Accounting Policies of Kairosoft AI Solutions Ltd. Company

Mar 31, 2025

Note 1

Corporate Information:

Kairosoft AI Solutions Limited is a Company incorporated on the 29th day of May, 1982. It is registered with Registrar of Companies, Delhi. The Company is engaged in the business of designing, developing, licensing, maintaining, and supporting Artificial Intelligence (AI) powered software solutions in India and elsewhere in the world and undertake research and development in the field of Al and machine learning for the purpose of creating innovative software solutions, provide consultancy services related to Al implementation, integration, and application across various industries, acquire, hold, sell, lease, or otherwise deal in intellectual property rights related to Al software solutions.. The Company is listed with Bombay Stock Exchange (INE820M01018).

Note 2

Basis for preparation of Standalone Financial Statements:

(a) Compliancewith Ind AS

These Standalone Financial Statements are prepared on going concern basis following accrual basis of accounting and comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendmentsthereto& the Companies Act, 2013.

(b) Basis of measurement/ Use of estimate

(i) The Standalone Financial Statementsare preparedon going concernand accrual basis under the historical cost convention

(ii) The preparation of Standalone Financial Statements requires judgments, estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the Standalone Financial Statements and the reported amount of revenues and expenses during the reporting period.

(c) Recent Accounting Pronouncements: Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issed from time to time. For the year ended March 31, 2025 MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determinedthat it does not have any significant impact in its financial statements.

(d) Functional and presentation currency

These Standalone Financial Statements are presented in Indian Rupees (INR), which is the Company''s functional currency. All financial information presented in INR has been rounded to the nearest thousands(up to two decimals), except as stated otherwise.

NOTE 3

Material Accounting Policies:

A summary of the material accounting policies applied in the preparation of the Standalone Financial Statements are as given below. These accounting policies have been applied consistentlyto all periodspresented in the Standalone Financial Statements.

(3.a) Property plant and equipment (PPE)

1. Initial recognition and measurement

Property, plant and equipments ("PPE") are measured at cost less accumulated depreciation/amortization and accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties, to the location and condition necessary for it to be capable of operatingin the manner intended by management.

When parts of an item of property,plant and equipmentshave differentuseful lives, they are recognized separately.

Spare parts are capitalized when they meet the definition of PPE, i.e. when the Company intends to use these for a period exceeding 12 months.

On transition to IND AS, the Company has elected to continue with the carrying value of all of its PPE recognized, measured as per the previous GAAP and use that carrying value as the deemed cost of the PPE.

2. Depreciation

Depreciation on Property, Plant and Equipment, including assets taken on lease, other than freehold land is charged based on Written down method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013.

Depreciationon additions to/deductionsfrom property, plant and equipment during the year is charged on pro-rata basis from/ up to the date on which the asset is available for use/disposed.

In circumstance,where a PPE is abandoned, the cumulativecapitalizedcosts relating to the property are written off in the same period.

The useful life of asset taken into considerationas per Schedule II for the purpose of calculating depreciation is as follows:-
Particulars of Property, Plant & Equipment	Useful life (in years)
Furniture	10
Motor Vehicle	8
Office Equipment	5
Computer	3

Depreciation/amortisation is not recorded on Intangible Assets underdevelopment until development and installation are complete and the asset is ready for its intended use.

An item of Property, Plant and Equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of Property, Plant and Equipment are determined as a difference between the sale proceeds and the carrying amount of the asset and is recognized in the profit and loss. At the end of each reporting period, the Company reviews the carrying amounts of tangible and intangible assets to determinewhether there is any indicationthat those assets have sufferedan impairment loss.

(3.b) Revenue recognition:

With Effective 1st April, 2018, the Company has applied Ind AS 115 - Revenue from Contracts with Customers Pursuant to adoption of Ind AS 115, Revenue from contracts with customers are recognized when the control over the goods or services promised in the contract are transferred to the customer. The amount of revenue recognized depicts the transfer of promised goods and services to customers for an amount that reflects the consideration to which the Company is entitled to in exchange for the goods or services.

