Manbro Industries Ltd. कंपली की लेखा नीति

Mar 31, 2025

2.2.1 Current versus non - current classification

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 has determined its operating cycle as twelve months for the purpose of current-non
current classification of assets and liabilities.

2.2.2 Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts
of cash that are subject to an insignificant risk of change in value and having original maturities of three months
or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with
banks which are unrestricted for withdrawal and usage.

Cash flow statement

''Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the
effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the company are segregated.

2.2.3 Financial Assets
Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
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 at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business whose objective is achieved by both collecting contractual cash flows that give rise on
specified dates to solely payments of principal and interest on the principal amount outstanding and by selling
financial assets. The Company has made an irrevocable election to present subsequent changes in the fair value
of equity investments not held for trading in Other Comprehensive Income.

Financial assets at fair value through profit or loss (FVTPL)

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair
value through other comprehensive income on initial recognition. The transaction costs directly attributable to
the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in
profit or loss.

Financial liabilities

Financial liabilities are measured at amortised cost using the effective interest method.

2.2.4 Impairment

Financial assets (other than at fair value)

The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried
at amortised cost and FVTOCI debt instruments. The impairment methodology applied depends on whether
there has been a significant increase in credit risk. For trade receivables only, the Company applies the
simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to
be recognised from initial recognition of the receivables.

PPE and intangibles assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever
there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair value less cost to sell and the value-in- use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which
the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying
amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
recognised in the Statement of Profit and Loss.

2.2.5 Inventories

Inventories are valued at lower of cost (First in First out) and net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to
their present location and condition, including all taxes and other levies, transit insurance and receiving charges.
Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable,
excise duty. Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and the estimated costs necessary to make the sale.

2.2.6 Revenue recognition

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, regardless of when the payment is being made. Revenue is measured at
the fair value of the consideration received or receivable, taking into account contractually defined terms of
payment, net of taxes or duties collected on behalf of the government.

However, sales tax/ value added tax (VAT)/Goods and Service tax (GST) is not received by the company on
its own account. Rather, it is tax collected on value added to the commodity/services by the seller on behalf of
the government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must also be met before revenue is recognised.

Sale of goods

Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which
time all the following conditions are satisfied:

the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

the Company retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the goods sold

the amount of revenue can be measured reliably;

it is probable that the economic benefits associated with the transaction will flow to the Company; and the costs
incurred or to be incurred in respect of the transaction can be measured reliably.

Interest Income

Interest income from financial assets is recognized when it is probable that economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial assets to that asset’s net
carrying amount on initial recognition.

Dividend

Dividend income from investments is recognised when the shareholder’s right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the Company and the
amount of income can be measured reliably).

Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent
that there is no uncertainty in receiving the claims.

2.2.7 Employee benefit expenses

Employee benefits consist of contribution to provident fund, superannuation fund, gratuity fund and
compensated absences.

(i) Post-employment benefit plans Defined Contribution plans

Payments to defined contribution retirement benefit scheme for eligible employees in the form of superannuation
fund are charged as an expense as they fall due. Such benefits are classified as Defined Contribution Schemes
as the Company does not carry any further obligations, apart from the contributions made.

The Company also makes contribution towards provident fund, in substance a defined contribution retirement
benefit plan for qualifying employees. The provident fund is deposited with the Provident Fund Commissioner
which is recognized by the Income Tax authorities.

Defined benefit plans

The Company operates various defined benefit plans- gratuity fund and Compensated absence. The liability or
asset recognised in the balance sheet in respect of its defined benefit plans is the present value of the defined
benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using the projected unit credit method. The present value of the
said obligation is determined by discounting the estimated future cash outflows, using market yields of
government bonds that have tenure approximating the tenures of the related liability. The interest income /
(expense) are calculated by applying the discount rate to the net defined benefit liability or asset. The net
interest income/ (expense) on the net defined benefit liability or as set is recognised in the Statement of Profit
and loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in
retained earnings in the Statement of Changes in Equity and inthe Balance Sheet. Changes in the present value
of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in
profit or loss as past service cost.

Short term employee benefit

Compensated absences which accrue to employees and which can be carried to future periods but are
expected to be encashed or availed in twelve months immediately following the year end are reported as
expenses during the year in which the employees perform the services that the benefit covers and the liabilities
are reported at the undiscounted amount of the benefits after deducting amounts already paid. Where there are
restrictions on availment of encashment of such accrued benefit or where the availment or encashment is
otherwise not expected to wholly occur in the next twelve months, the liability on account of the benefit is
actuarially determined using the projected unit credit method.

