AVTIL Enterprise Ltd. कंपली की लेखा नीति

Mar 31, 2015

I) Accounting Policies

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles in India and provision of the Companies Act, 2013. The accounts are maintained on accrual basis as a going concern.

ii) Valuation of Inventories

Inventories are valued at cost or Market Value whichever is lower,

The value of diminution in unquoted securities is unascertainable as the necessary information is not available and is considered to be valued at market value as cost.

iii) Cash Flow Statement

Cash flow statement is prepared under "Indirect Method" and the same is annexed.

iv) Depreciation on Fixed Assets

Depreciation on fixed assets is provided on WDV method in accordance with the life of the assets specified in the Part C of the Schedule II of the Companies Act, 2013 as per the details below.

SI No Nature of the assets Estimated useful life in years

1 Motor Vehicles 8

2 Computers - End User Devices 3

3 Office Equipment's 5

v) Revenue Recognition

The income of the company is derived from trading in shares and interest on loan given to companies & investments in properties.

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

The revenue and expenditure are accounted on a going concern.

vi) Accounting for Fixed Assets

Fixed Assets are stated at the cost of acquisition less accumulated depreciation. Cost includes all identifiable expenditure incurred to bring the assets to its present condition and location. Any gains or losses on account of exchange difference either on settlement or translation where they relate to the acquisition of fixed assets are adjusted to the carrying cost of such assets.

vii) Accounting for the effects of changes in Foreign exchange rates

The company has not incurred any transaction in foreign currencies. Therefore, this standard is not applicable for the current reporting period.

viii) Accounting for Investments

The company has made investment in immovable properties.

a) Long-term Investments are valued at cost less provision for permanent diminution in value of such investments.

b) Current Investments are valued at lower-of cost and market value.

During the F.Y. 2011-12 the company has made capital investments in the partnership firm - Green Investment Inc, in which company is the partner.

ix) Accounting for Employee Benefits

a) Short Term Employees Benefits:

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefit.

Benefits such as salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related services.

b) Post - employment benefit

(a) Defined Contribution plans:

State Governed provident fund cum employees pension scheme, are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employees render the related services.

x) Related Party Disclosures

As per accounting standard 18, the disclosure of transactions with the related parties are given below

List of related parties where control exists and related parties with whom transactions have been taken place and relationships :-

Sr.No. Name of the related party Relationship

1 Jaynati R. Bhandari (Director)

Key Management Personnel

2 Gautam R. Bhandari (Director)

3 Schwabe Incoat



4 Solitaire Contractions Enterprise over which Key Management Personnel are able 5 Green Investments Inc. execise significant influence.

6 Guru Rajendra Trading Pvt. Ltd.

Transaction with Related party during the year

(Amount in Rs.)

Sr Name of the Related Party Transaction F.Y.2014-15 F.Y. 2013-14 No. with Related Party

1 Schwabe Incoat Profit Share NIL 3,94,424/-

2 Schwabe Incoat Interest Income NIL 2,01,294/-

3 Green Investments Inc. Profit Share 1,511 /- (4,107/-)

xi) Earning Per Share

EPS is calculated in accordance with accounting standard prescribed.

Basic/Diluted earning per share are calculated by dividing Net profit for the period attributable to the Equity shareholder (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the period.

Particualrs F.Y. 2014-15 F.Y. 2013-14

I Net Profit after tax as per statement 1,33,80,065 1,30,57,219 of profit and loss attributable to Equity shareholders

Ii Weighted Average number of equity 4,00,000 4,00,000 shares used as denominator for calculating EPS

Iii. Basic and Diluted Earning per share 33.45 32.64

Iv Face Value per equity share 10 10

xii) Accounting for Taxes on Income

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for taxes on Income" (AS 22) issued by The Institute of Chartered Accountants of India. Tax comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to/recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted tax rates.

The Company has brought forward losses available for set off under the Income Tax Act, 1961. However in view of the present uncertainty regarding generation of sufficient future income, net deferred tax asset at the year end, including related credit for the year, has not been recognized in these accounts on prudent basis.

Provision for current taxation for the Company of Rs.34,00,550 /- represents the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Earlier the company was paying the taxes as per the provision of Minimum Alternate Tax pursuant to the provisions of Section 115JB of the Income Tax Act, 1961 of India. The Finance Act, 2005 inserted sub section (1A) to section 115JAA to grant tax credit in respect of MAT paid under section 115JB of the Act with effect from assessment year 2006-07 and carry forward the credit for a period of 10 years. Accordingly, the MAT Credit of Rs.53,28,757/-/7fo. 11,66,738/- of A.Y.2010-11 and Rs.41,62,019/- of A.Y.2011-12] is available to be set off against tax liability.

