Mackinnon Mackenzie & Company Ltd. कंपली की लेखा नीति

Mar 31, 2025

1) Corporate Information

a. Mackinnon Mackenzie & Company Limited (the “Company”) is a public limited company domiciled in India. Its shares are listed on the Bombay Stock Exchange., temporarily suspended for trading. The registered office of the Company is located at 4, Shoorji Vallabhdas Marg, Ballard Estate, Mumbai-400001.

b. The company is in the business of property owing and leasing, shipping agency.

c. The financial statements of the Company for the year ended 31st March, 2025 were approved and adopted by the board of directors of the Company in their meeting dated 31.07.2025.

2) Significant Accounting Policies

a) Statement of Compliance

These financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended for rules issued thereafter, the provisions of the Companies Act, 2013 (“the Act”) and guidelines issued by the Securities and Exchange Board of India except as mentioned in note 2(m) Long term employee benefits.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b) Basis of Preparation

These financial statements have been prepared on the historical cost convention and on accrual basis.

c) Current and Non-Current classification

All assets and liabilities are presented in the Balance Sheet based on current or non-current classification as per Company''s normal operating cycle and other criteria set out in the division II of Schedule III of the Act.

Based on the nature of service and the time between the acquisition of assets for processing and their realization, the Company has ascertained its operating cycle as twelve months for the purpose of current/ non-current classification of assets and liabilities.

d) Functional currency and presentation of currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency''). The financial statements are presented in Indian Rupee, which is the Company''s functional and presentation currency. All amounts are rounded off to the nearest rupees in lakhs.

e) Segment Reporting

Ind AS 108 Operating Segments requires Management to determine reportable segments for the purpose of disclosure in financial statements based on internal reporting reviewed by the Chief Operating Decision Maker (CODM) to assess performance and allocate resources. The standard also requires Management to make judgments with respect to aggregation of certain operating segments into one or more reportable segments.

The Company has determined that the Chief Operating Decision Maker (CODM) is the Board of Directors (BOD), based on its internal reporting structure and functions of BOD. The Operating Segment used to present segment information identified based on the internal reports used and reviewed by the BOD to assess performance and allocate resources. The Management has determined that Company''s current business activity has only one reportable segment Property Owning and Leasing.

f) Revenue Recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized to the extent that is it is probable that the economic benefits will flow to the company and the revenue can be reliable measured. Revenue is recognized on satisfaction of performance obligation as per contract.

Income from services including commission income is recognised when the services are rendered or when contracted milestones have been achieved.

Rental income from property is recognised as per the terms of the agreement and when it is probable that the consideration will be collected to which it will be entitled in exchange for the services that will be transferred to the tenant.

g) Income Tax Current Income tax

Provision for current tax is made as per the provisions of Income Tax Act, 1961. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where applicable.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, and deferred tax assets are recognised for all deductible temporary differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or the substantive enactment date.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxation authority.

Deferred tax assets pertaining to unabsorbed depreciation or carry forward of losses under tax laws is recognized only to the extent that there is virtual certainty supported by convincing evidence that future taxable income will be available against which such deferred tax assets can be realized. In all other cases, recognition of deferred tax asset is based on reasonable certainty instead of virtual certainty.

Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each Balance Sheet date. At each reporting date, the Company re-assesses unrecognised deferred tax assets. It recognises previously unrecognised deferred tax assets to the extent that it has become probable that future taxable profit allow deferred tax assets to be recovered.

h) Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of a) fair value of assets less cost of disposal and b) its value in use. Value in use is the present value of future cash flows expected to derive from an asset or CashGenerating Unit (CGU).

Based on the assessment done at each balance sheet date, recognised impairment loss is further provided or reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss as applicable, the depreciation charge for the asset is adjusted in future periods to allocate the asset''s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. If the conditions leading to recognition of impairment losses no longer exist or have decreased, impairment losses recognised are reversed to the extent it does not exceed the carrying amount that would have been determined after considering depreciation / amortisation had no impairment loss been recognised in earlier years.

Non-financial Assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

i) Cash and Cash Equivalents

For the purpose of presentation in the cash flow statement, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments, with original maturities of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit and loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the statement of profit and loss.

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period. Financial Assets

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets measured at fair value

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows or to sell these financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

In respect of equity investments which are not held for trading, the Company has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument by instrument basis at the time of initial recognition of such equity investments. Financial asset not measured at amortised cost or at fair value through other comprehensive income is carried at fair value through the statement of profit and loss.

