Encode Packaging India Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

2 Significant accounting policies
Z1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian
GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules. 2006 (as amended) and Tie
relevant provisions of the Companies Act, 1056. The financial statements have been prepared on accrual basis under the historical cost
convention . The accounting policies adopted in the preparation of the financial statements are consistent with those foilov^d in the previous

pear.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the actual resits and the estimates are recognised in the periods in which the
results are known / materiali se

2.3 Inventories

Inventories are valued at the lower of cost (on FIFO ) and the net realisable value after providing for obsolescence and other losses, where
considered necessary. Cost includes all charges in bringing the goods to the point of sale, inducting octroi and other levies, transit insurance and
receiving charges. Work-m-progress and finished goods indude appropriate proportion of overheads and. where applicable, excise duty.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of Tree
months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit l (loss) before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals cf past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information.

Z6 Depreciation and amortisation

For the year 2022-23 ''Depredationon on each asset has been provided on WDV Method as per useful lives prescribed in Schedule II to the
Companies Act, 2013 .

Z7 Revenue recognition
Sale of poods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally
coin odes with the delivery of goods to customers. Sales indude GST .

Income frorr services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.
Revenues from turnkey contracts, which are generally time bound fixed prioe contracts, are recognised over the life of the contract using Tie
proportionate completion method, wrth contract costs determining the degree of completion Foreseeable losses on such contracts are
recognised when probable.

Revenues from maintenance contracts are recognised pro-rata over the period of the contract.

2:8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the rig^rt to receive it is established
Z9 Tangible fixed assets

Fixed assets, are carried ait cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest or
borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental
expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to
acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such
assets Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are
capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is
capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of
performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till
commissioning of the project

Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book value of Tie asset given up.
adjusted for any balancing cash consideration. Fair market value is determined either for the assets acquired or asset given up, whichever is
more clearly evident. Fixed assets acqured in exchange for securities cf the Company are recorded at the fair market value of the assets or the
fair market value of the securities issued, whichever is more dearly evident.

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are earned at cost compns ng direct cost,
related incidental expenses and attributable interest.

Z10 Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any The cost of an intangible asset comprises its
purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any
directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is recognised as an expense when incurred inless it is probable that such
expenditure will enable Tie asset to generate future economic benefits in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset rel ably, in which case such expenditure is added to the cost of the asset.

Refer Note 2.21 for accounting for Research and Development Expenses

Z11 Foreign currency transactions and translations

Initial recognition

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date

Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on he
Balance Sheet date. Non-monetary items are carried at historical cost Revenue and expenses are translated at the average exchange rates
prevailing during the year. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

Treatment of exchange differences

Exchange differences arising on settiemerr. i restatement of short-term foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expense in the Statement of Profit and Loss. The exchange differences on restatemerr. /
settlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in a ’"Foreign
currency translation reserve'' until dsposalreoovery of the net investment

The exchange differences arising on restatement / settlement of long-term foreign currency monetary items are capitalised as part of the
depreciable fixed assets to which the monetary item relates and depredated over the remaining useful life of such assets or amortised on
settlement f over the maturity period of such items if such items do not relate to acquisition of depreciable fixed assets. The unamortised balance
is earned in the Balance Sheet as “Foreign currency monetary item translation difference account" net of the tax effect thereon.

Accoutring of forward contracts

Premium / discount on forward exchange contracts, which are not intended for trading or speculation purposes, are amortised over the period of
the contracts if such contracts relate to monetary items as at the Balance Sheet daee.

Refer Notes 2.26 and 2.27 for accounting for forward exchange contracts relating to firm commitments and highly probable forecast
transactions.

