Accounting Policies of Touchwood Entertainment Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies

(a) Basis of Preparation

The financial statements comply in all material
aspects with Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies
Act, 2013 (the Act) read with the Rule 3 of the
Companies (Indian Accounting Standards) Rules,
2015 as amended from time to time and other
relevant accounting principles generally accepted
in India.

(b) Basis of Measurement

The financial statements of the Company have
been prepared using the historical cost basis.

Summary of Significant Accounting Policies

a. Use of Estimates

The preparation of financial statements in
conformity with Indian Accounting Standards
(Ind AS) requires management of the company to
make judgments, estimates and assumptions that
affect the reported amount of revenues, expenses,
assets and liabilities (including disclosure of

contingent liabilities) at the end of the reporting
period.

The management believes that the estimates
used in preparation of the financial statements
are prudent and reasonable. Future results could
differ due to these estimates and the differences
between the actual results and the estimates are
recognized in the periods in which the results
are known/ materialise.

b. Current versus Non-Current Classification

The Company presents assets and liabilities
in the balance sheet based on current/ non
current classification. An asset is treated as
current when it is:

? Expected to be realised or intended to be
sold or consumed in normal operating
cycle

? Held primary for the purpose of trading.

Expected to be realised within twelve
months after the reporting period, or

? Cash or cash equivalent unless
restricted from being exchanged or
used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified a non
current. A liability is current when:

It is expected to be settled in normal
operating cycle It is held primarily
for the purpose of trading

? It is expected to be settled in normal
operating cycle It is held primarily
for the purpose of trading

? There is no unconditional right to
defer the settlement of the liability
for at least twelve months after the
reporting period.

The Company classifies all other liabilities as
non-current.

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 the Schedule HI to the Companies Act,
2013. Based on the nature of products and the
time between the acquisition of assets for
processing and their realisation in cash and
cash equivalents, the Company has
ascertained its operating cycle as 12 months
for the purpose of current/non current
classification of assets and liabilities.

c. Foreign Currencies

The Company''s financial statements are presented
in INR lacs, which is also the Company''s
functional currency. Functional currency is the
currency of the primary economic environment in
which the entity operates and is normally the
currency in which the entity primarily generates
and expends cash.

Transactions and Balances

Transactions in foreign currencies are initially
recorded by the Company at their respective
functional currency spot rates at the date the
transaction first qualifies for recognition.
Monetary assets and liabilities denominated in
foreign currencies are translated at the
functional currency spot rates of exchange at
the reporting date. Exchange differences
arising on settlement or translation of
monetary items are recognised in profit or loss.

Non-monetary items that are measured in terms
of historical cost in a foreign currency are
translated using the exchange rates at the dates
of the initial transactions.

d. Revenue Recognition

Revenue is recognised to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be
reliably measured, regardless of when the
payment is being made. Revenue is measured
at the fair value of the consideration received
or receivable, taking into account contractually
defined terms of payment and excluding taxes
or duties collected on behalf of the government.

However, Goods and Service Tax (GST) is not
received by the Company on its own account.
Rather, it is tax collected by the seller on behalf
of the government. Accordingly, it is excluded
from revenue.

The specific recognition criteria described below
must also be met before revenue is recognised.

Interest income

Interest income is recognized on time proportion
basis considering the funds deployed and the
applicable interest rates.

Dividend income

Dividend Income is accounted for as income,
when the right to receive dividend is established.

e. Taxes

Current Income Tax

Current income tax assets and liabilities are
measured at the amount expected to be
recovered from or paid to the taxation
authorities.

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

Current income tax relating to items
recognised outside profit or loss is, recognised
outside profit or loss (either in other
comprehensive income or in equity). Current
tax items are recognised in correlation to the
underlying transaction either in OCI or
directly in equity. Management periodically
evaluates positions taken in the tax returns
with respect to situations in which applicable
tax regulations are subject to interpretation
and establishes provisions where appropriate.