Impairment of financial assets

The Company recognises loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognised as an impairment gain or loss in statement of profit and loss.

De-recognition of financial assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the assets and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

Financial liabilities and equity instruments Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method where the time value of money is significant. Interest bearing bank loans and overdrafts are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the statement of profit and loss. De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or they expire.

k) Property, Plant and Equipment

Subsequent to transition to Ind AS, property, plant and equipment are stated at cost of acquisition less accumulated depreciation and accumulated impairment losses, if any. Gross carrying amount of all property, plant and equipment are measured using cost model.

Cost of an item of property, plant and equipment includes purchase price including non-refundable taxes and duties, borrowing cost directly attributable to the qualifying asset, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and the present value of the expected cost for the dismantling/ decommissioning of the asset.

Cost for subsequent additions comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use. Subsequent expenditures are added to its gross book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance.

The Company identifies and determines cost of each component/part of the plant and equipment separately, if the component/part has a cost which is significant to the total cost of the plant and equipment and has useful life that is materially different from that of the remaining plant and equipment.

Gains or losses arising from de-recognition of tangible property, plant and equipment are recognised in the Statement of Profit and Loss.

Depreciation is provided on all assets (other than free hold land and capital work-in-progress), on pro-rata basis, using written down value method based on the respective estimate of useful lives as given below:

The management believes that useful lives currently used is as prescribed under Part C of Schedule II to the Companies Act, 2013, fairly reflect its estimate of the useful lives and residual values of property, plant and equipment.

Estimated useful lives of the Property, Plant and Equipment are as follows:

Nature of Assets	Useful Life ( Years)
Building (leasehold)	60
Furniture and Fitting	10
Office Equipment''s	5
Plant and Machinery	15
Computer	3

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

Advances towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under ‘''Other non-current assets''''. Cost of assets under construction / acquisition / not put to use at the Balance sheet date are disclosed under ‘''Capital work-in-progress''''

l) Borrowing Cost

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 respective asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest expenses calculated as per effective interest method, exchange difference arising from foreign currency borrowings to the extent they are treated as an adjustment to the borrowing cost and other costs that an entity incurs in connection with the borrowing of funds.

m) Employee Benefits

Short term employee benefits

Short Term employee benefits such as salaries, wages, bonus etc, are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

Long term employee benefits

Provision for Gratuity has been made on arithmetical basis in respect of the employees on the assumption that all employees retire on 31st March 2025. Provision for compensated absences has been made on arithmetic basis in respect of all employees.

n) Contributed Equity

Equity shares are classified as Equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

o) Earnings Per Share

(i) Basic earnings per share: It is calculated by dividing

- The profit attributable to owners of the Company

- By the weighted average number of equity shares outstanding during the financial year

(ii) Diluted earnings per share: Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

- The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares which includes stock options granted to employees.

p) Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision, when there is a present obligation as a result of past events, the settlement of which is probable to result in an outflow of resources and a reliable estimate can be made of the amount of obligation. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the Company of the facts and legal aspects of the matters involved.

Contingent Assets are neither recognized nor disclosed.

q) Critical Judgments, Estimates and Assumptions

The preparation of the financial statements requires the management to make estimates, judgements and assumptions that affect the application of accounting policies and the reported balances of assets and liabilities, disclosure of contingent assets and liabilities as on the date of financial statements and reported amounts of income and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates.

Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed below:

i. Estimation of useful life of property, plant and equipment

ii. Impairment of property, plant and equipment

iii. Estimation of provisions and contingent liabilities

iv. Fair value measurement and impairment of financial instruments

v. Recognition of “Right-of-use” of assets as per the requirement of Ind AS 116. a. Litigations

From time to time, the Company is subjected to legal proceedings, the ultimate outcome of each being always subject to many uncertainties inherent in litigations. A provision is made when it is considered probable that payment will be made and the amount of the loss can be reasonably estimated. Significant judgment is made when evaluating, among other factors, the probability of unfavorable outcome and the ability to make a reasonable estimate of the amount of potential loss. Litigation provisions are reviewed at each accounting year and revisions made for the changes in facts and circumstances.

r) Foreign currency transactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. As at the Balance Sheet date, foreign currency monetary items are translated at closing exchange rate. Exchange difference arising on settlement or translation of foreign currency monetary items are recognised as income or expense in the year in which they arise.

