Hit Kit Global Solutions Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Company Overview

Hit Kit Global Solutions Ltd (“the Company”) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act 1956. The registered office of the Company is located at Office No. 3131/B, Rustomjee Eaze Zone, Laxmi Singh Complex, Malad West, Mumbai 400064. The Company is engaged in the business of Retail Trading. The Company is listed on the Bombay Stock Exchange (BSE).

1. Significant Accounting Policies

A. Basis of Preparation & Measurement:

These financial statements have been prepared in accordance with Indian Accounting standards (‘Ind AS’) notified by the Ministry of Corporate Affairs under section 133 of the Companies Act, 2013 (‘Act’) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and the relevant provisions of the Act.

Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31^st March, 2025, the Statement of Profit and Loss for the year ended 31^st March, 2025, the Statement of Cash Flows for the year ended 31^stMarch, 2025 and the Statement of Changes in Equity for the year ended as on that date, and accounting policies and other explanatory information (together hereinafter referred to as ‘financial statements’).

These Financial Statements were approved by the Board of Directors and authorized for issue on 27^th May, 2025.

The Financial Statements have been presented in Indian Rupees (INR), which is the Company’s functional currency. All financial information presented in INR has been rounded off to the nearest rupee, unless otherwise stated.

The financial statements have been prepared on an accrual system, based on the principle of going concern and under the historical cost convention, unless otherwise stated. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Accounting Estimates and Judgments:

The preparation of financial statements in accordance with Ind AS requires management to make certain judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates, with the differences between the same being recognized in the period in which the results are known or materialize. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognized prospectively.

Information about areas involving a higher degree of judgment or complexity or critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities are included in the following notes:

The areas involving critical estimates or judgments are:

a. Impairment of Financial Assets such as Trade Receivable.

b. Impairment of Non-Financial Assets.

c. Estimates of Tax Expenses and Liability.

d. Revenue recognitions.

Estimates and judgments are regularly revisited. Estimates are based on historical experience and other factors, including futuristic reasonable information that may have a financial impact on the company.

1. Property Plant &Equipment:

(a) Initial Measurement & Recognition

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of an item of Property, plant and equipment comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the assets to its working condition for its intended use with any trade discounts or rebates being deducted in arriving at purchase price. Cost of the assets also includes interest on borrowings attributable to acquisition, if any, of qualifying fixed assets incurred up to the date the asset is ready for its intended use.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of Property, plant and equipment.

Cost of Property, plant and equipment not ready for intended use as on the balance sheet date, is disclosed as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each balance sheet date are disclosed as Capital Advances under Other non-current Assets.

Any gain or loss on disposal of an item of property plant and equipment is recognized instatement of profit and loss.

(b) Subsequent expenditure

Subsequent costs are included in the asset’s carrying value recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period in which they are incurred.

(c) Depreciation:

Depreciation is provided on the written down value method based on estimated useful life prescribed under Schedule II to the Companies Act, 2013 Depreciation on assets added/disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable.

The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed at each financial year end and adjusted prospectively, if appropriate.

2. Cash and Cash Equivalents

Cash and cash equivalents are short-term (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.

3. Impairment of Non-Financial Assets:

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that a non-financial asset maybe impaired. If any indication of impairment exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made.

Asset/cash generating unit whose carrying value exceeds their recoverable amount are written down to the recoverable amount by recognizing the impairment loss as an expense in the Statement of Profit and Loss. Recoverable amount is higher of an asset’s or cash generating unit’s fair value less cost of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of its useful life.

Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased. An impairment loss recognized for goodwill is not reversed in subsequent periods.

4. Financial Instruments:

(A) Financial Assets

Recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. On initial recognition, a financial asset is recognized at fairvalue, in case of financial assets which are recognized at fair value through profit and loss (FVTPL), its transaction cost is recognized in the statement of profit and loss. In other cases, the transaction cost is attributed to the acquisition value of the financial asset.

Financial assets are subsequently classified as measured at

• Amortized cost

• Fair value through profit and loss (FVTPL)

• Fair value through other comprehensive income (FVOCI)

(a) Measured at amortized cost: Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortized cost using the effective interest rate (‘EIR’) method less impairment, if any. The amortization of EIR and loss arising from impairment, if any, is recognized in the Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive income: Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in the other comprehensive income (OCI). Interest income measured using the EIRmethod and impairment losses, if any are recognized in the Statement of Profit and Loss. On de-recognition, cumulative gain or loss previously recognized in OCI is reclassified from the equity to ‘other income’ in the Statement of Profit and Loss.