During the year under review the company
has made Income tax provision of Rs. 184.36
Lacs (Previous Year Rs. 123.16 Lacs) under
section 115BAA of the income tax Act.

Deferred Tax

Deferred income tax is provided in full, using
the liability method on temporary differences
arising between the tax bases of assets and
liabilities and their carrying amount in the
financial statement. Deferred income tax is
determined using tax rates (and laws) that
have been enacted or substantially enacted by
the end of the reporting period and are
excepted to apply when the related deferred
income tax assets is realised or the deferred
income tax liability is settled.

Deferred tax assets are recognised for all
deductible temporary differences and unused
tax losses, only if, it is probable that future
taxable amounts will be available to utilise
those temporary differences and losses.

Deferred tax assets and liabilities are offset
when there is a legally enforceable right to
offset current tax assets and liabilities and
when the deferred tax balances relate to the
same taxation authority. Current tax assets
and tax liabilities are offset where the
Company has a legally enforceable right to
offset and intends either to settle on a net
basis, or to realize the asset and settle the
liability simultaneously.

Current and deferred tax is recognised in the
Statement of Profit and Loss, except to the
extent that it relates to items recognized
in other comprehensive income or directly in
equity. In this case, the tax is also recognised in
other comprehensive income or directly in equity,
respectively.

During the year under review the company has
created Deferred tax asset of Rs. 0.86 lacs (deferred
tax assets Previous Year Rs. 0.47 lacs).

f. Property, Plant and Equipment

(i). Recognition and Measurement

Property, plant and equipment are tangible items
that are held for use in the production or supply
for goods and services, rental to others or for
administrative purposes and are expected to be
used during more than one period.

The cost of an item of property, plant and
equipment shall be recognised as an asset if and
only if it is probable that future economic benefits
associated with the item will flow to the Company
and the cost of the item can be measured reliably.
Freehold lands are stated at cost All other items of
property, plant and equipment are stated at cost,
net of recoverable taxes less accumulated
depredation, and impairment loss, if any.

The cost of an asset indudes the purchase cost of
material, including import duties and non
refundable taxes, and any directly attributable
costs of bringing an asset to the location and
condition of its intended use. Interest on
borrowings used to finance the construction of
qualifying assets are capitalised as part of the cost
of the asset until such time that the asset is ready
for its intended use. The carrying amount of the
replaced part is derecognised. All other repair and
maintenance costs are recognised in the Statement
of Profit and Loss as incurred.

The present value of the expected cost for the
decomrnissioning of an asset after its use, if
any, is included in the cost of the respective
asset if the recognition criteria for a provision
are met. Assets identified and technically
evaluated as obsolete are retired from active
use and held for disposal are stated at the
lower of its carrying amount and fair value
less cost to sell.

An item of property, plant and equipment and
any significant part initially recognised is
derecognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is
included in the income statement when the
asset is derecognised.

(i) Subsequent Expenditure

Subsequent costs are included in the assets
carrying amount only when it is probable that
future economic benefits associated with the
item will flow to the entity and the cost of the
item can be measured reliably.

Depreciation

Depreciation has been provided based on life
assigned to each asset in accordance with
Schedule II of the Companies Act, 2013.
Depreciation on Property, Plant & Equipment
(other than Intangible assets) is provided
based on the following useful life of the
assets:-

Depredation on additions is provided on a
pro-rata basis from the date of such additions.
Similarly, depreciation on assets sold/
disposed off during the year is being provided
upto the date on which the assets are sold/
disposed off.

The residual values, useful lives and methods
of depreciation of property, plant and
equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.

Modification or extension to an existing asset,
which is of capital nature and which becomes
an integral part thereof is depreciated
prospectively over the remaining useful life of
that asset.

During the year under review and in earlier
financial years, the company has purchased
some assets which are located at the Pandal
taken on rent for commercial purposes/ events.

g. Intangible Assets

(i) Recognition and Measurement

Intangible assets acquired separately are
measured on initial recognition at cost.
Following initial recognition, intangible assets
are carried at cost less any accumulated
amortization and accumulated impairment
losses.