2.2.8 Foreign currency translation

The functional currency of the Company is Indian rupee On initial recognition, all foreign currency transactions
are translated into the functional currency using the exchange rates prevailing on the date of the transaction. As
at the reporting date, foreign currency monetary assets and liabilities are translated at the exchange rate
prevailing on the Balance Sheet date and the exchange gains or losses are recognised in the Statement of Profit
and Loss.

2.2.9 Borrowing cost

Borrowing costs are interest and ancillary costs incurred in connection with the arrangement of borrowings.
General and specific borrowing costs attributable to acquisition and construction of any qualifying asset (one
that takes a substantial period of time to get ready for its designated use or sale) are capitalised until such time
as the assets are substantially ready for their intended use or sale, and included as part of the cost of that asset.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation. All the other borrowing costs
are recognised in the Statement of Profit and Loss within Finance costs of the period in which the y are
incurred.

2.2.10 Income tax

Income tax expense comprises current tax expense and the net change in the def erred tax asset or liability
during the year. Current and deferred taxes are recognised in Statement of Profit and Loss, except when they
relate to items that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.

Current tax

Current tax is measured at the amount of tax expected to be payable on the taxable income for the year as
determined in accordance with the provisions of the Income T ax Act, 1961.

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

Deferred tax

Deferred income tax is recognised using the Balance Sheet approach. Deferred income tax assets and liabilities
are recognised for deductible and taxable temporary differences arising between the tax base of assets and
liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable
profit or loss at the time of the transaction.

Deferred tax assets are recognised only to the extent that it is probable that either future taxable profits or
reversal of deferred tax liabilities will be available, against which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of a deferred tax asset shall be reviewed at the end of each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period and are expected to apply when the related deferred
tax asset is realised or the deferred tax liability is settled.

Deferred tax assets and liabilities are off set when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority.

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Mar 31, 2024

Note No. 2 : MATERIAL ACCOUNTING POLICIES

2.1 Basis of Preparation of Financial Statements

These financial statements comply in all material aspects with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'')as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with of the Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and other relevant provisions of the act.

2.3 Summary of Material Accounting Policies

2.3.1 Current versus non - current classification

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 has determined its operating cycle as twelve months for the purpose of current-non current classification of assets and liabilities.

2.3.2 Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage. Cash flow statement

''Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated.

2.3.3 Financial Assets Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business 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 at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows that give rise on specified dates to solely payments of principal and interest on the principal amount outstanding and by selling financial assets. The Company has made an irrevocable election to present subsequent changes in the fair value of equity investments not held for trading in Other Comprehensive Income.

Financial assets at fair value through profit or loss (FVTPL)

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or loss.

Financial liabilities

Financial liabilities are measured at amortised cost using the effective interest method.

2.3.4 Impairment

Financial assets (other than at fair value)

The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried at amortised cost and FVTOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

PPE and intangibles assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in- use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the Statement of Profit and Loss.

2.3.5 Inventories

Inventories are valued at lower of cost (First in First out) and net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to their present location and condition, including all taxes and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

2.3.6 Revenue recognition

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, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment, net of taxes or duties collected on behalf of the government.

However, sales tax/ value added tax (VAT)/Goods and Service tax (GST) is not received by the company on its own account. Rather, it is tax collected on value added to the commodity/services by the seller on behalf of the government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must also be met before revenue is recognised.

Sale of goods

Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:

the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold the amount of revenue can be measured reliably;

it is probable that the economic benefits associated with the transaction will flow to the Company; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest Income

Interest income from financial assets is recognized when it is probable that economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assets to that asset''s net carrying amount on initial recognition.

Dividend

Dividend income from investments is recognised when the shareholder''s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).

Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

2.3.7 Employee benefit expenses

Employee benefits consist of contribution to provident fund, superannuation fund, gratuity fund and compensated absences.

(i) Post-employment benefit plans Defined Contribution plans

Payments to defined contribution retirement benefit scheme for eligible employees in the form of superannuation fund are charged as an expense as they fall due. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made.

The Company also makes contribution towards provident fund, in substance a defined contribution retirement benefit plan for qualifying employees. The provident fund is deposited with the Provident Fund Commissioner which is recognized by the Income Tax authorities.

Defined benefit plans

The Company operates various defined benefit plans- gratuity fund and Compensated absence.