(c) Measured at fair value through profit or loss: A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL.Such financial assets are measured at fair value with all changes infair value, including interest income and dividend income if any,recognized as ‘other income’ in the Statement of Profit and Loss.

Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business model for managing financial assets.

Trade Receivables and Loans:

Trade receivables and loans are initially recognized at fair value. Subsequently, these assets are held at amortized cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is the rate that discounts estimated future cash income through the expected life of financial instrument.

Equity Instruments:

Investments in equity instruments, if any, are classified under financial assets are initially measured at fair value.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Impairment of Financial Assets

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category. For financial assets other than trade receivables, as per Ind AS 109, the Company recognizes 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company’s trade receivables do not contain significant financing component and loss allowance on trade receivables is measure date an amount equal to life time expected losses i.e. expected cash short fall. The impairment losses and reversals are recognized in Statement of Profit and Loss, if any.

(B) Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortized cost unless at initial recognition, they are classified as fair value through profit and loss. In case of trade payables, they are initially recognized at fairvalue and subsequently, these liabilities are held at amortized cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortized cost using the EIR method.

Financial liabilities carried at fair value through profit or loss is measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.

5. Revenue Recognition

Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of dispatch. Revenue from the sale of goods is measured at the value of the consideration received or receivable, net of returns and discounts and net of all taxes.

6. Taxation:

Income tax expense for the year comprises of current tax and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent it relates to a business combination or to an item which is recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. Interest income/ expenses and penalties, if any, related to income tax are included in current tax expense

Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is recognized using the tax rates enacted, or substantively enacted, by the end of the reporting period.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Current tax assets and current tax liabilities are offset 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 assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

7. Provisions and Contingent Liabilities

Provisions are recognized when the Company

(a) has a present obligation (legal or constructive) as a result of a past event,

(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and

(c) reliable estimate can be made of the amount of the obligation.

Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date. If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

8. EMPLOYEE BENEFITS/ RETIREMENT BENEFITS:

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

SHORT-TERM OBLIGATION:

Short-term employee benefits like salaries, wages, bonus and welfare expenses payable wholly within twelve months of rendering the services are accrued in the year in which the associated services are rendered by the employees and are measured at the amounts expected to be paid when the liabilities are settled.

LONG-TERM OBLIGATION

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognized 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. LongService Awards are recognized as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

DEFINED CONTRIBUTION PLANS

Contributions to defined contribution schemes such as employees’ state insurance, labour welfare fund, superannuation scheme, employee pension scheme etc. are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. Company’s provident fund contribution, in respect of certain employees, is made to a government administered fund and charged as an expense to the Statement of Profit and Loss. The above benefits are classified as Defined ContributionSchemes as the Company has no further defined obligations beyond the monthly contributions.

9. Earnings Per Share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity share outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, if any, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

B. Other Notes to Accounts

1) In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet, except for trade receivables and loans and advances which are covered under the management’s policy in respect of bad and doubtful debts as taken in the previous years, if any.

2) Debit and Credit balances are subject to confirmation and reconciliation.

3) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties identified on the basis of information available with the Company and relied upon by the auditors.

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Mar 31, 2024

1. Significant Accounting Policies
A. Basis of Preparation & Measurement:

These financial statements have been prepared in accordance with Indian Accounting standards
(''Ind AS'') notified by the Ministry of Corporate Affairs under section 133 of the Companies Act,
2013 (''Act'') read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as
amended) and the relevant provisions of the Act.

Accordingly, the Company has prepared these Financial Statements which comprise the Balance
Sheet as at 31^st March, 2024, the Statement of Profit and Loss for the year ended 31^st March, 2024,
the Statement of Cash Flows for the year ended 31^st March, 2024 and the Statement of Changes in
Equity for the year ended as on that date, and accounting policies and other explanatory
information (together hereinafter referred to as ''financial statements'').

These Financial Statements were approved by the Board of Directors and authorized for issue on
15^th April, 2024.

The Financial Statements have been presented in Indian Rupees (INR), which is the Company''s
functional currency. All financial information presented in INR has been rounded off to the nearest
rupee, unless otherwise stated.

The financial statements have been prepared on an accrual system, based on the principle of going
concern and under the historical cost convention, unless otherwise stated. Accounting policies have
been consistently applied except where a newly issued accounting standard is initially adopted or
are vision to an existing accounting standard requires a change in the accounting policy hitherto in
use.

