Accounting Policies of Ratnakar Securities Ltd. Company

Mar 31, 2025

3.Summary of Material Accounting Policies:

3.1 Property, Plant and Equipment

Items of property, Plant and Equipment are stated at cost less accumulated depreciation and accumulated impairment
losses, if any. Cost is inclusive of freight, duties, taxes or levies (net of recoverable taxes) and any directly attributable cost
of bringing the assets to their working condition for intended use.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as
“Capital work-in-progress".

Items of Property, Plant and Equipment that have been retired from active use and are held for disposal are stated at the
lower of their net carrying amount and net realisable value and are shown separately in the Standalone Financial
Statements. Any write-down in this regard is recognised immediately in the Standalone statement of Profit and Loss.

Depreciable amount for assets is the cost of an assets less its estimated residual value. Based on management''s
evaluation, useful life prescribed in Schedule II of the act represent actual useful life of Property, Plant and Equipment.
Accordingly, The Company has used useful lives as mentioned in Schedule II of the Act to provide depreciation of
different class of its Property, Plant and Equipment. The Company provides depreciation on reducing balance method as
per the useful life mentioned in Schedule II of the Act. Any change in estimate is accounted on prospective basis.

Depreciation on additions is being provided on pro rata basis from the date of such additions. Depreciation on assets
sold, discarded, disabled or demolished during the period is being provided up to the date in which such assets are sold,
discarded, disabled or demolished.

3.2 Impairment of non-financial assets

At the end of each reporting period, The Company reviews the carrying amounts of non-financial assets, other than
deferred tax assets to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of such asset is estimated in order to determine the extent of the
impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, The Company
estimates the recoverable amount of the cash generating unit (CGU) to which the asset belongs. Each CGU represents the
smallest Company of assets that generates cash inflows that are largely independent of the cash inflows of other assets
or CGUs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to
individual CGUs, or otherwise they are allocated to the smallest Company of CGUs for which a reasonable and consistent
allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal 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 the risks specific to the asset or CGU for which the estimates of
future cash flows have not been adjusted.

If the recoverable amount of an asset (or CGU ) is estimated to be less than its carrying amount, the carrying amount of
the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Standalone
Statement of Profit and Loss. Impairment loss recognised in respect of a CGU is allocated to reduce the carrying amounts
of the other assets of the CGU (or Company of CGUs) on a pro rata basis.

Reversal of impairment losses recognised in earlier years is recorded when there is an indication that the impairment
losses recognised for the asset/cash generating unit no longer exist or have decreased. However, the increase in carrying
amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying
amount that would have been determined (net of depreciation) had no impairment loss been recognised for that
asset/cash generating unit in earlier years. Reversal of impairment loss is directly recognised in the Standalone statement
of Profit and Loss.

3.3 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The financial instruments are recognised in the balance sheet when The Company becomes
a party to the contractual provisions of the financial instrument. The Company determines the classification of its
financial instruments at initial recognition.

(1) Initial Recognition and Measurements

A financial asset and financial liability is 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 and financial liabilities at fair
value through profit and loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit and loss are recognised immediately in the Standalone statement of Profit and Loss.

Where the fair value of a financial asset or financial liability at initial recognition is different from its transaction price, the
difference between the fair value and the transaction price is recognized as a gain or loss in the Standalone statement of
Profit and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for
an identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2
input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the
fair value and transaction price is deferred appropriately and recognized as a gain or loss in the Standalone statement of
Profit and Loss only to the extent that such gain or loss arises due to a change in factor that market participants take into
account when pricing the financial assets or financial liability.

Trade receivables that do not contain a significant financing component are measured at transaction price.

(2) Classification and Subsequent Measurements

(a) Financial Assets

For purposes of subsequent measurement, financial assets are classified based on assessment of business model in which
they are held. This assessment is done for portfolio of the financial assets. The relevant categories are as below:

(i) At amortised cost

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair
value through profit or loss (FVTPL):-

- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

(ii) At fair value through Other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

(iii) At fair value through profit and loss (FVTPL)

Financial assets which are not measured at amortised cost or OCI and are held for trading are measured at FVTPL. Fair
value changes related to such financial assets are recognised in the Standalone statement of Profit and Loss.

