Accounting Policies of GCCL Construction & Realities Ltd. Company

Mar 31, 2025

3. Summary of Material Accounting Policies information

The following are the material accounting policies applied by the Company in preparing
its financial statements consistently to all the periods presented:

3.1. Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-
current classification.

An asset is current when it is:

• Expected to be realised or intended to be sold or consumed in the normal
operating cycle;

• Held primarily 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 as non-current.

A liability is current when:

• It is expected to be settled in the 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.
Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for
processing and their realisation in cash or cash equivalents. As the Company’s normal
operating cycle is not clearly identifiable, it is assumed to be twelve months.

3.2. Use of estimates and judgements

The estimates and judgements used in the preparation of the financial statements are
continuously evaluated by the Company and are based on historical experience and
various other assumptions and factors (including expectations of future events) that the
Company believes to be reasonable under the existing circumstances. Difference between
actual results and estimates are recognised in the period in which the results are known
/ materialised.

The said estimates are based on the facts and events, that existed as at the reporting
date, or that occurred after that date but provide additional evidence about conditions
existing as at the reporting date.

3.3. Fair value measurement

The Company measures financial instruments such as Investments at fair value at the
end of each reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

• In the principal market for the asset or liability
Or

• In the absence of a principal market, in the most advantageous market for the
asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its
highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets
or liabilities.

• Level 2 — Valuation techniques for which the lowest level input that is significant
to the fair value measurement is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant
to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring
basis, the Company determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

The Company’s management determines the policies and procedures for both recurring
fair value measurement, such as derivative instruments and for non-recurring
measurement, such as asset held for sale.

At each reporting date, management analyses the movements in the values of assets and
liabilities which are required to be re-measured or re-assessed as per the Company’s
accounting policies. For this analysis, management verifies the major inputs applied in
the latest valuation by agreeing the information in the valuation computation to
contracts and other relevant documents.

Management, in conjunction with the Company’s external valuers, also compares the
change in the fair value of each asset and liability with relevant external sources to
determine whether the change is reasonable on yearly basis.

For the purpose of fair value disclosures, the Company has determined classes of assets
and liabilities on the basis of the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy, as explained above.

This note summarises accounting policy for fair value. Other fair value related
disclosures are given in the relevant notes.

• Material accounting judgements, estimates and assumptions

• Quantitative disclosures of fair value measurement hierarchy

• Financial instruments (including those carried at amortised cost)

3.4. Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of replacing part of
the plant and equipment and borrowing costs for long-term construction projects if the
recognition criteria are met. When significant parts of Property, plant and equipment are
required to be replaced at intervals, the Company recognises such parts as individual
assets with specific useful lives and depreciates them accordingly. Likewise, when a
major inspection is performed, its cost is recognised in the carrying amount of the plant
and equipment as a replacement if the recognition criteria are satisfied. All other repair
and maintenance costs are recognised in profit or loss as incurred. The present value of
the expected cost for the decommissioning of an asset after its use is included in the cost
of the respective asset if the recognition criteria for a provision are met.

Borrowing cost relating to acquisition / construction of fixed assets which take
substantial period of time to get ready for its intended use are also included to the extent
they relate to the period till such assets are ready to be put to use.

Capital work-in-progress comprises cost of fixed assets that are not yet installed and
ready for their intended use at the balance sheet date.

Derecognition

An item of property, plant and equipment 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 Statement of Profit and
Loss when the asset is derecognised.

Depreciation

Depreciation on property, plant and equipment is provided so as to write off the cost of
assets less residual values over their useful lives of the assets, using the straight-line
method as prescribed under Part C of Schedule II to the Companies Act 2013 except for
Plant and Machinery other than Lab equipment and Leasehold Improvements.
Depreciation for assets purchased/sold during a period is proportionately charged for the
period of use.

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.

3.5. 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 assets or cash-generating unit’s (CGU) fair value
less costs to sell and its value in use. It is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other
assets of the Company. 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. In determining fair value less costs to
sell, recent market transactions are taken into account, if available. If no such
transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share prices for publicly
traded subsidiaries or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecasts which
are prepared separately for each of the Company’s CGU to which the individual assets
are allocated. These budgets and forecast calculations are generally covering a period of
five years. For longer periods, a long-term growth rate is calculated and applied to project
future cash flows after the fifth year.