1. Interest Income: The Company recognises interest income using Effective Interest Rate (EIR) on all financial assets subsequently measured at amortised cost. EIR is calculated by considering all costs and other incomes attributable to acquisition of a financial assets.

2. Dividend: Dividend income from investments is recognised when the shareholders'' right to receive payment has been

establishedwhich is generally when the shareholders approve the dividend.

3. Other revenue from operations: The Company recognises revenue from contracts with customers (other than financial

assets to which Ind AS 109 ''Financial Instruments'' is applicable) based on a comprehensive assessment model as set out in Ind AS 115 ''Revenue from contracts with customers''. The Company identifies contract(s) with a customer and its performance obligations under the contract, determines the transaction price and its allocation to the performance obligations in the contract and recognises revenue only on satisfactory completion of performance obligations. Revenue is measured at fair value of the consideration receivedor receivable.

(3.c) Financial Instruments:

1. Financial Assets:-

Recognitionand initial measurement:-

Financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument and are measured initially at fair value adjusted for transaction cost.

Su bsequent measu rement: -

Equity instrument and Mutual Fund: - All equity Instrument and mutual funds within scope of Ind-AS 109 are measured at fair value. Equity instrument and Mutual fund which are held for trading are classified as at fair value through profit & loss (FVTPL). For all other equity instruments, the Company decided to classify them as at fair value through other comprehensive income (FVTOCI).

Debt instrument: - A ''debt instrument'' is measured at the amortised cost if both the following conditions are met. The assets are held within a business model whose objective is to hold assets for collecting contractual cash flows, and contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial measurement, such financial assets are subsequently measured at amortised cost using the effectiveinterestrate (EIR) method.

De- Recognition of financial Assets: -

Afinancialasset is primarilyde-recognisedwhen the rightsto receivecash flows from the asset have expired or Company has transferred its right to receive cash flow from the asset.

Impairment of financial assets: -

The Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.

2. Financial Liabilities: -Recognitionand initial measurement:-

All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisitionof the financial liabilitiesis also adjusted. Financial liabilities are classifiedat amortised cost.

Su bsequent measu rement: -

Subsequentto initialrecognition, these liabilitiesare measuredat amortised cost using the effective interest rate method. De-recognition of financialliabilities

Financial liabilities are derecognized when the obligation under the liabilities are discharged or cancelled or expires. Consequently, write back of unsettled credit balances is done on closure of the concerned project or earlier based on the previous experience of Management and actual facts of each case and recognized in other Operating Revenues.

Further when an existing Financial liability is replaced by another from the same lender on substantially different terms, or the terms of existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

3. Off settingof financial instrument:-

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is currently enforceable legal right to offset the recognized amounts and there is an intention to settle on net basis, to realize the assets and settle the liabilitiessimultaneously.

4. Impairment of Financial Assets: -

Equity instruments, Debt Instruments and Mutual Fund: - In accordance with Ind-AS 109, the Company applies Expected Credit Loss model for measurement and recognition of impairment loss for financial assets. Expected Credit Loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expectsto receive.

Other Financial Assets: - The Company determines whether there has been a significant increase in the credit risk since initial recognitionand if credit risk has increased significantly, impairment loss is provided.

5 . Expected Credit Loss (ECL): -

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowanceo on Loans with significant financing component is measured at an amount equal to 12-month ECL. For all other financial assets, expected credit losses are measured at an amount equal to the lifetime 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considers current and anticipated future economic conditions relating to industries the Company deals with and the countrieswhere it operates.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in condensed consolidated statement of comprehensiveincome.

(3.d) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise of cash at bank and on hand and short- term deposits with an original 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 overdraftsif they are considered an integral part of the Company''s cash management.

