

• The company''s business activity falls within a single primary segment the disclosure
requirements of Indian Accounting Standard (''Ind AS-108'') "Operating segment is not
applicable.

(M) Investments:

• Investments, if any which are readily realizable 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.

• On initial recognition, all investments are measured at cost. The cost comprises the
purchase price and directly attributable acquisition charges such as brokerage, fees and
duties. If an investment is acquired, or partly acquired by the issue of shares or the other
securities, the acquisition cost is the fair value of securities issued. If an investment is
acquired in exchange for another asset, the acquisition is determined by reference to the
fair value of the asset given up or by reference to the fair value of the investment
acquired, whichever is more clearly evident.

• Current investments are carried at the lower of cost and fair value determined on an
individual investment basis. Long- term investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other than temporary in
the value of the long term investments.

• 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.

(N) Earnings per share:

• Basic earnings per share are calculated by dividing the net profit or loss 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 or loss for the
period attributable to equity shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of all dilutive potential equity
shares.

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Mar 31, 2024

2. Summary of significant accounting policies

(A) Basis of Preparation of Financial Statements

During the year ended 31 March 2024, the Division II of Schedule III notified under the Companies
Act, 2013 has become applicable to the Company, for preparation and presentation of its financial
statements. The adoption of Division II of Schedule III does not impact recognition and measurement
principles followed for preparation of financial statements.

(B) Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards requires the
management to make judgments, 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.

(C) Property plant and Equipment''s

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Cost comprises of purchase price inclusive of taxes etc. up to the date the
asset is ready for its intended use. Depreciation is provided under written down value method at the
rates and in the manner prescribed under Schedule II to the Companies Act, 2013.

(D) Depreciation Tangible Fixed Assets.

Depreciation on fixed assets is calculated on a Straight-Line method at based on the useful lives
estimated by the management, or those prescribed under the Schedule II of the Companies Act, 2013,
The company has used the following rates to provide depreciation on its fixed assets.

(E) Intangible Assets

The entity is not in possession of any intangible assets.

(F) Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are expensed in the period they
occur.

(G) Impairment of non-financial assets

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash generating units). As a result, some assets are tested
individually for impairment and some are tested at the cash generating unit level. All individual
assets or cash generating units are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.

The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any
indication of impairment based on external or internal factors. An impairment loss is recognised
wherever the carrying amount of an asset exceeds its recoverable amount which represents the
greater of the net selling price of assets and their ''value in use'' in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a significant
increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss
allowance based on 12-month ECL.

Life time ECL are the expected credit losses resulting from all possible default events over the
expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which
results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR. When estimating the cash flows, an entity is required to consider all
contractual terms of the financial instrument (including prepayment, extension, call and similar
options) over the expected life of the financial instrument. However, in rare cases when the expected
life of the financial instrument cannot be estimated reliably, then the entity is required to use the
remaining contractual term of the financial instrument.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the Statement of profit and loss. This amount is reflected under the head ''other expenses''
in the Statement of profit and loss.

For assessing increase in credit risk and impairment loss, the Company combines financial
instruments on the basis of shared credit risk characteristics with the objective of facilitating an
analysis that is designed to enable significant increases in credit risk to be identified on a timely basis

(H) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on risk exposure arising from financial assets like
debt instruments measured at amortised cost e.g., trade receivables and deposits.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade
receivables or contract revenue receivables. The application of simplified approach does not require
the Company to track changes Purchase price is assigned using a weighted average basis. Net
realizable value is defined as anticipated selling price or anticipated revenue less cost to completion.

(I) Inventories

The company is service entity and it does not have inventory on end of reporting period.

(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. The following specific recognition criteria must
also be met before revenue is recognized:

(a) Portfolio Management Services

Income from portfolio management services is recognised on accrual basis.

(b) Interest

Interest is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.

(K) Accounting for Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Current and
deferred tax shall be recognized as income and expenses and included in profit and loss for the
period, except to the extent that the tax arises from (a) a transaction or event which is recognized in
the same or a different period, outside profit or loss, either in other comprehensive Income or directly
in equity or (b) a business combination. Deferred taxes recognized in respect of temporary differences
between the carrying amount of assets and liabilities for financial reporting purpose and
corresponding amounts used for taxation purpose except to the extent it relates to business
combination or to an item which is recognized directly in equity and in other comprehensive Income.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognized only to the extent that it is probable that
future taxable profit will be available against which the assets can be utilized. A deferred tax asset
shall be recognized for the carry-forward of unused tax losses and unused tax credits to the extent
that it is probable that future taxable profit will be available against which the unused tax losses and
unused tax credits can be utilized. Deferred tax assets are reviewed at each reporting date and
Reduced to the extent that it is no longer probable that the related tax benefit will be Realize. A
deferred tax liability is recognized based on the expected manner of realization or settlement of
carrying amount of assets and liabilities

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 tax assets and deferred taxes relate to
the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current
tax. The Company recognizes MAT credit available as an asset only to the extent that there is
convincing evidence that the Company will pay normal income tax during the specified period, i.e.,
the period for which MAT credit is allowed to be carried forward. In the year in which the Company
recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for credit
available in respect of Minimum Alternative Tax

under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit
and loss and shown as "MAT Credit Entitlement." The Company reviews the "MAT credit

entitlement" asset at each reporting date and writes down the asset to the extent the Company does
not have convincing evidence that it will pay normal tax during the specified period.