Impairment losses, including impairment on inventories, are recognised in the Statement
of Profit and Loss in those expense categories consistent with the function of the
impaired asset, except for a property previously revalued where the revaluation was
taken to other comprehensive income. In this case, the impairment is also recognised in
other comprehensive income up to the amount of any previous revaluation.

For assets excluding goodwill, an assessment is made at each reporting date as to
whether there is any indication that previously recognised impairment losses may no
longer exist or may 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 and Loss unless the asset is carried at a revalued
amount, in which case the reversal is treated as a revaluation increase.

Intangible assets with indefinite useful lives are tested for impairment annually either
individually or at the CGU level, as appropriate and when circumstances indicate that
the carrying value may be impaired.

3.6. Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or
services are transferred to the customer at an amount that reflects the consideration
entitled in exchange for those goods or services. The Company is generally the principal
as it typically controls the goods or services before transferring them to the customer.

Generally, control is transferred upon shipment of goods to the customer or when the
goods is made available to the customer, provided transfer of title to the customer occurs
and the Company has not retained any significant risk of ownership or future obligations
with respect to the goods shipped

Revenue is measured at the amount of consideration which the company expects to be
entitled to in exchange for transferring distinct goods or services to a customer as
specified in the contract, excluding amounts collected on behalf of third parties (for
example taxes and duties collected on behalf of the government). Consideration is
generally due upon satisfaction of performance obligations and a receivable is recognised
when it becomes unconditional.

3.7. Financial instruments - initial recognition and subsequent measurement

A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity.

a) Financial assets

(i) Initial recognition and measurement of financial assets

All financial assets are recognised initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial assets.

Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are
recognised on the trade date, i.e., the date that the Company commits to purchase or sell
the asset.

(ii) Subsequent measurement of financial assets

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

• Financial assets at amortised cost

• Financial assets at fair value through other comprehensive income (FVTOCI)

• Financial assets at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income
(FVTOCI)

• Financial assets at amortised cost:

A financial asset is measured at amortised cost if:

- the financial asset is held within a business model whose objective is to hold
financial assets 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 (SPPI) on the principal amount
outstanding.

This category is the most relevant to the Company. After initial measurement, such
financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included in finance income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss. This category generally applies to trade
and other receivables.

• Financial assets at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if:

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

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

Financial assets included within the FVTOCI category are measured initially as well as at
each reporting date at fair value. Fair value movements are recognized in the other
comprehensive income (OCI). However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain or loss in the P&L. On
derecognition of the asset, cumulative gain or loss previously recognised in OCI is
reclassified from the equity to P&L. Interest earned whilst holding FVTOCI financial asset
is reported as interest income using the EIR method.

• Financial assets at fair value through profit or loss

FVTPL is a residual category for financial assets. Any financial asset, which does not
meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at
FVTPL.

In addition, the Company may elect to designate a financial asset, which otherwise meets
amortized cost or fair value through other comprehensive income criteria, as at fair value
through profit or loss. However, such election is allowed only if doing so reduces or
eliminates a measurement or recognition inconsistency (referred to as ‘accounting
mismatch’). The Company has not designated any debt instrument as at FVTPL.

After initial measurement, such financial assets are subsequently measured at fair value
with all changes recognised in Statement of profit and loss.

(iii) Derecognition of financial assets

A financial asset is derecognised when:

- the contractual rights to the cash flows from the financial asset expire,

or

- The Company has transferred its contractual rights to receive cash flows from the
asset or has assumed an obligation to pay the received cash flows in full without material
delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company
has transferred substantially all the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, it evaluates if and to what extent it has
retained the risks and rewards of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of the asset, nor transferred control of
the asset, the Company continues to recognise the transferred asset to the extent of the
Company’s continuing involvement. In that case, the Company also recognises an
associated liability. The transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Company could be required to repay.

(iv) 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.