Intangible assets assessed for impairment
whenever there is an indication that the
intangible asset may be impaired. The
amortization period and the amortization
method for an intangible asset with a finite
useful life are reviewed at least at the end of
each reporting period. Changes in the expected
useful life or the expected pattern of
consumption of future economic benefits
embodied in the asset are considered to modify
the amortization period or method, as
appropriate, and are treated as changes in
accounting estimates. The amortization expense
on intangible assets with finite lives is
recognised in the statement of profit and loss
unless such expenditure forms part of carrying
value of another asset.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised
in the statement of profit or loss when the asset
is derecognised.

Internally generated intangible assets, excluding
capitalized development costs, are not capitalized
and expenditure is reflected in the statement of
profit and loss in the year in which the
expenditure is incurred.

(ii) Subsequent Expenditure

Subsequent expenditure is capitalised only when
it increases the future economic benefits from the
specific asset to which it relates.

(iii) Amortisation

Intangible Assets is amortised on a straight
line basis over a period of three years, being
the period over which the Company expects
to derive economic benefits from the use of
the Intangible Assets.

h. Borrowing Costs

Borrowing costs consist of interest and other
costs that an entity incurs in connection with
the borrowing of funds. Borrowing cost also
includes exchange differences to the extent
regarded as an adjustment to the borrowing
costs.

i. Impairment of Non-Financial Assets

The Company assesses, at each reporting date,
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable
amount is the higher of an asset''s or cash
generating units (CGU) fair value less costs of
disposal and its value in use. Recoverable
amount is determined for an individual asset,
unless the asset does not generate cash inflows
that are largely independent of those from
other assets or groups of assets. When the
carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered
impaired and is written down to its
recoverable amount.

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. For the purpose of impairment testing,
assets that cannot be tested individually are
grouped together into the smallest group of
assets that generates cash inflows from
continuing use that is largely independent of
cash flows of other assets or group of assets
(CGU).

For assets excluding goodwill, an assessment is
made at each reporting date to determine
whether there is an indication that previously
recognised impairment losses no longer exist
or have decreased. If such indication exists, the
Company estimates the asset''s or CGU''s
recoverable amount. A previously recognised
impairment loss is reversed only if there has
been a change in the assumptions used to
determine the asset''s recoverable amount since
the last impairment loss was recognised. The
reversal is limited so that the carrying amount
of the asset does not exceed its recoverable
amount, nor exceed the carrying amount that
would have been determined, net of
depreciation, had no impairment loss been
recognised for the asset in prior years. Such
reversal is recognised in the statement of profit
or loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as a
revaluation increase.

Mar 31, 2024

2 Significant Accounting Policies

(a) Basis of Preparation

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant accounting principles generally accepted in India.

(b) Basis of Measurement

The financial statements of the Company have been prepared using the historical cost basis.

Summary of Significant Accounting Policies

a. Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management of the company to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities (including disclosure of contingent liabilities) at the end of the reporting period.

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialise.

b. Current versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

? Expected to be realised or intended to be sold or consumed in normal operating cycle

? Held primary for the purpose of trading.

? Expected to be realised within twelve months after the reporting period, or

? Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified a non current. A liability is current when:

? It is expected to be settled in normal operating cycle It is held primarily for the purpose of trading

? It is due to be settled within twelve months after the reporting period, or

? There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non current classification of assets and liabilities.

c. Foreign Currencies

The Company''s financial statements are presented in INR lakhs, which is also the Company''s functional currency. Functional currency is the currency of the primary economic environment in which the entity operates and is normally the currency in which the entity primarily generates and expends cash.

Transactions and Balances

Transactions in foreign currencies are initially recorded by the Company at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

d. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected by the seller on behalf of the government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must also be met before revenue is recognised.

Interest income

Interest income is recognized on time proportion basis considering the funds deployed and the applicable interest rates.

