Kaizen Agro Infrabuild Ltd. कंपली की लेखा नीति

Mar 31, 2025

The operating cycle Is the time between the acquisition of assets for processing and their realization In cadi
and cash equivalents. The Company has identified period up to twelve months, es Us operating cycle.

¦ Foreign Currencies

Functional and presentation currency

Tbs financial statements are presented In INR, which is the Com puny ^?s functional currency, foreign c^reocy
transactions are Initially record*! at functional currency spot rabr* at the date tiw irarttoction first qualifies
for recognition.

Property, Plant and Equipment

Property, plant, and erpriptrent are cetYied at cost of acquisition, less accumulated rteprecl&timi qnd
accumulated Impairment, If any. Com comprise* purchase price and directly attributable cq$t of bringing the
asset to ib working condition for the intended use, Whan significant parts of piant and equipment are required
to be replaced at intervals, the Company depredates them separately based on their specific useful lives
Likewise, when a. major Inspection is performed, Its cost Is recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. Ail other repair and maintenance cost*
are recognised in the Statement of Profit and Loss os incurred. The present value of the expected cost for the
decommissioning of nn asset after Its use is included in the cost of the respective asset if tte recognition
criteria for a provision are met. Material items sue* ^ spare parts, stand-by equipment and service equipment
are classified as PPE when they meet the definition of PP)E as specified in Ind AS If - fToperty, Plant and
Equipment

An item of froperty, Plant and Equipment and any significant part Initially recognised is derecognised upon
disposal or when no future economic benefits are wpected from its use or disposal. Gains or looses arfslr^
from derecognition of the asset are measured as the difference between the net disposal proceeds and the
currying amount of the asset and are recognized in the Statement of Profit and Loss when the asset ts
derecognized.

Depreciation nn Property, Plant and Equipment other than land ts provided on the Stralgru-Llw Method to
allocate their cost, net of their residual values on the basis of useful Iteet prescribed In the Schedule n of th-
Companies Act, Z013,

inventories

Inventories are valued at the lower of cost and net realisable value, Haw materials, Stores ft Spare parts.
Finished Goods and Traded Goo* stated at the lower of cent and estimated net realisable value. Cost comprise
expenditure Incurred in this normal course of bittiness in bringing such Inventories to their present location
end oafidttlcn and Includes appropriate overheads {]h case of Finished GoodsByproducts, whose cost is not
identifiable, are valued at estimated net realisable value. Cost Is determined on weighted average basis,
tluwever. materials and other Items held for use in lhe production at inventories are not written down below
cost 1f the finished products in which they will be incorporated are expected to he sold ''are At or above cost.
Het realizable value Is the estimated selllny price in the ordinary oourws of business, less estimated tost; of
^r:omptetlon and estimated costs nacre wry to make the tele.

Omh and Cash Equivalent;

Cain anil cash equivalent comprise cash at banks and t*i hand imJ Jtv>rt-teim deposit* with an original maturity
of three months or less, which are subject to an Insignificant risk of changes In value.

Ttede FteceWahhri

Trade receivables are recognized Initially at the trwisattfcn price as tlvey do not contain significant financing
components. The Company holds the trade raceivaWK with the objective of coiled! ng the contractual cash
flows and therefore measures them subsequently at amortised cost using the effective Interest method, la®
loss allowance.

Impairment of nan-flnahCl»l 41MiS

Th* tympany assesses at tach reporflns data wherhef thereIs an indication mat an axrct may be impaired. If any indtratfan
©defcs, the Company estimate* tha asset''s recoverable amount An asset''s retoverable amount Is the higher of an asset’* or
cash-generating units'' (G5U J net oilrig prtte and Its value In use. The recoverable amount Is determined for an Individual
asset unless die asset does not generate cash Inflows t hit are largaiy independent of those from rfher assets or groups qf
assets, Where the carrying amount of an asset or CGU exceeds its recoverable amount, the ssset i
considered impaired and Is written nown to Its recoverable amount

In assessing value In use. the iitimatcd future cash Hows are diistounted to their r>rewm value using a pr&,iaxdlsrr:i!rii
rate that reflects currem. rnsruet asaewmentsofthe time value of money and the risks specific to the asset, in determining
net salting price, recent market transactions are taken Into account, if available. If no such transitions ran be identified.