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model
for measurement and recognition of impairment loss on the following financial assets
and credit risk exposure:

• Financial assets that are debt instruments, and are measured at amortised cost
e.g., loans, debt securities, deposits, trade receivables and bank balance

• Financial assets that are debt instruments and are measured as at FVTOCI

• Lease receivables under Ind-AS 17

• Trade receivables or any contractual right to receive cash or another financial
asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18

• Loan commitments which are not measured as at FVTPL

• Financial guarantee contracts which are not measured as at FVTPL

The Company follows ‘simplified approach’ for recognition of impairment loss allowance
on:

• Trade receivables resulting from transactions within the scope of Ind AS 18, if they
do not contain a significant financing component

• Trade receivables resulting from transactions within the scope of Ind AS 18 that
contain a significant financing component, if the Company applies practical expedient to
ignore separation of time value of money, and

The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.

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

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

ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive
(i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows,
an entity is required to consider:

• All contractual terms of the financial instrument (including prepayment,
extension, call and similar options) over the expected life of the financial instrument.
However, in rare cases when the expected life of the financial instrument cannot be
estimated reliably, then the Company is required to use the remaining contractual term
of the financial instrument

• Cash flows from the sale of collateral held or other credit enhancements that are
integral to the contractual terms

ECL impairment loss allowance (or reversal) recognized during the period is recognized
as income/ expense in the statement of profit and loss (P&L). This amount is reflected in
a separate line under the head “Other expenses” in the P&L. The balance sheet
presentation for various financial instruments is described below:

• Financial assets measured as at amortised cost, contract assets and lease
receivables: ECL is presented as an allowance, i.e. as an integral part of the
measurement of those assets in the balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write-off criteria, the Company does not reduce
impairment allowance from the gross carrying amount.

• Loan commitments and financial guarantee contracts: ECL is presented as a
provision in the balance sheet, i.e. as a liability.

• Debt instruments measured at FVTOCI: Since financial assets are already
reflected at fair value, impairment allowance is not further reduced from its value.
Rather, ECL amount is presented as ‘accumulated impairment amount’ in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines
financial instruments on the basis of shared credit risk characteristics with the objective
of facilitating an analysis that is designed to enable significant increases in credit risk to
be identified on a timely basis. The Company does not have any purchased or originated
credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on
purchase/ origination.

b) Financial Liabilities

(i) Initial recognition and measurement of financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value minus, in the case of financial
liabilities not recorded at fair value through profit or loss, transaction costs that are
attributable to the issue of the financial liabilities.

The Company’s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts, financial guarantee contracts and derivative
financial instruments.

(ii) Subsequent measurement of financial liabilities

The measurement of financial liabilities depends on their classification, as described
below:

• Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value
through profit or loss. Financial liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss
are designated at the initial date of recognition, and only if the criteria in Ind-AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to
changes in own credit risks are recognized in OCI. These gains / losses are not
subsequently transferred to P&L. However, the Company may transfer the cumulative
gain or loss within equity. All other changes in fair value of such liability are recognised
in the statement of profit or loss. The Company has not designated any financial liability
as at fair value through profit and loss.

• Loans and Borrowings

This is the category most relevant to the Company. After initial recognition, interest¬
bearing borrowings are subsequently measured at amortised cost using the EIR method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as
well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is
included as finance costs in the statement of profit and loss.

This category generally applies to borrowings.

(iii) Derecognition of financial liabilities

A financial liability (or a part of a financial liability) is derecognised from its balance
sheet when, and only when, it is extinguished i.e. when the obligation specified in the
contract is discharged or cancelled or expired.

When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.

c) 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.

3.8. Cash and Cash equivalent

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

For the purpose of the statement of cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company’s cash management.

3.9. Taxes

Tax expense comprises of current income tax and deferred tax.

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 Statement of profit and loss is
recognised outside Statement of profit and loss. Current income tax are recognised in
correlation to the underlying transaction either in other comprehensive income 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.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the
tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• When the deferred tax liability arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss;

• In respect of taxable temporary differences associated with investments in
subsidiaries and interests in joint arrangements, when the timing of the reversal of the
temporary differences can be controlled and it is probable that the temporary differences
will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry
forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits
and unused tax losses can be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss;

• In respect of deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint arrangements, deferred tax assets are
recognised only to the extent that it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply in the year when the asset is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside Statement of profit and loss is
recognised outside Statement of profit and loss. Deferred tax items are recognised in
correlation to the underlying transaction either in other comprehensive income or
directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.

3.10. Employee Benefits
Short Term Employee Benefits

All employee benefits payable within twelve months of rendering the service are classified
as short-term benefits. Such benefits include salaries, wages, bonus, exgratia,
performance pay etc. and the same are recognised in the period in which the employee
renders the related service.

