Accounting Policies of South Asian Enterprises Ltd. Company

Mar 31, 2015

A) General

The accompanying financial statements have been prepared on historical cost convention and conform to the statutory provisions and practices prevailing in the country.

b) Revenue recognition

Items of income and expenditure are generally accounted for on accrual basis unless otherwise stated. Dividend income is accounted for when the right to receive the same is established.

c) Fixed assets

i) All the fixed assets are stated at cost less accumulated depreciation.

ii) Depreciation on tangible assets is provided on the straight line method over the useful lives of assets in accordance with Part C of Schedule II of the Companies Act, 2013. There are no intangibles with the company as at 31.03.2015.

iii) Fixed Assets costing Rs. 5,000/- or less are fully depreciated in the year of acquisition.

d) Investments

Investments are classified into long-term and current Investments. Long-term investments are stated at cost and income thereon is accounted for when accrued. The company follows 'FIFO method' for calculating the cost of each investment sold by the company for computing the profit or loss thereon Provision for diminution in value of investments is made to recognize a decline other than temporary in nature.

e) Inventory

Inventories are valued at cost or net realisable value whichever is lower. Cost is arrived at on FIFO basis and comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

f) Taxation

i) Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and law that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized only to the extent that there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. The deferred tax liability is recognized on having a reasonable certainty for crystallization of the same.

ii) Provision for taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.

g) Retirement Benefit Costs:

i) In respect of Provident Fund, monthly contribution is paid to Government and is charged to revenue.

ii) Company's Gratuity and Leave encashment Schemes are defined benefit plans.

Gratuity Fund:

The cost of providing benefits is determined using the Project unit credit method, with actuarial valuations being carried out at each Balance Sheet date. Gratuity benefits are funded through a trust with Life Insurance Corporation of India Group Gratuity Scheme.

Unencashed Leave salary:

Leave encashment Scheme is not funded. The present value of the obligation under such defined benefit plan is determined based on actuarial valuation.

h) Impairment Loss:

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset'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 the asset and from its disposal at the end of its useful life. Net selling price is the amount attainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal, a previously recognised impairment loss is increased or reversed depending on changes in circumstances.

---

Mar 31, 2014

A) General

The accompanying financial statements have been prepared on historical cost convention and conform to the statutory provisions and practices prevailing in the country.

b) Revenue recognition

Items of income and expenditure are generally accounted for on accrual basis unless otherwise stated. Dividend income is accounted for on the basis of approval of the shareholders in their meeting.

c) Fixed assets

i) All the fixed assets are stated at cost less accumulated depreciation.

ii) Depreciation on own assets is provided on the straight line method at the rates and in the manner prescribed in Schedule-XIV of the Companies Act, 1956.

iii) Depreciation on assets not exceeding Rs.5,000/- is provided for at 100%.

d) Investments

Investments are classified into long-term and current Investments. Long-term investments are stated at cost and income thereon is accounted for when accrued. The company follows ''FIFO method'' for calculating the cost of each investment sold by the company for computing the profit or loss thereon. Provision for diminution in value of investments is made to recognize a decline other than temporary in nature.

e) Inventory

Inventories are valued at cost or net realisable value whichever is lower. Cost is arrived at on FIFO basis and comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

f) Taxation

i) Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and law that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized only to the extent that there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. The deferred tax liability is recognized on having a reasonable certainty for crystallization of the same.

ii) Provision for taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.

g) Retirement Benefit Costs:

(i) In respect of Provident Fund, monthly contribution is paid to Government and is charged to revenue. (ii) Company''s Gratuity and Leave encashment Schemes are defined benefit plans. Gratuity Fund:

The cost of providing benefits is determined using the Project unit credit method, with acturial valuations being carried out at each Balance Sheet date. Gratuity benefits are funded through a trust with Life Insurance Corporation of India Group Gratuity Scheme.

Unencashed Leave salary:

Leave encashment Scheme is not funded. The present value of the obligation under such defined benefit plan is determined based on acturial valuation.

h) Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset''s net selling price and it''s value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount attainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal, A previously recognised impairment loss is increased or reversed depending on changes in circumstances.

---

Mar 31, 2013

A) General

The accompanying financial statements have been prepared on historical cost convention and conform to the statutory provisions and practices prevailing in the country. fell Revenue recognition

Items of income and expenditure are generally accounted for on accrual basis unless otherwise stated. Dividend income is accounted for on the basis of approval of the shareholders in their meeting.