.Art anhmrrhf* uali lafirtn mrJdl I*

TJi* Company bases its Impairment oaliuPriori or: detailed budget; for each of the Company''s cash-ganarating units to which the individual assets ers allctared. impairment losses ol
continuing operations. Including impairment on inventor are recttfinised In the Statement of Profit and loss

Revenue from contracts with customer

Avenue from contracts with customer is recognised when control of the goods or services are transferred to
the customer at an amount tltat reflects the consideration to which the Company expects to be entitled In
exchanae for these goo* or sendees. The Company has generally concluded that ft is the principal In Id
revenue arrangements, because it typically control* the goods or services before transferring them to the
customer Revenue is measured at the amount of transaction pric^ net of returns, discounts, volume rebates,
outgoing sales taxes Including goods and service tax. The Company reajgnfssi. revenue whan the amount of
reverrue can be reliably measured, it r& probable that future economic benefits wfU flow to the Compare/
regardless of when the payment Is being made. The specific recognition criteria described below must also be
met before revenue is recognised.

Sale of Goods

Revenue from sale of goods H recognized when the Company transfers the control of flood* to the customer as
per the terms of contract The Company considers whether there are other promises In the contract that are
separate performance obtlflattons to which a portion of the transaction price needs to be allocated. in
determining the transaction price, the Company considers the effects of variable eontideratiun, the existence
of significant financing somporimt, non-cash considerations and consideration payable to the customer (it
any).

Interest Income

Interest Income 1s recognised on & rime proportion basis taking into account the amount outstanding and the
applicable Interest rate. Interest income from debt instrument; is recognised using the effective interest rate
method.

Taxation

Tax expense is the fiflgreflftte amount Included In the determination of profit or loss for the period in respect
of current tax and deferred tax. Current tax: Current tax h the amount of Income taxes payable In respect of
taxable profit for a period. Taxable prefit differ: from "profit before tax'' a; reporter in the Statement of from
and Loss because of items of income or expense that are taxable oi deductible in other yean and items that
are never taxable or deductible under the Income Tax Act, 1961. Current tax is measured using tax rates that
have been enacted by the end at reporting p&Hod for the amounts expected to be recovered from z* paid to
the taxation authorities.Deferred rax s recognised on temporary differences between the carrying aments of
assets and liabilities in the Financial Statements and the comespondlnfl tax bases used in the computation of
taxable profit under income tax Act, 1961. Deferred tax assets and liabilities are severally recognised for all
deductible and taxable temporary differences respectively. However, In case of temporary differences that
arise from initial recc^nltlon of assets ;jr liabilities in a transaction (other than business combination) that
affect neither the taxable profit norths accounting profit or¹ does rxrt give ri$e to equal taxable and deductible
temporary differences, deferred tax assets or liabilities are not recognised- Also, foe temporary differences if
any rtat may ari&e from initial recognition of goodwill, deferred tax liabilities ere not raoosntred. Deterred
tax assets are recognised to tf* extent It is probable that taxable profits will be available against which thme
deductible temporary difference can U utilized. The canylnj amount of deferred tax assets is reviewed at
tha end of eadi reporting period nod reduced to the extent that it is no longer probable that sufficient baxabta
profits will be available to allow the benefits of part or ftU of such deferred tax assets to be utilized, Deferred
tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by
the balance Sheet date and are expected to apply to taxable Income in the years in which those temporary
differences are expected to be recovered or settled.Presentation of current and deferred tax: Current and
deferred tux are recognised as income or an expense to the Statement of Profit and Loss, except deferred tax
relating to items recognised outside profit or lost is recognised outside profit or lota (either in other
comprehensive Income or fn equity).