3.11. Earnings per share (EPS)

Basic EPS is calculated by dividing the profit / loss for the year attributable to ordinary
equity holders of the Company by the weighted average number of ordinary shares
outstanding during the year.

Diluted EPS is calculated by dividing the profit / loss attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding
during the year plus the weighted average number of ordinary shares that would be
issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

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Mar 31, 2024

Note 3: Significant accounting policies

3.1 Changes in accounting policies and disclosures

The company has applied Ind AS and several other amendments and interpretations for the
first time during the financial year 2019-20. The company has not earlier adopted any
standards or amendments that have been issued but are not yet effective.

Ind AS 115 - ‘Revenue from Contracts with Customers’:

"Ind AS 115 was issued on March 28, 2018 and supersedes Ind AS 11 Construction
Contracts and Ind AS 18 Revenue and it applies, with limited exceptions, to all revenue
arising from contracts with its customers. Ind AS 115 establishes a five-step model to
account for revenue arising from contracts with customers and requires that revenue be
recognised at an amount that reflects the consideration to which an entity expects to be
entitled in exchange for transferring goods or services to a customer.

Ind AS 115 requires entities to exercise judgement, taking into consideration all of the
relevant facts and circumstances when applying each step of the model to contracts with
their customers. The standard also specifies the accounting for the incremental costs of
obtaining a contract and the costs directly related to fulfilling a contract. In addition, the
standard requires extensive disclosures.

The company adopted Ind AS 115 using the full retrospective method of adoption. The
change did not have material impact on the company''s standalone financial statements."

Amendments to Ind AS 12 - ‘Income Taxes’:

"The amendments clarify that an entity needs to consider whether tax law restricts the
sources of taxable profits against which it may make deductions on the reversal of that
deductible temporary difference. Furthermore, the amendments provide guidance on how an
entity should determine future taxable profits and explain the circumstances in which taxable
profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application
of the amendments, the change in the opening equity of the earliest comparative period may
be recognised in opening retained earnings (or in another component of equity, as
appropriate), without allocating the change between opening retained earnings and other
components of equity. Entities applying this relief must disclose that fact.

These amendments do not have any impact on the company as the company has no
deductible temporary differences or assets that are in the scope of the amendments."

There is no requirement for deferred tax as per Ind AS-12 Income Taxes as the company
has no deductible temporary differences or assets that are in the scope of the amendments.

3.2 Current / non-current classification

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

a) expected to be realized or intended to be sold or consumed in normal operating cycle;

b) held primarily for the purpose of trading;

c) expected to be realized within twelve months after the reporting period; or

d) 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 as non-current.

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

The operating cycle is the time between the acquisition of assets/materials for processing
and their realization in cash and cash equivalents. As the Company''s normal operating cycle
is not clearly identifiable, it is assumed to be twelve months.

3.3 Fair value measurement

"Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or
liability."

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants
act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.

"All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value measurement as a whole:
a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities;

"b) Level 2 — Valuation techniques for which the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable;" and

c) Level 3 — Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable."

For assets and liabilities that are recognized in the financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy
by re-assessing categorization (based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting period.

External valuers are involved, wherever required, for valuation of significant assets, such as
properties and unquoted financial assets, and significant liabilities. Involvement of external
valuers is decided upon by the Company after discussion with and approval by the
Company’s management. Selection criteria include market knowledge, reputation,
independence and whether professional standards are maintained. The Company, after
discussions with its external valuers, determines which valuation techniques and inputs to
use for each case.

3.4 Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services
are transferred to the customer at an amount that reflects the consideration entitled in
exchange for those goods or services. The Company is generally the principal as it typically
controls the goods or services before transferring them to the customer.

Generally, control is transferred upon shipment of goods to the customer or when the goods
is made available to the customer, provided transfer of title to the customer occurs and the

Company has not retained any significant risks of ownership or future obligations with
respect to the goods shipped.

Revenue is measured at the amount of consideration which the company expects to be
entitled to in exchange for transferring distinct goods or services to a customer as specified
in the contract, excluding amounts collected on behalf of third parties (for example taxes and
duties collected on behalf of the government). Consideration is generally due upon
satisfaction of performance obligations and a receivable is recognised when the it becomes
unconditional.