Foreign currency non-monetary items which are carried at historical cost are reported using the exchange rate at the date of transaction. Foreign currency non-monetary items which are measured at fair value are reported using the exchange rate at the date when the fair value is determined. Exchange difference arising on fair valuation of non-monetary items is recognised in line with the gain or loss of item that give rise to such exchange difference (i.e. translation differences on items whose gain or loss is recognised in statement of profit and loss or other comprehensive income is also recognised in statement of profit or loss or other comprehensive income respectively)

s) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease i.e., if the contract conveys the right to control the use of an identified asset for a period in exchange of consideration.

A lease for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

Short Term Lease

The Company is not recognizing right-of-use assets and lease liabilities for short-term leases (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option) and leases of low-value assets to the extent of Rs.50,000/-p.m. The Company recognises the lease payments associated with these leases as an expense over the lease term.

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Mar 31, 2024

2) Significant Accounting Policies

a) Statement of Compliance

These financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended for rules issued thereafter,
the provisions of the Companies Act, 2013 (“the Act”) and guidelines issued by the Securities and Exchange Board of
India except as mentioned in note 2(m) Long term employee benefits.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b) Basis of Preparation

These financial statements have been prepared on the historical cost convention and on accrual basis.

c) Current and Non-Current classification

All assets and liabilities are presented in the Balance Sheet based on current or non-current classification as per
Company''s normal operating cycle and other criteria set out in the division II of Schedule III of the Act.

Based on the nature of service and the time between the acquisition of assets for processing and their realization, the
Company has ascertained its operating cycle as twelve months for the purpose of current/ non-current classification of
assets and liabilities.

d) Functional currency and presentation of currency

Items included in the financial statements of the Company are measured using the currency of the primary economic
environment in which the Company operates (‘the functional currency''). The financial statements are presented in
Indian Rupee, which is the Company''s functional and presentation currency. All amounts are rounded off to the nearest
rupees in lakhs.

e) Segment Reporting

Ind AS 108 Operating Segments requires Management to determine reportable segments for the purpose of disclosure
in financial statements based on internal reporting reviewed by the Chief Operating Decision Maker (CODM) to assess
performance and allocate resources. The standard also requires Management to make judgments with respect to
aggregation of certain operating segments into one or more reportable segments.

The Company has determined that the Chief Operating Decision Maker (CODM) is the Board of Directors (BOD),
based on its internal reporting structure and functions of BOD. The Operating Segment used to present segment
information identified based on the internal reports used and reviewed by the BOD to assess performance
and allocate resources. The Management has determined that Company''s current business activity has only one
reportable segment Property Owning and Leasing.

f) Revenue Recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized to the extent
that is it is probable that the economic benefits will flow to the company and the revenue can be reliable measured.
Revenue is recognized on satisfaction of performance obligation as per contract.

Income from services including commission income is recognised when the services are rendered or when contracted
milestones have been achieved.

Rental income from property is recognised as per the terms of the agreement and when it is probable that the
consideration will be collected to which it will be entitled in exchange for the services that will be transferred to the
tenant.

g) Income Tax
Current Income tax

Provision for current tax is made as per the provisions of Income Tax Act, 1961. Management periodically evaluates
positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation
and establishes provisions where applicable.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised
amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are
recognised for all taxable temporary differences, and deferred tax assets are recognised for all deductible temporary
differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will
be available against which those deductible temporary differences, carry forward tax losses and allowances can be
utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as
income or expense in the period that includes the enactment or the substantive enactment date.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxation authority.

Deferred tax assets pertaining to unabsorbed depreciation or carry forward of losses under tax laws is recognized only
to the extent that there is virtual certainty supported by convincing evidence that future taxable income will be available
against which such deferred tax assets can be realized. In all other cases, recognition of deferred tax asset is based
on reasonable certainty instead of virtual certainty.

Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each Balance Sheet
date.

At each reporting date, the Company re-assesses unrecognised deferred tax assets. It recognises previously
unrecognised deferred tax assets to the extent that it has become probable that future taxable profit allow deferred tax
assets to be recovered.

h) Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based
on internal / external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the higher of a) fair value of assets less cost of disposal and
b) its value in use. Value in use is the present value of future cash flows expected to derive from an asset or Cash¬
Generating Unit (CGU).

Based on the assessment done at each balance sheet date, recognised impairment loss is further provided or
reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss
as applicable, the depreciation charge for the asset is adjusted in future periods to allocate the asset''s revised carrying
amount, less its residual value (if any), on a systematic basis over its remaining useful life. If the conditions leading
to recognition of impairment losses no longer exist or have decreased, impairment losses recognised are reversed to
the extent it does not exceed the carrying amount that would have been determined after considering depreciation /
amortisation had no impairment loss been recognised in earlier years.