During the current F.Y. MAT credit of Rs.21,87,345/- is utilized out of the total MAT credit of Rs.53,28,757/- from the current year tax liability. & balance MAT Credit of Rs Rs.31,41,412/-[ Rs.31,41,412/- of A.Y.2011-12] is available to be set off against future tax liability.

xiii) Provision, Contingent Liabilities and Contingent Assets

There arc no Contingent Liabilities as Certified by Management,

Particulars As at at

31st March,2013 31st March,2014

Contingent liabilities

* Claims against the company not acknowledged as debt NIL NIL

* Guarantees NIL NIL

* Other Money for which the company is contingently liable NIL NIL NIL NIL

Commitments

* Estimated amount of contracts unexecuted on capital account NIL NIL

* Uncalled liability on shares and other investments partly paid NIL NIL

* Other commitments NIL NIL NIL NIl

Total NIL NIL

---

Mar 31, 2014

(a) PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211 (3C) and the other relevant provisions of the companies act 1956.

All the assets and liabilities have been classified as current and non-current as per the company''s normal operating cycle and other criteria set out in Revised schedule VI to the companies act 1956. Based on nature of products and the time between the acquisition of assets processing and their realization in cash & cash equivalent, the company has ascertain its operating cycle to be 12 months for the purpose of current-non current classification of assets and liabilities.

Previous year''s figures have regrouped & reclassifies wherever is necessary.

(b) SIGNIFICANT ACCOUNTING POLICIES

i) AS-1 Disclosure of Accounting Policies

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles in India and provision of the Companies Act, 1956. The accounts are maintained on accrual basis as a going concern.

ii) AS-2 Valuation of Inventories

Inventories are valued at cost or Market Value whichever is lower.

The value of diminution in unquoted securities is unascertainable as the necessary information is not available and is considered to be valued at market value as cost.

iii) AS-3 Cash Flow Statement

Cash flow statement is prepared under "Indirect Method" and the same is annexed.

iv) AS-4 Contingencies and Events Occurring after Balance Sheet date There were no contingencies and events occurred after balance sheet date.

v) AS-5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting policies

The nature and amount of prior period item is separately disclosed in the profit & Loss account.

vi) AS-6 Depreciation on Fixed Assets

Depreciation on fixed assets are provided on WDV method under section 205 (ii) (b) and in the manner and at the rates prescribed in schedule XIV of the Companies Act, 1956. Individual assets costing less that Rs. 5,000 are depreciated in full in the year of purchase.

vii) AS-7 Accounting for construction contracts

This Accounting standard is not applicable.

viii) AS-8

This Accounting standard is withdrawn and included in AS-26.

ix) AS-9 Revenue Recognition

The income of the company is derived from trading in shares and interest on loan given to companies & investments in properties.

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

The revenue and expenditure are accounted on a going concern.

x) AS-10 Accounting for Fixed Assets

Fixed Assets are stated at the cost of acquisition less accumulated depreciation. Cost includes all identifiable expenditure incurred to bring the assets to its present condition and location. Any gains or losses on account of exchange difference either on settlement or translation where they relate to the acquisition of fixed assets are adjusted to the carrying cost of such assets.

xi) AS-11 Accounting for the effects of changes in Foreign exchange rates

The company has not incurred any transaction in foreign currencies. Therefore, this standard is not applicable for the current reporting period.

xii) AS-12 Accounting for Government grants

The company has not received any grants from the Government. Therefore, this standard is not applicable for the current reporting period.

xiii) AS-13 Accounting for Investments

The company has made investment in immovable properties.

a) Long-term Investments are valued at cost less provision for permanent diminution in value of such investments.

b) Current Investments are valued at lower of cost and market value.

During the F.Y. 2009-10 the company has made capital investments in the partnership firm

* Schwabe Incoat, in which company is the partner.

During the F.Y. 2011-12 the company has made capital investments in the partnership firm

* Green Investment Inc, in which company is the partner.

xiv) AS-14 Accounting for Amalgamation

During the year, there was no amalgamation.

xv) AS-15 Accounting for Employee Benefits

a) Short Term Employees Benefits:

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefit.