3.5 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets, except investment in subsidiaries and associate, are recognized initially
at fair value plus, in the case of financial assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are
recognized on the trade date, i.e., the date that the Company commits to purchase or sell
the asset.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss or as those measured at amortized cost.

The Company''s financial liabilities include trade and other payables, loans and borrowings.
Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:
a) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognized in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes
in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred
to the statement of profit & loss. However, the Company may transfer the cumulative gain or

loss within equity. All other changes in fair value of such liability are recognized in the
statement of profit or loss. The Company has not designated any financial liability as at fair
value through profit and loss.
b) Financial liabilities at amortized cost

Financial liabilities at amortized cost include loans and borrowings and payables.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in profit or loss when
the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.

3.6 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand.

3.7 Taxes
Current taxes

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 recognized outside profit or loss is recognized outside
profit or loss (either in other comprehensive income or in equity). Current tax items are
recognized in correlation to the underlying transaction either in OCI or directly in equity. The
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.

Deferred taxes

Deferred tax is provided using the balance sheet method on temporary differences between
the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except when the
deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.

Deferred tax assets are recognized for all deductible temporary differences, the carry
forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognized to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilized, except when the deferred tax asset relating to the
deductible temporary difference arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.

3.8 Earnings Per Share

The basic earnings per share is computed by dividing the net profit / loss attributable to
equity shareholders for the period by the weighted average number of equity shares
outstanding during the period. The number of shares used in computing diluted earnings per
share comprises the weighted average shares considered for deriving basic earnings per
share, and also the weighted average number of equity shares which could be issued on the
conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless they have been issued at a later date. In
computing dilutive earnings per share, only potential equity shares that are dilutive and that
would, if issued, either reduce future earnings per share or increase loss per share, are
included.

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Mar 31, 2013

1 BASIS OF ACCOUNTING :

- The Accounts of the Company have been prepared under the historical cost convention In accordance with the applicable accounting standards and other generally accepted accounting principles in conformity with the statutory requirements.

- The major considerations that are kept In mind while adopting an accounting policy are prudence. Substance over Form, Materially and Consistency.

- A change in an accounting policy is made only if

The adoption of a different accounting policy is required by statute; or For compliance with an accounting standard or;

If It Is considered that the change would result In a more appropriate presentation of the financial statements of the enterprise

2 FIXED ASSETS:

- Tangible Fixed Assets :

The company has no fixed assets as on Balance sheet date.

3 INVESTMENTS:

- Long Term:

Long term Investments shown in the Balance Sheet are valued at cost unless there is a permanent diminution in the value, in which case they are valued at the diminished value and the resulting difference is reflected in the Profit & Loss Account.

- Current Investments:

- Investments classified as current investments are being carried in the financial statements at the lower of cost and fair value Identified on Individual Investment basis.

Disposal of Investments:

On disposal of an investment, the difference between the carrying amount and net disposal proceeds is being charged to Profit & Loss Account determined on the basis of Flrst-ln-Flrst-out Method._

4 REVENUE RECOGNITION :

- Revenue is recognized only when measurability and rabidity is certain. In case of uncertain, revenue recognition is postponed to the year in which it is property measured & reliability assured. In respect of services, the Company accounts for revenue on the basis of the completed contract method.

5 CONTINGENT LIABILITIES:

- Contingent Liabilities are disclosed after careful evaluation of fads and legal aspects of the matter involved.

6 TAXES ON INCOME:

- Tax Expenses for the year Includes current tax & deferred tax. Current tax is the tax payable / recoverable from taxation authorities. Deferred tax is the tax effect of timing difference arising between Accounting income and tax income. Deferred tax is recognized for all timing differences at substantively enacted rates except in respect of those giving rise to deferred tax assets, which are recognized only if their reliability is reasonably certain and virtually certain in case of unabsorbed depreciation and unabsorbed losses.

7 EARNING PER SHARE:

- The Company reports basic and diluted earnings per share in accordance with Accounting Standard (AS) 20 - Earning per Share issued by the institute of Chartered Accountants of India. Basic Earnings per Share are computed by dividing the net profit or loss for the year by the weighted average number of equity share outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year as adjusted for the effects of all dilutive potential equity share, except where the results are anti- dilutive.