(3.e) Taxation

1. Current Income tax: Provision for current tax is made as per the provisions of the Income Tax Act, 1961.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). Management periodically evaluates positions taken in the tax returns with respect to applicable tax regulations which are subject to interpretation and establishes provisionswhere appropriate.

2. Deferred Tax: 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 assets and liabilities are measured based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity).

(3.f) Employee benefits

Short Term Benefits: Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under performance related pay if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(3.g) Earning per share

Basic earnings/ (loss) per share are calculated by dividing the net profit/ (loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the period and also after the Balance Sheet date but beforethe date the Ind AS financialstatementsare approved by the Board of Directors.

For the purpose of calculating diluted earnings/ (loss) per share, the net profit/ (loss) for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemedconvertedas of the beginning of the period, unless issued at a later date.

(3.h) Provision, contingent liabilities and contingentassets

Provision: A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into accountthe risksand uncertaintiessurroundingthe obligation.

Contingent Liability: Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjustedto reflect the currentmanagement estimate.

(3.i) Current and Non Current classification: All assets and Liabilities have been classified as current or non-current. Based on the nature of product and activities of the Company and their realization in cash and cash equivalent, the Company has determined its operatingcycle as 12 months for the purpose of current and non-current classificationof assets and liabilities.

Deferredtax assets/liabilitiesare classified as non-current.

NOTE 4

Major Estimatesand Judgments made in preparing Standalone Financial Statements

The preparation of the Company''s Standalone Financial Statements requires management to make judgements and estimates that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. These include recognition and measurement of financial instruments, estimates of useful lives and residual value of Property, Plant and Equipment and Intangible Assets, valuation of inventories, measurement of recoverable amounts of cash-generating units, measurementof employee benefits, actuarial assumptions, provisions etc.

Uncertainty about these judgments and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the Statement of Profit and Loss in the period in which the estimatesare revised and in any future periods affected

a. JUDGEMENTS

In the process of applying the company''s accounting policies, management has made the following judgements, which have the significant effecton the amounts recognised in the Standalone Financial Statements:

Materiality

Ind AS requires assessment of materiality by the Company for accounting and disclosure of various transactions in the Standalone Financial Statements. Accordingly, the Company assesses materiality limits for various items for accounting and disclosures and follows on a consistent basis. Overall materiality is also assessed based on various financial parameters such as Gross Block of assets, Net Block of Assets, Total Assets, Revenue and Profit Before Tax. The materiality limits are reviewed and approved by the Board.

Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeable developments, this likelihood could alter. In the similar line, management also on the basis of best judgment and estimatedeterminesthe net realizable value of the Inventoriesto make necessary provision.

b. MAJOR ESTIMATES

The key assumptions concerning the future and other key sources of estimation at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.

Useful life of property, plant and equipment and intangibleassets

The estimated useful life of property, plant and equipment is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenanceexpendituresrequired to obtain the expectedfuture cash flows from the asset.

Useful life of the assets other than Plant and machinery are in accordance with Schedule II of the Companies Act, 2013.

The Company reviews at the end of each reporting date the useful life of property, plant and equipment, and are adjusted prospectively, if appropriate.

Income Taxes

The Company uses estimates and judgements based on the relevant facts, circumstances, present and past experience, rulings, and new pronouncements while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised.

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Mar 31, 2024

3 Material Accounting Policies:

A summary of the material accounting policies applied in the preparation of the Standalone Financial Statements are as given below. These
accounting policies have been applied consistently to all periods presented in the Standalone Financial Statements.

(3.a) Property plant and equipment (PPE)

1.1. Initial recognition and measurement

Property, plant and equipments ("PPE") are measured at cost less accumulated depreciation/amortization and accumulated impairment losses.
Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties, to the location and
condition necessary for it to be capable of operating in the manner intended by management
When parts of an item of property, plant and equipments have different useful lives, they are recognized separately.

