Accounting Policies of Tirth Plastic Ltd. Company

Mar 31, 2025

Summary of significant accounting policies

17.01 Corporate information

Tirth Plastic Limited ("the company") is a public limited company incorporated and domiciled in India. The address of its registered office is Urth Plastic Limited, 602, 6th floor One World West,S.No.396 F.P.119,Vakil bridge, Bopal Ambli Road,Village Vejalpur,Ahmedabad-380051, Gujarat, India. Urth has its primary listing with BSE Ltd. The company is engaged in the business of Trading of Acrelic Solid Surface, Glue and Other Materials.

17.02 Basis for Preparation of Financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2016 and the relevant amendment rules issued thereafter. Effective April 1,2017, the Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards, with April 1, 2016 as the transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

These financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items which have been measured at fair value as required by relevant Ind AS:

a) Derivative financial instruments;

b) Financial instruments classified as fair value through other comprehensive income or fair value through profit or loss;

c) The defined benefit asset/ (liability) is recognised as the present value of defined benefit obligation less fair value of plan assets.

17.03 Use of estimates

The preparation of financial statements is conformity with Ind AS requires management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period.

Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

17.04 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit or (loss) for the period is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

17.05 Income taxes

Tax expenses comprises of current tax, deferred tax charge or credit, and adjustments of taxes for earlier years. In respect of amounts adjusted against securities premium / retained earnings, the corresponding tax effect is also adjusted against the securities premium / retained earnings or other reserves as the case may be as per the announcement of Institute of Chartered Accountants of India.

Provision for current tax is made as per the provisions of Income Tax Act, 1961.

Deferred tax charge or credit 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 and are measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent 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. Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each balance sheet date.

17.06 Property, Plant and Equipment

i) Property, plant & equipment are stated at cost of acquisition / construction less accumulated depreciation / amortization and accumulated impairment losses, if any. Gross carrying amount of all property, plant and equipment are measured using cost model.

ii) Cost of property, plant & equipment includes non-refundable taxes and duties, borrowing cost directly attributable to the qualifying asset and any directly attributable costs of bringing the asset to its working condition for its intended use and the present value of the expected cost for the dismantling / decommissioning of the asset.

iii) Parts (major components) of an item of property, plant and equipment having different useful lives are accounted as separate items of property, plant and equipment.

iv) Property, plant and equipment are eliminated from financial statement either on disposal or when retired from active use. Assets held for disposal are stated at net realizable value. Losses arising in the case of retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognised in the statement of profit and loss in the year of occurrence.

v) Depreciation

a) Depreciation on property, plant & equipment is provided on a straight line method (SLM) over their useful lives which is in consonance of useful live mentioned in Schedule II to the Companies Act, 2013.

b) Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively.

c) In the case of assets purchased, sold or discarded during the year, depreciation on such assets is calculated on prorata basis from the date of such addition or as the case may be, up to the date on which such asset has been sold or discarded.

17.07 Intangible assets and amortization

i) Intangible assets are recognized only if it is probable that the future economic benefits attributable to the asset will

ii) Cost of an intangible asset includes purchase price including non-refundable taxes and duties, borrowing cost directly attributable to the qualifying asset and any directly attributable expenditure on making the asset ready for its intended

17.08 Impairment of assets

A) Financial assets:

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade receivables and other financial assets. Expected credit loss is the difference between the contractual cash flows and the cash flows that the entity expects to receive, discounted using the effective interest rate.

B) Non - Financial assets:

The Company assess long-lived assets such as property, plant and equipment and acquired intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. If any such indication exists, the Company estimates the recoverable amount of the asset or group of assets. The recoverable amount of an asset or cash generating unit is the higher of its fair value less cost of disposal (FVLCD) and its value-in-use (VIU). The VIU of long-lived assets is calculated using projected future cash flows. FVLCD of a cash generating unit is computed using turnover and earnings multiples. If the recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the consolidated statement of profit and loss. If at the reporting date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the impairment losses previously recognised are reversed such that the asset is recognised at its recoverable amount but not exceeding written down value which would have been reported if the impairment losses had not been recognised initially.

17.09 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized.

Sale of Goods

The sales are recorded when supply of goods takes place in accordance with the terms of sales and on change of title in the goods, Revenue is recognized only when it can be reliably measured, and it is reasonable to expect ultimate collection.

Interest

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

17.10 Foreign Currency transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction and difference arise on realization have been recognized as foreign exchange gains or losses as applicable.