Benefits such as salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related services.

b) Post-employment benefit

(a) Defined Contribution plans:

State Governed provident fund cum employees pension scheme, are defined contribution plans. The contribution paid/payable under the schemes is recognized during the period in which the employees render the related services.

xvi) AS-16 Borrowing Cost

The company has not borrowed any fund to acquire, build and install the fixed assets and other assets; Therefore, This standard is not applicable for the current reporting period.

xvii) AS-17 Segment Reporting

The company operates in only one segment and there are no separate reportable segments. Therefore, this standard is not applicable for the current reporting period.

xviii) AS-18 Related Party Disclosures

Refer note no. 20 from Notes on financial statements.

xix) AS-19 Accounting for Lease

The company has not taken any asset on lease. Therefore, this standard is not applicable for the current reporting period.

xx) AS-20 Earning Per Share

EPS is calculated in accordance with accounting standard prescribed.

Basic/Diluted earning per share are calculated by dividing Net profit for the period attributable to the Equity shareholder (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the period.

xxi) AS-21 Consolidated Financial Statements

Since the company does not have any subsidiary company or control over any other company. Therefore, this standard is not applicable for the current reporting period.

xxii) AS-22 Accounting for Taxes on Income

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for taxes on Income" (AS 22) issued by The Institute of Chartered Accountants of India. Tax comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to/recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted tax rates.

The Company has brought forward losses available for set off under the Income Tax Act, 1961. However in view of the present uncertainty regarding generation of sufficient future income, net deferred tax asset at the year end, including related credit for the year, has not been recognized in these accounts on prudent basis.

Provision for current taxation for the Company of Rs. 33,59,559/- represents the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Earlier the company was paying the taxes as per the provision of Minimum Alternate Tax pursuant to the provisions of Section 115JB of the Income Tax Act, 1961 of India. The Finance Act, 2005 inserted sub section (1A) to section 115JAA to grant tax credit in respect of MAT paid under section 115JB of the Act with effect from assessment year 2006-07 and carry forward the credit for a period of 10 years. Accordingly, the MAT Credit of Rs. 53,28,757/-[Rs. 11,66,738/- of A.Y.2010-11 and Rs. 41,62,019/- of A.Y.2011-12] is available to be set off against future tax liability.

During the current F.Y. MAT credit of Rs. 20,16,509/- is utilized out of the total MAT credit of Rs. 73,45,266/- from the current year tax liability.

xxiii) AS-23 Accounting for Investments in Associates in Consolidated Financial Statements

The company is not making any consolidated financial statement as stated in above AS 21. Therefore, this standard is not applicable for the current reporting period.

xxiv) AS-24 Discontinuing operations

The company has not discontinued any operation during the year. Therefore, this standard is not applicable for the current reporting period.

xxv) AS-25 Interim Financial Reporting

The company is in process of compiling and publishing interim financial reporting.

xxvi) As-26 Intangible Assets

During the year, the company has no intangible assets. Therefore, this standard is not applicable for the current reporting period.

xxvii) AS-27 Financial Reporting of Interest in Joint Venture

The company has no interest in joint venture. Therefore, this standard is not applicable for the current reporting period.

xxviii) As-28 Impairment of Assets

The company does not have any fixed assets. Therefore, this standard is not applicable for the current reporting period.

xxix) AS-29 Provision, Contingent Liabilities and Contingent Assets

There are no Contingent Liabilities as Certified by Management.

---

Mar 31, 2013

The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects with the applicable accounting principles in india, the applicable accounting standards notified under section 211 (3C) and the other relevant provisions of the companies act 1956.

All the assets and liabilities have been classified as current and non-current as per the company''s normal operating cycle and other criteria set out in schedule VI to the companies act 1956: Based on nature of products and the time between the acquisition of assets processing arid their realization in cash & cash equivalent, the company has ascertain its operating cycle to be 12 months for the purpose of current-non current classification of assets and liabilities.

i) AS-1 Disclosure of Accounting Policies

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principlesin India and provision of the Companies Act, 1956. The accounts are maintained on accrual basis as a going concern.

ii) AS-2 Valuation of Inventories

Inventories are valued at cost or Market Value whichever is lower, ;

The value of diminution in unquoted securities is unascertainable as the necessary information is not available and is considered to be valued at market value as cost.

iii) AS-3 Cash Flow Statement

Cash flow statement is prepared under "Indirect Method" and the same is annexed.

iv) AS-4 Contingencies and Events Occurring after Balance Sheet date

There were no contingencies and events occurred after balance sheet date.

v) AS-5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting policies The nature and amount of prior period item is separately disclosed in the profit & Loss account.

vi) AS-6 Depreciation on Fixed Assets

There are no existing fixed assets or not purchased during the year. Therefore, this standard is not applicable for the current reporting period.

vii) AS-7 Accounting for construction contracts This Accounting standard is not applicable.

viii)AS-8

This Accounting standard is withdrawn and included in AS-26.

ix) AS-9 Revenue Recognition

The income of the company is derived from trading in shares and interest on loan given to companies & investments in properties.