The liability or asset recognised in the balance sheet in respect of its defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the said obligation is determined by discounting the estimated future cash outflows, using market yields of government bonds that have tenure approximating the tenures of the related liability. The interest income / (expense) are calculated by applying the discount rate to the net defined benefit liability or asset. The net interest income/ (expense) on the net defined benefit liability or as set is recognised in the Statement of Profit and loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Statement of Changes in Equity and inthe Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Short term employee benefit

Compensated absences which accrue to employees and which can be carried to future periods but are expected to be encashed or availed in twelve months immediately following the year end are reported as expenses during the year in which the employees perform the services that the benefit covers and the liabilities are reported at the undiscounted amount of the benefits after deducting amounts already paid. Where there are restrictions on availment of encashment of such accrued benefit or where the availment or encashment is otherwise not expected to wholly occur in the next twelve months, the liability on account of the benefit is actuarially determined using the projected unit credit method.

2.3.8 Foreign currency translation

The functional currency of the Company is Indian rupee On initial recognition, all foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the date of the transaction. As at the reporting date, foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are recognised in the Statement of Profit and Loss.

2.3.9 Borrowing cost

Borrowing costs are interest and ancillary costs incurred in connection with the arrangement of borrowings. General and specific borrowing costs attributable to acquisition and construction of any qualifying asset (one that takes a substantial period of time to get ready for its designated use or sale) are capitalised until such time as the assets are substantially ready for their intended use or sale, and included as part of the cost of that asset. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All the other borrowing costs are recognised in the Statement of Profit and Loss within Finance costs of the period in which the y are incurred.

2.3.10 Income tax

Income tax expense comprises current tax expense and the net change in the def erred tax asset or liability during the year. Current and deferred taxes are recognised in Statement of Profit and Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.

Current tax

Current tax is measured at the amount of tax expected to be payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

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

Deferred tax

Deferred income tax is recognised using the Balance Sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred tax assets are recognised only to the extent that it is probable that either future taxable profits or reversal of deferred tax liabilities will be available, against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of a deferred tax asset shall be reviewed at the end of each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets and liabilities are off set when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.

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Mar 31, 2014

(a) Accounting Convention

The financial statements are prepared by following the Going Concern Concept under the historical cost convention on accrual basis, in accordance with the generally accepted accounting principles in India , the accounting Standards issued by the institute of Chartered Accountants of india and the provisions of the companies Act, 1956.

(b) Fixed Assets

The company is not having any fixed assets.

(c) Depreciation

As no fixed assets are held by the company, no depreciable is being charged.

(d) Impairment of Assets

This clause is not applicable on this company.

(e) Investment

No investment are held by the company.

(f) Tax on income

Due to losses, no provision for Income Tax has been provided under the provided under the provisions of The Income Tax Act, 1956.

Deferred tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods, Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2013

(i) Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956 as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) Fixed Assets:

Fixed Assets are stated at their historical cost less accumulated depreciation. Additions, Improvements and major renewals are capitalized. Maintenance, repair and minor repairs are charged to Statement of Profit & Loss.

(iii) Depreciation:

Depreciation is provided on historical cost basis using Straight-line basis at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(iv) Revenue Recognition

Revenue is being recognized on accrual basis of accounting in accordance with the Guidance note issued by the Institute of Chartered Accountants of India. In all other cases, revenue (income) is recognized when no significant uncertainty as to its determination or realization exists.

(v) Miscellaneous Expenditure:

Miscellaneous Expenditure is written off in the period in which it is incurred.

(vi) Investments:

Long Term Investments

Investments are valued at cost. Diminution in the value of investments is recognized only if such decline is other than temporary in the management''s opinion. Current Investments

Current investments are stated at lower of cost and fair value.

(vii) Classification of Current/Non-current Assets and Liabilities:

An asset is classified as current when it satisfies following criteria:

a) It is expected to be realized in or is intended for provisioning of service in, the company''s operating cycle;

b) It is expected to be realized within 12 months after the reporting date;

c) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

d) All other assets are classified as Non-current.

A liability is classified as current when it satisfies any of following criteria:

a) It is expected to be settled in the company''s normal operating cycle;

b) It is due to be settled within 12 months after the reporting date;

c) The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

All other liabilities are classified as Non-current

(viii) Amortization:

(ix) Retirement Benefits :

Short-term employee benefits

These 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 Gratuity

The company provides for gratuity to its employees in the form of defined benefit retirement plan (the "Gratuity Plan") covering all employees. The Plan provides a lump sum payment to vested employees at retirement, death or on termination of employment of an amount based on the respective employee''s salary and the years of employment with the company. The company provides for gratuity based on the actuarial valuation.

Leave Encashment

Liability in respect of Provision for Leave Encashment is made, based on the actuarial valuation made by an independent actuary as at the Balance Sheet date.