Monetary items denominated in foreign currencies at the year-end are restated at year end rates. In case of items which are covered by forward exchange contracts. The difference between the year-end rate and rate on the date of the contract is recognized as exchange difference and realized gain or loss due to fluctuation is recognized as Forward Gain and Loss.

17.11 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset, if it is virtually certain that reimbursement will be received, and the amount of the receivable can be measured reliably.

Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

17.12 Investments

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

Current investments are carried at lower of cost and fair value (net asset value in case of units of mutual fund) determined on an individual investment (category wise) basis. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognize a decline, other than temporary, on an individual investment basis.

Long term investments which are expected to be realized within twelve months from the balance sheet date are presented under ''current investments’ as ''current portion of long term investments'' in accordance with the current / noncurrent classification of investments as per Schedule III of the Companies Act, 2013.

The cost of investments comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired in exchange, or part exchange, for another asset, the acquisition cost of the investment is determined by reference to the fair value of the asset given up or fair value of the investment acquired whichever is more clearly evident.

Investment transactions are accounted for on a trade date basis. In determining the holding cost of investments and the gain or loss on sale of investments, the ‘weighted average cost’ method is followed.

17.13 Event occurring after the Balance Sheet Date

No significant events which could affect the financial position as on 31st March 2025, to a material extent have been reported by the management, after the Balance Sheet date till the signing the report.

17.14 Prior period Items

Prior period expenses/income is accounted for under respective heads. Material items, if any, are disclosed separately by way of note.

17.16 Financial derivatives and Hedging Transaction

In respect of derivative contracts, premium paid and gains/losses on settlement are recognized in the Profit and Loss account except in case where they relate to the acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

17.16 Earnings Per Share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period adjusted for treasury shares held. Diluted earnings per share is computed using the weighted-average number of equity and dilutive equivalent shares outstanding during the period, using the treasury stock method for options and warrants, except where the results would be anti-dilutive.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any splits and bonus shares issues including for change effected prior to the approval of the financial statements by the Board of Directors.

17.17 Segment reporting

Accounting standards interpretation (ASI) 20 dated 14-02-2004, issued by the accounting standard board of ICAI, on AS-17, Segment reporting clarifies that in case by applying the definition of “Business Segment and Geographical Segment” given in AS-17, it is concluded that there is neither more than one Business Segment nor more than one Geographical segment, Segment information as per AS-17 is not required to be disclosed.

17.18 Financial Instruments

a) Non-derivative financial instruments:

Non derivative financial instruments consist of:

• Financial assets, which include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other advances, investments in equity and debt securities and eligible current and non- current assets.

• Financial assets are derecognised when substantial risks and rewards of ownership the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognised only when the Company has not retained control over the financial asset.

• Financial liabilities, which include long and short- term loans and borrowings, bank overdrafts, trade payables, eligible current and non-current liabilities.

• Non- derivative financial instruments are recognised initially at fair value.

Subsequent to initial recognition, non-derivative financial instruments are measured as described below:

A. Cash and cash equivalents:

The Company’s cash and cash equivalents consist of cash on hand and in banks and demand deposits with banks, which can be withdrawn at any time, without prior notice or penalty on the principal.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand and are considered part of the Company’s cash management system. In the balance sheet, bank overdrafts are presented under borrowings within current liabilities.

B. Other financial assets:

Other financial assets are non-derivative financial assets with fixed or determinable payments that are not quoted - in an active market. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. These are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any impairment losses. These comprise trade receivables, unbilled revenues, cash and cash equivalents and other assets.

C. Trade and other Payables:

Hade and other payables are initially recognised at fair value, and subsequently carried at amortised cost using the effective interest method. For these financial instruments, the carrying amounts approximate fair value due to the shortterm maturity of these instruments.

b) De-recognition of financial instruments:

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expires or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. If the Company retains substantially all the risks and rewards of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a borrowing for the proceeds received. A financial liability (or a part of a financial liability) is derecognised from the Company’s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

17.19 Equity

a) Share capital and share premium:

The authorised share capital of the Company as of March 31, 2025 is Rs.6,00,00,000 divided into 59,40,000 equity shares of Rs. 10 each, and 60,000 preference shares of Rs.10 each. Par value of the equity shares is recorded as share capital. Every holder of the equity shares, as reflected in the records of the Company as of the date of the shareholder meeting shall have one vote in respect of each share held for all matters submitted to vote in the shareholder meeting.

b) Retained earnings:

Retained earnings comprises of the Company’s undistributed earnings after taxes.

c) Other comprehensive income:

Changes in the fair value of financial instruments measured at fair value through other comprehensive income and actuarial gains and losses on defined benefit plans are recognised in other comprehensive income (net of taxes), and presented within equity as other comprehensive income.

d) Share Forfeiture Reserve:

Share Forfeiture Reserve amounting to Rs. NIL (March 31, 2024: Rs.NIL) is not freely available for distribution.