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

The revenue and expenditure are accounted on a going concern.

x) AS-10 Accounting for Fixed Assets

There are no existing fixed assets or no purchased during the year. Therefore, this standard is not applicable for the current reporting period.

xi) AS-11 Accounting for the effects of changes in Foreign exchange rates

The company has not incurred any transaction in foreign currencies. Therefore, this standard is not applicable for the current reporting period.

xii) AS-12 Accounting for Government grants

The company has hot received any grants from the Government. Therefore, this standard is not applicable for the current reporting period.

xiii) AS-13 Accounting for Investments

The company has made investment in immovable properties.

a) Long-term Investments are valued at cost less provision for permanent diminution in value of such investments.

b) Current Investments are valued at lower of cost and market value.

During the F.Y. 2009-10 the company has made capital investments in the partnership firm

- Schwabe Incoat, in which company is the partner.

During the F.Y. 2011-12 the company has made capital investments in the partnership firm

- Green Investment Inc, in which company is the partner.

xiv) AS-14 Accounting for Amalgamation

During the year, there was no amalgamation.

xv) AS-15 Accounting for Employee Benefits

a) Short Term Employees Benefits:

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefit.

Benefits such as salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related services.

b) Post - employment benefit

(a) DefinaMagntcibution plans:

State Governed provident fund cum employees pension scheme, are defined contribution plans. The contribution paid / payable under the schemes is recognized during the; period in which the employees render the related services.

xvi) AS-16 Borrowing Cost

The company has not borrowed any fund to acquire, build and install the fixed assets and other assets; Therefore, This standard is not applicable for the current reporting period.

xvii) AS-17 Segment Reporting

The company operates in only one segment and there are no separate reportable segments. Therefore, this standard is not applicable for the current reporting period.

xviii) AS-18 Related Party Disclosures

Refer note no. 20 from Notes on financial statements.

xix) AS-19 Accounting for Lease

The company has not taken any asset on lease. Therefore, this standard is not applicable for the current reporting period.

xx) AS-20 Earning Per Share

EPS is calculated in accordance with accounting standard prescribed. .

Basic/Diluted earning per share are calculated by dividing Net profit for the: period attributable to the Equity shareholder (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the period.

xxi) AS-21 Consolidated Financial Statements

Since the company does not have any subsidiary company or control over any other company. Therefore, this standard is not applicable for the current reporting period. I

xxii) AS-22 Accounting for Taxes on Income

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for taxes on Income" (AS 22) issued by The Institute of Chartered Accountants of India. Tax comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to/recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted tax rates.

The Company has brought forward losses available for set off under the Income Tax Act, 1961. However in view of the present uncertainty regarding generation of sufficient future income, net deferred tax asset at the year end, including related credit for the year, has not been recognized in these accounts on prudent basis.

Provision for current taxation for the Company of Rs.41,10,270 /- represents the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of thaJgJftj^ax Act, 1961.

Earlier the company was paying the taxes as per the provision of Minimum Alternate Tax pursuant to the provisions of Section 115JB of the In come Tax Act, 1961 of India. The Finance Act, 2005 inserted sub section (1A) to section 115JAA to grant tax credit injrespect of MAT paid under section 115JB of the Act with effect from assessment year 2006J07 and carry forward the credit for a period of 10 years. Accordingly, the MAT Credit of HsJ3,45,266/-fRs.31,83,247/- of A.Y.2010-11 and Rs.41,62,019J- of A.Y.2011112] is available to be set off against future tax liability after setting off of the MAT Credit of Rs.24,84,771 /- [ Rs.6,84,604 /- of A.Y. 2008-09 , Rs. 17,36,809/- of A.Y. 2Q09-10, Rs. 63,358/- of A. Y. 2010-11, ] from the current year tax liability. j

xxiii) AS-23 Accounting for Investments in Associates in Consolidated Financial Statements

The company is not making any consolidated financial statement as stated in above AS 21. Therefore, this standard is not applicable for the current reporting period.

xxiv) AS-24 Discontinuing operations

The company has not discontinued any operation during the year. Therefore, this standard is not applicable for the current reporting period.

xxv) AS-25 Interim Financial Reporting

The company is in process of compiling and publishing interim financial reporting.

xxvi) As-26 Intangible Assets.