Dividend income

Dividend Income is accounted for as income, when the right to receive dividend is established.

e. Taxes Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

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

Current income tax relating to items recognised outside profit or loss is, recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

During the year under review the company has made Income tax provision of Rs. 123.16 Lacs (Previous Year Rs. 110.44 lacs) under section 115BAA of the income tax Act.

Deferred Tax

Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only

if, it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

During the year under review the company has created Deferred tax asset of Rs. 0.47 lacs (Reversal of deferred tax assets Previous Year Rs. 5.87 lacs).

f. Property, Plant and Equipment

(i) Recognition and Measurement

Property, plant and equipment are tangible items that are held for use in the production or supply for goods and services, rental to others or for administrative purposes and are expected to be used during more than one period.

The cost of an item of property, plant and equipment shall be recognised as an asset if and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net of recoverable taxes less accumulated depreciation, and impairment loss, if any.

The cost of an asset includes the purchase cost of material, including import duties and nonrefundable taxes, and any directly attributable costs

of bringing an asset to the location and condition of its intended use. Interest on borrowings used to finance the construction of qualifying assets are capitalized as part of the cost of the asset until such time that the asset is ready for its intended use. The carrying amount of the replaced part is derecognized. All other repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred.

The present value of the expected cost for the decommissioning of an asset after its use, if any, is included in the cost of the respective asset if the recognition criteria for a provision are met. Assets identified and technically evaluated as obsolete are retired from active use and held for disposal are stated at the lower of its carrying amount and fair value less cost to sell.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

(ii) Subsequent Expenditure

Subsequent costs are included in the asset''s carrying amount only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

Depreciation

Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. Depreciation on Property, Plant & Equipment (other than Intangible assets) is provided based on the following useful life of the assets:-

Depreciation on additions is provided on a pro-rata basis from the date of such additions. Similarly, depreciation on assets sold/ disposed off during the year is being provided upto the date on which the assets are sold/ disposed off.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Modification or extension to an existing asset, which is of capital nature and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset.

g. Intangible Assets

(i) Recognition and Measurement

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses.

Intangible assets assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognised in

the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.

(ii) Subsequent Expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates.

(iii) Amortization

Intangible Assets is amortised on a straight-line basis over a period of three years, being the period over which the Company expects to derive economic benefits from the use of the Intangible Assets.

h. Borrowing Costs

Borrowing costs directly attributable to the acquisition of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

i. Impairment of Non-Financial Assets

higher of an asset⁷s or cash-generating units (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

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. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that is largely independent of cash flows of other assets or group of assets (CGU).

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

Mar 31, 2023

1 Corporate Information

The Company was incorporated as a Private Limited company on 1^st August 1997 under the provisions of Companies Act 1956 and gets itself converted into Limited Company after passing Special Resolution on 08/03/2003 in terms of Section 31/21 read with Section 44 of the Companies Act 1956. The Company is engaged in Event Management Services. The Equity Shares of the Company are listed at National Stock Exchange (NSE) of India since 21^st December 2017 with Symbol: TOUCHWOOD and Series ISIN: INE486Y01013.

2 Significant Accounting Policies(a) Basis of Preparation

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant accounting principles generally accepted in India.

(b) Basis of Measurement

The financial statements of the Company have been prepared using the historical cost basis.

Summary of Significant Accounting Policiesa. Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management of the company to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities (including disclosure of contingent liabilities) at the end of the reporting period.

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialise.

b. Current versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ noncurrent classification. An asset is treated as current when it is:

? Expected to be realised or intended to be sold or consumed in normal operating cycle

? Held primary for the purpose of trading.

? Expected to be realised within twelve months after the reporting period, or

? Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified a non-current. A liability is current when:

? It is expected to be settled in normal operating cycle

? It is held primarily for the purpose of trading

? It is due to be settled within twelve months after the reporting period, or

? There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities

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 the 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 realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non current classification of assets and liabilities.

c. Foreign Currencies

Transactions and Balances

Transactions in foreign currencies are initially recorded by the Company at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

d. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected by the seller on behalf of the government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must also be met before revenue is recognised.