Based on The Company''s business model, The Company has classified its securities held for trade,Investment in Equity
Shares and Investment in Mutual Funds at FVTPL.

(iv) Investment in Equity Instruments

Investment in Subsidiaries, Associates and Joint ventures are out of scope of Ind AS 109 and hence, The Company has
accounted for its investment in Subsidiaries at cost.

All other equity investments in scope of Ind AS 109, are measured at fair value. Equity instruments which are held for
trading are classified as at FVTPL. For equity instruments other than held for trading, The Company has irrevocable option
to present in Other Comprehensive Income subsequent changes in the fair value. The Company makes such election on
an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

Where The Company classifies equity instruments as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts of profit or loss from OCI to Standalone
statement of Profit and Loss, even on sale of investment.

(v) Impairment of Financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit
risk since initial recognition. If credit risk has not increased significantly, twelve month ECL is used to provide for
impairment loss, otherwise lifetime ECL is used.

However, only in case of trade receivables, The Company applies the simplified approach which requires expected
lifetime losses to be recognised from initial recognition of the receivables.

Expected credit losses rate the weighted average of credit losses with the respective risks of default occurring as the
weights. Credit loss 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 Company expects to receive (i.e. all cash shortfalls), discounted at the original
effective interest rate. The Company estimates cash flows by considering all contractual terms of the financial instrument
through the expected life of that financial instrument.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the
assets.

(vi) 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 contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred or in which The Company neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of
the consideration received and receivable and the cumulative gain or loss that had been recognised in other
comprehensive income and accumulated in equity is recognised in the Standalone statement of Profit and Loss if such
gain or loss would have otherwise been recognised in the Standalone statement of Profit and Loss on disposal of that
financial asset.

(b) Financial Liabilities

All financial liabilities of The Company are subsequently measured at amortized cost using the effective interest method
or at FVTPL.

(i) At amortised cost:

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the
end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at
amortised cost are determined based on the effective interest method. Under the effective interest method, the future
cash payments are exactly discounted to the initial recognition value using the effective interest rate. The cumulative
amortization using the effective interest method of the difference between the initial recognition amount and the
maturity amount is added to the initial recognition value (net of principal repayments, if any) of the financial liability over
the relevant period of the financial liability to arrive at the amortized cost at each reporting date. The corresponding
effect of the amortization under effective interest method is recognized as interest expense over the relevant period of
the financial liability. The same is included under finance cost in the Standalone statement of Profit and Loss.

Trade and other payables are recognised at the transaction cost, which is its fair value, and subsequently measured at
amortised cost.

(ii) At Fair Value through Profit and Loss:

A financial liability may be designated as at FVTPL upon initial recognition if:

• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise
arise;

• the financial liability whose performance is evaluated on a fair value basis, in accordance with The Company''s
documented risk management.

Fair value changes related to such financial liabilities are recognised in the Standalone statement of Profit and Loss.

(iii) Derecognition of Financial Liabilities

The Company derecognises financial liabilities when, and only when, The Company''s obligations are discharged, cancelled
or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable is recognised in the Standalone statement of Profit and
Loss.

(iv) Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are offset when The Company has a legally enforceable right (not contingent on
future events) to off-set the recognised amounts either to settle on a net basis, or to realise the assets and settle the
liabilities simultaneously.

(3) 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 are recognised at the proceeds received, net of direct issue costs.
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 as
per the relevant standards. Ordinary shares are classified as Equity when The Company has an un-conditional right to
avoid delivery of cash or another financial asset, that is, when the dividend and repayment of capital are at the sole and
absolute discretion of The Company and there is no contractual obligation whatsoever to that effect.

3.4 Revenue Recognition

Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) is measured at fair value of
the consideration received or receivable. Ind AS 115 Revenue from contracts with customers outlines a single
comprehensive model of accounting for revenue arising from contracts with customers.

(a) The Company recognises revenue from contracts with customers based on a five step model as set out in Ind AS
115:

Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that
creates enforceable rights and obligations and sets out the criteria for every contract that must be met.

Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a
customer to transfer a good or service to the customer.

Step 3: Determine the transaction price: The transaction price is the amount of consideration to which The Company
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts
collected on behalf of third parties.

Step 4: Allocate the transaction price to the performance obligations in the contract: For a contract that has more than
one performance obligation, The Company allocates the transaction price to each performance obligation in an amount
that depicts the amount of consideration to which The Company expects to be entitled in exchange for satisfying each
performance obligation.

Step 5: Recognise revenue when (or as) The Company satisfies a performance obligation Revenue from contracts with
customers is recognised when control of the services are transferred to the customer which can be either at a point in
time or over time, at an amount that reflects the consideration to which The Company expects to be entitled in exchange
for those services.

(b) Revenue recognized are exclusive of goods and service tax, stamp duties and other levies by Security Exchange Board
of India (SEBI) and exchanges.

(c) The Company recognises revenue from the following major sources:

(i) Commission and Fees Income from distribution of financial products

(ii) Brokerage Income from stock broking business

Commission and Fees Income relating to Distribution of Financial Products: Fees on distribution services are recognized
at a point in time when the service obligations are completed and when the terms of contracts are fulfilled.

Commission and Fees Income relating to Stock Broking : Revenue from contract with customer is recognised point in
time when performance obligation is satisfied. Income from broking activities is accounted for on the trade date of
transactions.

Dividend Income : Dividend income is recognised when the right to receive payment of the dividend is established, it is
probable that the economic benefits associated with the dividend will flow to The Company and the amount of the
dividend can be measured reliably.

(d) In respect of other heads of income, it is accounted for to the extent it is probable that the economic benefits will
flow, and the revenue can be reliably measured, regardless of when the payment is being made. An entity shall recognise
a refund liability if the entity receives consideration from a customer and expects to refund some or all of that
consideration to the customer.

(e) Financial assets at fair value through profit or loss are carried in the balance sheet at fair value, with net changes in
fair value recognised in the statement of profit and loss.

3.5 Retirement and other Employees Benefit

Employee benefits include short term employee benefits, provident fund, employee''s state insurance, and gratuity

(i) Short term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits and they are recognized in the period in which the employee renders the related service. The Company
recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services
rendered as a liability (accrued expense) after deducting any amount already paid.

(ii) Defined Contribution Plan

The Company''s contribution to Provident Fund, Employee State Insurance Scheme are considered as defined contribution
plans and are charged as an expense based on the amount of contribution required to be made and when services are
rendered by the employees. The Company does not carry any further obligations, apart from the contributions made on a
monthly basis.

(iii) Defined Benefit Plan

The Company provides for the gratuity, a defined benefit plan (the “"Gratuity Plan"") covering eligible employees in
accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees
at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s
salary and the tenure of employment. The Company''s liability is actuarially determined (using the Projected Unit Credit
method) at the end of each year. The Company''s liability is un-funded. Re-measurements of the net defined benefit
liability comprising actuarial gains and losses (excluding amounts included in net interest on the net defined benefit
liability) and, are recognized in Other Comprehensive Income. Such re-measurements are not reclassified to the
Standalone statement of Profit and Loss in the subsequent year.

3.6 Current and deferred tax

Tax on Income comprises current and deferred tax.

(i) Current tax :

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the reporting period in
accordance with the Income-tax Act, 1961 enacted in India and any adjustment to the tax payable or receivable in
respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws)
enacted or substantially enacted by the reporting date. Current tax assets and current tax liabilities are offset only if there
is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the
liability on a net basis or simultaneously.

(ii) Deferred tax :

Deferred tax is recognised for the future tax consequences of temporary differences between the carrying values of
assets and liabilities in Standalone Financial Statements and their respective tax bases at the reporting date, using the tax
rates and laws that are enacted or substantially enacted as on reporting date. The measurement of deferred tax reflects
the tax consequences that would follow from the manner in which The Company expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities. Deferred tax is also recognised in respect of carried
forward tax losses and tax credits subject to the assessment of reasonable certainty of recovery. Deferred tax assets and
deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing
current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws. Deferred tax relating to items recognised outside the Standalone statement of Profit and Loss is
recognised outside with the underlying items i.e. either in the statement of other comprehensive income or directly in
equity as relevant.

