Hira Automobiles Ltd. कंपली की लेखा नीति

Mar 31, 2025

1. SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

A) General Information
The Company is an authorized dealer of Maruti Suzuki India Ltd. for purchase and sale of Motor Vehicles, Spare parts and service of its vehicles. The company also deals in pre-owned car sales and purchase. The other activities carried out in the company are getting vehicles financed from banks and NBFCs, dealing in insurance business of vehicles and running of Maruti Driving School. The company is Public Company listed on Bombay Stock Exchange in India and is incorporated under the provision of the Companies Act,1956 as replaced by the Companies Act, 2013 applicable in India. Its principal place of business is located in Patiala, further branches are in the district Patiala and district Muktsar of Punjab.

B) Basis for Preparation of Financial Statements
These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on an accrual basis. These financial statements have been prepared to comply in all material respects with the applicable accounting principles in India, the applicable Indian accounting standards notified under Section 211(3C) [Companies (Indian Accounting Standards) Rules, 2015 as amended] of the Companies Act, 1956, issued pursuant to the Companies (Accounting Standards) Rules, 2006 as per 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, Accounting Standard 30, Financial Instruments: Recognition and Measurement issued by the Institute of Chartered Accountants of India to the extent it does not contradict with any other accounting standard referred to in Section 211 (3C) [Companies (Accounting Standards) Rules, 2006 as amended] of the Act, other recognised accounting practices and policies and the relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act.. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

C) Revenue Recognition
a) Sale and purchase of products is recognized when the products are supplied and received in accordance with the terms of sale and purchase recorded net of trade discounts but inclusive of Goods & Service Tax for the year under consideration.

b) Service Income is accounted for as and when vehicles are serviced in accordance with the terms of service and recorded net of discount but inclusive of Goods & Service Tax for the year

under consideration.

c) Interest income is recognized on accrual basis.

D) Fixed Assets Tangible Assets
Fixed assets (except freehold land which is carried at cost) are carried at cost of acquisition or construction in the year of capitalisation less accumulated depreciation. Assets acquired under finance leases are not capitalised in the books of accounts.

Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

E) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised till the month in which each asset is put to use as part of the cost of that asset.

F) Depreciation
Depreciation on Fixed Assets is provided on the basis of Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

G) Inventories
Inventories are valued at Cost or Net Realizable value, whichever is lower. The cost is ascertained on Weighted Average in case of Spares and Accessories whereas vehicles cost is ascertained on specific cost basis

H) Employee Benefit Costs Short - Term Employee Benefits:
Recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered. These benefits include performance incentive and compensated absences

Post-Employment and Other Long Term Employee Benefits:
The Company has Defined Contribution Plans for post-employment benefit under which company

pays specified contribution to a separate entity. The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Company's contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

I) Foreign Currency Translations:
The Company does not deal with Foreign Currently, hence AS-!! "Effect of changes in Foreign Exchanges issued by the Institute of Chartered Accountants of India is not applicable.

J) Cash Flow Statement:
Cash Flow Statements has been prepared following the indirect method set out in the Accounting Standard-3 on "Cash Flow Statement" issued by the Institute of Chartered Accountants of India.

K) Taxes
Tax expense for the year, comprising current tax and deferred tax, is included in determining the net profit/ (loss) for the year.

Current tax is recognised based on assessable profit computed in accordance with the Income Tax Act and at the prevailing tax rate.

Deferred tax is recognised for all timing differences. Deferred tax assets are carried forward to the extent it is reasonably / virtually certain (as the case may be) that future taxable profit will be available against which such deferred tax assets can be realised. Such assets are reviewed at each balance sheet date and written down to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realised.

Minimum Alternative Tax credit is recognised as an asset only to the extent and when there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted at the balance sheet date.

L) Impairment of Assets
At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognised in the statement of profit and loss to the extent the carrying amount exceeds the recoverable amount.