Accounting Estimates and Judgments:

The preparation of financial statements in accordance with Ind AS requires management to Make
certain judgments, estimates and assumptions in the application of accounting policies that affect
the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates, with the differences between the same being recognized in the period in which
the results are known or materialize. Continuous evaluation is done on the estimation and
judgments based on historical experience and other factors, including expectations of future events
that are believed to be reasonable. Revisions to accounting estimates are recognized prospectively.

Information about areas involving a higher degree of judgment or complexity or critical judgments
in applying accounting policies, as well as estimates and assumptions that have the most significant
effect to the carrying amounts of assets and liabilities are included in the following notes:

The areas involving critical estimates or judgments are:

a. Impairment of Financial Assets such as Trade Receivable.

b. Impairment of Non-Financial Assets.

c. Estimates of Tax Expenses and Liability.

d. Revenue recognitions.

Estimates and judgments are regularly revisited. Estimates are based on historical experience and
other factors, including futuristic reasonable information that may have a financial impact on the
company.

1. Property Plant &Equipment:

(a) Initial Measurement & Recognition

Property, plant and equipment are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of an item of Property, plant and equipment comprises
its purchase price, including import duties and other non-refundable taxes or levies and
any directly attributable cost of bringing the assets to its working condition for its intended
use with any trade discounts or rebates being deducted in arriving at purchase price. Cost

of the assets also includes interest on borrowings attributable to acquisition, if any, of
qualifying fixed assets incurred up to the date the asset is ready for its intended use.

If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of Property, plant and
equipment.

Cost of Property, plant and equipment not ready for intended use as on the balance sheet
date, is disclosed as capital work in progress. Advances given towards acquisition of
property, plant and equipment outstanding at each balance sheet date are disclosed as
Capital Advances under Other non-current Assets.

Any gain or loss on disposal of an item of property plant and equipment is recognized
instatement of profit and loss.

(b) Subsequent expenditure

Subsequent costs are included in the asset''s carrying recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the Statement of Profit and Loss during the period
in which they are incurred.

(c) Depreciation:

Depreciation is provided on the written down value method based on estimated useful life
prescribed under Schedule II to the Companies Act, 2013 Depreciation on assets
added/disposed off during the year is provided on pro-rata basis from the date of addition
or up to the date of disposal, as applicable.

The residual values, useful lives and method of depreciation of property, plant and
equipment is reviewed at each financial year end and adjusted prospectively, if
appropriate.

2. Cash and Cash Equivalents

Cash and cash equivalents are short-term (three months or less from the date of acquisition),
highly liquid investments that are readily convertible into cash and which are subject to an
insignificant risk of changes in value.

3. Impairment of Non-Financial Assets:

Assessment for impairment is done at each Balance Sheet date as to whether there is any
indication that a non-financial asset maybe impaired. If any indication of impairment exists, an
estimate of the recoverable amount of the individual asset/cash generating unit is made.

Asset/cash generating unit whose carrying value exceeds their recoverable amount are written
down to the recoverable amount by recognizing the impairment loss as an expense in the
Statement of Profit and Loss. Recoverable amount is higher of an asset''s or cash generating
unit''s fair value less cost of disposal and its value in use. Value in use is the present value of
estimated future cash flows expected to arise from the continuing use of an asset or cash
generating unit and from its disposal at the end of its useful life.

Assessment is also done at each Balance Sheet date as to whether there is any indication that
an impairment loss recognized for an asset in prior accounting periods may no longer exist or
may have decreased. An impairment loss recognized for goodwill is not reversed in subsequent
periods.

4. Financial Instruments:

(A) Financial Assets

Recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual
provisions of the instrument. On initial recognition, a financial asset is recognized at fair
value, in case of financial assets which are recognized at fair value through profit and loss
(FVTPL), its transaction cost is recognized in the statement of profit and loss. In other cases,
the transaction cost is attributed to the acquisition value of the financial asset.

Financial assets are subsequently classified as measured at

• Amortized cost

• Fair value through profit and loss (FVTPL)

• Fair value through other comprehensive income (FVOCI)

(a) Measured at amortized cost: Financial assets that are held within a business model
whose objective is to hold financial assets in order to collect contractual cash flows
that are solely payments of principal and interest, are subsequently measured at
amortized cost using the effective interest rate (''EIR'') method less impairment, if
any. The amortization of EIR and loss arising from impairment, if any, is recognized
in the Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive income: Financial assets that
are held within a business model whose objective is achieved by both, selling
financial assets and collecting contractual cash flows that are solely payments of
principal and interest, are subsequently measured at fair value through other
comprehensive income. Fair value movements are recognized in the other
comprehensive income (OCI). Interest income measured using the EIR method and
impairment losses, if any are recognized in the Statement of Profit and Loss. On de¬
recognition, cumulative gain or loss previously recognized in OCI is reclassified from
the equity to ''other income'' in the Statement of Profit and Loss.