2.12 Government grants, subsidies and export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply wrtii the conditions
attached to them and the grants / subsidy will be received. Government grants whose primary condition is that the Company should purchase,
construct or otherwise acquire capital assets are presented by deducting them from the carrying value of the assets. The grant is recognised as
inoome over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Government grants in the nature of promoters'' contribution like investment subsidy, where no repayment is ordinarily expected in respect
thereof, are treated as capital reserve. Government grants in the form of non-monetary assets, given at a concessional rate, are recorded on the
basis of their acquisition cost. In case the non-monetary asset is gven free of cost the grant is recorded at a nominal value.

Other government grants and subsidies are recognised as income over the periods necessary to match them with the costs for which they are
intended to compensate, on a systematic basis.

2.13 Investments

Long-term investments (excluding investment properties), are carried individually at cost . Current investments are carried individually. 3t die
tower of cost and fair value. Cost of investments indude acquisition charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment if any. Investment properties are capitalised
and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment property is
determined in accordance with the policy stated for Impairment of Asses.

2.14 Employee benefits

Employee benefits indude provident fund, superannuation fund, gratuity fund, compensated absences, long servioe awards and post¬
employment medical benefits.

Defined contribution plans

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity find and post-employment medical benefits, the cost of providing benefits is determined using
the Projected Unit Crerecognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that
the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until die benefits become vested. The
retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for
unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past
servioe cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Sho''t-''.e— en~c oyee tenefts

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are
recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences
which are expected to occur wathin twelve months after the end of the period in which the employee renders the related service. The cost of such
compensated absences is accounted as inder:

(a) in case of aocurmJated compensated absences, when employees render the services that increase their entitlement of future compensated
absences, and

lb) in case of non-aocumuiatina compensated absences, when the absences occur.

Loop-term employee benefits

Compensated absences which are not expected to occur within tv^lve months after the end of the period in which the employee renders the
related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value
of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value
of the defined benefit obligation as at the Balance Sheet date.

2.15 Employee share based payments

The Company formulated no Employee Stock Option Schemes (ESOS).

Z16 Borrowing costs

Borrowing costs include interest amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the interest cost Costs in connection with the borrowing of funds to the extent not directiy
^related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs,
allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development o''"
the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is
suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets
is interrupted.

Z17 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments forwftich separate financial information is available and for which operating
prorit''loss amounts are evaluated regularly by the executive Management in deeding how to al beats resources and in assessing performance.
The accounting policies adopted for segment reporting are in line wth the accounting policies of the Company. Segment revenue, segment
expenses segment assets and segment liab I lies have been identified to segments on the basis of their relationship to the operating activities of
the segment

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair val ue factors.

Revenue, expenses, assets and liabtl ties which relate to the Company as a whole and are not allocable to segments on reasonable basis have
_been included under ‘ unallnr.vpn revenue <’ expenses ¦'' assets liabilities*_

2.18 Leases

Company has not given any of its property on lease.

2.19 Earnings per share

Basic earnings per share is computed by dividing the profit i (loss) after tax (including the post tax effect of extraordinary items, if arty) by the
weighted average number of equity shares outstanding during the year. Diluted earrings per share is computed by dividing the profit l (loss)
after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges n expense or income
relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share
and the weighted average number of equity shares which coukJ have been issued on the conversion of all dilutive potential equity shares
Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing
ordnary operations Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued
at a later date. The dilutive potential equity shares are adjusted for the proceeds recervable had the shares been actually issued at fair value (i.e.
average market value of die outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The
number of equity shares and potentially dilutive equity shares are adjusted for share splits l reverse share splits and bonus shares, as
_aczr Donate._

2.20 Taxes on income

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

Minimum Alternate Tax (MAT) paid in accordance with die tax laws, which gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing evidence that the Company wll pay normal income tax. Accordingly. MAT is
recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated wth it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between die taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and die tax laws
enacted or substantially enacted as at the reporting date Deferred tax liabilities are recognised for all timing differences Deferred tax assets in
respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient fljture
taxable income available to realise such assets Deferred tax assets are recognised for timing differences of other items only to the extent that
reasonable certainty exists that sufficient future taxable income will be available against which these can be realised Deferred tax assets and
liabilities are of*set if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable
right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

2^21 Research and development expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged :o
the Statement of Profit and Loss unless a product''s technological feasibility has been established, in which case such expenditure is caprialised.
The amount C3prialised comprises expendture that can be directly attributed or allocated on a reasonable and consistent basis to creating,
producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capital ised and depreciated
in accordance wilh the policies stated for Tangible Fixed Assets and Intangible Assets.