M) Provisions and Contingencies
Provisions are recognised when there is a present obligation as a result of a past event, it is

probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are not discounted to their present value.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

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Mar 31, 2024

A) General Information

The Company is an authorized dealer of Maruti Suzuki India Ltd. for purchase and sale of Motor
Vehicles, Spare parts and service of its vehicles. The company also deals in pre-owned car sales
and purchase. The other activities carried out in the company are getting vehicles financed from
banks and NBFCs, dealing in insurance business of vehicles and running of Maruti Driving School.
The company is Public Company listed on Bombay Stock Exchange in India and is incorporated
under the provision of the Companies Act,1956 as replaced by the Companies Act, 2013
applicable in India. Its principal place of business is located in Patiala, further branches are in the
district Patiala and district Muktsar of Punjab.

B) Basis for Preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted
accounting principles in India under the historical cost convention on an accrual basis. These
financial statements have been prepared to comply in all material respects with the applicable
accounting principles in India, the applicable Indian accounting standards notified under Section
211(3C) [Companies (Indian Accounting Standards) Rules, 2015 as amended] of the Companies
Act, 1956, issued pursuant to the Companies (Accounting Standards) Rules, 2006 as per 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, Accounting Standard 30, Financial Instruments: Recognition and Measurement issued
by the Institute of Chartered Accountants of India to the extent it does not contradict with any other
accounting standard referred to in Section 211 (3C) [Companies (Accounting Standards) Rules,
2006 as amended] of the Act, other recognised accounting practices and policies and the relevant
provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the Company''s
operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act.. Based
on the nature of products and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - noncurrent classification of assets and liabilities.

C) Revenue Recognition

a) Sale and purchase of products is recognized when the products are supplied and received in
accordance with the terms of sale and purchase recorded net of trade discounts but inclusive of
Goods & Service Tax for the year under consideration.

b) Service Income is accounted for as and when vehicles are serviced in accordance with the
terms of service and recorded net of discount but inclusive of Goods & Service Tax for the year

under consideration.

c) Interest income is recognized on accrual basis.

D) Fixed Assets
Tangible Assets

Fixed assets (except freehold land which is carried at cost) are carried at cost of acquisition or
construction in the year of capitalisation less accumulated depreciation. Assets acquired under
finance leases are not capitalised in the books of accounts.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for the
intended use and net charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets.

E) Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying assets are capitalised till the month in which each asset is put to use as part of the cost of
that asset.

F) Depreciation

Depreciation on Fixed Assets is provided on the basis of Straight Line Method (SLM).
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.

G) Inventories

Inventories are valued at Cost or Net Realizable value, whichever is lower. The cost is ascertained
on Weighted Average in case of Spares and Accessories whereas vehicles cost is ascertained on
specific cost basis.

H) Employee Benefit Costs

Short - Term Employee Benefits:

Recognised as an expense at the undiscounted amount in the statement of profit and loss for
the year in which the related service is rendered. These benefits include performance incentive
and compensated absences.

Post-Employment and Other Long Term Employee Benefits:

The Company has Defined Contribution Plans for post-employment benefit under which company
pays specified contribution to a separate entity. The Company makes specified monthly
contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The
Company''s contribution is recognized as an expense in the Profit and Loss Statement during the
period in which the employee renders the related service.

I) Foreign Currency Translations:

The Company does not deal with Foreign Currently, hence AS-!! "Effect of changes in
Foreign Exchanges issued by the Institute of Chartered Accountants of India is not applicable.

J) Cash Flow Statement:

Cash Flow Statements has been prepared following the indirect method set out in the Accounting
Standard-3 on "Cash Flow Statement" issued by the Institute of Chartered Accountants of India.

K) Taxes

Tax expense for the year, comprising current tax and deferred tax, is included in determining the
net profit/ (loss) for the year.

Current tax is recognised based on assessable profit computed in accordance with the Income Tax
Act and at the prevailing tax rate.

Deferred tax is recognised for all timing differences. Deferred tax assets are carried forward to the
extent it is reasonably / virtually certain (as the case may be) that future taxable profit will be
available against which such deferred tax assets can be realised. Such assets are reviewed at
each balance sheet date and written down to reflect the amount that is reasonably/ virtually certain
(as the case may be) to be realised.

Minimum Alternative Tax credit is recognised as an asset only to the extent and when there is
convincing evidence that the Company will pay normal income tax during the specified period.
Such asset is reviewed at each balance sheet date and the carrying amount is written down to the
extent there is no longer convincing evidence to the effect that the Company will pay normal tax
during the specified period.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or
substantively enacted at the balance sheet date.

