Accounting Policies of Sarthak Global Ltd. Company

Mar 31, 2015

1 General Information

Sarthak Global Limited (the Company) is a Listed Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company earned major income from the business of Investments and trading in securities and rendering services as share transfer agent during the year.

2.1 Basis of preparation

The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in India under the historical cost convention on accrual basis of accounting. Pursuant to section 133 of Companies Act, 2013 read with Rule 7 of the Companies ( Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies(Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

All assets and liabilities have been classified as current and non current as per the Company's operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

2.2 Tangible Assets

Tangible assets are stated at acquisition cost, net of accumulated depreciation. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

2.3 Depreciation

Depreciation was provided on a pro rata basis on the straight- line method over the estimated useful lives of the assets as per the provisions of Companies Act, 1956. During the current year to conform to the requirements of the schedule II of Companies Act, 2013, the Company has recalculated the useful life of the assets as on 1st April 2014. The company has taken the residual value of the assets equal to the maximum of 5% allowed as per the schedule II for all the assets. Accordingly the depreciation for the current year has been calculated for the assets whose useful life have not expired. For those assets for which the remaining useful life is nil as on 1st April 2014, the carrying amount of the asset after retaining the residual value has been transferred to the Statement of Profit and Loss.

2.4 Impairment of Assets

Assessment is done at each balance sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of asset/cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset's or cash generating unit's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of asset and from its disposal at the end of its useful life. Assessment is also done at each balance sheet date as to whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased.

2.5 Investments

Investments that are readily realisable and are 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. Current investments are carried at cost or fair value, whichever is lower. Long term investments are carried at cost. However, provision of diminution is made to recognise a decline, other than temporary, in the value of the investments, such reduction being determined and made for each investment individually.

2.6 Inventories

Inventories are stated at lower of cost and net realisable value. Cost is determined using the first in, first out (FIFO) method.

2.7 Revenue Recognition

In contracts involving the rendering of services, the revenue is measured using the proportionate completion method and are recognised net of service tax.

2.8 Other Income

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

Dividend income is recognised when the right to receive the payment is established.

2.9 Current and Deferred Tax

Tax expense for the period, comprising of current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognised 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.

Minimum Alternate Tax Credit is recognised 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. Such asset is reviewed at each Balance Sheet date and the carrying amount of MAT Credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

2.10 Provisions & Contingent Liabilities

Provisions are recognised when there is a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation.

Contingent Liabilities are disclosed when there is possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurence 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 to settle or a reliable estimate of the amount cannot be made.

2.11 Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less.

2.12 Earnings Per Share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining in the Company's earnings per share is the net profit for the period after deducting preference dividends and any attributable tax there to for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating the 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 period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2014

1.01 Basis of Accounting.

Financial statements are prepared under historical cost convention on accrual basis, except in case of Leave encashment and gratuity with shall be accounted for on cash basis and in accordance with generally accepted accounting principles in India :and the provisions of the Companies Act.

1.02 Fixed Assets (Tangible and Intangible):

Fixed assets are stated at cost less accumulated depreciation/amortization. The cost of fixed assets includes taxes,, freight and other incidental expenses relating to the acquisition and installation of the respective assets. An appropriate charge of pre-operative expenses, interest and commitment charges incurred upto the date of installation of fixed assets is also capitalized.

1.03 Depreciation and Amortizations

Depreciation on tangible assets has been calculated on straight-line method at the rates given in schedule XIV of the companies Act, 1956 and is charged until nominal value of the asset remains Re. 1/-. Intangible Assets is amortized over the useful life of the assets or 10 years, where useful life is not ascertainable.

1.04 Inventories

The cost of inventories are assigned by using the FIFO method. Inventories are valued at cost or net realizable value whichever is less.

1.05 Investment

Long-term investments are usually carried at cost. However, when there is a decline, other than temporary, in the value of a long term investment, Provison for dimulation in value of investment is made and the carrying amount is reduced to recognise the decline.

1.06 Revenue recognition

For revenue from services, performance is recognized under the proportionate completion method and performance is regarded as being achieved when no significant uncertainty exists regarding the amount of consideration that will be derived from rendering of services.

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

Dividend income is recognized when the right to receive payment is established.

1.07 Taxes on Income

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

1.08 Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

1.09 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of recourses. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.10 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known materialized.

1.11 Cash and cash equivalents Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short term (three months or less from the date of acquisition) highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value.

1.12 Employee & Retirements Benefits

No Gratuity is accounted for or provided in the books of accounts as Payment of Gratuity Act 1972 is not applicable on the company.

Leave Encashment is accounted on Cash Basis

1.13 Segment Reporting

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the company. Further,

Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and Expenses which relate to the company as a whole and are not allocable to the segments on a reasonable basis, have been included under "Unallocated expense/Unallocated income".

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Mar 31, 2013

1. Corporate Information

Sarthak Global Limited (the Company) is a Listed Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. It is an listed company. The company earned major income from the business of Investments & trading in securities & rendering services as share transfer agent during the year.

2. Summary of Significant Accounting Policies, forming part of financial statements:-

2.01 Basis of Accounting

Financial statements are prepared under historical cost convention on accrual basis, except in case of Leave encashment and gratuity with shall be accounted for on cash basis and in accordance with generally accepted accounting principles in India and the provisions of the Companies Act 1956.

2.02 Fixed Assets (Tangible and Intangible):

Fixed assets are stated at cost less accumulated depreciation/amortization. The cost of fixed assets includes taxes, freight and other incidental expenses relating to the acquisition and installation of the respective assets. An appropriate charge of pre-operative expenses, interest and commitment charges incurred upto the date of installation of fixed assets is also capitalized.