Interest income

Interest income is recognized on time proportion basis considering the funds

deployed and the applicable interest rates. Dividend income

Dividend Income is accounted for as income, when the right to receive dividend is established.

e. TaxesCurrent Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

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

Current income tax relating to items recognised outside profit or loss is, recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

During the year under review the company has made Income tax provision of Rs. 110.44 Lacs (Previous Year Rs. 81.55 lacs) under section 115BAA of the income tax Act.

Deferred Tax

income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if, it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

During the year under review the company has reversed Deferred tax asset of Rs. 5.87 lacs (Previous Year Rs. 2.38 lacs).

f.Property, Plant and Equipment

(i) Recognition and Measurement

Property, plant and equipment are tangible items that are held for use in the production or supply for goods and services, rental to others or for administrative purposes and are expected to be used during more than one period.

The cost of an item of property, plant and equipment shall be recognised as an asset if and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net of recoverable taxes less accumulated depreciation, and impairment loss, if any.

The cost of an asset includes the purchase cost of material, including import duties and non-refundable taxes, and any directly attributable costs of bringing an asset to the location and condition of its intended use. Interest on borrowings used to finance the construction of qualifying assets are capitalised as part of the cost of the asset until such time that the asset is ready for its intended use. The carrying amount of the replaced part is derecognised. All other repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred.

on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.

(ii) Subsequent Expenditure

Depreciation

Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. Depreciation on Property, Plant & Equipment (other than Intangible assets) is provided based on the following useful life of the assets:-

Asset Category	Useful Life (In years)
^Office Equipments	5 years
Motor Cars	8 years
^Furniture and Fixtures	10 years
Electrical Items	5 years
Computer and Peripherals	3 years
Generator	15 years
Truck	6 years
Printer	5 years
Television	5 years
Composting Machine	15 years

The residual values, useful lives and

methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Modification or extension to an existing asset, which is of capital nature and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset.

g. Intangible Assets

(i) Recognition and Measurement

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and

accumulated impairment losses.

Intangible assets assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is

derecognised.

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.

(ii) Subsequent Expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates.

(iii) Amortisation

h. Borrowing Costs

i. Impairment of Non-Financial Assets

estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating units (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

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. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that is largely independent of cash flows of other assets or group of assets (CGU).

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no

impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

j.Provisions, Contingent Liabilities and Assets

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

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require and outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continuously and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

A contingent asset is not recognised but

disclosed, when possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

k. Employee Benefits

(i) Short-Term Obligations

Short-term obligations liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the undiscounted amounts expected to be paid when the liabilities are settled. The liabilities are presented as current benefit obligations in the balance sheet.

(ii) Retirement and Other Employee Benefits

The Company provides for Gratuity covering eligible employees of company. The Gratuity provides a lumpsum 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 with the Company.

Liabilities with regard to the Gratuity are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method.

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

Re-measurement gain and loss arising from experience adjustments and change actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of change in equity and in the balance sheet.

l. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and current deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

m. 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 company.

(A) Financial Assets

Initial Recognition and Measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

(i) Financial Assets carried at Amortised Cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order 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) Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI)

A financial asset is measured at FVTOCI if it 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. Interest income for these financial assets is included in other income using the effective interest rate method.

(iii) Financial Assets at Fair Value through Profit or Loss (FVTPL)

A financial asset/equity investment which is in scope of Ind AS 109 and is not classified in any of the above categories are measured at FVTPL.

(B) Financial Liabilities

Initial Recognition and Measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of

recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

Subsequent Measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

(D) Reclassification of Financial Assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The company''s senior management determines change in the business model as a result of external or internal changes which are significant to the company''s operations. Such changes are

evident to external parties. A change in the business model occurs when the company either begins or ceases to perform an activity that is significant to its operations. If the company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

(E) Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

n. Earnings per Share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and equivalent dilutive equity shares outstanding during the year, except where the result would be anti-dilutive.

o. Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management of the Company to make judgments, estimates and assumptions that affect the reported amount of

revenues, expenses, assets and liabilities (including disclosure of contingent liabilities) at the end of the reporting period.

The areas involving critical judgements are as follows-

(i) Depreciation/ Amortisation and useful lives of Property, Plant and Equipment/ Intangible assets

Property, plant and equipment/ intangible assets are depreciated/ amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/ amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation/amortisation for future periods is revised if there are significant changes from previous estimates.

(ii) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of

provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

(iii) Defined Benefit Obligations

The costs of providing gratuity and other post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 ''Employee benefits'' over the period during which benefit is derived from the employees'' services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates. The same is disclosed in Note 18.

(iv) Income Tax

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions.

Notes to Account

1. The party balances classified under sundry debtors, sundry creditors, loans & advances are subject to confirmation and reconciliation with the respective parties.

2. The Company could not account/reconcile entire amount of Tax deducted at source, by its clients as the clients have yet to file their quarterly TDS return for March 2023 Qtr. In view of this the company has accounted the TDS amount to the extent amount appearing in Form 26AS and TDS deducted by clients in case of bill wise

payment received.

3. Contingent liability may be incurred in respect of pending direct & indirect taxes & statutory dues the amount of which is neither known nor presently ascertainable.

4. In the opinion of the management the value of Current Assets & Loans & Advances is not less than the amounts stated in books of accounts and are considered good.

5. The Company was allotted a Pent House at

JAYPEE GREENS, NOIDA vide provisional allotment letter bearing No. 47698/390115/KRH0213202 dated

09/11/2013 for a total consideration of Rs.220.32 lacs. Till the close of the current financial year the company has paid a sum of Rs.113.49 lacs. M/s Jaypee Infratech Limited is in process of resolution of insolvency but the company''s management is confident of getting the possession of the property in the coming time. Therefore no provision for diminution in the value of advance given for the same is considered. This amount is classified under "Loan Under Financial Liability (Non Current)."

6. The assessing officer has raised and uploaded demand of Income Tax in respect of Assessment Year 2008-09. Till the close of the current financial year CPC has adjusted an amount of Rs.29.18 lacs out of which an amount of Rs.23.05 lacs has been received in November 2017. The management is hopeful that the balance amount will be refunded by the income tax department in due course and the amount is classified under Other Current Assets.

Further an amount of Rs. 25 lacs had been seized by the investigation wing of IT Department during the FY 2018-19 and the company has shown the same under

"Other Current Assets." The company is replying to the query raised on this matter.

7. Provision for Current income tax has been made as per the provisions of Income tax Act 1961 which is subject to assessment.

8. As certified by the directors of the Company no legal case against the company was pending as on Balance sheet date.

9. The company has taken prior approval from the shareholders for paying Remuneration to Managing Director and Executive director in accordance with Schedule-V of The Companies Act.

10. The Company has communicated with its Sundry Creditors to enquire whether they are registered under Micro, Small and Medium Enterprises Development Act, 2006 or not, but the company has not received any reply from the creditors and considered that these creditors are not covered within the Provisions of Micro, Small and Medium Enterprises Development Act, 2006 and hence all the creditors are taken as not registered under Micro, Small and Medium Enterprises Development Act, 2006.

11. The company has not received any information from the suppliers/service providers that they are registered as Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act 2006. Consequently as per management the amount paid/payable are disclosed pertaining to such parties during the year is nil.

