Punctual Trading Ltd. कंपली की लेखा नीति

Mar 31, 2024

B SIGNIFICANT ACCOUNTING POLICIES

B.1 BASIS OF PREPARATION AND PRESENTATION

The financial Statements have been prepared to comply in all material aspects with the Accounting Standards notified under
Section 133 of Companies Act, 2013 as per Companies (Indian Accounting Standards (Ind AS)) Rules, 2015 and other relevant
provisions of the Companies Act, 2013 and rules framed thereunder.

The Financial Statements have been prepared under the historical cost convention and on accrual basis, except for certain
financial assets and liabilities (including derivative instruments) measured at fair value.

B.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Property, plant and equipment :

Property, plant and equipment is stated at cost, net of accumulated depreciation. Such cost includes purchase price, taxes and
duties.

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial

year end and adjusted prospectively, if appropriate.

Tangible assets carrying value under previous GAAP is recognized as deemed cost.

(b) Impairment of non-financial assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An asset is treated as impaired when the carrying amount exceeds its recoverable value. The
recoverable amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future
cash flows are discounted to the present value using a pre-tax discount rate that reflects current market assessment of the time
value of money and risks specific to the assets. An impairment loss is charged to the Statement of Profit and Loss in the year in
which an asset is identified as impaired. After impairment, depreciation is provided on the revised carrying amount of the asset
over its remaining useful life. The impairment loss recognized in prior accounting periods is reversed if there has been a change
in the estimate of recoverable amount.

(c) Investments and financial assets
Classification

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash
flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For
investments in debt instruments, this will depend on the business model in which the investment is held. For investments in
equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition
to account for the equity investment at fair value through other comprehensive income.

The company reclassifies debt investments when and only when its business model for managing those assets changes.

Measurement

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely
payment of principal and interest except trade receivable.

Measurement of debt instruments

Subsequent measurement of debt instruments depends on the company’s business model for managing the asset and the cash
flow characteristics of the asset. There are three measurement categories into which the company classifies its debt instruments:

• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost, is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial
assets is included in finance income using the effective interest rate method.

• Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows
and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured
at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through Other
Comprehensive Income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains
and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss
previously recognised in Other Comprehensive Income is reclassified from equity to profit or loss and recognised in other
gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value
through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss, is
recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the year in which
it arises. Interest income from these financial assets is included in other income.

Measurement of equity instruments

The company subsequently measures all equity investments at fair value. Where the company’s management has elected to
present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification
of fair value gains and losses to profit or loss. Dividends from such investments are recognised in profit or loss as other income
when the company’s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/ (losses) in the
statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI
are not reported separately from other changes in fair value.

Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost
and FVOCI 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.

De-recognition of financial assets
A financial asset is derecognised only when

• The company has transferred the rights to receive cash flows from the financial asset or

• retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the
cash flows to one or more recipients.

Where the entity has transferred an asset, the company evaluates whether it has transferred substantially all risks and rewards of
ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the
financial asset, the financial asset is derecognised if the company has not retained control of the financial asset. Where the
company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in
the financial asset.

(d) Borrowings and other financial liabilities

Borrowings and other financial liabilities are initially recognised at fair value (net of transaction costs incurred). Difference
between the fair value and the transaction proceeds on initial is recognised as an asset / liability based on the underlying reason
for the difference.

Subsequently all financial liabilities are measured at amortised cost using the effective interest rate method

Preference shares which are mandatorily redeemable on a specific date are classified as a financial liability. Dividends on
preference shares are recognised in statement of profit and loss.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired.
The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and
the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. The gain /
loss is recognised in other equity in case of transaction with shareholders.

(e) Revenue recognition

Rent income are recognized on an accrual basis in accordance with the terms of relevant agreement.

Dividend is recognized when the Company’s right to receive the payment has been established.

(f) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share,
the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential equity shares.

(g) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at
call with financial institutions and banks.

(h) Employee benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of Profit and Loss for
the year in which the related service is rendered.

Post-employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss for
the year in which the employee has rendered services. Provision for Gratuity is determined as per the Provision for Gratuity Act,
1972.

Compensated absences are accounted similar to the short term employee benefits.

(i) Current and non-current classification:

The Company presents assets and liabilities in statement of financial position based on current/non-current classification. The
Company has presented non-current assets and current assets before equity, non-current liabilities and current liabilities in
accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

a) Expected to be realised or intended to be used in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months after the reporting period, or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A liability is classified as current when it is:

a) Expected to be settled in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Due to be settled within twelve months after the reporting period, or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.
Deferred tax assets and liabilities are classified as non-current assets and liabilities. The Company has identified twelve months
as its normal operating cycle.

(i) Significant Accounting Judgments, Estimates And Assumptions:

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods. The key assumptions concerning the future
and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based on its
assumptions and estimates on parameters available when the financial statements were prepared. However, existing
circumstances and assumptions about future developments may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

i) Property, plant and equipment, Investment Properties and Intangible Assets:

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of
depreciation to be recorded during any reporting period. The useful lives and residual values as per schedule II of the
Companies Act, 2013 or are based on the Company’s historical experience with similar assets and taking into account anticipated
technological changes, whichever is more appropriate.

ii) Income Tax:

The income tax expense or credit for the year is the tax payable on the current period’s taxable income based on the applicable
income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax
losses.

Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset 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. Current tax assets and tax liabilities are offset where the
entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.

iii) Contingencies:

Management has estimated the possible outflow of resources at the end of each annual reporting financial year, if any, in respect
of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with
accuracy.

iv) Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. The
Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on
Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

v) Recoverability of trade receivable:

Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against
those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of
anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

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Mar 31, 2014

A) Basis of Preparation of Financial Statements

The Finanancial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Revenue recognition

The Company follows mercantile system of accounting and recognises significant items of income.

c) Fixes Assets

Fixed Assets are stated at cost of acquisition cost less accumulated depreciation.

d) Depreciation is provided on written down value method as per the provisions of the Income Tax Act, 1961

e) Investments

Long term investments are carried at cost.

f) Provision for Current Tax

Provision for current Income Tax is made on the taxable income under the Income Tax Act, 1961.

g) Provisions. Contingent Liabilities and Contingent Assets

There are no contingent Liabilities and Assets at the end of the year.

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Mar 31, 2013

A) Basic preparation of Financial Statements

The Finana, statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Revenue recognition

The Company follows mercantile system of accounting and recognises significant items of income.

c) Fixes Assets

Fixed As: eis are stated at cost of accuisition cost less accumulated depreciation.

d) Depreciation is provided on written cown value method as per the provisions of the Income Tax Act 1961

e) Investments

Lcnc are carriec basis

f) Provision for Current Tax

Provision for current Income Tax is made on the taxable income under the Income Tax Act, 1961.

g) Provisions. Contingent Liabilities and Contingent Assets

There are no contingent Liabilities and Assets at the enu of the year.

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Mar 31, 2012

A) Basis of Preparation of Financial Statements

The Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Revenue recognition

The Company follows mercantile system of accounting and recognises significant items of income.

c) Fixes Assets

Fixed Assets are stated at cost of acquisition cost less accumulated depreciation.

d) Depreciation is provided on written down value method as per the provisions of the Income Tax Act, 1961

e) Investments

Long term investments are carried at cost.

f) Provision for Current Tax

Provision for current Income Tax is made on the taxable income under the Income Tax Act, 1961.

g) Provisions. Contingent Liabilities and Contingent Assets

There are no contingent Liabilities and Assets at the end of the year.