(c) Measured at fair value through profit or loss: A financial asset not classified as
either amortized cost or FVOCI, is classified as FVTPL. Such financial assets are
measured at fair value with all changes in fair value, including interest income and
dividend income if any, recognized as ''other income'' in the Statement of Profit and
Loss

Financial assets are not reclassified subsequent to their recognition, except if and in
the period the Company changes its business model for managing financial assets.

Trade Receivables and Loans:

Trade receivables and loans are initially recognized at fair value. Subsequently, these assets
are held at amortized cost, using the effective interest rate (EIR) method net of any
expected credit losses. The EIR is the rate that discounts estimated future cash income
through the expected life of financial instrument.

Equity Instruments:

Investments in equity instruments, if any, are classified under financial assets are initially
measured at fair value.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the contractual rights to receive the cash flows
from the asset.

Impairment of Financial Assets

Expected credit losses are recognized for all financial assets subsequent to initial recognition
other than financials assets in FVTPL category. For financial assets other than trade
receivables, as per Ind AS 109, the Company recognizes 12 month expected credit losses for
all originated or acquired financial assets if at the reporting date the credit risk of the
financial asset has not increased significantly since its initial recognition. The expected credit
losses are measured as lifetime expected credit losses if the credit risk on financial asset
increases significantly since its initial recognition. The Company''s trade receivables do not
contain significant financing component and loss allowance on trade receivables is measure
date an amount equal to life time expected losses i.e. expected cash short fall. The
impairment losses and reversals are recognized in Statement of Profit and Loss, if any.

(B) Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument. Financial liabilities are initially measured at the amortized
cost unless at initial recognition, they are classified as fair value through profit and loss. In
case of trade payables, they are initially recognized at fair value and subsequently, these
liabilities are held at amortized cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortized cost using the EIR method.
Financial liabilities carried at fair value through profit or loss is measured at fair value with
all changes in fair value recognized in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation specified in the contract is
discharged, cancelled or expires.

5. Revenue Recognition
Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer, usually on delivery of the goods. In case of
export sales, revenue is recognized as on the date of bill of lading, being the effective date of
dispatch. Revenue from the sale of goods is measured at the value of the consideration
received or receivable, net of returns and discounts and net of all taxes.

6. Taxation:

Income tax expense for the year comprises of current tax and deferred tax. It is recognized in
the Statement of Profit and Loss except to the extent it relates to a business combination or to
an item which is recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year
using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of
previous years. Interest income/ expenses and penalties, if any, related to income tax are
included in current tax expense.

Deferred tax is recognized in respect of temporary differences between the carrying amount of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes. Deferred tax is recognized using the tax rates enacted, or substantively
enacted, by the end of the reporting period.

Deferred tax assets are recognized only to the extent that it is probable that future taxable
profits will be available against which the asset can be utilized. Deferred tax assets are
reviewed at each reporting date and reduced to the extent that it is no longer probable that the
related tax benefit will be realized.

Current tax assets and current tax liabilities are offset 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 assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities; and the deferred tax
assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority.

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Mar 31, 2014

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and provisons of the Companies Act, 1956.

Use of Estimates

The preparation of financial statements is conformity with the GAAP (generally accepted accounting principles) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting year. Differences between actual results and estimates are recognized in the year in which the results are known / materialized.

Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises of material cost, freight, duties, taxes, interest and other incidental expenses related to aquistion and installation.

Depreciation / Amortization

Depreciation has been provided for on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

Impairment

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to there Profit and Loss Account in the year in which an asset is identified as Impaired. The impairment loss recognised in prior accounting year is reversed if there has been a change in the estimate of recoverable amount.

Investments

Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temparary. Inventories

Inventories are valued "at lower of cost and net realizable value".

Revenue Recognition

The company generally follows mercantile system of accounting and recognises significant terms of income and expenditure on accrual basis.

Revenue from Software & Retail Business consists primarily on account of sale of goods and is recognised on delivery to the clients.

Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial year of time to get ready for intended use. All other borrowing costs are charged against revenue.

Research and Development

Expenditure incurred on Research & Development is charged to revenue and fixed assets in the year it is incurred as per nature of expenses.

Taxation

Tax liability is estimated considering the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable /virtual certainty that the asset will be realised in future.

Cash Flow Statement

Cash Flow Statement has been prepared in accordance with indirect method prescribed in Accounting Standard 3 issued by the Institite of Chartered Accountants of India.