(M) Retirement and Other Employee Benefits

The Group has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

(O) Segment reporting

The company''s business activity falls within a single primary segment the disclosure requirements of
Indian Accounting Standard (''Ind AS-108'') "Operating segment is not applicable.

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

The financial statement have been prepared in accordance with the Generally Accepted Accounting Principles in India ("GAAP") under the historical cost convention on an accrual basis to comply in all material aspects the mandatory Accounting Standards notified under the Companies Act, 1956 read with General Circular 15/2013 dated 13th September, 2013 of the Ministry of the Minstry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

2.2 Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the year in which results are known / materialised.

2.3 Fixed Assets

Fixed Assets are stated at their cost of acquisition/ construction including incidental expenses related to acquisition, construction and installation of the concerned assets.

2.4 Impairment of Assets

Pursuant to Accounting Standard AS 28 Impairment of Assets, the company assessed its fixed assets for impairment as at March 31, 2014 and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

2.5 Depreciation :

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956. Depreciation is provided upto 95% of gross block value.

2.6 Revenue recognition

a) Portfolio Management Services:

Income from Portfolio Management Services is recoginsed on accrual basis.

b) Interest

Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

2.7 Borrowing Cost:

Borrowing Cost which have a direct nexus and are directly attributable to the project are charged to the project and other borrowing costs are expensed out as a period cost as specified in Accounting Standard 16 on "Borrowing Cost".

2.8 Investments

Investments held by the Company are of long term in nature and are stated at cost less provision for diminution in the value is made to recognise a decline other than temporary in the value of the investments.

2.9 Employee Benefit

a. Defined Contribution Plan:

The company''s Contribution paid/payable for the period to defined contribution retirement benefit plan is charged to the Statement of Profit and Loss.

b. Defined Benefit Plan and other long term benefit:

The company''s liability towards defined benefit schemes viz gratuity benefits and other long term benefit viz leave encashment are determined using the ''Project Unit Credit Method''. Actuarial Valuations under the project unit credit method are carried out at a balance sheet date. Actuarial gain and losses are recognised in the statement of Profit and Loss in the period of occurance of such gain and losses. Past service cost is recognised immediately to the extent of benefits are vested, otherwise it is amortised on the straight line basis over the remaining average period until the benefit become vested.

b. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for services rendered by the employees are recognised undiscounted during the period employee renders services.

2.10 Prior period adjustments, extra ordinary items and changes in accounting policies

Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

2.11 Taxes on income

Current tax is determined on the amount of tax payable in respect of taxable income for the year.

The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.

2.12 Contingent Liabilities

Contingent Liabilities are not provided for in the accounts and if any the same is reflected in notes to accounts.

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Mar 31, 2010

BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements have been prepared under the historical cost convention on the accrual basis, in accordance with the generally accepted accounting principles and materially comply with the Accounting Standards specified by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the year in which results are known / materialised.

FIXED ASSETS

Fixed Assets are stated at their cost of acquisition/ construction including incidental expenses related to acquisition, construction and installation of the concerned assets.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956.

INVESTMENTS

Investments held by the Company are of long term in nature and are stated at cost.

REVENUE RECOGNITION

Profit or losses from investment are recognized on trade dates generally following the "first in first out" basis.

RETIREMENT BENEFIT

Gratuity and Leave encashment benefit is accounted for on cash basis.

PRIOR PERIOD ADJUSTMENTS, EXTRA ORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

TAXES ON INCOME

Current tax is determined on the amount of tax payable in respect of taxable income for the year.

The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.

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Jun 30, 2009

BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements have been prepared under the historical cost convention on the accrual basis, in accordance with the generally accepted accounting principles and materially comply with the Accounting Standards specified by the Institute of Chartered Accountants of India.

USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the year in which results are known / materialised.

FIXED ASSETS

Fixed Assets are stated at their cost of acquisition/ construction including incidental expenses related to acquisition, construction and installation of the concerned assets.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956.

INVESTMENTS

Investments held by the Company are of long term in nature and are stated at cost.

REVENUE RECOGNITION

Profit or losses from investment are recognized on trade dates generally following the "first in first out" basis.

RETIREMENT BENEFIT

Gratuity and Leave encashment benefit is accounted for on cash basis.

PRIOR PERIOD ADJUSTMENTS, EXTRA ORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

TAXES ON INCOME

Current tax is determined on the amount of tax payable in respect of taxable income for the year.

The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.