Mehta Integrated Finance Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES:

1. Corporate information:

The company is incorporated under the Indian Companies Act, 1956/2013, having its registered office situated at 003, Law Garden Apartment, Scheme-I, Opp. Law Garden, Ellis- bridge, Ahmedabad-380006. The Company is SEBI Registered Merchant Banker and is investing its surplus funds for long term gains. The company invests in equity market and other markets to optimize return on funds. The Company''s equity share is listed on the Bombay Stock Exchange i.e. BSE Ltd.

The financial statements are approved for issue by the Company''s Board of Directors on May 30, 2025.

2. Statement of compliance:

The standalone financial statements have been prepared in accordance with IND AS notified under the Companies (Indian Accounting Standards) Rules, 2015.

Up to the year ended March 31, 2017, the Company prepared its standalone financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with rules there under (''Indian GAAP'' or ''previous GAAP'').These are the Company''s Eighth IND AS financial statements. The date of transition to IND AS is April 1, 2016. These standalone financial statements comprising of Balance Sheet, Statement of Profit and Loss, Statement of Changes in Equity and Statement of Cash Flows as at March 31, 2025 have been prepared in accordance with Indian Accounting Standards (''IND AS'') as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

Accounting Policies have been consistently applied except where a newly issued IND AS is initially adopted or a revision to an existing standard requires changes in the accounting policy there to in use.

The Company presents the Balance Sheet, the Statement of Profit and Loss and the statement of changes in

Equity in the order of liquidity as per the format prescribed under Division III of Schedule III to the Companies act 2013.

3. Basis of preparation and presentation of standalone financial statements:

The standalone financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below:

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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value form measurement and/or disclosure purposes in these standalone financial statements is determined on such basis.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly ; and

• Level 3 inputs are unobservable inputs for the asset or liability.

4. The principal accounting policies are set out below:a. Use of estimates:

The preparation of these standalone financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the standalone financial statements and the reported amounts of income and expense for the periods presented. The estimates and assumptions used in the accompanying standalone financial statements are based upon management''s evaluation of relevant facts and circumstances as at the date of the financial statements. Actual results could differ from estimates.

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.

Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year is in respect of useful lives of property, plant and equipment and provisions and contingent liabilities.

Critical accounting judgments and key sources of estimation uncertainty

(i) Impairment of Non-financial assets

Impairment exists when the carrying value of assets exceeds its recoverable amount, which is higher of its fair value less cost of disposal and its value in use. The value in use is determined based upon discounted cash flow model which is derived from the budget determined by the Company. The recoverable amount is sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used.

(ii) Provisions and contingent liabilities:

A provision is recognized when the Company has a present obligation as a result of past event and it is probable than an out flow of resources will be required to settle the obligation, in respect of which the reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.

(iii) Other estimates:

The preparation of standalone financial statements involves estimates, classification and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of standalone financial statements and the reported amount of revenues and expenses for the reporting period. Specifically, the Company estimates the probability of collection of accounts receivable by analysing historical payment patterns, customer concentrations, customer credit- worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

b. Revenue recognition:Revenue from contracts with customers

The Company determines revenue recognition through the following steps:

(a) Identification of the contract, or contracts, with a customer.

(b) Identification of the performance obligations in the contract

(c) Determination of the transaction price.

(d) Allocation of the transaction price to the performance obligations in the contract.

(e) Recognition of revenue when, or as, we satisfy a performance obligation.

Nature of Services

Merchant Banking and Advisory Services

The Group derives main revenue from corporate advisory services. The Group specialize in providing value added advice and services to our clients on complex strategic and financial decisions and transactions focused around Fund Raising, Mergers & Acquisitions, Equity & Debt Private Placements, Initial Public Offerings, Corporate Advisory, and Capital Restructuring. Income from corporate advisory services is recognised upon rendering of services.

Interest Income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

Dividend income is accounted for when the right to receive it is established.

c. Tangible Fixed Assets:

Company do not have immovable assets (Land & Building).

Furniture, Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is recognized so as to write off the cost of assets less their residual values over their useful lives, using the Written down Value Method (WDV). The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

d. Depreciation on tangible fixed assets:

Depreciation is calculated using the Written down method to allocate their cost, net of their residual values, over their estimated useful life prescribed under Schedule II to the Companies Act, 2013. Useful life of Property Plant and Equipment are reviewed at each balance sheet date and adjusted prospectively, if appropriate. The Company provides pro-rata depreciation from the date on which the asset is available to use, till date the assets are sold or disposed.

e. Impairment of tangible assets:

At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Company of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

As per the management''s view there is no impairment of any assets during the year 2024-25.

a. Non-current assets held for sale

The company do not have non-current assets held for sale.

b. Borrowing Costs:

The company do not have any borrowings except interest free corporate loan and hence do not have borrowing cost during the year.

c. Inventories:

The company do not have inventory therefore disclosure as to its valuation and method of valuation does not arise.

d. Financial instruments:

Financial assets and financial liabilities are recognised when a Company entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs 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 added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

The Company classifies its financial assets as per IND AS 109 those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and those to be measured at amortised cost. The company has made an irrevocable election not to present the other comprehensive income and subsequent changes in the fair value of equity instruments not held for trading.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable of financial assets and liabilities at fair value through profit or loss are immediately recognised profit or loss.