L) Impairment of Assets

At each balance sheet date, the Company assesses whether there is any indication that an asset
may be impaired. If any such indication exists, the Company estimates the recoverable amount. If
the carrying amount of the asset exceeds its recoverable amount, an impairment loss is
recognised in the statement of profit and loss to the extent the carrying amount exceeds the
recoverable amount.

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Mar 31, 2014

A) Accounting Convention

The financial statements are prepared on accrual basis of accounting, and in accordance with the provision of Companies Act, 1956 and comply, in all material aspects, with theAccounting Standards issued by the Institute of Chartered Accountants of India notified under section 211(3C) of the Companies Act,1956.

All assets and liabilities have been classified as current or non- current as per the Group''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956

B) Revenue Recognition

(i) Sale of products is recognized when the products are supplied in accordance with the terms of sale and recorded net of trade discounts and Sales Tax. (ii) Service Income is accounted for as and when vehicles are serviced in accordance with the terms of service and recorded net of discount. (iii) Interest income is recognized on accrual basis.

C) Tangible Assets and Intangible Assets

Tangible Assets and Intangible Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use are included to the extent they relate to the period till such assets are ready to be put to use.

Depreciation is provided using the Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

D) Borrowing Costs

Borrowing Costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which theyare incurred.

E) Inventories

Inventories are valued At Cost or Net Realizable value, whichever is lower. The cost is ascertained on Average basis except vehicles where cost is ascertained on specific cost basis.

F) Employee Retirement Benefits

Contribution to defined contribution schemes such as Provident Fund and ESI are charged to the profit and loss account as incurred.

G) Foreign Currency Transaction

The Company does not deal with Foreign Currency, henceAS-11 "Effect of changes in Foreign Exchanges issued bythelnstituteof Chartered Accountants of India is not applicable. H) Cash Flow Statements Cash Flow Statements has been prepared following the indirect method set out in theAccounting Standard -Son "Cash Statements "issued bythelnstituteof Chartered Accountants oflndia. I) Taxes on Income

(i) Income tax expenses for the period comprise of Current Tax and Deferred Tax.

(ii) Current Tax is the amount of tax payable on the taxable income for the year determined in accordance with the provision of the IncomeTaxAct, 1961.

(iii) Deferred Tax is recognized, on the timing differences, being the difference between accounting income and taxable income, which originates in one period and are capable of reversal in one or more subsequent accounting periods in accordance with the provisions of Accounting Standard -22 on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. Deferred Tax Asset in respect of brought forward losses is recognized only if there is virtually certainly thatthere will be sufficient future taxable income againstwhich such assetcan be realized.

J) Provisions and Contingent liabilities

Provisions are recognized when the company has a present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made forthe amount of obligation.

K) Impairment of Assets

At each balance sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount, an impairment loss is recognized in the profit and loss account to the extent the carrying amount exceeds the recoverable amount.

L) Earnings Per Share

The calculation of Earnings Per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with the requirement of Accounting Standard (AS) -20 on Earnings Per Share issued by the Institute ofCharteredAccountantsoflndia.

Diluted Earning per share is the same as Basic Earning per share because there is no potential equity shares which would have dilutive effect on earning per shares to equity shareholders.

M) Segment Reporting

The Company is Authorized Dealer of Maruti Suzuki India Limited (MSIL) and hence, is engaged in the business of sale & service of MSIL vehicles. As the basic nature of sale of variants of vehicles is governed by the same set of risk & returns, these have been grouped as single segment as per Accounting Standard(AS-17) on segment reporting issued by the Institute of Chartered Accountants of India.

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Mar 31, 2013

A) Accounting Convention

The financial statements are prepared on accrual basis of accounting, and in accordance with the provision of Companies Act,1956 and comply, in all material aspects, with the Accounting Standards issued by the Institute of Chartered Accountants of India notified under section 211(3C) of the Companies Act,1956. All assets and liabilities have been classified as current or non- current as per the Group''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act,1956

B) Revenue Recognition

(i) Sale of products is recognized when the products are supplied in accordance with the terms of sale and recorded net of trade discounts and Sales Tax.

(ii) Service Income is accounted for as and when vehicles are serviced in accordance with the terms of service and recorded net of discount.

