1. Accounting Standards Compliance

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 as prescribed under Section 133 of the Companies Act, 2013 (‘the Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

AS-1 Disclosure of Accounting Policies

• The accounts of the company have been prepared by following mercantile system of accounting and recognize Statements of Income and Expenditure Account on an accrual basis except those with significant uncertainties. However, in respect of certain transaction such as Income Tax, Municipal or Local Tax, Sales Tax, Professional Tax, Post assessment dues or refunds, gratuity, bonus and guarantees -warranty claims, the account are maintained on cash basis of accounting.

• The accounts have been prepared as per historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

AS-2 Valuation of Inventories

• A. The stock-in-trade is valued at cost or market value whichever is lower. The stock is physically verified by management at the year end. Further, the valuation of inventories and quantitative details in respect of Opening Stock, Purchase & Closing Stock is certified by the management technical personnel and the same is incorporated in financial statement of accounts.

• Scrap is valued at net realizable value.

AS-3 Cash Flow Statements

• Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three 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.

• Cash Flow Statement is applicable to the company.

AS-4 Contingencies and events occurring after the Balance-Sheet Date.

• Company is contingently liable for providing performance guarantee of Rs.5,53,40,419/- (PY Rs. 5,53,40,419/-).

AS-5 Net profit or loss for the period, prior period items and changes in accounting policies.

• Significant items of Income & Expenditure which relate to prior accounting period are accounted in the Profit and Loss account under the head “Prior Period Adjustments” other than those occasions by events occurring during or after the close of the year and which are treated as relatable to the current year.

AS-7 Accounting for Construction Contracts.

• This standard is not applicable to the company.

AS-8 Accounting for Research and Development

• The company has not incurred any expenditure (capital or revenue) on Research and Development.

AS-9 Revenue Recognition

• Sale of goods

The revenue is recognised when property in the goods are transferred to the buyer for a price or all significant risks and rewards of ownership have been transferred to the buyer and assessee does not retain effective control of the goods transferred to a degree usually associated with ownership.

• Income from services

Revenue is recognised when there is reasonable certainty of its ultimate collection.

The revenue is recognised when the services under the contract is completed or substantially completed. The cost of services which are not recognised at reporting date is carried forward to subsequent reporting period.

Sales is shown net of GST of Rs. 18,06,64,457/-

• Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established. Incomes are recognized when right to receive is established and there exists no uncertainty with regards to ultimate collection.

AS-10 Property, Plant and Equipment

• Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets comprises its purchase price (net of any trade discounts and rebates), any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses

and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use.

• Subsequent expenditure on fixed assets after its purchase / completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance

• Depreciation on all fixed asset has been provided on the written down value method at the rates determined based on the useful life prescribed in schedule II to Companies act 2013.

AS-12 Accounting for Government Grants.

• The company did not receive any grants from Government.

AS-13 Accounting for Investments

• Long-term investments are carried individually at cost. Current investments are carried individually, at the lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage, fees and duties.

AS-14 Accounting for amalgamation

• There were no amalgamations in the year under report

AS-15 Accounting for Employee benefits

• The company’s obligation in respect of gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods and discounting that benefit to determine its present value. The present value is determined based on actuarial valuation by an independent actuary using the project unit credit method, which recognizes each period of service as given rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan are based on the market yields on Government securities as at balance sheet date.

• The Company has neither ascertained nor provided any liability in respect of employee’s dues in accordance with AS-15. It accounts such liability on cash basis.

AS-16 Borrowing cost

• The borrowing cost that are directly attributable to the acquisition production and / or construction of qualifying assets are capitalized as part of the cost of such assets up to the date when the assets are ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. Other borrowing costs are charged to the Profit & Loss Account.

• Borrowing cost includes commitment charges, amortised amount of discount or premium or ancillary cost of arrangement for borrowings and finance charges.

AS-17 Segment Reporting

• This standard is applicable to the company. The company is in process of adopting segmental reporting for its outdoor hoarding business and real estate trading.