Financial assets at amortised cost:-

Financial assets subsequently measured at amortized cost if these financial assets are held within a business whose objective is to hold these assets to collect contractual cash flows and contractual terms of the financial assets give rise on specified dates to cash flows that are solely payment of principal and interest on the principal amount outstanding.

As per the policy, when the financial assets are sold, the gain / loss arises out of the transactions are recognised as other income as "Long Term / Short Term Gain / Loss".

Impairment of financial assets :-

The Company assesses at each of Balance Sheet date whether a financial assets or a group of financial assets is impaired. IND AS 109 requires expected credit losses to be measured through loss allowance. The Company recognizes lifetime expected credit losses for all contracts and/or all trade receivables that do not constitute financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

Out of the total quoted investments, Rs. 3.05 lakhs have been impaired during year 2023-24 upon closure of investee entities and the same have been written off during the year 2023-24 through profit & loss account.

De-recognition of financial assets:-

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognizes collateral is borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been

recognized in other income and is recognized in profit or loss on disposal of that financial asset.

On de-recognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset. A cumulative gain or loss that had been recognised in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.

Financial liabilities and equity instruments

Classification as Loans or Equity :-

Unsecured Corporate Loan instruments taken by a Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Financial liabilities :-

All financial liabilities are subsequently measured at amortised cost using the effective interest method, however, company has taken interest free loans from corporates and hence interest cost is nil for the company.

Financial guarantee contracts :-

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debt or fails to make payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:

• the amount of loss allowance determined in accordance with impairment requirements of IND AS 109; and

• the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of IND AS18.

De-recognition of financial liabilities :-

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

Offsetting Financial Instruments :-

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or real is the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counter party.

e. Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, Balance with Bank, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The company do not have bank overdraft.

f. Foreign currency:

The functional currency of the Company is Indian rupee (INR).

The company do not have any transactions in foreign currency or any currency other than functional currency.

g. Retirement and other employee benefits:

(i) Defined benefit plans

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at Balance sheet date. Actuarial gains and losses are recognised in full in the other comprehensive income for the period in which they occur. Company has not separately invested / taken any policy for terminal benefits of employees.

(ii) Defined contribution plans

Company is not contributing to defined contribution plans as the total number of employees of the company are below legal minimum threshold limit.

(iii) Compensated absences

As per the policy of the company, unutilised and accumulated leaves lapses at the end of financial year.

h. Income Tax:

Income tax expense represents the sum of the tax currently payable and deferred tax and MAT Credit.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the period

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

MAT credit that is equivalent to the tax paid in excess of MAT over normal tax liability can be carried forward up to a period of 15 assessment years from the year MAT credit was generated. The company has provided for current tax of Rs. 1.89 Lakhs (MAT) by debiting Profit & Loss Account. However, the same has been considered as Long Term Asset under "MAT Credit Entitlement".

i. Segment Reporting:

The Group has only one segment i.e. Financial Advisory & Intermediation services. There are no separate reportable segments in terms of Ind AS 108. All assets of the Group are domiciled in India.

j. Provisions and contingencies:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking in to account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

k. Earnings per equity share:

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the standalone financial statements by the Board of Directors.

l. Operating Cycle:

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and the realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

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Aug 31, 2014

1. Accounting convention: 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 notified under Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act / 2013 Act, as applicable unless otherwise stated herein. 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.

a) The accounts are prepared under the historical cost convention and on the accrual basis of accounting

b) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule II or more than the rate prescribed in Schedule II of the Companies Act, 2013.

c) Long-term investments are stated at average cost except where there is a diminution in value which is other than temporary, for which provision is made. Current investments are stated at the lower of cost and fair value, considered category wise.

d) Use of Estimates: The preparation of financial statements in confirmation with GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known /materialized.

e) As the Company''s business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

2. Contingent Liabilities: Contingent Liabilities are determined of the basis of available information and are disclosed by way of note to the accounts.

3. Income and Expenditure:

a) Income and Expenditure are accounted on accrual basis.

b) Merchant Banking and corporate advisory Services income is accounted on accrual basis.

c) Underwriting income are accounted on completion of the issue.

d) Income from securities operations is accounted after considering the acquisition cost.

e) Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

f) Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the year end based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

4. Fixed Assets and Depreciation:

a) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

b) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule II or more than the rate prescribed in schedule II of the Companies Act, 2013.

5. Investments:

Investments are stated at their acquisition cost. Investments of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, provision for diminution in the value of such investments is made. Investments where there is permanent diminution is written off.

Investments that are intended to be held for not more than one year from the date of acquisition are classified as current investments.