2 22 Joint venture operations

The accounts of die Company reflect its share of the Assets. Liabilities. Income and Expendture of the Joint Venture Operations which are
accounted on the basis of the audited accounts of the Joint Ventures on line-by-line basis with similar items in the Company s accounts to the
extent of the participating interest of the Company as per the Joint Venture Agreemerrs.At present the company has not entered in any joint
venture agreement
2.23 Impairment of assets

~he carrying values of assets / cash generating units at each Balance Sheet d3te are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their
recoverable amount The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by
discounting the fljture cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss
recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in
the Statement of Profit and Loss, except in case of revalued assets.

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Mar 31, 2014

I) Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and relevant provisions thereof.

ii) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities (including contingent liabilities) on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

iii) Inventories

Inventories are valued at lower of cost and net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sales including octori and other levied. Finished goods and work in progress are valued at cost or realizable value.

iv) Cash flow Statement

Cash flow are reported using the indirect methods, whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operating, investing and financing activities of the company are segregated based on the available information.

v) Depreciation and amortization

Depreciation has been provided for on the written down Value method (WDV) as per the rates prescribed in schedule XIV to the Companies Act, 1956. Depreciation is charged from the month of the date of purchase in the case of acquisition made during the year. In respect of assets sold, depreciation is provided up to the month prior to the date of sale. Intangible assets are amortized over their estimated useful life.

vi) Revenue recognition

SALES OF GOODS

Revenue is recognized when significant risk and rewards of ownership of the goods sold are transferred to the customer and the commodity has been dejivered to the shipping agent/ customer. Revenue represents the invoice value of goods and services provided to third parties net of discounts, sales tax/ value added and adjustments arising on analysis variances.

OTHER INCOME

Interest income is recognized on a time proportion basis by reference to the principal outstanding and at the interest rate applicable.

vii) Tangible fixed assets

Fixed assets are carried at historical cost (net of available Central and State VAT credit) less accumulated depreciation/amortization and impairment losses, if any. Costs include expenses incidental to the installation of assets and attributable borrowing and financing costs incurred upto the date the assets is ready for its intended use.

CAPITAL WORK IN PROGLSS

Projects under which assets are not ready for their intended use and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

viii) Intangible Assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.

ix) Foreign currency transactions and translations

No foreign currency Transactions are recorded during the financial year.

x) Foreign currency forward contracts

No Foreign currency forward contracts are made.

xi) Government grants, subsidies and export incentives

No Government grants and subsidies are received by the company.

xii) Investments

Long term investment is made by the company for acquiring publication unit for which advance is given.

xiii) Employee benefits

The un discounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized during the year when the employees render the service.

xiv) Borrowing Costs

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differenced arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs attributable to the acquisition or construction of assets requiring a substantial period of time . are capitalized. All other borrowing costs including exchange differences on foreign currency loans to the extent regarded as an adjustment to the interest costs are charged to statement of profit and loss and included under "Finance Cost".

xv) Segment reporting

The company is dealing in single product. Therefore, the company operates in single business segment.

xvi) Taxes on income

The company''s income taxes include taxes on the company''s taxable profits, adjustment attributable to earlier periods and changes in deferred taxes. Valuation of all tax liabilities are carried at current amounts and in accordance with the enacted tax laws and in the case of deferred taxes, at rates that have substantively enacted.