During the year, the company has no intangible assets. Therefore, this standard is not applicable for the current reporting period.

xxvii) AS-27 Financial Reporting of Interest in Joint Venture

The company has no interest in joint venture. Therefore, this standard is not applicable for the current reporting period.

xxviii) As-28 Impairment of Assets

The company does not have any fixed assets. Therefore, this standard is not applicable for the current reporting period.

xxix) AS-29 Provision, Contingent Liabilities and Contingent Assets

There are no Contingent Liabilities as Certified by Management.

---

Mar 31, 2012

I) AS-1 Disclosure of Accounting Policies

The financial statements are prepared under historical cost convention' in accordance with the generally accepted accounting principles in India and provision of the Companies Act' 1956' The accounts are maintained on accrual basis as a going concern.

ii) AS-2 Valuation of Inventories

Inventories are valued at cost or 1arket Value whichever is lower'

The value of diminution in unquoted securities is un as certain able as the necessary information is not available and is considered to be valued at market value as cost.

iii) AS-3 Cash Flow Statement

Cash flow statement is prepared under "Indirect Method" and the same is annexed.

iv) AS-4 Contingencies and Events Occurring after Balance Sheet date There were no contingencies and events occurred after balance sheet date.

v) AS-5 Net Profit or Loss for the period' Prior Period Items and Changes in Accounting policies

The nature and amount of prior period item is separately disclosed in the profit & Loss account.

vi) AS-6 Depreciation on Fixed Assets

There are no existing fixed assets or not purchased during the year. Therefore' this standard is not applicable for the current reporting period'

vii) AS-7 Accounting for construction contracts This Accounting standard is not applicable'

viii) AS-8

This Accounting standard is withdrawn and included in AS-26'

ix) AS-9 Revenue Recognition

The income of the company is derived from trading in shares and interest on loan given to companies & investments in properties*

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

The revenue and expenditure are accounted on a going concern.

x) AS-10 Accounting for Fixed Assets

There are no existing fixed assets or no purchased during the year. Therefore' this standard is not applicable for the current reporting period.

xi) AS-11 Accounting for the effects of changes in Foreign exchange rates

The company has not incurred any transaction in foreign currencies. Therefore' this standard is not applicable for the current reporting period.

xii) AS-12 Accounting for Government grants

The company has not received any grants from the Government. Therefore' this standard is not applicable for the current reporting period.

xiii) AS-13 Accounting for Investments

The company has made investment in immovable properties'

a) Long-term Investments are valued at cost less provision for permanent diminution in

value of such investments.

b) Current fnvestments are valued at lower of cost and market value*

During the F.Y' 2009-10 the company has made capital Investments in the partnership firm -Schwabe Incoat' in which company is the partner.

During the F.Y' 2011-12 the company has made capital investments in the partnership firm — Green Investment Inc' in which company is the partner.

xiv) AS-14 Accounting for Amalgamation

During the year' there was no amalgamation.

xv) AS-I5 Accounting for Employee Benefits

a) Short Term Employees Benefits;

All employee benefits payable wholly within twelve months of rendering the services arc classified as short term employee benefit

Benefits such as salaries' wages' short term compensated absences etc. and the expected cost of bonus' cx-gratia are recognized in the period in which the employee renders the related services.

b) Post - employment benefit

(a) Defined Contribution plans:

State Governed provident fund cum employees pension scheme' are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period j-ss«=5fc. in which the employees render the related services.

xvi) AS-16 Borrowing Cost

The company lias not borrowed any fund to acquire' build and install the fixed assets and other assets; Therefore. This standard is not applicable for the current reporting period.

xvii) AS-17 Segment Reporting

The company operates in only one segment and there are no separate reportable segments. Therefore' this standard is not applicable for the current reporting period.

xviii) AS-1S Related Part)' Disclosures

Refer note no' 20 from Notes on financial statements.

xix) AS-19 Accounting for Lease

The company has not taken any asset on lease. Therefore' this standard is not applicable for the current reporting period.

xx) AS-20 turning Per Share

EPS is calculated in accordance with accounting standard prescribed' Basic/Diluted earning per share are calculated by dividing Net profit for the period attributable to the Equity shareholder (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the period.

xxi) AS-21 Consolidated Financial Statements

Since the company does not have any subsidiary company or control over any other company. Therefore' this standard is not applicable for the current reporting period.

xxii) AS-22 Accounting for Taxes on Income

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for taxes on Income" (AS 22) Issued by The Institute of Chartered Accountants of India' Tax comprises both current and deferred tax* Current tax is measured at the amount expected to be paid to/recovered from the tax authorities using the applicable tax rates' Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted tax rates.