* Income tax demand from the Indian Tax Authority for payment of tax of Rs 154598 upon completion of their tax reviews for the financial year 2003-04. The matter is pending before the income tax officer, ward-4(l)

- The company is contesting the demands and no tax expense has been accrued in the financial statements for the tax demands raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company''s financial position and results of the operations.

8 Contingent Liability

31 March 2013 31 March 2012 Rs) (Rs)_

Income tax demand 154598 154598

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Mar 31, 2012

1 BASIS OF ACCOUNTING :

The Accounts of the Company have been prepared under the historical cost convention in accordance with the applicable accounting standards and other generally accepted accounting principles in conformity with the statutory requirements.

The major considerations that are kept in mind while adopting an accounting policy are prudence. Substance over Form, Materially and Consistency.

A change in an accounting policy is made only if The adoption of a different accounting policy is required by statute ; or For compliance with an accounting standard or; If it is considered that the change would result in a more appropriate presentation oMhe financial statements of the enterprise

2 FIXED ASSETS:

Tangible Fixed Assets:

The company has no fixed assets as on Balance sheet date.

3 INVESTMENTS:

Long Term :

Long term Investments shown in the Balance Sheet are valued at cost unless there is a permanent diminution in the value, in which case they are valued at the diminished value and the resulting difference is reflected in the Profit & Loss Account.

Current Investments:

Investments classified as current investments are being carried in the financial statements at the lower of cost and fair value identified on individual investment basis.

Disposal of Investments:

On disposal of an investment, the difference between the carrying amount and net disposal proceeds is being charged to Profit & Loss Account determined on the basis of First-in-First-out Method.

4 REVENUE RECOGNITION:

Revenue is recognized only when measurability and realiability is certain. In case of uncertain, revenue recognition is postponed to the year in which it is properly measured & readability assured, in respect of services, the Company accounts for revenue on the basis of the completed contract method.

5 CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed aftercareful evaluation of facts and legal aspects of the matter involved.

6 TAXES ON INCOME :

Tax Expenses for the year includes current tax & deferred tax. Current tax is the tax payable / recoverable from taxation authorities. Deferred tax is the tax effect of timing difference arising between Accounting income and tax income. Deferred tax is recognized for all timing differences at substantively enacted rates except in respect of those giving rise to deferred tax assets, which are recognized only if their readability is reasonably certain and virtually certain in case of unabsorbed depreciation and unabsorbed losses.

7 EARNING PER SHARE:

The Company reports basic and diluted earnings per share in accordance with Accounting Standard (AS) 20 - Earning per Share issued by the Institute of Chartered Accountants of India. Basic Earning per Share are computed by dividing the net profit or loss for the year by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the net profit or loss forthe year by the weighted average number of Equity Shares outstanding during the year as adjusted forthe effects of all dilutive potential equity share, except where the results are anti-dilutive.

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Mar 31, 2010

1. BASIS OF ACCOUNTING :

The Accounts of the Company have been prepared under the historical cost convention in accordance with the

applicable accounting standards and other generally accepted accounting principles in conformity with the statutory

requirements.

The major considerations that are kept in mind while adopting an accounting policy are prudence. Substance over

Form, Materially and Consistency.

A change in an accounting policy is made only if

- The adoption of a different accounting policy is required by statute ; or

- For compliance with an accounting standard or ;

- If it is considered that the change would result in a more appropriate presentation of the financial statements of the enterprise.

2. FIXED ASSETS :

Tangible Fixed Assets :

The Company has no fixed assets as on Balance Sheet date.

3. INVESTMENTS :

Long Term :

Long term Investments shown in the Balance Sheet are valued at cost unless there is a permanent diminution in the value, in which case they are valued at the diminished value and the resulting difference is reflected in the Profit & Loss Account.

Current Investments :

Investments classified as current investments are being carried in the financial statements at the lower of cost and fair value identified on individual investment basis.

Disposal of Investments :

On disposal of an investment, the difference between the carrying amount and net disposal proceeds is being charged to Profit & Loss Account determined on the basis of First-in-First-out Method.

4. REVENUE RECOGNITION :

Revenue is recognized only when measurability and realiability is certain. In case of uncertain, revenue recognition is postponed to the year in which it is properly measured & realisability assured. In respect of services, the Company accounts for revenue on the basis of the completed contract method.