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Mar 31, 2024

16.01 Corporate information

Tirth Plastic Limited ("the company") is a public limited company incorporated and domiciled in India. The address of its registered office is Tirth Plastic
Limited, 602, 6th floor One World West,S.No.396 F.P.119,Vakil bridge ,Bopal Ambli Road,Village Vejalpur,Ahmedabad-380051, Gujarat, India. Tirth has
its primary listing with BSE Ltd. The company is engaged in the business of Trading of Acrelic Solid Surface, Glue and Other Materials.

16.02 Basis for Preparation of Financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on
accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''the Act'') (to the
extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read
with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2016 and the relevant amendment rules issued thereafter. Effective April 1, 2017,
the Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101, First-time Adoption of Indian
Accounting Standards, with April 1, 2016 as the transition date. The transition was carried out from Indian Accounting Principles generally
accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the
previous GAAP. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in the accounting policy hitherto in use.

These financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items which
have been measured at fair value as required by relevant Ind AS:

a) Derivative financial instruments;

b) Financial instruments classified as fair value through other comprehensive income or fair value through profit or loss; and

c) The defined benefit asset/ (liability) is recognised as the present value of defined benefit obligation less fair value of plan assets.

16.03 Use of estimates

The preparation of financial statements is conformity with Ind AS requires management to make assumptions and estimates, which it believes are
reasonable under the circumstances that affect the reported amounts of assets and liabilities on the date of financial statements and the reported
amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and
estimates are recognized in the period in which the results are known/materialized.

16.04 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit or (loss) for the period is adjusted for the effects of transactions of non-cash nature
and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of
the company are segregated based on the available information.

16.05 Income taxes

Tax expenses comprises of current tax, deferred tax charge or credit, and adjustments of taxes for earlier years. In respect of amounts adjusted against
securities premium / retained earnings, the corresponding tax effect is also adjusted against the securities premium / retained earnings or other
reserves as the case may be as per the announcement of Institute of Chartered Accountants of India.

Provision for current tax is made as per the provisions of Income Tax Act, 1961.

Deferred tax charge or credit 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 and are measured based on the tax rates and the tax laws enacted or substantively enacted at the balance
sheet date.

Deferred tax assets are recognized only to the extent 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. Deferred
tax assets are reviewed for the appropriateness of their respective carrying amounts at each balance sheet date.

16.06 Property, Plant and Equipment

i) Property, plant & equipment are stated at cost of acquisition / construction less accumulated depreciation / amortization and accumulated
impairment losses, if any. Gross carrying amount of all property, plant and equipment are measured using cost model.

ii) Cost of property, plant & equipment includes non-refundable taxes and duties, borrowing cost directly attributable to the qualifying asset and any
directly attributable costs of bringing the asset to its working condition for its intended use and the present value of the expected cost for the
dismantling / decommissioning of the asset.

iii) Parts (major components) of an item of property, plant and equipment having different useful lives are accounted as separate items of
property, plant and equipment.

iv) Property, plant and equipment are eliminated from financial statement either on disposal or when retired from active use. Assets held for disposal
are stated at net realizable value. Losses arising in the case of retirement of property, plant and equipment and gains or losses arising from disposal of
property, plant and equipment are recognised in the statement of profit and loss in the year of occurrence.

v) Depreciation

a) Depreciation on property, plant & equipment is provided on a straight line method (SLM) over their useful lives which is in consonance of useful live
mentioned in Schedule II to the Companies Act, 2013.

b) Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively.

c) In the case of assets purchased, sold or discarded during the year, depreciation on such assets is calculated on pro-rata basis from the date of such
addition or as the case may be, up to the date on which such asset has been sold or discarded.

16.07 Intangible assets and amortization

i) Intangible assets are recognized only if it is probable that the future economic benefits attributable to the asset will flow to the Company and the cost
of asset can be measured reliably. Intangible assets are stated at cost of acquisition / development less accumulated amortization and accumulated
impairment loss, if any.

ii) Cost of an intangible asset includes purchase price including non-refundable taxes and duties, borrowing cost directly attributable to the
qualifying asset and any directly attributable expenditure on making the asset ready for its intended use.

16.08 Impairment of assets
A) Financial assets:

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortised cost, debt
instruments at FVTOCI, lease receivables, trade receivables and other financial assets. Expected credit loss is the difference between the
contractual cash flows and the cash flows that the entity expects to receive, discounted using the effective interest rate.