(iii) Interest income is recognized on accrual basis.

C) Tangible Assets and Intangible Assets

Tangible Assets and Intangible Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use are included to the extent they relate to the period till such assets are ready to be put to use.

Depreciation is provided using the Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

D) Borrowing Costs

Borrowing Costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

E) Inventories

Inventories are valued At Cost or Net Realizable value, whichever is lower. The cost is ascertained on Average basis except vehicles where cost is ascertained on specific cost basis.

F) Employee Retirement Benefits

Contribution to defined contribution schemes such as Provident Fund and ESI are charged to the profit and loss account as incurred.

H) Cash Flow Statements

Cash Flow Statements has been prepared following the indirect method set out in the Accounting Standard -3 on "Cash Statements "issued by the Institute of Chartered Accountants of India.

I) Taxes on Income

(i) Income tax expenses for the period comprise of Current Tax and Deferred Tax.

(ii) Current Tax is the amount of tax payable on the taxable income for the year determined in accordance with the provision of the Income Tax Act, 1961.

(iii) Deferred Tax is recognized, on the timing differences, being the difference between accounting income and taxable income, which originates in one period and are capable of reversal in one or more subsequent accounting periods in accordance with the provisions of Accounting Standard -22 on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. Deferred Tax Asset in respect of brought forward losses is recognized only if there is virtually certainly that there will be sufficient future taxable income against which such asset can be realized.

J) Provisions and Contingent liabilities

Provisions are recognized when the company has a present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of obligation.

K) Impairment of Assets

At each balance sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount, an impairment loss is recognized in the profit and loss account to the extent the carrying amount exceeds the recoverable amount.

L) Earnings Per Share

The calculation of Earnings Per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with the requirement of Accounting Standard (AS) -20 on Earnings Per Share issued by the Institute of Chartered Accountants of India.

Diluted Earnings per share is the same as Basic Earnings per share because there is no potential equity shares which would have dilutive effect on earning per shares to equity shareholders.

M) Segment Reporting

The Company is Authorized Dealer of Maruti Suzuki India Limited (MSIL) and hence, is engaged in the business of sale & service of MSIL vehicles. As the basic nature of sale of variants of vehicles is governed by the same set of risk & returns,

these have been grouped as single segment as per Accounting Standard(AS-17) on segment reporting issued by the Institute of Chartered Accountants of India.

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Mar 31, 2012

A) Accounting Convention

The financial statements are prepared on accrual basis of accounting, and in accordance with the provision of Companies Act, 1956 and comply, in all material aspects, with the Accounting Standards issued by the Institute of Chartered Accountants of India notified under section 21 l(3C) of the Companies Act, 1956.

All assets and liabilities have been classified as current or non- current as per the Group''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956

B) Revenue Recognition

(i) Sale of products is recognized when the products are supplied in accordance with the terms of sale and recorded net of trade discounts and Sales Tax.

(ii) Service Income is accountcd for as and when vehicles are serviced in accordance with the terms of service and recorded net of discount.

(iii) Interest income is recognized on accrual basis.

C) Tangible Assets and Intangible Assets

Tangible Assets and Intangible Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use are included to the extent they relate to the period till such assets are ready to be put to use. Depreciation is provided using the Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act. 1956.

D) Borrowing Costs

Borrowing Costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

E) Inventories

Inventories are valued At Cost or Net Realizable value, whichever is lower. The cost is ascertained on Average basis except vehicles where cost is ascertained on specific cost basis.

F) Employee Retirement Benefits

Contribution to defined contribution schemes such as Provident Fund and ESI are charged to the profit and loss account as incurred.

G) Foreign Currency Transaction

The Company does not deal with Foreign Currency, hence AS-11 "Effect of changes in Foreign Exchanges issued by the Institute of Chartered Accountants of India is not applicable.

H) Cash Flow Statements

Cash Flow Statements has been prepared following the indirect method set out in the Accounting Standard -3 on "Cash Statements "issued by the Institute of Chartered Accountants of India.

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Mar 31, 2011

A) Basis of preparation of financial statements

The financial statements are prepared on accrual basis of accounting, and in accordance with the provision of Companies Act, 1956 and comply, in all material aspects, with the Accounting Standards issued by the Institute of Chartered Accountants of India notified under section 211(3C) of the Companies Act, 1956.

