Accounting Policies of Nivi Trading Ltd. Company

Mar 31, 2024

C. Significant Accounting Policies

1.6. Presentation and disclosure of financial statement

All assets and liabilities have been classified as current and non-current as per
Company’s normal operating cycle and other criteria set out in Schedule 111 of the
Companies Act, 2013 for a company whose financial statements are made in
compliance with the Companies (India Accounting Standards) Rules, 2015.

Based on the nature of products / services and time between acquisition of
assets for processing / rendering of services and their realization in cash and
cash equivalents, operating cycle is less than 12 months, however for the
purpose of current/ non- current classification of assets and liabilities, period of
12 months have been considered as its normal operating cycle.

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

An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal
operating cycle

• Held primarily for the purpose of trading

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

• Cash or cash equivalents unless restricted from being exchanged or used
to settle a liability for at least twelve iporuhs after the repo^m^/period.

Ail other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

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

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

The Company classifies all other liabilities as non-current.

1.7. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits
will flow to the Company and the revenue can be reliably measured. Revenue is
measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment and excluding taxes or duties
collected on behalf of the government and discounts given to the customers. The
Company has applied the guidelines mentioned in Ind AS 18 for Revenue
Recognition.

Interest income is recognized on a time proportionate basis taking into account
the amount outstanding and the rate as applicable.

Dividend is recognized on actual receipt basis.

1.8. Employee benefits

The employee retirement benefits like Gratuity, etc, if any shall be recorded on
actual payment basis. However, currently there are no employees in the
Company.

1.9. Taxes on income

Tax expense comprises current and deferred tax. Provision for current tax is
made after taking into consideration benefits admissible under the provisions of
the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives
future economic benefits in the form of adjustment to future income tax liability,
is considered as an asset if there is convincing evidence that the Company will
pay normal income tax.

Accordingly, MAT is recognised as an asset in the Balance Sheetywhen it is
probable that future economic benefit associated with it ''will/flow to the

Company. Ip''

Deferred tax is recognized on timing differences; being the differences between
the taxable income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax assets is
recognized subject to the consideration of prudence and carried forward only to
the extent that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized.
The tax effect is calculated on the accumulated timing difference at the year end
and based on the tax rates and laws enacted or substantially enacted as on the
reporting date.

1.10. Investments in equity instruments at FVTOCI

The quoted and unquoted Equity investments of other companies (including
Equity oriented Mutual Funds) are initially measured at fair value plus
transaction costs. Subsequently, they are measured at fair value with gains and
losses arising from changes in fair value recognised in other comprehensive
income and accumulated in the ''Reserve for equity instruments through other
comprehensive income’. The cumulative gain or loss is not reclassified to profit
or loss on disposal of the investments.

There are no equity investments which are held for trading.

The Quoted Shares are valued as per quoted value available on the stock
Exchange on the last day of the year

The unquoted Shares are valued as per Book value of the previous year as per
the audited accounts of the Company

1.11. Investments in equity instruments at FVTPNL

The investments in Mutual Funds are initially measured at fair value plus
transaction costs. Subsequently, they are measured at fair value with gains and
losses arising from changes in fair value are recognised in Profit & Loss A/c.

1.12. Cash and cash equivalent

Cash and cash equivalents include cash in hand, bank balances, deposits with
banks (other than on lien) and all short term and highly liquid investments that
are readily convertible into known amounts of cash and are subject to an
insignificant risk of changes in value.

For the purpose of cash flow statement, cash and cash equivalent as calculated
above also includes outstanding bank overdrafts as they are considered an
integral part of the Company''s cash management.

1.13. Cash flow statement

Cash flows are reported using the indirect method, where by net profit before tax
is adjusted for the effects of transactions df a non-cash nature, any deferrals or

(O U

accruals of past or future operating cash receipts or payments and item of
income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities are segregated.

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Mar 31, 2014

A. Basis of preparation of financial statements

Basis of Accounting

The financial statements have been prepared to comply in all material respects with the notified accounting standards under section 211(3C) of the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 and the relevant provisions. The financial statements have been prepared under the historical cost convention on the accrual basis of accounting. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles (‘GAAP'') requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent liabilities as at the date of financial statements and the results of operations during the reporting period. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. Investments

Investments, if any which are readily realizable and intended to be held not for more than 12 months from the date On which investments are made, are classified as Current Investments. All other Investments are classified as Non Current Investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Long term Investments are carried at cost. However, provision in diminution in value is made to recognize a decline other than temporary in the value of the investments.

c. Revenue Recognition

The Revenue is recognized on accrual basis. However, the recognition of revenue is restricted to the extent it is probable or there is a certainty that the economic benefits shall flow to the Company. The Revenue shall be accounted on the basis of prudence to the extent it is quantifiable.

Interest is recognized on a time proportionate basis taking into account the amount outstanding and the rates applicable.

d. Tax expenses

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income tax reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted, at the reporting date.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

e. Cash & Cash Equivalents

Cash & Cash Equivalents stated in the Statement of Affairs normally comprise of Cash at Bank and in Hand and short - term Investments with an original maturity period of three months or

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholder by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or 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.

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 resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed at the required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

h. Events Occurring After the Balance Sheet Date

Wherever material, events occurring after the Balance Sheet Date are considered up to the date of approval of accounts by the Board of Directors

i. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or, a present obligation that is not recognized because , it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

j. Current & Non Current

All the Loans & Advances that are receivable / repayable within the company''s normal operating cycle of 12 months is to be considered as Current.

Similarly, certain Loans & Advances which are repayable within the operating cycle of 12 months although receivable on demand is to be considered to be Non-Current.

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Mar 31, 2013

(a) Use of estimates

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

(b) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

(c) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholder by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or 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

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(e) Cash and cash equivalents

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

(f) Taxation

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in india. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 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 tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

(g) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident-

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in vaiue is made to recognize a decline other than temporary in the vaiue of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

(h) Contingent Liabilities

Contingent liabilities are not recognized in the accounts but disclosed as under:

Disputed Income Tax liability pending in appeal with The ITAT , Mumbai amounts to Rs. 1,44,016/- for AY.2001-02 and Rs.44,683/- for AY2005-06.

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Mar 31, 2012

(a) Presentation and disclosure of financial statements

During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Use of estimates

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

(c) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

(d) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

(e) Contingent Liabilities

Contigent liabilities are not recognised in the accounts but disclosed as under:

Disputed Income Tax liability pending in appeal with The IT AT , Mumbai amounts to Rs. 1,44,016/- for AY.2001-02 and Rs.44,683/- for AY2005-06.

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Mar 31, 2010

A. Basis of preparation :

The financial statements have been prepared to comply in all material respects in respects with the Notified accounting standard by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

b. Use of estimates

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

c. Revenue recognition:

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer.

d. Taxation :

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

A) SIGNIFICANT ACCOUNTING POLICIES :~ (contd..)

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 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 tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised, In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

e. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share uring the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares). For the puipose of calculating diluted earnings per share, the net profit or 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.

f. Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

g. Cash and Cash equivalents

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