Spare parts are capitalized when they meet the definition of PPE, i.e. when the Company intends to use these for a period exceeding 12 months.

On transition to IND AS, the Company has elected to continue with the carrying value of all of Its PPE recognized, measured as per the previous
GAAP and use that carrying value as the deemed cost of the PPE.

1.2. Depreciation

Depreciation on Property, Plant and Equipment, including assets taken on lease, other than freehold land Is charged based on Written down
method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on additions to/deductions from property, plant and equipment during the year ic charged on pro-rata basis from/up to the date on
which the asset is available for use/disposed.

In circumstance, where a PPE is abandoned, the cumulative capitalized costs relating to the property are written off in the same period.

The useful life of asset taken into consideration as per Schedule II for the purpose of calculating depreciation is as follows: -

An item of Property. Plant and Equipment is derecognized upon disposal or when no future economic benefits are expected to arise from tne
continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of Property, Plant and Equipment are determined as a
difference between the sale proceeds and the carrying amount of the asset and is recognized in the profit and loss. At the end of each reporting
period, the Company reviews the carrying amounts ol tangible and intangible assets to determine whether there is any indication that those
assets have suffered an impairment loss.

(3.bl Revenue recognition: ,, ,._cm

With Effective 1st April, 2018, the Company has applied Ind AS 115 - Revenue from Contracts with Customers Pursuant to adoption of Ind AS 115,
Revenue from contracts with customers are recognized when the control over the goods or services promised in the contract are transferred to
the customer. The amount of revenue recognized depicts the transfer of promised goods and services to customers for an amount that. eflects the
consideration to which the Company Is entitled to in exchange for the goods or services.

3,b.l Interest Income: The Company recognises interest income using Effective Interest Rate (EIR) on all financial assets subsequently
measured at amortised cost El R is calculated by considering all costs and other incomes attributable to acquisition of a financial assets.

3.b.2 Dividend: Dividend income from investments is recognised when the shareholders'' right to receive payment has been established which

is generally when the shareholders approve the dividend.

3.b.3 Other revenue from operations: The Company recognises revenue from contracts with customers (other than financial assets to which
Ind AS 109 Financial Instruments’ is applicable) based on a comprehensive assessment model as set out in Ind AS 115 Revenue from
contracts with customers’. The Company identifies contract(s) with a customer and Its performance obligations under the contract,
determines the transaction price and its allocation to the performance obligations in the contract and recognises revenue only on
satisfactory completion of performance obligations. Revenue is measured at fair value of the consideration received or receivable.

(3.c) Financial Instruments:

3.C.1 Financial Assets:-

Recognition and initial measurement: -

Financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the
instrument and are measured initially at fair value adjusted for transaction cost

Subsequent measurement: -

Equity instrument and Mutual Fund: - All equity Instrument and mutual funds within scope of Ind-AS 109 are measured at fair value.
Equity instrument and Mutual fund which are held for trading are classified as at fair value through profit & loss (FVTPL). For all other
equity instruments, the Company decided to classify them as at fair value through other comprehensive income (FVTOCI).

Debt instrument: - A ’debt instrument’ is measured at the amortised cost if both the following conditions are met The assets are held
within a business model whose objective is to hold assets for collecting contractual cash flows, and contractual terms of the assets give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial
measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

De- Recognition of financial Assets: -

A financial asset Is primarily de-recognised when the rights to receive cash flows from the asset have expired or Company has transferred
its right to receive cash flow from the asset

Impairment of financial assets: -

The Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has
increased significantly, impairment loss is provided.

3.C.2 Financial Liabilities : -

Recognition and initial measurement: -

All financial liabilities are recognised initially at fair value and transaction cost that Is attributable to the acquisition of the financial
liabilities is also adjusted. Financial liabilities are classified at amortised cost

Subsequent measurement: -

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest rate method.