The Company has brought forward losses available for set off under the Income Tax Act' 196L However in view of the present uncertainty regarding generation of sufficient future income' net deferred tax asset at the year end' including related credit for the year' has not been recognized in these accounts on prudent basis.

Provision for current taxation for the Company of Rs.38?53?300 /- represents the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act' 1961.

Earlier the company was paying the taxes as per the provision of Minimum Alternate Tax pursuant to the provisions of Section 115JB of the In come Tax Act' 1961 of India' The Finance Act' 2005 inserted sub section (1 A) to section 115JAA to grant tax credit in respect of MAT paid under section 115JB of the Act with effect from assessment year 2006-07 and carry forward the credit for a period of 10 years. Accordingly' the MAT Credit of TteM£1LfliSll-{Rs.6M>6Q4/- ofA.Y.2008-09' Rs. 17'36'809/- of A.Y 2009-10'Rs.32'46'605/- ofAY.2010-II and Rs.41'62'019J- ofAY. 2011-12] is available to be set off against future tax liability after setting off of the MAT Credit of Rs'21'95'458 /- [ Rs. 14'35'975 A of A.Y. 2007-08 and Rs. 7'59f 483/- of A. K 2008-09 J from the current year tax liability.

xxiii) AS-23 Accounting for Investments in Associates in Consolidated Financial Statements

The company is not making any consolidated financial statement as stated in above AS 21. Therefore' this standard is not applicable for the current reporting period.

xxiv) AS-24 Discontinuing operations

The company has not discontinued any operation during the year. Therefore' this standard is not applicable for the current reporting period.

xxv) AS-25 Interim Financial Reporting

The company is in process of compiling and publishing interim financial reporting.

xxvi) As-26 Intangible Assets.

During the year' the company has no intangible assets. Therefore' this standard is not applicable for the current reporting period.

xxvii) AS-27 Financial Reporting of Interest in Joint Venture

The company has no interest in joint venture. Therefore' this standard is not applicable for the current reporting period'

wviii) As-28 Impairment of Assets

The company does not have any fixed assets. Therefore' this standard is not applicable for the current reporting period.

xxix) AS-29 Provision' Contingent Liabilities and Contingent Assets :

There are no Contingent Liabilities as Certified by Management.

---

Mar 31, 2011

I) AS-1 Disclosure of Accounting Policies

The accounts are maintained on accrual basis as a going concern.

ii) AS-2 Valuation of Inventories

Inventories are valued at cost or Market Value whichever is lower. The value of diminution in unquoted securities is unascertainable as the necessary information is not available and is considered to be valued at market value as cost.

iii) AS-3 Cash Flow Statement

Cash How statement is prepared under "Indirect Method" and the same is annexed.

iv) AS-4 contingencies and events occurring after balance sheet date

There were no contingencies and events occurred after balance sheet date.

v) AS-5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting policies The nature and amount of prior period item is separately disclosed in the profit & Loss account.

vi) AS-6 Depreciation on Fixed Assets

There are no existing fixed assets or not purchased during the year, therefore this Accounting standard is not applicable.

vii) AS-7 Accounting for Contracts

This Accounting standard is not applicable.

viii) AS-8

This Accounting standard is withdrawn and included in AS-26.

ix) AS-9 Revenue Recognition

The income of the company is derived from trading in shares and interest on loan given to companies & investments in properties. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. The revenue and expenditure are accounted on a going concern.

x) AS-10 Accounting for Fixed Assets

There are no existing fixed assets or no purchased during the year, therefore this Accounting standard is not applicable.

xi) AS-11 Accounting for the effects in Foreign exchange rates

The company has not incurred any transaction in foreign currencies. Therefore this accounting standard is not applicable.

xii) AS-12 Accounting for Government grants

The company has not received any grants from the Government

xiii) AS-13 Accounting for Investments

The company has made investment in immovable properties.