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Mar 31, 2024

A. SIGNIFICANT ACCOUNTING POLICIES:

1. Basis of Preparation of Financial Statements

The financial statements have been prepared and presented under the historical cost
convention, on accrual basis of accounting in accordance with generally accepted
accounting principles in India and the provisions of the Companies Act, 2013. They are
prepared in accordance with the Accounting Standards specified under section 133 of the
Companies Act, 2013 (''the Act'') and other relevant provisions to the extent applicable.

2. Use of Estimates

The preparation of Financial Statements in conformity with generally accepted
accounting principles requires estimates and assumptions to be made, that affects
the reported amounts of assets and liabilities on the date of the Financial Statements
and the reported amounts of revenue and expenses during the reporting period.
Differences between the actual results and estimates are recognized in the period in
which the results are known / materialized.

3. Fixed Assets

There is no Fixed assets hold by the Company.

4. Depreciation / Amortization

As no fixed assets hold by the company, the question of depreciation do not arise.

5. Inventories

Finished goods, Work in progress & material is valued at cost including material cost
and attributable overheads. Provision is made when expected realization is lesser
than the carrying cost. The inventories are stated at lower of cost and Net realizable
value.

6. Revenue Recognition

The revenue is recognized on the mercantile basis. Revenue is recognized when
significant risk and reward is transferred to Customers. Interest income is recognized
on time proportionate basis.

7. Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rate prevailing on the
date of the transaction.

a) Monetary items outstanding at the balance sheet date are translated at the exchange
rate prevailing at the balance sheet date and the resultant difference is recognized as
income or expense.

b) Non-monetary items outstanding at the balance sheet date are reported using the
exchange rate at the date of the transactions.

8. Employee Benefits

a) As certified by the management, the company has no liability under the Provident
Fund & Super-annuation Fund.

b) It is explained to us that the company does not provide for any leave encashment and
any liability arising thereon shall be paid and dealt with in the books of accounts at
the actual time of payment.

c) Company does not made provision for Gratuity.

9. Taxation

Current tax is measured at the amount expected to be paid/recovered from the
taxation authorities, using the applicable tax rates and tax law. The tax effect of the
timing differences that result between taxable income and accounting income and
are capable of reversal in one or more subsequent period are recognized as deferred
tax assets or deferred tax liability. They are measured using the substantively enacted
tax rates and tax regulations. Deferred tax assets are recognized only to the extent
there is reasonable certainty that sufficient future taxable income will be available
against which such deferred assets can be realized. Deferred tax assets are recognized
on carried forward of unabsorbed depreciation and tax losses only if there is virtual
certainty that such deferred tax assets can be realized against future taxable profits.

10. Impairment of Assets

Consideration is given at each balance sheet date to determine whether there is any
indication of impairment of the carrying amount of the Company''s fixed assets. If any
such indication exists, then recoverable amount of the asset is estimated. An
impairment loss, if any, is recognized whenever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is greater of the net selling
price and the value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value based on an appropriate discount factor. The
impairment loss recognized in a prior accounting period is reversed, if there has been
a change in the estimate of recoverable amount.

11. Earnings per Share

The basic earnings per share is computed by dividing the net profit attributable to the
equity shareholders for the year by the weighted average number of equity shares
outstanding during the reporting period. Diluted earnings per share is computed by
dividing the net profit attributable to the equity shareholders for the year by the
weighted average number of equity and dilutive equity equivalent shares outstanding
during the year, except where the results would be anti-dilutive.

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Mar 31, 2015

(i) Basis of Accounting :

The financial Statement are prepared on the basis of historical cost convention and in accordance with the normally accepted accounting principles.

(ii) Fixed Assets :

a) Fixed Assets are stated at cost of Acquisition less accumulated depreciation.

b) Depreciation on fixed Assets have been provided in accordance with the useful life of the Asset as prescribed in Schedule II of the Companies Act, 2013 except in certain Assets where depreiation provided at the rates and manner finds reasonable by the managment.