Segment fteportfbi

The Company operates in a single business segment ami In n single geographical ^rea. Accordingly, there are
no separate reports We segments as defined by Indian Accounting Standard (ind AS) tft) on Operating Segments.
Earning* per Share

B^sic Earnings P*J is calculated ty dividing the net profit or toss for the period attributable to equity
shareholder by the weighted average number of equity shares outstanding during the period

The weighted average number of equity shares outstanding during the period is adjusted for events sudi as
bonus issue, bonus dement In a rights issue, share split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding, without a corresponding change In resources.

ror the purpose of calculating diluted earnings per share, the ncn. profit or loss for the period attributable to
cjqufty shareholders and the weighted average numter of shares outstanding during the period Is adjusted for
the effects of all dHutlye potential equity shares.

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Mar 31, 2024

Corporate Information

Kaizen Agro Infrabuild Limited (previously Anubhav Infrastructure Limited) (the Company) is a Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956.

The Company is in the business of providing land development, construction services and other related services for civil & structural construction and infrastructure sector projects.

1. Significant Accounting Policies & Notes:

1.1 Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 as applicable. Up to the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the company''s first Ind AS financial statements. The date of transition to Ind AS is April 1st, 2016. Refer Note 27 for the details of first-time adoption exemptions availed by the Company. In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented a reconciliation under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP" or "Indian GAAP") to Ind AS.

Basis of Preparation of Financial Statements

These financial statements are prepared on historical cost basis, except for certain financial instruments which are measured at fair values as explained in the accounting policies below.

1.3. Presentation and disclosure of Financial Statements

During the year ended 31st March 2011, Revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year. The revised schedule VI allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the face of the financial statements when such presentation is relevant to an understanding of the Company''s financial position or performance or to cater to industry/sector-specific disclosure requirements. As per Companies Act 2013 Schedule VI name has been replaced by Schedule III.

1.4. Use of Estimates

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

1.5. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and shortterm investments with an original maturity of three months or less.

1.6. Provision For Current & Deferred Tax

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

1.7. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as Current Investments. All other investments are classified as Long-Term Investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Both current investments and long-term investments are carried in the financial statements at cost. On disposal of an investment, the difference between it''s carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.8. Current Assets & Loans

In the opinion of the Board and to the best of its knowledge and belief the value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and repayable on demand.

1.9. Property. Plant & Equipment Tangible Assets:

Tangible assets are stated at their cost of acquisition net of receivable CENVAT and VAT Credits. All costs, direct or indirect, relating to the acquisition and installation of fixed assets and bringing it to its working condition for its intended use are capitalized and include borrowing costs and adjustments arising from foreign exchange rate variations directly attributable to construction or acquisition of fixed assets. Depreciation on fixed assets is provided on straight line method (SLM) on a pro-rata-basis at the rates and in the manner specified in part C of Schedule II to the Companies Act, 2013. In respect of assets acquired/sold during the period, depreciation has been provided on pro-rata basis with reference to the days of addition/put to use or disposal.

Impairment of tangible and intangible Assets:

Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use i.e. the present value of

future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment

loss for an asset is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognized.

¹-¹⁰- Recognition of Income & Expenditure

income and expenditure are recognised and accounted for on accrual basis. Revenue is recognised to the extent that It is probable tha, the economic benefits will flow to the Company and the revenue can be reliably measured Revenue from sale of goods Is recognised on transfer of significant risks and rewards of ownership to the customer

and when no significant uncertainty exists regarding realisation of the consideration. Sales are recorded net-of sales returns, sales tax/VAT, cash and trade discounts.

i-H- Earning Per Sharps

The Company reports Basic and Diluted earnings per equity share in accordance with the Accounting standard . 20 on Earning Per Share. In determining earning per share, the Company considers the net profit after tax and includes e post tax effect ot any extraordmary/exceptional items. The number of shares used in computing basic earnings per share IS the weighted average number of equity shares outstanding during the period. The numbers of shares used m computing diluted earnings per share comprises the weighted average number of equity shares that would have been issued on the conversion of all potential equity shares. Dilutive potential equity shares have been deemed converted as of the beginning of the period, unless issued at a later date.