Fixed assets

i) All the fixed assets including assets given on lease are stated at cost less accumulated depreciation.

ii) Depreciation on own assets is provided on the straight line method at the rates and in the manner prescribed in Schedule-XIV of the Companies Act, 1956.

iii) Depreciation on the assets given on lease is provided in consonance with the method recommended by the Institute of Chartered Accountants of India under which 100% of the cost of assets is depreciated over the primary lease period applying interest rate implicit in the lease on the outstanding balances of the lease advances to calculate the finance earnings for the year and difference between the lease rentals and finance earnings is accounted for as depreciation. ,

iv) Depreciation on assets not exceeding Rs.5,000/- is provided for at 100%.

Investments

Investments are classified into long-term and current Investments. Long-term investments are stated at cost and income thereon is accounted for when accrued. The company follows ''FIFO method'' for calculating the cost of each investment sold by the company for computing the profit or loss thereon: Provision for diminution in value of investments is made to recognize a decline other than temporary in nature.

S) Inventory

Inventories are valued at cost or net realisable value whichever is lower. Cost is arrived at on FIFO basis and comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

Q Taxation

I) Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and law that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized only to the extent that there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. The deferred tax liability is recognized on having a reasonable certainty for crystallization of the same.

ii) Provision for taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961. gi Employees Benefits (In accordance with AS-15)

i) Defined Contribution Plans

Provident Fund- The Company contributes to Regional Provident Fund on behalf of its employees and above contributions are expensed to statement of Profit & Loss.

ii) Defined Benefit Plans

- Gratuity - The Company makes contribution to scheme managed by LIC to discharge liabilities to the employees.

Leave Encashment- Provision for un-availed Leave Benefits payable to employees as per scheme of the Company is made on the basis of actuarial valuation.

iii) Short Term Employees Benefits

Short Term Employees Benefits are recognized as an expense as per the Company''s scheme based on expected obligation on undiscounted basis. hi Impairment Loss Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset''s net selling price and it''s value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount attainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

---

Mar 31, 2012

A. General

The accompanying financial statements have been prepared on historical cost convention and conform to the statutory provisions and practices prevailing in the country.

b Rmrme recognition

Items of income and expenditure are generally accounted for on accrual basis unless otherwise stated. Dividend income is accounted for on the basis of4 approval of the shareholders in their meeting.

c Fixed assets

i) All the fixed assets including assets given on lease are stated at cost less accumulated depreciation.

ii) Depreciation on own assets is provided on the straight line method at the rates and in the manner prescribed in Schedule-XIV of'the Companies Act' 1956.

iii) Depreciation on the assets given on lease is provided in consonance with the method recommended by the Institute of Chartered Accountants of India undefj which 100% of the cost of assets is depreciated over the primary lease period applying interest rate implicit in the lease on the outstanding balances of the lease! advances to calculate the finance earnings for the year and difference between the lease rentals and finance earnings is accounted for as depreciation.

iv) Depreciation on assets not exceeding Rs.5'000/- is provided for at 100%.

d) Investments

Investments are classified into long-term and current Investments. Long-term investments are stated at cost and income thereon is accounted for wher.' accrued. The company follows 'FIFO method' for calculating the cost of each investment sold by the company for computing the profit or loss thereon. J Provision for diminution in value of investments is made to recognize a decline other than temporary in nature.

e Inventory

Inventories are valued at cost or net realisable value whichever is lower. Cost is arrived at on FIFO basis and comprises of cost of purchase' cost of conversion' and other costs incurred in bringing them to their respective present location and condition.

f Taxation

i) Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and law that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized only to the extent that there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. The deferred tax liability is recognized on having a reasonable certainty for crystallization of the same.

ii) Provision for taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act' 1961. 3) Employees Benefits (In accordance with AS-15)

i) Defined Contribution Plans

- Provident Fund- The Company contributes to Regional Provident Fund on behalf of its employees and above contributions are expensed to Profit & Loss Account.

ii) Defined Benefit Plans

¦ Gratuity - The Company makes contribution to scheme managed by LIC to discharge liabilities to the employees.

- Leave Encashment- Provision for un-availed Leave Benefits payable to employees as per scheme of the Company is made on the basis of actuarial valuation.

iii) Short Term Employees Benefits

Short Term Employees Benefits are recognized as an expense as per the.Company's scheme based on expected obligation on undiscounted basis.

iv) Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of anasset's net selling price and it's value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount attainable from sale of the asset in an arm's length transaction between knowledgeable' willing parties' less the costs of disposal.