Non-financial Assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.

i) Cash and Cash Equivalents

For the purpose of presentation in the cash flow statement, cash and cash equivalents include cash on hand, deposits
held at call with financial institutions, other short-term, highly liquid investments, with original maturities of three months
or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.

j) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets and financial liabilities are recognised when the Company becomes a
party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit and loss) are added to or deducted from the fair
value measured on initial recognition of financial asset or financial liability. The transaction costs directly attributable to
the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised
in the statement of profit and loss.

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future
cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.
Financial Assets

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets measured at fair value

Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business model whose objective is to hold these assets in order to collect contractual cash flows or to sell
these financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

In respect of equity investments which are not held for trading, the Company has made an irrevocable election to
present in other comprehensive income subsequent changes in the fair value of such equity instruments. Such an
election is made by the Company on an instrument by instrument basis at the time of initial recognition of such equity
investments.

Financial asset not measured at amortised cost or at fair value through other comprehensive income is carried at fair
value through the statement of profit and loss.

Impairment of financial assets

The Company recognises loss allowances using the expected credit loss (ECL) model for the financial assets which
are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component
is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at
an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition
in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required
to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognised as an
impairment gain or loss in statement of profit and loss.

De-recognition of financial assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire,
or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity. If the
Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognises its retained interest in the assets and an associated liability for amounts it
may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial
asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.

Financial liabilities and equity instruments
Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all
of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured
at amortised cost, using the effective interest rate method where the time value of money is significant. Interest bearing
bank loans and overdrafts are initially measured at fair value and are subsequently measured at amortised cost using
the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement
or redemption of borrowings is recognised over the term of the borrowings in the statement of profit and loss.
De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or they expire.

k) Property, Plant and Equipment

Subsequent to transition to Ind AS, property, plant and equipment are stated at cost of acquisition less accumulated
depreciation and accumulated impairment losses, if any. Gross carrying amount of all property, plant and equipment
are measured using cost model.

Cost of an item of property, plant and equipment includes purchase price including non-refundable taxes and duties,
borrowing cost directly attributable to the qualifying asset, any costs directly attributable to bringing the asset to the
location and condition necessary for its intended use and the present value of the expected cost for the dismantling/
decommissioning of the asset.

Cost for subsequent additions comprises the purchase price and any other attributable cost of bringing the asset to its
working condition for its intended use. Subsequent expenditures are added to its gross book value only if it increases
the future benefits from the existing asset beyond its previously assessed standard of performance.

The Company identifies and determines cost of each component/part of the plant and equipment separately, if the
component/part has a cost which is significant to the total cost of the plant and equipment and has useful life that is
materially different from that of the remaining plant and equipment.

Gains or losses arising from de-recognition of tangible property, plant and equipment are recognised in the Statement
of Profit and Loss.

Depreciation is provided on all assets (other than free hold land and capital work-in-progress), on pro-rata basis, using
written down value method based on the respective estimate of useful lives as given below:

The management believes that useful lives currently used is as prescribed under Part C of Schedule II to the Companies
Act, 2013, fairly reflect its estimate of the useful lives and residual values of property, plant and equipment.

Estimated useful lives of the Property, Plant and Equipment are as follows:

Advances towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified
as capital advances under ‘''Other non-current assets''''. Cost of assets under construction / acquisition / not put to use
at the Balance sheet date are disclosed under ‘''Capital work-in-progress''''

l) Borrowing Cost

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 respective asset till such time the asset is ready for its intended use or sale. A
qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale.
All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest expenses
calculated as per effective interest method, exchange difference arising from foreign currency borrowings to the extent
they are treated as an adjustment to the borrowing cost and other costs that an entity incurs in connection with the
borrowing of funds.

m) Employee Benefits

Short term employee benefits

Short Term employee benefits such as salaries, wages, bonus etc, are recognized as an expense at the undiscounted
amount in the statement of profit and loss of the year in which the related service is rendered.