¹-¹²'' Provision, Contingent Liabilities and Contingent AccPtc

Provisions involving substantial degree of estimation in measurement a,e 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.

The Company are not recognized any Contingent Liabilities and Contingent Assets in the financial statements.

1-13. Cash Flow Statement

Cash flows are reported usihg the indirect method, whereby profit before tax is adjusted for the effects of trarrsactroos of a non-cash nature, any deferrals or accruals or accruals of pas, & future operating cash receipts or ymen s an item of income or expenses associated with investing and financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1-14. Borrowing Cn«>t

Borrowing costs that are attributable to the acquisition or construction qualifying assets are capitalised as part o,

the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

^1,ls- Foreign Currency Transactions

Earnings in Foreign Currency - Nil (Previous year: Nil)

Expenditure in Foreign Currency - Nil (Previous Year: NIL)

1.16. Contingent Liabilities not provided for

The company does not have any Contingent liability that need to disclosed in the notes on accounts.

1.17. MSMED Act, 2006

The Government of India has promulgated an Act namely The Micro, Small and Medium Enterprises Development Act, 2006 which comes into force with effect from October 2, 2006. As per the Act, the company is required to identify the Micro, Small & Medium suppliers and pay them interest on over dues beyond the specified period irrespective of the terms agreed with the suppliers. The Company does not have any dues to any entity covered under The Micro, Small and Medium Enterprises Development Act, 2006.

1.18. COVIP-19

The outbreak of Coronavirus (COVID-19) pandemic globally and in India has caused significant disturbance and slowdown of economic activity. During the year ended March 31, 2024, there is no significant impact on the ope-ations of the Company. The Company has taken into account the possible impact of COVID-19 in preparation of financial statements, including its assessment of recoverable value of its assets based on internal and external information up to the date of approval of these financial statements and current indicators of future economic conditions.

1.19. Contingent Liabilities & Pending Litigations

The company does not have any Contingent Liabilities & pending litigations as on the Balance Sheet date and hence no provision is required under any law or accounting standard, for material foreseeable losses if any on long term contracts including derivative contracts.

1.20. Related Party Disclosures

In accordance with the provisions of AS 18 "Related Party Disclosures" and the Companies Act, 2013, Subsidiary company and Company''s Directors, are considered as Key Management Personnel.

(a) Holding Companies

I. NIL

(b) Associate Companies

I. NIL

(c) Subsidiary Companies

I. NIL

1.21. Transactions with related parties NIL

the Company for holding arw Benami propert^r^rtV'' "^{he,e proeee,Iln6 has been lnitlated} or pending against

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foreign entitles SST” “ ^S"''‘^i!Vli“⁾''

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(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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^{(a) Wen,ified ,n any ma}""^{er b}v or on

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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VIII. The Company has not been declared as willful defaulter by any Banks. Financial institution or other lenders.

1-23 Dividend

The company has no, declared or paid any dividend during the year and has no, proposed final dividend for the year 1-24 Impairment of Assets

The carrying amounts of assets are reviewed a, each balance sheet date if there is any indication of impairment based on mternal/external factors. An impairment loss is recognized wherever the carrying amount of an asset

us h ''>¦ T ^amOUnt'' ^{The re}“^{ve,able am}“"t « the higher of the asset’s net selling price and value in

use, which rs determined by the present value of the estimated future cash flows

1.25 Medium Enterprises Development Act, 2006 and hence disclosures have been made only for the parties from whom the declaration has been received. In respect of other vendors from whom declaration has not been received disclosure has not been made for those which have not been received disclosure has not been made.

1.26 Party''s Balance with respect to the Trade Receivables, Trade & Other Payables, Loans & advances are subject to confirmation/reconciliation. In the opinion of management, the same are receivable/ payable as stated in the books of accounts. Hence, no effect on the profitability due to the same for the year under review.

1.27 Previous year''s figure has been regrouped/rearranged whenever necessary to conform to the current years presentation.

