Accounting Policies of Kiev Finance Ltd. Company

Mar 31, 2008

1, Accounting System:

The financial statement have been to comply in ail material aspects with all the applicable accounting principle in India, the applicable accounting standards and relevant presentational requirement of the Companies Act 1956. The Financial statements have been prepared in accordance with the historical cost convention, ongoing concern concept and follows accrual basis of accounting, unless otherwise stated.

2 Inventories:

Inventories represent Shares held as Stock -in Trade are valued at cost or market price whichever is lower. However, the market value is indeterminate, since the shares are delisted.

3. Revenue Recognition:

Lease rent is accounted for on receipt basis. Lease rent for the current year and also for earlier years has not been realized. The Company is taking proper action for quicker recovery.

4. Fixed Assets:

All the fixed assets including assets given on lease have been capitalized at cost inclusive of incidental expenses. Fixed Assets are valued at cost less accumulated depreciation. No provision for Depreciation is made in earlier years including current year, since no business activity is carried out since June 1997 and also no assets were put into use after that period. The Profit/ (Loss) to the extent is over/ (under)stated and Net block to the extent is (undercover stated

5. Investments:

Investments are made for long term purpose and are stated at cost.

6. Taxation:

i. In view of accumulated losses, no provision for Income Tax is made.

ii. Deferred Tax Liability and Deferred Tax Assets have not been recognized since company has not been carrying on any business and there is virtual uncertainty as to when the Company will resume its operation.

7. Segment Accounting Policies:

The Company has only one reportable business segment i.e. Financial and Consultancy Services as per Accounting Standard 17 issued by the Institute of Chartered Accountants of India.