12. Subsidiaries: The company has two subsidiaries, namely, out of which one is wholly owned and had made investment in previous financial year;

a) MakeMeUp Private Limited

b) WedAdvisor Solutions Private Limited

During the year under review, MakeMeUp Pvt Ltd, has started commercial operations however WedAdvisor Solutions Pvt Ltd., shall start the same from the next financial year and as on the date of Balance sheet all investment except equity share capital, made by the Touchwood Entertainment Ltd., have been shown under "Other Current Assets"

13. Segment Reporting : As per Ind-AS 108 ,the company has only one business segment "event management " and all the revenue comes from it. During the year under review the company has carried it''s one subsidiary and one wholly owned subsidiary companies namely MakeMeUp Private Limited and WedAdvisor Solutions Private Limited respectively and they have/shall carry on different segments of business revenue from the this/next financial years. During the current financial year all the assets relate to "Event management" segment only however an amount of Rs. 2 lacs and Rs. 152.12 lacs (Previous Year Rs. 2 lacs and Rs. 129.51 lacs respectively) are shown as Investment and Other Current Assets respectively, in the financials of the company. There is no specific geographical reporting segment as the company is doing business across India.

14. Previous year figures have been regrouped or reclassified wherever found necessary to make them comparable with the figures of the current year.

15. During the year under review the company has received Excess Car Insurance Claim of Rs. 35.15 lacs and a Compensation of Rs. 16 lacs under Exceptional Income.

	2022-2023	2021-2022
16. Payment made in Foreign Currency	Nil	Nil
17. Earning in Foreign Currency	240.34 lacs	Nil
18. Statutory Auditor''s Remuneration Audit Fee & LRR Fee	4.80 lacs	3.12 lacs

19. Disclosures as per Ind AS 19 "Employee Benefits" relating to Actuarial Valuation of Gratuity

The Company has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days wages for every completed year of service or part thereof in excess of six months, based on the rate of wages last drawn by the employee concerned.

Membership Information

Membership data of the Plan as at 31-Mar-2023 (Census Date) was provided by the Sponsor. A summary of membership data provided is given below:

% increase /31-Mar-2023 /31-Mar-2022
Number of members considered for valuation		-9.5%	19	21
Average age		1.2%	35.25	34.83
Monthly Salary (INR)	Average	4.8%	111,263	106,155
	Total	-5.2%	2,114,000	2,229,250
Past Service (Years)	Average	13.1%	8.22	7.27
Discontinuance Liability^A	Total	5.5%	11,060,962	10,480,721

Amount Recognised in Statement of Profit & Loss Account
Particulars	2022-23	2021-22
Current Service Cost	4,75,070	6,82,295
Past Service Cost	-	-
Settlement/Curtai lment Cost/(Credit)
Interest on DBO	5,91,695	5,88,975
Interest on Plan Assets	10 66 766	12,71,269
Recognised in Profit & Loss

Amount Recognised in Other Comprehensive Income
Particulars	2022-23	2021-22
''Remeasurement of DBO
-Changes in Demographic Assumption
-Changes in Financial Assumption	(1,74,430)	(2,18,551)
-Changes due to Plan Experience	(8,17,712)	(15,40,672)
Expense/(Income) recognised in OCI	(9,92,142)	(17,59,223)

Mar 31, 2018

Note No-01

ACCOUNTING POLICIES & NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31.03.2018

Background: The Company was incorporated as a Private Limited company on 1^stAugust 1997 under the provisions of Companies Act 1956 and was converted into Limited Company after passing Special Resolution on 08/03/2003 in terms of Section 31 /21 read with Section 44 of the Companies Act 1956. The Company is engaged in Event Management Services.

During the year the company has issued 5,03,248 Equity Shares as bonus shares to its shareholders in proportion of 4:1 on 14/08/2017and further issued 5,03,250 right shares at a premium of Re.1/ - in the proportion on 5:1 on 31/08/2017.

The company came out with an Initial Public Offer of 10,53,000 Equity Shares at a premium of Rs.30/-on 11^th December 2017. The company made allotment of 10,53,000 Equity Shares on18/12/2017. The Equity Shares of the Company were got listed at National Stock Exchange (SME) of India on 21^st December 2017 with Symbol: TOUCHWOOD and Series ISIN: INE486Y01013

A. ACCOUNTING POLICIES

Basis of Accounting

The financial statements of the company have been prepared to comply in all material aspects with the accounting standards notified by the companies (Accounting Standard) Rules read with rule 7 to the companies (Accounts) Rules, 2014 in respect of section 133 of the Companies Act 2013. These Financial Statements are prepared on accrual basis of accounting under the historical cost convention and in accordance with the generally accepted accounting principles unless otherwise stated. The accounting policies applied are consistent with those used in the previous financial year.