During the preceding year the company has made capital investments in the partnership firm Schwabe Incoat, in which company is the partner.

xiv) AS-14 Accounting for Amalgamation

During the year, there was no amalgamation.

xv) AS-15 Accounting for Retirement Benefits

There are no employees; therefore this standard is not applicable.

xv i) A S-16 Borrow i n g Cost

The company has not borrowed any fund to acquire, build and install the fixed assets and other assets; therefore this standard is not applicable.

xvii) AS-17 Segment Reporting

The company operates in only one segment and there are no separate reportable segments.

xviii) AS-18 Related Party Disclosures

Refer Annexure - A.

xix) AS-19 Accounting for Lease

The company has not taken any asset on lease, so this standard is not applicable.

xx) AS-20 Earning Per Share

EPS is calculated in accordance with accounting standard prescribed. Basic/Diluted earnings per share are calculated by dividing Net profit for the period attributable to the Equity shareholder (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the period.

xxi) AS-21 Consolidated Financial Statements

Since the company does not have any subsidiary company or control over any other company; therefore this standard is not applicable.

xxii) AS-22 Accounting for Taxes on Income

Provision for income tax is made on the basis of book profit for the year at applicable rate. Current tax represents the amount of income tax payable/ recoverable in respect of taxable income/ loss for the reporting year.

The Company has brought forward losses available for set off under the Income Tax Act. 1961. However in view of the present uncertainty regarding generation of sufficient future income, net deferred tax asset at the year end, including related credit for the year, has not been recognized in these accounts on prudent basis.

xxiii) AS-23 Accounting for Investments in Associates in Consolidated Financial Statements The company is not making any consolidated financial statement as slated in above AS 21 so this standard is not applicable

xxiv) AS-24 Discontinuing operations

The company has not discontinued any operation during the year

xxv) AS-25 Interim Financial Reporting

The company is in process of compiling and publishing interim financial reporting.

xxvi) As-26 Intangible Assets.

During the year, the company has no intangible assets.

xxvii) AS-27 Financial Reporting of Interest in Joint Venture

The company has no interest in joint venture.

xviii) As-28 Impairment of Assets

The company does not have any fixed assets; hence this standard is not applicable.

xix) AS-29 Provision, contingent liabilities and contingent assets There are no Contingent Liabilities as Certified by Management.

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Mar 31, 2010

I) AS-1 Disclosure of Accounting Policies

The accounts are maintained on accrual basis as a going concern.

ii) AS-2 Valuation of Inventories Inventories are valued at cost or market value whichever is lower, The value of diminution in unquoted securities is unascertainable as the necessary information is not available and is considered to be valued at market value as cost.

iii) AS-3 Cash flow statement Cash flow statement is prepared under "Indirect Method" and the same is annexed.

iv) AS-4 contingencies and events occurring after balance sheet date There were no contingencies and events occurred after balance sheet date. v) AS-5 Net profit or loss for the period, prior period Items and changes in Accounting policies The nature and amount of prior period item is separately disclosed in the Profit & Loss account. vi) AS-6 Depreciation on Fixed Assets There are no existing fixed assets or nor purchased during the year, therefore this accounting standard is not applicable. vii) AS-7 Accounting for contracts This accounting standard is not applicable. viii) AS-8 This Accounting standard is withdrawn and included in AS-26.

ix) AS-9 Revenue Recognition The income of the company is derived form trading in shares and interest on loan given to companies & investment in properties. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. The revenue and expenditure are accounted on a going concern.

x) AS-10 Accounting for Fixed Assets There are no existing fixed assets or no purchased during the year, therefore this Accounting standard is not applicable.

Xi) AS-11 Accounting for the effects in Foreign exchange rates The company has not incurred any transaction in foreign Currencies. Therefore this accounting standard is not applicable. Xii) AS-12 Accounting for Government grants The company has not received any grants from the Government

xiii) AS-13 Accounting for Investments The company has made investment in immovable properties. During the year the company has made capital investments in the Partnership firm schwa be in coat, in which company is the partner.

xiv) AS-14 Accounting for Amalgamation During the year, there was no amalgamation.

xv) AS-15 Accounting for Retirement Benefits There are no employees; therefore this standard is not applicable.