De-recognition of financial liabilities

Financial liabilities are derecognized when the obligation under the liabilities are discharged or cancelled or expires. Consequently, write
back of unsettled credit balances is done on closure of the concerned project or earlier based on the previous experience of Management
and actual facts of each case and recognized in other Operating Revenues.

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Sjnit^dif credit risk has increased significantly, impairment loss >s provided.

3.C.5 Fvnected Credit l-OSS lEClli • __... . ,_Pr., _d ¦ _for fi_nandal assets which are not fair valued

The Company recognizes loss allowances using the rape e "''financing compunent is measured at an amount equal to 12-month F.CL.
through profit or loss. Loss allowanceo on Loans with jj . [_{0 [hp |lfetime} i₂-month ECL, unless there has been

^ »¦»*«*«* ^bank °^{verdrafts if they are considcred an in,e8ral part of}

the Company''s cash management

appropriate. . .

e 2 Deferred Tax: Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their
carrying amounts tor financial reporting purposes at the reporting date. Deferred tax assets and liabilities are measured based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or
loss (either in other comprehensive Income or in equity).

(3.f) Employee benefits

Short Term Benefits: Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided.

A liability is recognized for the amount expected to be paid under performance related pay if the Company has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(3.g) Earning per share

Basic earnings/ (loss) per share are calculated by dividing the net profit/ (loss) for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are
adjusted for any bonus shares issued during the period and also after the Balance Sheet date but before the date the Ind AS financial statements
are approved by the Board of Directors.

For the purpose of calculating diluted earnings/ (loss) per share, the net profit/ (loss) for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity
shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed converted as
of the beginning of the period, unless issued at a later date.

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Mar 31, 2015

A. Use of estimates

The preparation of Financial Statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current event and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b. Fixed Assets

Fixed assets are carried at the cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets.

c. Depreciation on Fixed Assets

Depreciation on fixed asset is provided on the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the asset as prescribed in Schedule II to the Companies Act 2013.

d. Revenue Recognition

Having regards to the size, nature and level of operation of the business, the company is applying accrual basis of accounting for recognition of income earned and expenses incurred in the normal course of business.

e. Inventories

Inventories include investments in shares of other companies. The company classified such investments as inventory and valuation of them has been made at cost.

f. Taxes on Income

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period.

Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realize the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

g. Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resource embodying economic benefits will be require to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are review at the end of each reporting date and adjusted to reflect the current best estimates.

h. Earning Per Share

Basic Earning per Share has been calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted Earning per Share has been computed by dividing the net profit after tax by the weighted average no. of equity shares considered for deriving basic Earning per Share and also the weighted average no. of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

i. Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, cash at bank and short term investments with the original maturity of three months or less.

j. Previous year figures

The company has reclassified previous year figures to conform to current year's classification.

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Mar 31, 2014

1. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended from time to time) and the relevant provisions of the Companies Act, 1956.

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

2. Summary of significant accounting policies

a. Revenue recognition

Having regard to the size, nature and level of operation of the business, the company is applying accrual basis of accounting for recognition of income earned and expenses incurred in the normal course of business.

b. Fixed assets:

Fixed Assets are valued at cost of purchase and/ or construction as increased by necessary expenditure incurred to make them ready for use in the business.

c. inventories

Inventories include investments in shares of other companies. The Company classifies such investments as inventory and valuation of them has been made at tower of cost or Market Value. However, unquoted investments are stated at cost.

d. Depreciation

The company is charging depreciation on all assets which are put to use by the Companyon written down value method method as per rates prescribed under Schedule XIV of the Companies Act, 1956 on pro- rata basis. However, no Depreciation is being trharged on asset depreciated upto 95% of its historical cost.

e. Taxes on income

Current taxes on income have been provided by the Company in accordance with the relevant provisions of the Income Tax Act, 1961. Deferred Taxes has been recognisedon timing differences between accounting income and taxable income subject to consideration of prudence.

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Mar 31, 2012

Not Available