Sat Kartar Life Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1.1 GENERAL

The financial statements have been prepared in accordance with accounting standards specified by the Institute
of Chartered Accountants of India. Accounting policies not specifically referred to otherwise are consistent and
in accordance with generally accepted accounting principles.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (SIGNIFICANT ACCOUNTING POLICIES & OTHER
EXPLANATORY NOTES):-

2.1 BASIS OF PREPARATION

These standalone financial statements have been prepared on historical cost basis except for certain financial
instruments and defined benefit plans which are measured at fair value or amortized cost at the end of each
reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services .Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. All assets and liabilities have been
classified as current and non-current as per the Company''s normal operating cycle. Based on the nature of
services rendered to customers and time elapsed between deployment of resources and the realization in cash
and cash eguivalents ofthe consideration for such services rendered, the Company has
Considered an operating cycle of 12 months.

The statement of cash flows has been prepared under indirect method, whereby profit or loss is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and items of income or expense associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities ofthe Company are segregated. The Company considers all highly
liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk
ofchanges in value to be cash eguivalents.

These standalone financial statements have been prepared in Indian Rupee ('') which is the functional currency of
the Company. Foreign currency transactions are recorded at exchange rates prevailing on the date of the
transaction.

Foreign currency denominated monetary assets and liabilities are retranslated at the exchange rate prevailing on
the balance sheet dates and exchange gains and losses arising on settlement and restatement are recognized in
the statement of profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost
in foreign currencies are not retranslated.

The material accounting policy information related to preparation ofthe standalone financial statements have
been discussed in the respective notes.

2.2 USE OF ESTIMATES AND JUDGMENTS

The preparation of standalone financial statements in conformity with the recognition and measurement
principles of Accounting Standards reguires management of the Company to make estimates and judgments
that affect the reported balances of assets and liabilities, disclosures of contingent liabilities as at the date of
standalone financial statements and the reported amounts of income and expenses for the periods presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and future periods are affected.

The Company uses the following critical accounting judgments, estimates and assumptions in preparation of its
standalone financial statements:

2.3 PROVISION FOR INCOME TAX AND DEFERRED TAX ASSETS

The Company uses judgments based on the relevant rulings in the areas of allocation of revenue, costs,
allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax
asset is recognized to the extent that it is probable that future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilized. Accordingly, the Company exercises its judgment
to reassess the carrying amount of deferred tax assets at the end of each reporting period.

2.4 PROVISIONS AND CONTINGENT LIABILITIES

The Company estimates the provisions that have present obligations as a result of past events and it is probable
that outflow of resources will be reguired to settle the obligations. These provisions are reviewed at the end of
each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgments to assess contingent liabilities. 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 reguired to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognized nor disclosed in the standalone financial statements.

2.5 EMPLOYEE BENEFITS

The Company has adopted the Accounting Standard 15- Employee Benefits prescribed under the Companies
(Accounting Standards) Rules, 2006. ''Employee benefits include provident fund, bonus and gratuity benefits. The
Company''s obligation towards various employee benefits has been recognized as follows:

° Short Term Employee Benefits:-

All employee benefits payable wholly within twelve months of rendering the service are short-term employee
benefits. Benefits such as salaries, wages and bonus, wages, etc., are recognized in the Profit and Loss statement
in the period in which the employee renders the related service.

° Defined Contribution Plans:-

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

¦ Defined benefits plans -

i. For defined-benefit plans, the amount recognized in the Balance Sheet is the present value of the
defined-benefit obligation less the fair value of any plan assets. The present value of the defined benefit
obligation is the present value of expected future payments reguired to settle the obligation resulting from
employee service in the current and prior periods. The discount rate used is the market yields on
government bonds at the Balance Sheet date with remaining terms to maturity approximating those of the
Company''s obligations.

ii. Actuarial gains and losses in respect of post-employment and other long-term benefits are charged to the
Statement of Profit and Loss.

2.6 Leases

° Finance lease

i. Assets taken on finance lease are capitalized at fair value or net present value of the minimum lease
payments, whichever is less.

ii. Lease payments are apportioned between the finance charges and outstanding liability in respect of assets
taken on lease.

° Operating Lease

i. Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased
term are classified as operating lease. Lease rent are recognized as an expense in the Statement of Profit and
Loss on a straight line basis over the lease term.

The financial statements have been prepared in accordance with accounting standards specified by the
Institute of Chartered Accountants of India. Accounting policies not specifically referred to otherwise are
consistent and in accordance with generally accepted accounting principles.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (SIGNIFICANT ACCOUNTING POLICIES &
OTHER EXPLANATORY NOTES):-

2.1. BASIS OF PREPARATION

These standalone financial statements have been prepared on historical cost basis except for certain
financial instruments and defined benefit plans which are measured at fair value or amortized cost at
the end of each reporting period. Historical cost is generally based on the fair value of the consideration
given in exchange for goods and services .Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date.
All assets and liabilities have been classified as current and non-current as per the Company''s normal
operating cycle. Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realization in cash and cash equivalents of the consideration for such
services rendered, the Company has considered an operating cycle of 12 months.

The statement of cash flows has been prepared under indirect method, whereby profit or loss is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and items of income or expense associated with investing or financing cash
flows. The cash flows from operating, investing and financing activities of the Company are segregated.
The Company considers all highly liquid investments that are readily convertible to known amounts of
cash and are subject to an insignificant risk of changes in value to be cash equivalents.

These standalone financial statements have been prepared in Indian Rupee ('') which is the functional
currency of the Company. Foreign currency transactions are recorded at exchange rates prevailing on the
date of the transaction.

Foreign currency denominated monetary assets and liabilities are retranslated at the exchange rate
prevailing on the balance sheet dates and exchange gains and losses arising on settlement and restatement
are recognized in the statement of profit and loss. Non-monetary assets and liabilities that are measured
in terms of historical cost in foreign currencies are not retranslated.

The material accounting policy information related to preparation of the standalone financial statements
have been discussed in the respective notes.

2.2. USE OF ESTIMATES AND JUDGMENTS

The preparation of standalone financial statements in conformity with the recognition and measurement
principles of Accounting Standards requires management of the Company to make estimates and
judgments that affect the reported balances of assets and liabilities, disclosures of contingent liabilities as
at the date of standalone financial statements and the reported amounts of income and expenses for the
periods presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and future periods are affected.

The Company uses the following critical accounting judgments, estimates and assumptions in preparation
of its standalone financial statements:

2.3. PROVISION FOR INCOME TAX AND DEFERRED TAX ASSETS

The Company uses judgments based on the relevant rulings in the areas of allocation of revenue, costs,
allowances and disallowances which is exercised while determining the provision for income tax. A deferred
tax asset is recognized to the extent that it is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses can be utilized. Accordingly, the Company
exercises its judgment to reassess the carrying amount of deferred tax assets at the end of each reporting
period.