Long term employee benefits

Provision for Gratuity has been made on arithmetical basis in respect of the employees on the assumption that all
employees retire on 31st March 2024. Provision for compensated absences has been made on arithmetic basis in
respect of all employees.

n) Contributed Equity

Equity shares are classified as Equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.

o) Earnings Per Share

(i) Basic earnings per share: It is calculated by dividing

- The profit attributable to owners of the Company

- By the weighted average number of equity shares outstanding during the financial year

(ii) Diluted earnings per share: Diluted earnings per share adjust the figures used in the determination of basic
earnings per share to take into account:

- The after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and

- The weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares which includes stock options granted to employees.

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Mar 31, 2014

(i) Basis of Accounting

These financial statements are prepared in accordanvce with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspect of accounting standards notifed under Section 211(3C). [ ( Companies Accounting Standards} Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classifed as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956 Based on the nature of products and the time between the acquisition of asset for processing and their realisation in cash and cash equivalents , the Company has ascertained its operating cycle as 12 months for the purpose if current-non-current classifcation of assets and liabilities.

ii) Fixed Assets and Depreciation

(a) Fixed Assets :Tangibles

All Tangible assets are stated at cost of acqusition less accumulated depreciation.

(b) Depreciation: Tangibles

Depreciation on Tangible assets has been provided on the Written Down Method at the rate specified in Schedule XIV of the Companies Act, 1956. c) The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the amount recoverable of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that is a previously assessed impairment no longer exists, the recoverable amount is reassessed and the asset is refected at the recover- able amount.

iii) Investments

Long Term Investments are valued at cost. Provision has been made for permanent diminution in the value of invest- ments , if any, except where data is not available.

iv) Revenue Recognition: Revenues are recognised on accrual basis.

v) Foreign Currency Transactions

i) Transactions in Foreign Exchange are recorded at the exchange rates prevailing on the date of realisation. ii) Current Assets and Liabilities balances in foreign currency at the date of Balance Sheet are translated with reference to year and exchange rates, the loss/gain , on such translation is accounted for in the Profit & Loss Account.

vi Retirement benefits

i) Defined Contribution Plans: The company''s contribution in respect of Provident Fund and Superannuation Fund is charged to Profit & Loss Account each year.

ii) Defined benefit Plan/Long Term Compensated Absences: Provision for Gratuity has been made on arithmetical basis in respect of employees on the assumption that all employees retire on 31st March 2014. Provision for compensated absences has been made on arithmetic basis in respect of all employees.

vii Taxation

i) Current Tax: No provision is made in view of the loss and carried forward loss

ii) Deferred Tax: Net deferred tax asset has not been recognised by the company in view of uncertainty of future taxable income.

c) The company has one class of Equity Shares having a par value of Rs 1 per share. Each shareholder is eligible for one vote. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in the case of the Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholdings

e) In order to bring in line the paid up capital which was not represented by the assets due to huge carried forward losses the company had made a petition the the Hon. Bombay High Court under section 100 and other applicable provisions of the Companies Act, 1956 for reduction of capital from Rs 2.50 crores to Rs 25 Lacs by reducing the paid up value of the share from Rs 10 to Rs 1. The Hon.Bombay High Court has confirmed the reduction of capital vide their order dated 15th April 2004.Consequently Rs 22,375,012 ( after adjusting forfeiture of 27,775 shares and Rs13,888 amount paid on forfeited shares) has been reduced from the accumulated losses of the company during the year ended 31st March 2005.

Note:

The Hon''able Bombay High Court has approved the application of the banks for transfer of debts owed by the company to them to M/s Ardeshir B Cursettjee & Sons Ltd ( hereinafter referred to A.B.C & Sons Ltd, ) along with securities and mortagage charges. Consequently suits fled by the banks pending before the Debt Recovery Tribunal has transposed M/s A.B.C & Sons Ltd in place of the banks. Total amount due to M/s A.B. C & Sons Ltd against debts of various banks taken over by them is Rs 8,25,61,29,338.( Previous Year Rs 8,25,61,29,338) and no interest has been provided thereon.

Notes:

(a) Trade payables include an amount of Rs 26,51,925 ( Previous Year Rs 26,51,925) which represents old balances for which no write back has been made pending the review /confirmations of the same.

(b) In view of the multiplicity and identifcation of accounts relating to small scale undertakings, information for determin- ing the particulars relating to current indebtedness to such undertakings as required under Schedule VI part I to the Companies Act, 1956 is not readily available.

Notes

a) Investments include an amount of Rs 236000 representing equity shares in a co-operative society towards purchase of fat

b) Investments Rs 15,120 are kept as security with authorities. These investments have matured. The Company is not in a position to get the same from authorities as the same are lost or misplaced. No provision is made for loss of investments Rs 15,120 and accrued interest Rs 8545 as company is still following up with the authorities

c) Investments made at Kolkata Rs 56,000 are presently not physically available as building is destroyed by fre. In absence of adequate data, no provision is made for loss of investments if any

d) NA denotes not available 19

Note: Other Loans and Advances include certain old balances amounting to Rs 8,18,785/- (Previous Year Rs 8,18,785/-) for which no provision for doubtful items has been made in accounts pending review confirmation of the same. As a result , the effect on such non-provision on the loss for the year cannot be ascertained.

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Mar 31, 2012

(i) Basis of Accounting

These financial statements are prepared in accordanvce with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspect of accounting standards notified under Section 211(3C). [ ( Companies Accounting Standards} Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956.

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 VI to the Companies Act, 1956 Based on the nature of products and the time between the acquisition of asset for processing and their realisation in cash and cash equivalents, the Company has as- certained its operating cycle as 12 months for the purpose if current-non-current classification of assets and liabilities.

(ii) Fixed Assets and Depreciation

(a) Fixed Assets Tangibles

All Tangible assets are stated at cost of acqusition less accumulated depreciation.

(b) Depreciation: Tangibles

Depreciation on Tangible assets has been provided on the Written Down Method at the rate specified in Schedule XIV of the Companies Act, 1956.

c) The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the amount recoverable of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that is a previously assessed impairment no longer exists, the recoverable amount is reassessed and the asset is reflected at the recover- able amount.

iii) Investments

Long Term Investments are valued at cost. Provision has been made for permanent diminution in the value of invest- ments, if any, except where data is not available.

iv) Revenue Recognition: Revenues are recognised on accrual basis.

v) Foreign Currency Transactions

i) Transactions in Foreign Exchange are recorded at the exchange rates prevailing on the date of realisation.

ii) Current Assets and Liabilities balances in foreign currency at the date of Balance Sheet are translated with reference to year and exchange rates, the loss/gain, on such translation is accounted for in the Profit & Loss Account.

vi Retirement Benefits

i) Defined Contribution Plans: The company's contribution in respect of Provident Fund and Superannuation Fund is charged to Profit & Loss Account each year.

ii) Defined Benefit Plan/Long Term Compensated Absences: Provision for Gratuity has been made on arithmetical basis in respect of employees on the assumption that all employees retire on 31st March 2012. Provision for compensated absences has been made on arithmetic basis in respect of all employees.

vii Taxation

i) Current Tax: No provision is made in view of the loss and carried forward loss

ii) Deferred Tax: Net deferred tax asset has not been recognised by the company in view of uncertainty of future taxable income.

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Mar 31, 2010

A) Basis of Accounting

The financial statements are prepared in accordance with the requirements of the Companies Act, 1956, including the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India, under historical cost convention on accrual basis.

b) Fixed Assets and Depreciation

i) Fixed assets are stated at cost, less accumulated depreciation.

ii) Depreciation on Fixed Assets is provided on the "Written Down Value Method" (WDV) at the rate specified in Schedule XIV to the Companies Act, 1956.

iii) in case of assets sold/scrapped/disposed oft, pro-rata depreciation is provided in the accounts upto the date of sale/scrapping/disposal of the assets as the case may be.

iv) Assets costing less than Rs.5,000/- are fully depreciated in the year of purchase.

v) Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arms length transaction between knowledgeable, willing parties, less the cost of disposal.

c) Investments

Long term investments are valued at cost. Provision has been made for permanent diminution in the value of investments, if any, except where data is not available.

d) Foreign Currency Transactions

i) Transactions in Foreign Exchange are recorded at the exchange rates prevailing on the date of realisation.

ii) Current Assets and Liabilities balances in foreign currency at the Balance Sheet date are translated with reference to year end exchange rates, the loss/gain, on such translations is accounted for in the Profit & Loss Account.

e) Retirement Benefits

i) Defined Contribution Plans: The companys contribution in respect of Provident fund and Superannuation fund is charged to Profit & Loss

Account each year. it) Defined Benefit Plan/Long Term Compensated Absences: Provision for gratuity has been made on arithmetical basis in respect of employees on the assumption that all employees retire on 31st March 2010. Provision for compensated absences has been made on arithmetical basis in respect of all employees.

f) Taxation

i) Current Tax : No provision is made in view of loss and carried forward loss

ii) Deferred Tax : Net Deferred tax asset has not been recognised by the company in view of uncertainity of future taxable income.