(x) Foreign Exchange Transactions:

Foreign currency transactions arising during the year are recorded at the exchange rate prevailing on the date of transaction. Closing balance of current Assets and Liabilities are converted at the rate of exchange prevailing at the end of the year. Any increase or decrease arising out of the above is taken to the Statement of Profit & Loss.

(xi) Taxation:

Provision for Income Tax:

Provision for Income Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the Provisions of Income Tax Act, 1961.

Deferred Tax:

Deferred Income Taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred Tax is measured based on the Tax Rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax Assets relating to timing differences are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2011

1) REVENUE RECOGNITION

Revenue is being recognised on accrual basis of accounting in accordance with the Guidance note issued by the Institute of chartered Accountants of India. Accordingly, if there are any uncertainties in realisation, Income is not accounted for.

2) FIXED ASSETS

Fixed assets are accounted for on historical cost basis, inclusive of the cost of installation, as the case may be.

3) GRATUITY

No provision for gratuity is made as no staff falling under this category at the last day of the financial year.

4) FOREIGN CURRENCY

Not Applicable , as no Sales are made during the year under review.

5) INVESTMENT

Investments are valued at cost inclusive of expenses incidental to their acquisition, if any. Investments meant for long term are carried at cost and any diminution in value, though material is not recognised if such diminution in value, in the opinion of the management, is temporary in nature.

6) TRANSACTIONS IN FOREIGN CURRENCIES(Other than for Fixed Assets)

Not applicable, as no transaction in Foreign Currency are carried out during the year under review.

7) TAXATION

(a) Provision for Income Tax is made in accordance with Income Tax Act, 1961

8) PROVISION FOR DOUBTFUL DEBTS

The Company does not make provision for doubtful debts, and follow the practice or writing off bad debts as and when determined. However, all the debts exceeding more than one year.

9) PROVISION FOR EXPENSES

The Company made necessary provision for all the required expenses pertaining to financial year 2010-11.

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Mar 31, 2010

1) REVENUE RECOGNITION

Revenue is being recognised on accrual basis of accounting in accordance with the Guidance note issued by the Institute of chartered Accountants of India. Accordingly, if there are any uncertainties in realisation, Income is not accounted for.

2) FIXED ASSETS

Fixed assets are accounted for on historical cost basis, inclusive of the cost of installation, as the case may be.

3) GRATUITY

No provision for gratuity is made as no staff falling under this category at the last day of the financial year.

4) FOREIGN CURRENCY

Not Applicable , as no Sales are made during the year under review.

5) INVESTMENT

Investments are valued at cost inclusive of expenses incidental to their acquistion, if any. Investments meant for long term are carried at cost and any diminution in value, though material is not recognised if such diminution in value, in the opinion of the management, is temporary in nature.

6) TRANSACTIONS IN FOREIGN CURRENCIES(Other than for Fixed Assets)

Not applicable, as no transaction in Foreign Currency are carried out during the year under review.

7) TAXATION

(a) Provision for Income Tax is made in accordance with Income Tax Act, 1961

8) PROVISION FOR DOUBTFUL DEBTS

The Company does not make provision for doubtful debts, and follow the practice or writing off bad debts as and when determined. However, all the debts exceding more than one year.

9) PROVISION FOR EXPENSES

The Company made necessary provision for all the required expenses pertaning to financial year 2009-2010.

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Mar 31, 2009

1) REVENUE RECOGNITION

Revenue is being recognised on accrual basis of accounting in accordance with the Guidance note issued by the Institute of chartered Accountants of India. Accordingly, if there are any uncertainties in realisation, Income is not accounted for.

2) FIXED ASSETS

Fixed assets are accounted for on historical cost basis, inclusive of the cost of installation, as the case may be.

3) GRATUITY

No provision for gratuity is made as no staff falling under this category at the last day of the financial year.

4) FOREIGN CURRENCY

Not Applicable, as no Sales are made during the year under review.

5) INVESTMENT

Investments are valued at cost inclusive of expenses incidental to their acquistion, if any. Investments meant for long term are carried at cost and any diminution in value, though material is not recognised if such diminution in value, in the opinion of the management, is temporary in nature.

6) TRANSACTIONS IN FOREIGN CURRENCIES(Other than for Fixed Assets)

Not applicable, as no transaction in Foreign Currency are carried out during the year under review.

7) TAXATION

(a) Provision for Income Tax is made in accordance with Income Tax Act, 1961

8) PROVISION FOR DOUBTFUL DEBTS

The Company does not make provision for doubtful debts, and follow the practice or writing off bad debts as and when determined. However, all the debts exceding more than one year.

9) PROVISION FOR EXPENSES

The Company made necessary provision for all the required expenses pertaning to financial year 2008-2009.