2.03 Depreciation and Amortizations

Depreciation on tangible assets has been calculated on straight-line method at the rates given in schedule XIV of the companies Act, 1956 and is charged until nominal value of the asset remains Re. 1/-. Intangible Assets is amortized over the useful life of the assets or 10 years, where useful life is not ascertainable.

2.04 Inventories

The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects are assigned by specific identification of their individual costs. The cost of other inventories are assigned by using the FIFO method. Inventories are valued at cost or net realizable value whichever is less.

2.05 Investment

Investments are valued at cost. No provision is made for diminution in the value, if any.

2.06 Revenue recognition

For revenue from services, performance is recognized under the proportionate completion method and performance is regarded as being achieved when no significant uncertainty exists regarding the amount of consideration that will be derived from rendering of services.

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

Dividend income is recognized when the right to receive payment is established.

2.07 Taxes on Income

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

2.08 Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

2.09 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of recourses. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

2.10 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/materialized.

2.11 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short term (three months or less from the date of acquisition) highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value.

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Mar 31, 2012

1.01 Basis of Accounting.

Financial statements are prepared under historical cost convention on accrual basis, except in case of Leave encashment and gratuity with shall be accounted for on cash basis and in accordance with generally accepted accounting principles in India and the provisions of the Companies Act 1956.

1.02 Fixed Assets (Tangible and Intangible):

Fixed assets are stated at cost less accumulated depreciation/amortization. The cost of fixed assets includes taxes, freight and other incidental expenses relating to the acquisition and installation of the respective assets. An appropriate charge of pre-operative expenses, interest and commitment charges incurred upto the date of installation of fixed assets is also capitalized.

1.03 Depreciation and Amortizations

Depreciation on tangible assets has been calculated on straight-line method at the rates given in schedule XIV of the companies Act,1956 and is charged until nominal value of the asset remains Re. 1/-. Intangible Assets is amortized over the useful life of the assets or 10 years, where useful life is not ascertainable.

1.04 Inventories

(a) Cost of inventory comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to present location and condition.

(b) The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects are assigned by specific identification of their individual costs. The cost of other inventories are assigned by using the FIFO method.

1.05 Investment

Investments are valued at cost. No provision is made for diminution in the value, if any.

1.06 Revenue recognition

Revenue from sale of goods is recognized when the significant risk and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customers. Sales are stated net of discounts, rebates and returns.

For revenue from services, performance is recognized under the proportionate completion method and performance is regarded as being achieved when no significant uncertainty exists regarding the amount of consideration that will be derived from rendering of services.

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

Dividend income is recognized when the right to receive payment is established.

1.07 Taxes on Income

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

1.08 Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

1.09 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessary substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

1.10 Provision, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of recourses. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.11 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

1.12 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks, Cash equivalents are short term (three months or less from die date of acquisition) highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value.

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Mar 31, 2011

(a) SYSTEM OF ACCOUNTING:

The company adopts accrual basis (except gratuity, which shall be accounted on cash basis) on historical cost of convention as going Concern basis in the preparation of accounts for all incomes and expenditures.

(b) FIXED ASSETS:

Fixed Assets are' staled at Cost of acquisition less accumulated depreciation. All costs, including financing costs till Commencement of Commercial use relating to borrowings attributable to I he Fixed Assets are capitalized.

(c) DEPRECIATION:

Depredation has been calculated on straight-line method at the rates given in schedule XIV of the companies Act.1956 and is charged until nominal value of the asset remains Re.1/-.

(d) DEFERRED EXPENSES :

Expenses considered as Deferred expenses are written off over a period of 5 years.

(e) INVESTMENTS: Shares held by the company, which are being treated as "Investments" are valued at cost. No Provision is made for diminution in the value of such investment.

(f) IMPAIRMENT OF ASSETS

The recoverable amount of the asset is estimated if after assessing at the balance sheet date, indication exists that any asset may be impaired. If the recoverable amount of an asset is less that its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and impairment loss is expensed.

(g) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessary substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(h) PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current is made after taking into consideration benefits admissible under the provisions of the income Tax Act, 1961. Deferred tax resulting from timing differences between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

(i) PROVISION,CONTINGENT LIABILITIES AND CONTINGENT

ASSETS Provisions involving substantial degree of estimation in measurement are recon seed when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent Liabilities are net recognized but are disclosed in the notes.

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Mar 31, 2010

(a) SYSTEM OF ACCOUNTING:

The company adopts accrual basis (except gratuity, which shall be accounted on cash basis} on historical cost of convention as going Concern basis in the preparation of accounts for all incomes and expenditures.

(b) FIXED ASSETS:

Fixed Assets are stated at Cost of acquisition less accumulated depreciation. All costs, including financing costs till Comme- ncement of Commercial use relating to borrowings attributable to the Fixed Assets are capitalised.

(c) DEPRECIATION:

Depreciation has been calculated on straight-line method at the rates given in schedule XIV of the companies Act, 1956 and is charged until nominal value of the asset remains Re. 1/-,

(d) DEFERRED EXPENSES :

Expenses considered as Deferred expenses are written off over a period of 5 years.

(e) INVESTMENTS:

Shares held by the company, which are being treated as "Investments" are valued at cost. No Provision is made for diminution in the value of such investment.

(f) IMPAIRMENT OF ASSETS

The recoverable amount of the asset is estimated if after assessing at the balance sheet date, indication exists that any asset may be impaired. If the recoverable amount of an asset is less that its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and impairment loss is expensed.

(g) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifyingasset is one that takes necessary substancial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(h) PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from timing differences between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried- forward only to the extent that there is a virtual certainty that the asset will be realised in future.

(i) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measuremnt are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes,