ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Mafia Trends Ltd.

Mar 31, 2024

1. SIGNIFICANT ACCOUNTING POLICIES

1.01 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 specified under
Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013
Act"), as applicable. 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 followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally
accepted accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Company''s normal
operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of
products and the time between the acquisition of assets for processing and their realization in cash and
cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of
current - non-current classification of assets and liabilities.

1.02 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 results and the estimates
are recognised in the periods in which the results are known / materialise.

1.03 PROPERTY, PLANT & EQUIPMENT

All Fixed Assets are recorded at cost including taxes, duties, freight and other incidental expenses incurred
in relation to their acquisition and bringing the asset to its intended use.

1.04 DEPRECIATION / AMORTISATION
Tangible Assets:

Depreciable amount of assets is the cost of an asset, or other amount substituted for cost, less its estimated
residual value.

Depreciation on tangible fixed assets has been provided on the written-down value method as per the
useful life prescribed in Schedule II to the Companies Act, 2013.

Intangible Assets:

Intangible Assets consists of software which has been amortized over a period of 3 years.

1.05 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable
amount is the higher of an asset''s net selling price 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 the asset and from its disposal at
the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length
transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is
charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The
impairment loss recognised in prior accounting periods is reversed if there has been a change in the
estimate of the recoverable value.

1.06 BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised
as part of the cost 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 to revenue.