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Mar 31, 2015

CORPORATE INFORMATION

ANUBHAV INFRASTRUCTURE LIMITED {the Company) is a Limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 as amended Companies Act, 2013.

The Company is in the business of providing land development, construction services and other related services for civil & structural construction and infrastructure sector projects.

1. Basis Of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India {Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, {as amended) and the relevant provisions of the Companies Act,2013.The accounting policies adopted in the preparation of financial statements are consistent with those of previous year. The financial statements have been prepared on an accrual basis except as otherwise stated. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. 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 ascertains its operating cycle for the purpose of current/non-current classification of assets and liabilities.

2. Presentation and disclosure of financial statements

During the year ended 31st March 2011, Revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.The revised schedule VI allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the face of the financial statements when such presentation is relevant to an understanding of the company's financial position or performance or to cater to industry/sector-specific disclosure requirements. As per Companies Act 2013 Schedule Vi name has been replaced by Schedule III.

3. Use Of Estimates

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

4. Cash and cash equivalents

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

5. Provision For Current And Deferred Tax

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

6. Investments

investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as Current Investments. All other investments are classified as Long Term Investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Both current investments and long term investments are carried in the financial statements at cost. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

7. Current Assets, Loans & Advances

In the opinion of the Board and to the best of its knowledge and belief the value on realisation of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and repayable on demand.

8. Fixed Assets and Depreciation

Tangible Assets :

Tangible assets are stated at their cost of acquisition net of receivable CENVAT and VAT Credits. All costs, direct or indirect, relating to the acquisition and installation of fixed assets and bringing it to its working condition for its intended use are capitalised and include borrowing costs and adjustments arising from foreign exchange rate variations directly attributable to construction or acquisition of fixed assets. Depreciation on fixed assets is provided on straight line method (SLM) on a pro-rata- basis at the rates and in the manner specified in part C of Schedule II to the Companies Act, 2013. In respect of assets acquired/sold during the period, depreciation has been provided on pro-rata basis with reference to the days of addition/put to use or disposal.

Impairment of tangible and intangible Assets :

Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price and value in use i.e. the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognized.

9. Recognition of Income & Expenditure

Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods is recognised on transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding realisation of the consideration. Sales are recorded net of sales returns, sales tax/VAT, cash and trade discounts.

10. Earning Per Shares

The Company reports Basic and Diluted earnings per equity share in accordance with the Accounting Standard - 20 on Earning Per Share. In determining earning per share, the Company considers the net profit after tax and includes the post tax effect of any extraordinary/exceptional items. The number of shares used in computing basic earning per share is the weighted average number of equity shares outstanding during the period. The numbers of shares used in computing diluted earning per share comprises the weighted average number of equity shares that would have been issued on the conversion of all potential equity shares. Dilutive potential equity shares have been deemed converted as of the beginning of the period, unless issued at a later date.

11. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financja! statements.

12. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals or accruals of past & future operating cash receipts or payments and item of income or expenses associated with investing and financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

13. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of of such assets, A qualifying assets is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

14. Foreign Currency Transactions

The Company follows Accounting Standard- 11 issued by the Institute of Chartered Accounting of India to account for the foreign exchange transactions.

15. lease Policy

(i) Finance Leases:

Leases which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item are capitalised at the inception of the lease term at the lower of the fair value of the leased property and present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of the interest on the remaining balance of the liability. Finance charges are recognaised as finance costs in the Statement profit and loss.

(ii) Operating Leases:

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating lease. Operating lease payments are recognised as an expense in the statement of profit and Loss on a straight line basis over the lease term.

17. Related Party Disclosers

Related party disclosers as required under Accounting Standard-18 on "Related party Discloser" are given below:-

18. During the year under review the promoters of the Company i.e. Parmeshwar Barter Private Limited and Parmeshwar Mercantile Private Limited has got the shares of the Company listed on BSE SME platform by the way of Offer for Sale. Both the promoters offered 30 lacs share each for offer for sale.