B) Revenue Recognition

(i) Sale of products is recognised when the products are supplied in accordance with the terms of sale and recorded net of trade discounts and Sales Tax.

(ii) Service Income is accounted for as and when vehicles are serviced in accordance with the terms of service and recorded net of discount.

(iii) Interest income is recognized on accrual basis.

C) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use are included to the extent they relate to the period till such assets are ready to be put to use.

D) Borrowing Costs

Borrowing Costs that are directly attributable to the acquisition ,construction or production of a qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs are recognised as an expense in the period in which they are incurred .

E) Depreciation:

Depreciation is provided using the Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

F) Inventories

Inventories are valued At Cost or Net Realizable value, whichever is lower. The cost is ascertained on Average basis except vehicles where cost is ascertained on specific cost basis. .

G) Employee Retirement Benefits

Contribution to defined contribution schemes such as Provident Fund and ESI are charged to the profit and loss account as incurred.

H) Foreign Currency Transaction

The Company does not deal with Foreign Currency, hence AS-11 "Effect of changes in Foreign Exchanges issued by the Institute of Chartered Accountants of India is not applicable.

I) Cash Flow Statements

Cash Flow Statements has been prepared following the indirect method set out in the Accounting Standard -3 on "Cash Statements " issued by the Institute of Chartered Accountants of India.

J) Taxes on Income

(i) Income tax expenses for the period comprise of Current Tax and Deferred Tax.

(ii) Current Tax is the amount of tax payable on the taxable income for the year determined in accordance with the provision of the Income Tax Act, 1961.

(iii) Deferred Tax is recognized, on the timing differences, being the difference between accounting income and taxable income, which originates in one period and are capable of reversal in one or more subsequent accounting periods in accordance with the provisions of Accounting Standard -22 on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. Deferred Tax Asset in respect of brought forward losses is recognized only if there is virtually certainly that there will be sufficient future taxable income against which such asset can be realized.

6. Related Party'' Disclosure in accordance with Accounting Standard - 18 :

a) Enterprises owned or Significantly Influenced by Directors and their Relatives

- Pacific Finlease Pvt. Ltd

- Bajwa Aijun Property Developer Pvt. Ltd.

- Rahul Sidhu Enterprises Pvt. Ltd.

- Rahul Sidhu Business Services

8. Balance confirmation letters have been obtained from all the parties.

9. Figures of Previous year have been re-grouped and re classified wherever necessary'', in order to conform to the current year''s presentation.

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Mar 31, 2010

A) Basis of preparation of financial statements

The financial statements are prepared on accrual basis of accounting, and in accordance with the provision of Companies Act, 1956 and comply, in all material aspects, with the Accounting Standards issued by the Institute of Chartered Accountants of India notified under section 211 (3C) of the Companies Act, 1956.

B) Revenue Recognition

(i) Sale of products is recognised when the products are supplied in accordance with the terms of sale and recorded net of trade discounts and Sales Tax.

(ii) Service Income is accounted for as and when vehicles are serviced in accordance with the terms of service and recorded net of discount.

(iii) Interest income is recognized on accrual basis.

C) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use are included to the extent they relate to the period till such assets are ready to be put to use.

D) Borrowing Costs

Borrowing Costs that are directly attributable to the acquisition ,construction or production of a qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs are recognised as an expense in the period in which they are incurred. £) Depreciation:

Depreciation is provided using the Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

F) Inventories

Inventories are valued At Cost or Net Realizable value,which ever is lower. The cost is ascertained on Average basis except vehicles where cost is ascertained on specific cost basis.

G) Employee Retirement Benefits

Contribution to defined contribution schemes such as Provident Fund and ESI are charged to the profit and loss account as incurred.

H) Foreign Currency Transaction

The Company does not deal with Forign Currencyjience AS-11 "Effect of changes in Foreign Exchanges issued by the Institute of Chartered Accountants of India is not applicable.

I) Cash Flow Statements

Cash Flow Statements has been prepared following the indirect method set out in the Accounting

Stanadard -3 on "Cash Statements " issued by the Institute of Chartered Accountants of India. J) Taxes on Income

(i) Income tax expenses for the period comprise of Current Tax and Deferred Tax.