Xvi) AS-16 Borrowing Cost The company has not borrowed any fund to acquire, build and Install the fixed assets and other assets, therefore this Standard is not applicable.

xvii) AS-17 Segment Reporting The company operates in only one segment and there are no Separate reportable segments.

xviii) AS-18 Related Party Disclosures Refer Annexure-A

xix) AS-19 Accounting for Lease The company has not taken any assets on lease, so this standard is not applicable.

xx) AS-20 Earning Per Share EPS is calculated in accordance with accounting standard Prescribed. Basic earning per share are calculated by dividing net Profit for the period attributable to the equity shareholder (after deducting preference dividend and attributable taxes) by The weighted average number of equity shares outstanding during The period.

xxi) AS-21 Consolidated Financial Statements Since the company does not have any subsidiary company or control over any other company; therefore this standard is not applicable.

xxii) AS-22 Accounting for Taxes on Income Provision for income tax is made on the basis of book profit for the year at applicable rate. Current tax represents the amount of income tax payable/ recoverable in respect of taxable income/loss for the reporting year. The company has unabsorbed depreciation and carry forward losses available for set off under the income tax Act, 1961. However in view of the present uncertainly regarding generation of sufficient future income, net deferred tax asset at the year end, including related credit for the year, has not been recognized in these accounts on prudent basis.

xxiii) AS-23 Accounting for Investment in Associates in Consolidated Financial Statements The Company is not making any consolidated financial statement as stated in above AS21 so this standard is not applicable

xxiv) AS-24 Discontinuing Operations The company has nor discontinued any operation during the year

xxv) AS-25 Interim Financial Reporting The company is in process of compiling and publishing interim financial reporting.

xxvi) AS-26 Intangible Assets. During the year, the company has no intangible assets.

xxvii) AS-27 Financial Reporting of Interest in Joint Venture The company has no interest in joint venture.

xxviii) As-28 Impairment of Assets The company does not have any fixed assets; hence this standard is not applicable. xxix) AS-29 Provision, contingent liabilities and contingent assets There are no contingent liabilities are certified by management.

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Mar 31, 2009

A) AS-1 Disclosure of Accounting Policies

The accounts are maintained on accrual basis as a going concern.

b) AS-2 Valuation of Inventories

Inventories are valued at cost.

c) AS-3 Cash Flow Statement

Cash flow statement is prepared under "Indirect Method" and the same is annexed.

d) AS-4 contingencies and events occurring after balance sheet date

There were no contingencies and events occurred after balance sheet date

e) AS-5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting policies

The nature and amount of prior period item is separately disclosed in the profit & Loss account.

f) AS-6 Depreciation on Fixed Assets

There are no any existing fixed assets or not any purchased during the year, so this Accounting standard is not applicable.

g) AS-7 Accounting for Contracts

This Accounting standard is not applicable.

h) AS-9 Revenue Recognition

The income of the company is derived from trading in shares and interest on loan given to companies & investments in properties.

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

The revenue and expenditure are accounted on a going concern.

i) AS-10 Accounting for Fixed Assets

There are no existing fixed assets or not any purchased during the year, so this Accounting standard is not applicable.

j) AS-11 Accounting for the effects in Foreign exchange rates

The company has not done any transaction in foreign currencies. Therefore this accounting standard is not applicable.

k) AS-12 Accounting for Government grants

The company has not received any grants from the Government

l) AS-13 Accounting for Investments

The company has made investment in immovable properties.

n)AS-14 Accounting for Amalgamation

During the year, there was no amalgamation.

n) AS-15 Accounting for Retirement Benefits

There are no employees; therefore this standard is not applicable

o) AS-16 Borrowing Cost

The company has not borrowed any fund to acquire, build and install the fixed assets and other assets, " therefore this standard is not applicable.

p). AS-17 Segment Reporting

The company operates in only one segment and there are no separate reportable segments.

q) AS-18 Related Party Disclosures

This standard is not applicable

AS-19 Accounting for Lease

The company has not taken any asset on lease, so this standard is not applicable.

s) AS-20 Earning Per Share

EPS is calculated in accordance with accounting standard prescribed profit and loss account

t) AS-21 Consolidated Financial Statements

Since the company does not have any subsidiary company or control over any other company; therefore • this standard is not applicable.

u) AS-22 Accounting for Taxes on Income

Provision for income tax is made on the basis of book profit for the year at applicable rate. Current tax represents the amount of income tax payable/ recoverable in respect of taxable income/ loss for the reporting year.

v) AS-23 Accounting for Investments in Associates in Consolidated Financial Statements

The company is not makin/g any consolidated financial statement as stated in above AS 21 so this standard is not applicable

w) AS-24 Discontinuing operations

The company has not discontinued any operation during the year

x) AS-2S Interim Financial Reporting

The company is in process of compiling and publishing interim financial reporting.

y) As-26 Intangible Assets.

During the year, the company has no intangible assets.

z) AS-27 Financial Reporting of Interest in Joint Venture

The company has no interest in joint venture.