6. Amortization of Miscellaneous Expenditure: Miscellaneous Expenditure are amortized over a period of ten years.

7. Earnings Per Share: The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20), 0.92 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

8. Related Party Transactions: Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

9. Provisions, Contingent Liabilities and Contingent Assets: Provisions involving substantial degree of estimation in measurement are recognized 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 recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

10. Impairment of Assets: As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

11. Prior Period Adjustments: Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

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Aug 31, 2012

1. A. Accounting convention:

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in accordance with the Companies Act, 1956 and in accordance with generally accepted accounting principles (Indian ‘GAAP'') are in compliance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

B. Significant Accounting Policies:

(i) The accounts are prepared under the historical cost convention and on the accrual basis of accounting.

(ii) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule XIV of the Companies Act.

(iii) Long-term investments are stated at average cost except where there is a diminution other than temporary, for which provision is made. Current investments are stated at the lower of cost and fair value, considered category wise.

(iv) Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known / materialized.

2. As the Company''s business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

3. Contingent Liabilities :- Contingent Liabilities are determined of the basis of available information and are disclosed by way of note to the accounts.

4. Income and Expenditure :-

4.1 Income and Expenditure are accounted on accrual basis.

4.2 Merchant Banking and corporate advisory Services income is accounted on accrual basis.

4.3 Underwriting income are accounted on completion of the issue.

4.4 Income from securities operations is accounted after considering the acquisition cost.

4.5 Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

4.6 Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the yearend based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

5. Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

ii) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

6. Investment :-

Investments are stated at their acquisition cost. Investment of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, provision for diminution in the value of such investments is made. Investments where there is permanent diminution is written off.

7. Amortization of Miscellaneous Expenditure :-

Miscellaneous Expenditure are amortized over a period of ten years.

8. Earnings Per Share: The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20) 0.71 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

9. Related Party Transactions: Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

10. Provisions, Contingent Liabilities and Contingent Assets: Provisions involving substantial degree of estimation in measurement are recognized 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 recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Impairment of Assets: As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

12. Prior Period Adjustments:

Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

13. Preliminary Expenses:

Preliminary expenses are written off equally over a period of ten years.

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Aug 31, 2011

1. A. Accounting convention:

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in accordance with the Companies Act, 1956 and in accordance with generally accepted accounting principles (Indian 'GAAP') are in compliance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

(i) The accounts are prepared under the historical cost convention and on the accrual basis of accounting.

(ii) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule XIV of the Companies Act. .

(iii) Long-term investments are stated at average cost except where there is a dimunition other than temporary, for which provision is made.

Current investments are stated at the lower of cost and fair value, considered category wise.

(iv) Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known / materialized.

2. As the Company's business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

3. Contingent Liabilities

Contingent Liabilities are determined of the basis of available information and arc disclosed by way of note to the accounts.

4. Income and Expenditure :-

4.1 Income and Expenditure are accounted on accrual basis.

4.2 Merchant Banking and corporate advisory Services income is accounted on accrual basis.

4.3 Underwriting income are accounted on completion of the issue.

4.4 Income from securities operations is accounted after considering the acquisition cost.

4.5 Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

4.6 Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the year end based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

5. Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

ii) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

6. Investment :-

Investments are stated at their acquisition cost. Investment of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments v/here the market value is lower than the acquisition cost, provision for diminition in the value of such investments is made. Investments where there is permanent diminition is written off.

7. Amortization of Miscellaneous Expenditure :-

Miscellaneous Expenditure are amortized over a period of ten years.

8. Earnings Per Share:

The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20) 0.71 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

9. Related Party Transactions:

Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized 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 recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Impairment of Assets:

As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

12. Prior Period Adjustments:

Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

13. Preliminary Expenses:

Preliminary expenses are written off equally over a period of ten years.

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Aug 31, 2010

A Accounting convention:

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in accordance with the Companies Act, 1956 and in accordance with generally accepted accounting principles (Indian 'GAAP') are in compliance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

(i) The accounts are prepared under the historical cost convention and on the accrual basis of accounting.

(ii) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule XIV ofthe Companies Act.

(iii) Long-term investments are stated at average cost except where there is a diminition other than temporary, for which provision is made.

Current investments are stated at the lower of cost and fair value, considered category wise.

(iv) Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known / materialized.

1. As the Company's business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

2. As the Company's business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

3. Contingent Liabilities :-

Contingent Liabilities are determined of the basis of available information and are disclosed by way of note to the accounts.

4. Income and Expenditure :-

4.1 Income and Expenditure are accounted on accrual basis.

4.2 Merchant Banking and corporate advisory Services income is accounted on accrual basis.

4.3 Underwriting income are accounted on completion of the issue.

4.4 Income from securities operations is accounted after considering the acquisition cost.

4.5 Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

4.6 Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the year end based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

5. Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

ii) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

6. Investment :-

Investments are stated at their acquisition cost. Investment of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, provision for diminition in the value of such investments is made. Investments where there is permanent diminition is written off.

7. Amortization of Miscellaneous Expenditure :-

Miscellaneous Expenditure are amortized over a period often years.

8. Earnings Per Share:

The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20) 0.71 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

9. Related Party Transactions:

Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized 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 recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Impairment of Assets:

As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

12. Prior Period Adjustments:

Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

13. Preliminary Expenses:

Preliminary expenses are written off equally over a period often years.