Accounting Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles required the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and the result of operations during the reported period. Although these estimates are based upon the managementâs best knowledge of current events and actions, actual results could differ from these estimates which are recognized in the period in which they are determined.

Cash Flow Statement

Cash flow statement has been prepared as per as per requirement of Accounting Standard-3. Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of the transactions of non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the company are segregated accordingly.

Segment reporting

As the company is engaged only in Event Management activities, segment reporting is Not Applicable to the company.

Earning Per Share

In determining the earning per share, the company considers net profit after tax which includes post tax effect of exceptional item. The number of shares used in computing basis earning per share is the weighted average number of shares outstanding during the period.

The number of shares used in computed diluted earning per share comprises the weighted average number of shares considered for computing basic earning per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.

In the event of issue of Bonus shares, or share split, the number of equity shares outstanding is increased without an increase in the resources. The number of equity shares outstanding before the event is adjusted for the proportionate change in the number of equity shares outstanding as if the event had occurred at the beginning of the earliest reported period.

Fixed Assets Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition including attributable interest and finance cost till the date of acquisition/ installation of the assets and all improvements thereof less accumulated depreciation and impairment loss thereon.

Depreciation

Depreciation on fixed assets has been provided on the basis of useful life of assets as prescribed under Schedule II of The Companies Act 2013 on straight line method. In case of addition of Fixed Assets during the year, depreciation has been charged for the period from which assets was put to use/ ready for use.

Impairment of Fixed Assets

The carrying amount of assets is reviewed at each balance sheet date. If there is any indication of impairment based on internal or external factors, an impairment loss is recognized in the statement of profit and loss. Whenever the carrying amount of an asset or cash generating unit exceeds its recoverable value, the recoverable amount of the asset (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

The company owned an aircraft which is not in use since last 6 years. In the opinion of the management the disposable value of the aircraft is more than that stated in the books of accounts. In view of this no provision for diminution in the value as required under AS 28 has been made in the accounts.

Share Issue Expenses

Share Issue expenses have been charged off against Securities Premium Account.

Investments

The company has made Investment in Listed Shares & Securities purchased through a broker. The same are accounted at cost plus direct expenses attributable to purchase the same. The management intends to hold the same for long term, hence the same are treated as Non-Current Investments, in view of this no provision for diminution in value except permanent diminution, of these shares& securities, if any, have been made in the accounts.

Borrowing Costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalized as part of the cost of such assets in accordance with noticed Accounting Standard 16 âBorrowing Costsâ. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

Accounting of Taxation on Income

Tax expenses for the year comprises current tax and deferred tax & tax for past period. Current income tax is determined in respect of taxable income while deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s) Such deferred tax is quantified used rates and laws enacted or substantively enacted as at the end of the financial year.

During the year company has provided for Deferred tax assets and as per management there is virtual certainty and supported with convincing evidences that sufficient future taxable income will be available against which such deferred tax asset can be realized.

Revenue Recognitions

All the known major Income and expenses are accounted for on accrual basis. Dividend on investments has been accounted as and when received.

Provision, Contingent Liabilities and Contingent Assets

a. Provision involving substantial degree of estimation in measurement is recognized when there is present obligation as result of past event and it is probable that there will be an outflow of resources.

b. Contingent liabilities are not recognized but are disclosed in the notes to financial statements and notes thereon, nor disclosed in the financial statements.

Retirement and other employee benefits

The company has made provision for gratuity on the basis of actuarial valuation carried out by actuary M/s Navin V Iyer, as required by AS-15 issued by The Institute of Chartered Accountants of India. No provision for leave salary has been made in the accounts as there is no outstanding leave due to the employees.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article