B) Non - Financial assets:

The Company assess long-lived assets such as property, plant and equipment and acquired intangible assets for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. If any such indication
exists, the Company estimates the recoverable amount of the asset or group of assets. The recoverable amount of an asset or cash generating unit is the
higher of its fair value less cost of disposal (FVLCD) and its value-in-use (VIU). The VIU of long-lived assets is calculated using projected future cash
flows. FVLCD of a cash generating unit is computed using turnover and earnings multiples. If the recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and is recognised in the consolidated statement of profit and loss. If at the
reporting date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the
impairment losses previously recognised are reversed such that the asset is recognised at its recoverable amount but not exceeding written
down value which would have been reported if the impairment losses had not been recognised initially.

16.09 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
The following specific recognition criteria must also be met before revenue is recognized.

Sale of Goods

The sales are recorded when supply of goods takes place in accordance with the terms of sales and on change of title in the goods, Revenue is
recognized only when it can be reliably measured, and it is reasonable to expect ultimate collection

Interest

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

16.10 Foreign Currency transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the
actual rate at the date of the transaction and difference arise on realization have been recognized as foreign exchange gains or losses as applicable.
Monetary items denominated in foreign currencies at the year-end are restated at year end rates. In case of items which are covered by forward
exchange contracts. The difference between the year-end rate and rate on the date of the contract is recognized as exchange difference and realized
gain or loss due to fluctuation is recognized as Forward Gain and Loss.

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Mar 31, 2014

A. Basis for Preparation of Financial statements:

The financial statements are prepared and presented under the historical cost Convention on accrual basis of accounting, in accordance with the accounting Principles generally accepted in India and comply with the mandatory accounting standards issued by the institute of Chartered Accountants of India and the relevant provisions of the Companies Act except where otherwise stated. The accounting principles are consistently applied.

B. Use of Estimates :

The preparation of financial statements is conformity with generally accepted accounting principles requires management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

C. Taxes on Income :

Provision for Current Tax is made in the books of accounts as per the tax provisions of the Income tax act, 1961. Provision for Differed Tax is made in the books of accounts as per AS-22 issued by the ICAI.

D. Fixed assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of cost of acquisition and any attributable cost of bringing the assets to the condition for its intended use.

E. Depreciation and Amortization :

Depreciation on fixed assets (fixed assets includes which are put to use) is provided on straight line method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

F. Income and expenditure :

All expenses and income to the extent considered payable and receivable respectively stated to be otherwise are accounted for an accrual basis.

G. Provisions, Contingent Liabilities and Contingent Assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

H. Investments :

Investment is stated at cost and as per Accounting Standard-13 issued by the Institute of Chartered Accountant of India.

I. Impairment of Assets :

The carrying amounts of assets are reviewed at each balance sheet date. The impairment loss if any is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

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Mar 31, 2013

A. Basis for preparatio of Financial statments

The financial statements are prepared and presented under the historical cost Convention on accrual basis of accounting, in accordance with the accounting Principles generally accepted in India and comply with the mandatory accounting standards issued by the institute of Chartered Accountants of India and the relevant provisions of the companies act, 19S6 except where otherwise stated. The accounting principles are consistently applied.

B. Use of Estimates:

The preparation of financial statements is conformity with generally accepted accounting principles requires management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/materiafized.

c. Taxes on Income

* Provision for Current Tax is mode in the books of accounts as per the tax provisions of the Income tax act, 1961.

* Provision for Differed Tax is made in the books of accounts as per AS-22 issued by the ICAI.

D. Fixed assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of cost of acquisition and any attributable cost of bringing the assets to the condition for its intended use.

E. Depreciation and Amortization:

Depreciation on fixed assets (fixed assets includes which are put to use) is provided on straight line method at the rates and in the manner prescribed in schedule XIV of the companies act,1956.

F.Income and expenditure:

All expenses and income to the extent considered payable and receivable respectively stated to be otherwise are accounted for an accrual basis.

G. Provisions, contingent liabilities and contingent assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

H.Investments :

Investment is stated at cost and as per Accounting Standard-13 issued by the Institute of Chartered Accountant of India.

I. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date. The impairment loss if any is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

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Mar 31, 2011

A. Basis for Preparation of Financial statements

The financial statements are prepared and presented under the historical cost Convention on accrual basis of accounting, if according the accounting Principles generally accepted in India and comply with the mandatory accounting standards Issued by the institute of Chartered Accountants of India and the relevant provisions of the compares act, ISS6. except where otherwise stated. The accounting principles are consistently applied,

B. Use to Estimates

The preparation of financial statements is conformity with generally accepted accounting principles requires managements to make adjustment and estimates, which It believes are reasonable under the circumstances that affect the resorted amounts of assets and liabilities on' the date of financial statements and the reported a *, cents of revenue and expenses during the period, Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period In which the results are known/materialized.

C. Taxes on income

-Provision for current Tax is made in the books of accounts as per the tax provisions of the income act, 1961.

- Provisions for differed tax is made in the books of accounts as per AS-22 issued by the ICAI

D. Fixed assets

Fixed Assets are stated at cost less depreciation. Cost comprises of cost of acquisition and any attributable cost of bringing the assets to the condition for its Intended use.

E. Depreciation and Amortization

Depreciation or fixed assets fixed assets Includes which are put to use! is provided on straight sine method at the rates and in the manager prescribed in schedule XIV of the companies act 1956,

F. Income and expenditure

All expenses and income to the extent soldered payable and receivable respectively stated to be otherwise are accounted for an accrual basis,

G. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are reckoned when there is a present obligation as a result, of past events and it is probable that there will be an out few of resources. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount In the notes forming pan of the accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

H. Investments

investment is stated at cost.

I impairment of Assets;

The carrying amounts of assets are reviewed at each balance sheet date. The Impairment loss if any is recognized whenever the carrying amount of an asset exceeds Its recoverable.

J Earnings Per Share

The earning considered in ascertaining the company's EPS comprises the profit available tar shareholders i.e. profit after tax and statutory/regulatory appropriations. The number, of shares used in computing Basic CPS is the weighted average number of shaft's outstanding during the year as per the guidelines of AS-20.

K Impairment of Assets

The management has given certificate at us that there is no impairment in assess.

L Segment reporting

Accounting standards interpretation (ASI) 20 dated 24-02-2004, issued by the accounting standard board of ICAI, on AS-17, Segment reporting clarifies that In case by applying the definition of "Business Segment and Geographical Segment" given in A5-17, it is concluded that there Is neither more than one business segment for more than one geographical segment, segment Information as per AS-17 Is not required to disclosed

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Mar 31, 2010

A. Basis for Preparation of Financial statements

The financial statements are prepared and presented under the historical cost Convention on accrual basis of accounting, in accordance with the accounting Principles generally accepted in India and comply with the mandatory accounting standards issued by the institute of Chartered Accountants of India and the relevant provisions of the companies act, 1956. except where otherwise stated. The accounting principles are consistently applied. However it is noteworthy that the company is not carrying its operation til) previous year thus it has ceased to be going concern, Though company has made some trading activity during the year.

B. Use of Estimates

The preparation of financial statements is conformity with generally accepted accounting principles requires management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

C. Taxes on Income

- Provision for Current Tax is made in the books of accounts as per the tax provisions of the income tax act, 1961.

- Provision for Differed Tax is made in the books of accounts as per AS-22 issued by the ICAI.

D. Fixed assets

Fixed Assets are stated at cost less depreciation. Cost comprises of cost of acquisition and any attributable cost of bringing the assets to the condition for its intended use.

E. Depreciation and Amortization

Depreciation on fixed assets (fixed assets includes which are put to use) is provided on straight line method at the rates and in the manner prescribed in schedule XIV of the companies act,1956.

F. Income and expenditure

All expenses and income to the extent considered payable and receivable respectively stated to be otherwise are accounted for an accrual basis.

G. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

H. Investments

Investment is stated at cost.

Notes to Accounts Contingent Liabilities :-

As informed to us by the management, the ROC has sued company for non-filling of returns and other non-compliances under the Companies Act,1956. Due to nature of the cases and non-availability of the information the amount for the same can not be quantified.

Key Management Personnel:-

- Varis Doshi : Director

- Gunjan Doshi : Director

- Manojkumar shah : Director

Earing Per Share:-

The earning considered in ascertain the company's EPS comprises the profit available for shareholder i.e profit after and statutory/regulatory appropriations. The number of shares used in computing Basis EPS is the weighted average number of shares outstanding during the year as per the guidelines of AS-20

NOTE: The company was not following AS:22 up till year For this financial year the company has made its provisions in the books. The Balance of Differed Tax Liability of Rs.209381 is charged to profit and Loss (miss. ASSET)A/C.

Impairment of Assets

The Company has not taken any steps to identify whether is any impairment in any assets of the company as required by AS-28 issued by ICAI, Thus it is not possible to us whether three any impairment in any asserts or not.