(ii) Current Tax is the amount of tax payable on the taxable income for the year determined in accordance with the provision of the Income Tax Act, 1961.

(iii) Deferred Tax is recognized,on the timming differences,being the difference between accounting income and taxable income,which originates in one period and are capable of reversal in one or more subsequent accounting periods in accordance with the provisions of Accounting Standard - 22 on "Accounting for Taxes on Income",issued by the Institute of Chartered Accountants of lndia.Deferred Tax Asset in respect of brought forward lossess is recognized only if there is virtually certainly that there will be sufficient future taxable income against which such asset can be realized.

K) Provisions and Contingent liabilities

Provisions are recognized when the company has a present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of obligation.

L) Impairment of Assets

At each balance sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount, an impairment loss is recognized in the profit and loss account to the extent the carrying amount exceeds the recoverable amount.

M) Earnings Per Share

The calculation of Earnings Per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with the requirement of Accounting Standard (AS) -20 on Earnings Per Share issued by the Institute of Chartered Accountants of India.

Diluted Earning per share is the same as Basic Earning per share because there is no potential equity shares which would have dilutive effect on earning per shares to equity shareholders.

N) Segment Reporting

The Company is Authorized Dealer of Maruti Suzuki India Limited (MSIL) and hence, is engaged in the business of sale & service of MSIL vehicles. As the basic nature of sale of variants of vehicles is governed by the same set of risk & returns, these have been grouped as single segment as per Accounting Standard(AS-17) on segment reporting issued by the Institute of Chartered Accountants of India. 2. Contingent Liabilities not provided for Service Tax Penalty of Rs 76000/- for the Assessment Year 2009-10.

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Mar 31, 2009

1) Basis of preparation of financial statements

The financial statements are prepared on accrual basis of accounting, and in accordance with the provision of Companies Act, 1956 and comply, in all material aspects, with the Accounting Standards issued by the Institute of Chartered Accountants of India notified under section 211(3C) of the companies Act, 1956.

2) Revenue Recognition

(i) Sale of products is recognised when the products are supplied in accordance with the terms of sale and recorded net of trade discounts.

(ii) Service Income is accounted for as and when vehicles are serviced in accordance with the terms of service and recorded net of discount

3) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use are included to the extent they relate to the period till such assets are ready to be put to use.

4) Borrowing Costs

Borrowing Costs that are directly attributable to the acquisition ,construction or production of a qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs are recognised as an expense in the period in which they are incurred .

5) Depreciation

Depreciation is provided using the Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

6) Inventories

Inventories are valued At Cost or Net Realizable value.which ever is lower. The cost is ascertained on Average basis except vehicles where cost is ascertained on specific cost basis.

(7) Retirement Benefit Costs

Contribution to defined contribution schemes such as Provident Fund and ESI are charged to the profit and loss account as incurred.

(8) Foreign Currency Transaction : Nil

(9) Investments :

Investments are taken at Book Value.

(10) Deferred Taxes

Tax expenses comprising of current tax and deferred tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Incomes- Tax Act.Deferred income taxes reflects the impact of current year timming differences between taxable income and accounting for the year and reversal of timing difference of earlier years.

(11) Provisions and Contingencies

Provisions arc recognized when the company has a present legal or constructive obligation, as a result c f past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of obligation.

12) Impairment of Assets

At each balance sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount, an impairment loss is recognized in the profit and loss account to the extent the carrying amount exceeds the recoverable amount.

13) Earnings Per Share

The calculation of Earnings Per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with the requirement of Accounting Standard (AS) -20 on Earnings Per Share issued by the Institute of Chartered Accountants of India.

Diluted Earning per share is the same as Basic Earning per share because there is no potential equity shares which would have dilutive effect on earning per shares to equity shareholders.

14) Segment Reporting

The Company is Authorized Dealer of Maruti Suzuki India Limited (MSIL) and hence, is engaged in the business of sale & service of MSIL vehicles. As the basic nature of sale of variants of vehicles is governed by the same set of risk & returns, these have been grouped as single segment as per Accounting Standard(AS-17) on segment reporting issued by the Institute of Chartered Accountants of India.