NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

1.1 Corporate Information

Rajasthan Petro Synthetics Limited is a public company domiciled in India and incorporated
under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock
Exchange. The Company is presently engaged in Office Management Services / C&E Agency
Operations. The Company's registered office is at Flat No.201,8-B, Oasis Tower, New Navratan
Complex, Bhuwana Udaipur-313001 (Rajasthan)

1.2 Basis of Preparation and Presentation of Financial Statements

(A) Statement of Compliance

These standalone Ind AS financial statements of the Company have been prepared in accordance
with the Indian Accounting Standards (Ind AS) as prescribed under the Companies (Indian
Accounting Standards) Rules, 2015. The financial statements up to the year ended March 31,
2017 were prepared in accordance with Accounting Standards notified under the Companies
(Accounting Standards) Rules, 2006 and other relevant provisions of the Act ('Previous GAAP').
The date of transition to Ind AS is April 1,2016.

(B) Basis of measurement

The financial statements are prepared on historical Cost basis except for certain financial assets
and liabilities that are measured at fair value. The accounting policies not specifically referred to
otherwise, are consistent and in consonance with generally accepted accounting principles. All
income and expenditure are being accounted for an accrual basis.

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 assets or paid to transfer
a liability in an ordinary transaction between market participants at the measurement date.

(C) Functional and Presentation Currency

These financial statements are presented in Indian Rupee (INR), which is the Company's
functional currency. All financial information presented in INR has been rounded to the nearest
lakhs (upto two decimals), except as stated otherwise

(D) Use of Estimates

In preparing Company's financial statements in conformity with accounting principles
generally accepted in India, management is required to make estimates and assumptions that
affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at
the date of the financial statements and reported amount of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Any revision to accounting
estimates is recognized in the period in which the same is determined.

E) Current and non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-
current classification. An asset is current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle;

Ý Held primarily for the purpose of Business;

• Expected to be realized within twelve months after the reporting period; or

Ý Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period. All other assets are classified

as non-current.

A liability is current when:

It is expected to be settled in normal operating cycle;

It is held primarily for the purpose of Business

It is due to be settled within twelve months after the reporting period; or

There is no unconditional right to defer settlement of the liability for at least twelve months

after the reporting period.

All other liabilities are classified as non-current

1.3 Fixed Assets and Depreciation & Amortization

The Company has no Tangible/Intangible assets and therefore no depreciation has been
provided.

1.4 (A) Cash and Cash Equivalents

Cash and cash equivalent in the Balance Sheet comprise cash at banks and cash in hand,
which are subject to insignificant risk of change in value.

(B) Financial Instruments
Initial recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction cost
that are directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at fair value through profit or
loss] are deducted from or added to the fair value of financial assets or financial liabilities,
as appropriate, on initial recognition.

Subsequent measurement

Non derivative financial instruments

(i) Financial assets carried at amortized cost: A financial asset is subsequently measured
at amortized cost if it is held in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

(ii) Financial assets carried at fair value through other comprehensive income (FV)

measured at FVT0C1 if it is held not only for collection of cash flows arising from payments
of principal and interest but also from the sale of such assets. Such assets are subsequently
measured at fair value, with unrealized gains and losses arising from changes in the fair
value being recognized in other comprehensive income.

(iii) Financial assets carried at fair value through profit or loss (FVTPL): A financial asset
which is not classified in any of the above categories is subsequently measured at fair
value through profit or loss.

(iv) Financial liabilities: Financial liabilities are subsequently measured at amortized cost
using the effective interest method. For trade and other payables maturing within one
year from the Balance Sheet date, the carrying amounts are approximate to fair value due
to the short maturity of these instruments.

(C) Impairment

(I) Financial assets

The Company recognizes loss allowances using the expected credit loss for the financial
assets which are not measured at fair value through Profit or Loss. Loss allowance for trade
receivables with no significant financing component is measured at an amount equal to
lifetime expected credit loss.

(D) Fair value measurement

The Company measures financial instruments, such as derivatives at fair value at each Balance
Sheet date. 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. The

fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either: In the principal market for the asset or liability, or in the
absence of a principle market, in the most advantageous market for the asset or liability. The
principal or the most advantageous market is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants act
in their economics best interest. A fair value measurement of a non-fmancial asset takes into
account a market participant's ability to generate economic benefits by using the asset in its
highest and best use or by selling it to another market participant that would use the asset in its
highest and best use. The company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, maximizing the
use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and
liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input
that is significant to the fair value measurement as a whole.:

Level 1 - Quoted prices in active markets.

Level 2 -Input other than quoted prices included within Level 1 that are observable,

either directly or indirectly.

Level 3 - Input that are not based on observable market data.