Earning 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 the weighted average number of shares outstanding during the year are adjusted for the effects of all dilative potential equity shares.

Provision, Contigent Liabilities and Contigent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2012

Basis of Presentation

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards} Rules, 2006 anc provisons of the Companies Act, 1956.

Use of Estimates

The preparation of financial statements is conformity with the GAAP (generally accepted accounting principles) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period Differences between actual results and estimates are recognized in the period in whit Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation Cost comprises of material cost, freight, duties, taxes, interest and other incidental expenses related to aquiston and installation Depreciation I Amorti ation

Depreciation has been provided for on straight-line method at the rales prescribed in Schedule XIV to the Companies Act, 1956.

Impairment

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to there Profit and loss Accoun in the period in which an asset is identified as Impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

Investments

Long term investments are stated at cost of acquistion.

Inventories

Inventories are valued 'at lower of cost and net realizable value"

Revenue Recognition

The company generally follows mercantile system of accounting and recognises significant terms of income and expenditure on accrual basis.

Revenue from Software & Retail Business consists primarily on account of sale of goods and is recognised on delivery to the clients.

Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use All other borrowing costs are charged against revenue.

Research and Development

Expenditure incurred on Research & Development is charged to revenue and fixed assets in the period it is incurred as per nature of expenses.

Taxation

Tax liability is estimaied considenng the provisions of the Income Tax Act, 1961. Deferred tax resulting from 'timing differences' between book and taxable profii is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the 8alance Sheet date. The deferred tax asset is recognised and carried forward only lo the extent that there is a reasonable /virtual certainty that the asset will be realised in future.

Cash Flow Statement

Cash Flow Statement has been prepared in accordance with indirect method prescribed in Accounting Standard 3 issued by the Institute of Charterec Accountants of India.

Retirement Benefits

Liability for payment of Gratuity is accounted for on cash basis and future liability on accruing basis has, however, not been actuarially determined.

Earning Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the penod attributable to equity shareholders by the weighted average number ol equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilative potential equity shares.

Provision, Contigent Liabilities and Contigeni Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Jan 31, 2010

1) Basis of Presentation

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the accounting principles generally accepted in India and are in accordance with the applicable Accounting Standards, Guidance Notes and the relevant provisions of the Companies Act, 1956.

2) Use of Estimates

The preparation of financial statements is conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

3) Revenue Recognition: Revenue from Activity:

a.The company generally follows mercantile system of accounting and recognises significant terms of income and expenditure on accrual basis.

b.Revenue from Software & Retail Business consists primarily on account of sale of goods and is recognised on delivery to the clients.

4) Equipment and Depreciation (Fixed Assets)

a.Assets are stated at actual cost less accumulated depreciation. The actual cost capitalised includes material cost, freight, installation cost, duties and taxes, finance charges and other incidental expenses incurred during the construction/installation stage.

b. Depreciation has been provided for on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956 as amended by the Central Governments Notification No. GSR Nodf. 756(E) dated 16.12.1993.

5)lnvestments

Investments are stated at cost of acquisition.

6) Inventories

Inventories are valued at Cost.

7) Software Development Expenses

Software Development Expenses includes the cost of subcontracting consultancy and services. The software development expenses of internally developed software are charged to the Profit & Loss account for the year, in which the software development is completed and are shown as extra ordinary items.

8) Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged against revenue.

9) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to there Profit and Loss Account in the period in which an asset is identified as Impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

10)Research and Development

Expenditure incurred on Research & Development is charged to revenue and fixed assets in the year it is incurred as per nature of expenses.

11)Taxation

Provisions for current tax are made after taking into consideration benefits admissible under the provisions of the Income Tax Ac t, 1961. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable /virtual certainty that the asset will be realised in future. Provision for Income Tax includes provision for current Tax & Deferred Tax liabilities / Assets.

12)Provision, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

13)Retirement Benefits

Liability for payment of Gratuity is accounted for on cash basis and future liability on accruing basis has, however, not been actuarially determined.

14)Earning Per Share:

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

15)Dues to Small Scale industrial undertaking.

As at January 31st, 2010 and January 31st 2009, the company has no outstanding dues exceeding Rs. 1 lakhs for more than 30 days to Small Scale Industrial Undertaking.

There are no Micro and Small Enterprises to whom the company owes dues, for more than 45 days as at January 31st 2010. This information as required to be disclosed under the micro , Small and Medium Enterprises development Act, 2006 has been determined to the extent such parties have been identified on the basis of Information available to the company.