Deferred tax is calculated to correspond to the tax effect arising when final tax is determined. Deferred tax corresponds to the net effect of tax on all timing differences which occur as a result of items being for income tax purposes during a period different from when they were recognized in the financial statements.

xvii) Impairment of assets

The impairment of assets is not charged to the statement of Profit & Loss.

xviii) Provision, contingent liabilities and contingent assets

A contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is neither recognized nor disclosed.

xix) Related Party Disclosures

As per Accounting Standard 18, there are no transactions with related parties.

xx) Previous year Figures

Previous year figures are regrouped and recasted.

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Mar 31, 2013

I) Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and relevant provisions thereof.

ii) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities (including contingent liabilities) on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

iii) Inventories

Inventories are valued at lower of cost and net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sales including octopi and other levied. Finished goods and work in progress are valued at cost or realizable value.

iv) Cash flow Statement

Cash flow are reported using the indirect methods, whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operating, investing and financing activities of the company are segregated based on the available information.

v) Depreciation and amortization

Depreciation has been provided for on the written down Value method (WDV) as per the rates prescribed in schedule XIV to the Companies Act, 1956. Depreciation is charged from the month of the date of purchase in the case of acquisition made during the year. In respect of assets sold, depreciation is provided up to the month prior to the date of sale. Intangible assets are amortized over their estimated useful life.

vi) Revenue recognition

SALES OF GOODS

Revenue is recognized when significant risk and rewards of ownership of the goods sold are transferred to the customer and the commodity has been delivered to the shipping agent/ customer. Revenue represents the invoice value of goods and services provided to third parties net of discounts, sales tax/ value added and adjustments arising on analysis variances.

OTHER INCOME

Interest income is recognized on a time proportion basis by reference to the principal outstanding and at the interest rate applicable.

vii) Tangible fixed assets

Fixed assets are carried at historical cost (net of available Central and State VAT credit) less accumulated depreciation/amortization and impairment losses, if any. Costs include expenses incidental to the installation of assets and attributable borrowing and financing costs incurred up to the date the assets is ready for its intended use.

CAPITAL WORK IN PROGESS

Projects under which assets are not ready for their intended use and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

viii) Intangible Assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.

xi) Government grants, subsidies and export incentives

No Government grants and subsidies are received by the company.

xii) Investments

Long term investment is made by the company for acquiring publication unit for which advance is given.

xiii) Employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized during the year when the employees render the service.

xiv) Borrowing Costs

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differenced arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs attributable to the acquisition or construction of assets requiring a substantial period of time are capitalized. All other borrowing costs including exchange differences on foreign currency loans to the extent regarded as an adjustment to the interest costs are charged to statement of profit and loss and included under "Finance Cost".

xv) Segment reporting

The company is dealing in single product. Therefore, the company operates in single business segment.

xvi) Taxes on income

The company''s income taxes include taxes on the company''s taxable profits, adjustment attributable to earlier periods and changes in deferred taxes. Valuation of all tax liabilities are carried at current amounts and in accordance with the enacted tax laws and in the case of deferred taxes, at rates that have substantively enacted.

Deferred tax is calculated to correspond to the tax effect arising when final tax is determined. Deferred tax corresponds to the net effect of tax on all timing differences which occur as a result of items being for income tax purposes during a period different from when they were recognized in the financial statements.

xvii) Impairment of assets

The impairment of assets is not charged to the statement of Profit & Loss.

xviii) Provision, contingent liabilities and contingent assets

A contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is neither recognized nor disclosed.

xix) Related Party Disclosures

As per Accounting Standard 18, there are no transactions with related parties.

xx) Previous year Figures

Previous year figures are regrouped and recanted.