(iii) Income & Expenditure :

All Income & Expenditure items having material bearing on the financial statements are recognised on accrual basis.

(iv) Retirement Benifits :

Since none of the employees have completed the minimum specified period for eligibility under the payment of Gratuity Act, 1972 no provision for gratuity has been made.

(v) Investments :

Investments are considered as Long Term Investments unless and otherwise specified. Investments are valued at cost Dividend/lnterest on Investments are recognised on receipt basis.

(vi) Contingent Liabilities :

Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantity of such liabilities.

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Mar 31, 2014

(i) Basis of Accounting :

The financial Statement are prepared on the basis of historical cost convention and in accordance with the normally accepted accounting principles.

(ii) Fixed Assets:

a) Fixed Assets are stated at cost of Acquisition less accumulated depreciation.

b) Depreciation on fixed Assets have been provided in accordance with the rates and manner finds reasonable by the management.

(iii) Income & Expenditure :

All Income & Expenditure items having material bearing on the financial statements are recognised on accrual basis.

(iv) Retirement Benefits :

Since none of the employees have completed the minimum specified period for eligibility under the payment of Gratuity Act, 1972 no provision for gratuity has been made.

(v) Investments:

Investments are considered as Long Term Investments unless and otherwise specified. Investments are valued at cost Dividend/Interest on Investments are recognised on receipt basis.

(vi) Contingent Liabilities :

Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantity of such liabilities.

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Mar 31, 2013

(i) Basis of Accounting :

The financial Statement are prepared on the basis of historical cost convention and in accordance with the normally accepted accounting principles.

(ii) Fixed Assets:

a) Fixed Assets are stated at cost of Acquisition less accumulated depreciation.

b) Depreciation on fixed Assets have been provided in accordance with the rates and manner finds reasonable by the managment.

(iii) Income & Expenditure :

All Income & Expenditure items having material bearing on the financial statements are recognised on accrual basis.

(iv) Retirement Benifits :

Since none of the employees have completed the minimum specified period for eligibility under the payment of Gratuity Act, 1972 no provision for gratuity has been made.

(v) Investments:

Investments are considered as Long Term Investments unless and otherwise specified. Investments are valued at cost Dividend/Interest on Investments are recognised on receipt basis.

(vi) Contingent Liabilities :

Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantity of such liabilities.

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Mar 31, 2011

(i) Basis of Accounting :

The financial Statement are prepared on the basis of historical cost convention and in accordance with the normally accepted accounting principles.

(ii) Fixed Assets:

a) Fixed Assets are stated at cost of Acquisition less accumulated depreciation.

b) Depreciation on fixed Assets have been provided in accordance with the rates and manner finds reasonable by the management.

(iii) Income & Expenditure :

All Income & Expenditure items having material bearing on the financial statements are recognised on accrual basis.

(iv) Retirement Benefits : Since none of the employees have completed the minimum specified period for eligibility under the payment of Gratuity Act, 1972 no provision for gratuity has been made.

(v) Investments:

Investments are considered as Long Term Investments unless and otherwise specified. Investments are valued at cost Dividend/Interest on Investments are recognised on receipt basis.

(vi) Contingent Liabilities : Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantity of such liabilities.

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Mar 31, 2010

(i) Basis of Accounting :

The financial Statement are prepared on the basis of historical cost convention and in accordance with the normally accepted accounting principles.

(ii) Fixed Assets:

a) Fixed Assets are stated at cost of Acquisition less accumulated depreciation.

b) Deprecation on on fixed Assets have been provided on straight line method in accordance with the rates and manner finds reasonable by the managment.

(iii) Income & Expenditure ;

All Income & Expenditure items having material bearing on the financial statements are recognised on accrual basis.

(iv) Retirement Benifits: Since none of the employees have completed the minimum specified period tor eligibility under the payment of Gratuity Act. 1972 no provision for gratuity has been made.

(v) Investments: Investments are considered as Long Term Investments unless and otherwise specified. Investments are valued a: cost Dividenat interest on Investments are recognised on receipt basis.

(vi) Contingent Liabilities:

Conlingent Liabilities are dislosed in the accounts by way of notes giving the nature and quantity of such liabilities.