---

Mar 31, 2011

A) General

The accompanying financial statements have been prepared on historical cost convention and conform to the statutory provisions and practices prevailing in the country.

b) Revenue recognition

Items of income and expenditure are generally accounted for on accrual basis unless otherwise stated. Dividend income is accounted for on the basis of approval of the shareholders in their meeting.

c) Fixed assets

i) All the fixed assets including assets given on lease are stated at cost less accumulated depreciation.

ii) Depreciation on own assets is provided on the straight line method at the rates and in the manner prescribed in Schedule-XIV of the Companies Act, 1956.

iii) Depreciation on the assets given on lease is provided in consonance with the method recommended by the Institute of Chartered Accountants of India under which 100% of the cost of assets is depreciated over the primary lease period applying interest rate implicit in the lease on the outstanding balances of the lease advances to calculate the finance earnings for the year and difference between the lease rentals and finance earnings is accounted for as depreciation.

iv) Depreciation on assets not exceeding Rs.5,000/- is provided for at 100%.

d) Investments

Investments are classified into long-term and current Investments. Long- term investments are stated at cost and income thereon is accounted for when accrued. The company follows 'FlFO method' for calculating the cost of each investment sold by the company for computing the profit or loss thereon. Provision for diminution in value of investments is made to recognize a decline other than temporary in nature.

e) Inventory

Inventories are valued at cost or net realisable value whichever is lower. Cost is arrived at on FIFO basis and comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

f) Taxation

i) Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and law that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized only to the extent that there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. The deferred tax liability is recognized on having a reasonable certainty for crystallization of the same.

ii) Provision for taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.

g) Employees Benefits (In accordance with AS-15)

i) Defined Contribution Plans

- Provident Fund- The Company contributes to Regional Provident Fund on behalf of its employees and above contributions are expensed to Profit & Loss Account.

ii) Defined Benefit Plans

- Gratuity - The Company makes contribution to scheme managed by LIC to discharge liabilities to the employees.

- Leave Encashment- Provision for un-availed Leave Benefits payable to employees as per scheme of the Company is made on the basis of actuarial valuation.

iii) Short Term Employees Benefits

Short Term Employees Benefits are recognized as an expense as per the Company's scheme based on expected obligation on undiscounted basis.

h) Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset's net selling price and it's value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount attainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

---

Mar 31, 2010

A) General

The accompanying financial statements have been prepared on historical cost convention and conform to the statutory provisions and practices prevailing in the country.

b) Revenue recognition

Items of income and expenditure are generally accounted for on accrual basis unless otherwise stated. Dividend income is accounted for on the basis of approval of the shareholders in their meeting.

c) Fixed assets

i) All the fixed assets including assets given on lease are stated at cost less accumulated depreciation.

ii) Depreciation on own assets is provided on the straight line method at the rates and in the manner prescribed in Schedule- XlV of the Companies Act, 1956.

iii) Depreciation on the assets given on lease is provided in consonance with the method recommended by the Institute of Chartered Accountants of India under which 100% of the cost of assets is depreciated over the primary lease period applying interest rate implicit in the lease on the outstanding balances of the lease advances to calculate the finance earnings for the year and difference between the lease rentals and finance earnings is accounted for as depreciation.

iv) Depreciation on assets not exceeding Rs.5,000/- is provided for at 100%.

d) Investments

Investments are classified into long-term and current Investments. Long-term investments are stated at cost and income thereon is accounted for when accrued. The company follows FIFO method for calculating the cost of each investment sold by the company for computing the profit or loss thereon. Provision for diminution in value of investments is made to recognize a decline other than temporary in nature.

e) Inventory

Inventories are valued at cost or net realisable value whichever is lower. Cost is arrived at on FIFO basis and comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

f) Taxation

i) Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and law that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized only to the extent that there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. The deferred tax liability is recognized on having a reasonable certainty for crystallization of the same.

ii) Provision for taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.

g) Employees Benefits (In accordance with AS-15) i) Defined Contribution Plans

- Provident Fund- The Company contributes to Regional Provident Fund on behalf of its employees and above contributions are expensed to Profit & Loss Account.

ii) Defined Benefit Plans

- Gratuity- The Company makes contribution to scheme managed by LIC to discharge liabilities to the employees.

- Leave Encashment- Provision for un-availed Leave Benefits payable to employees as per scheme of the Company is made on the basis of actuarial valuation.

iii) Short Term Employees Benefits

Short Term Employees Benefits are recognized as an expense as per the Companys

scheme based on expected obligation on undiscounted basis. h) impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their

recoverable amounts. recoverable amount is the higher of an asset s net selling price ana its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount attainable from sale of the asset in an arms length transaction between knowledgeable, willing parties, less the costs of disposal.