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Mar 31, 2012

I) Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and relevant provisions thereof.

ii) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities (including contingent liabilities) on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

iii) Inventories

Inventories are valued at lower of cost and net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sales including octori and other levied. Finished goods and work in progress are valued at cost or realizable value.

iv) Cash flow Statement

Cash flow are reported using the indirect methods, whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operating, investing and financing activities of the company are segregated based on the available information.

v) Depreciation and amortization

Depreciation has been provided for on the written down Value method (WDV) as per the rates prescribed in schedule XIV to the Companies Act, 1956. Depreciation is charged from the month of the date of purchase in the case of acquisition made during the year. In respect of assets sold, depreciation is provided up to the month prior to the date of sale. Intangible assets are amortized over their estimated useful life.

vi) Revenue recognition

SALES OF GOODS

Revenue is recognized when significant risk and rewards of ownership of the goods sold are transferred to the customer and the commodity has been delivered to the shipping agent/ customer. Revenue represents the invoice value of goods and services provided to third parties net of discounts, sales tax/ value added and adjustments arising on analysis variances.

OTHER INCOME

Interest income is recognized on a time proportion basis by reference to the principal outstanding and at the interest rate applicable.

vii) Tangible fixed assets

Fixed assets are carried at historical cost (net of available Central and State VAT credit) less accumulated depreciation/amortization and impairment losses, if any. Costs include expenses incidental to the installation of assets and attributable borrowing and financing costs incurred upto the date the assets is ready for its intended use.

CAPITAL WORK IN PROGESS

Projects under which assets are not ready for their intended use and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

viii) Intangible Assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.

ix) Foreign currency transactions and translations

No foreign currency Transactions are recorded during the financial year.

x) Foreign currency forward contracts

No Foreign currency forward contracts are made.

xi) Government grants, subsidies and export incentives

No Government grants and subsidies are received by the company.

xii) Investments

Long term investment is made by the company for acquiring publication unit for which advance is given.

xiii) Employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized during the year when the employees render the service.

xiv) Borrowing Costs

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differenced arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs attributable to the acquisition or construction of assets requiring a substantial period of time are capitalized. All other borrowing costs including exchange differences on foreign currency loans to the extent regarded as an adjustment to the interest costs are charged to statement of profit and loss and included under "Finance Cost".

xv) Segment reporting

The company is dealing in single product. Therefore, the company operates in single business segment.

xvi) Taxes on income

The company's income taxes include taxes on the company's taxable profits, adjustment attributable to earlier periods and changes in deferred taxes. Valuation of all tax liabilities are carried at current amounts and in accordance with the enacted tax laws and in the case of deferred taxes, at rates that have substantively enacted.

Deferred tax is calculated to correspond to the tax effect arising when final tax is determined. Deferred tax corresponds to the net effect of tax on all timing differences which occur as a result of items being for income tax purposes during a period different from when they were recognized in the financial statements.

xvii) Impairment of assets

The impairment of assets is not charged to the statement of Profit & Loss.

xviii) Provision, contingent liabilities and contingent assets

A contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is neither recognized nor disclosed.

xix) Previous year Figures

Previous year figures are regrouped and recasted.

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Mar 31, 2010

The Company follows the Mercantile System of Accounting and recognizes Income and Expenditure on accrual basis. Accounting Policies not referred to otherwise are consistent with generally accepted accounting principles.

a) Fixed Assets & Depreciation: NIL

b) Investments : NIL

c) Inventories : Stock in trade is valued at cost.

d) Deferred Income Tax : Deferred Income Tax reflects the impact of the previous years timing differences between taxable income & accounting income & of current year timing differences between taxable income & accounting income. Deferred tax is measured based on the tax rates and the tax laws enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is the reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation losses if there is virtually certainty that such deferred tax assets can be realized against future taxable profits. Unrecognized deferred tax of earlier years are reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. The management expects no immediate profits with certainty, therefore, no deferred tax assets or deferred tax liabilities is accounted for in the books of accounts, Subject to the above deferred tax asset/liability is taken at NIL

e) Gratuity : Payment of Gratuity act 1972 is not applicable to the company.

f) Patent and Trademarks: N.A.

g) Miscellaneous Expenses : Expenses in connection with the formation of the company are written off over a period of five years.