Oasis Securities Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1. Corporate Information

Oasis Securities Ltd (‘the Company’) is a public limited company incorporated under the erstwhile Companies Act, 1956 on 6th November, 1986. The Company is registered with Registrar of Companies, Mumbai, Maharashtra vide registration no. L51900MH1986PLC041499 having its registered office address at A-112, 1st Floor, Lodha Supremus, MIDC, Andheri East, Mumbai, Maharashtra, 400093 and corporate office address at 2nd Floor, C 373, Behind Amar Jain Hospital, Block C ,Vaishali Nagar, Jaipur, Rajasthan, 302021.

Oasis Securities Ltd is a Non-Banking Financial Company - Non-Systemically Important Non-Deposit Taking Company (NBFC-ND), engaged in the business of non-banking financial activities.

The financial statements were approved by the Board of Directors and authorised for issue on 11th May 2026.

2. Basis of Preparation and Presentation 2.1. Compliance with Ind AS

The standalone financial statements comply in all material respects with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (“the Act”), read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other relevant provisions of the Act. They also adhere to the Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 (‘the NBFC Master Directions’), the RBI notification for implementation of Indian Accounting Standards issued vide circular RBI/2019-20/170 DOR(NBFC).CC.PD. No. 109/22.10.106/2019-20 dated March 13, 2020, and other applicable RBI circulars/notifications.

The Balance Sheet, the Statement of Profit and Loss, and the Statement of Changes in Equity are prepared and presented in the format prescribed under Division III of Schedule III to the Act. The Statement of Cash Flows is prepared in accordance with Ind AS 7 “Statement of Cash Flows.” Collectively, the Balance Sheet, Statement of Profit and Loss, Statement of Cash Flows, Statement of Changes in Equity, summary of the material accounting policy information, and other explanatory notes comprise the financial statements of the Company.

The accounting policies have been applied consistently, except where a new accounting standard has been adopted for the first time or where changes to an existing standard require a revision in accounting policy.

The standalone financial statements are presented in Indian Rupees (?), which is the Company’s functional currency, in denominations of crore, rounded off to two decimal places as permitted by Schedule III to the Act.

2.2 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

2.3 Basis of Measurement

The Ind AS Financial Statements have been prepared on a going concern basis using historical cost convention and on accrual method of accounting, except for certain financial assets and liabilities, including financial instruments which have been measured at fair value as described below

2.4 Key Accounting Estimates and Judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognized prospectively. Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities, are included in the following notes:

(i) Determination of the estimated useful lives of property, plant and equipment and intangible assets.

(ii) Recognition and measurement of provisions and contingencies, key assumptions about the likelihood and magnitude of an outflow of resources.

(iii) Recognition of deferred tax assets.

(iv) Fair value of financial instruments.

(v) Applicable discount rate.

(vi) Impairment on financial assets

(vii) Provision for tax expenses

(viii) Provision and other contingent liabilities

2.5 Measurement of fair values

The Company measures certain financial instruments at fair value in accordance with the requirements of Indian Accounting Standards (Ind AS) applicable to Non-Banking Financial Companies (NBFCs). The Company has established appropriate internal controls and valuation procedures for determining fair values.

Fair value is determined using valuation techniques that are appropriate in the circumstances and for which sufficient data is available. These techniques maximise the use of observable market inputs and minimise the use of unobservable inputs. Management regularly reviews the valuation methodologies, significant assumptions, and inputs used in the measurement of fair values. Where fair values are determined using third-party quotations or pricing services, management evaluates whether such valuations are reasonable and comply with the requirements of Ind AS, including the appropriate classification within the fair value hierarchy.

The fair value hierarchy is based on the nature of inputs used in the valuation techniques and is classified into the following levels:

Level 1

Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2

Inputs are observable either directly or indirectly for the asset or liability, other than quoted prices included within Level 1. These include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and other observable market inputs such as interest rates, yield curves, credit spreads, and implied volatilities.

Level 3

Inputs are unobservable inputs for the asset or liability and are used when observable market data is not available. Such valuations involve management estimates and assumptions.

Where fair value measurement uses inputs from different levels of the hierarchy, the entire fair value measurement is classified based on the lowest level input that is significant to the overall valuation.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period in which the transfer occurs.

2.6 Estimation of impairment allowance on financial assets

The Company recognises impairment allowances for expected credit losses (“ECL”) on financial assets measured at amortised cost in accordance with the principles of Ind AS 109 - Financial Instruments. At each reporting date, the Company assesses whether there has been a significant increase in credit risk and whether any financial asset is credit-impaired.

A financial asset is considered credit-impaired when one or more events that have an adverse impact on the estimated future cash flows of the asset have occurred.

The ECL is determined using an approach based on Probability of Default (“PD”), Loss Given Default (“LGD”) and Exposure at Default (“EAD”), including applicable undisbursed commitments. The Company has developed an internal ECL methodology and framework consistent with the requirements of Ind AS 109 and relevant regulatory guidance applicable to NBFCs.

For the purpose of impairment assessment, the Company classifies its loan assets and other financial assets measured at amortised cost into the following three stages based primarily on the number of days past due (“DPD”) and assessment of credit deterioration:

• Stage 1: Financial assets that have not experienced a significant increase in credit risk since initial recognition and are generally up to 29 days past due. For these assets, 12-month ECL is recognised.

• Stage 2: Financial assets that have experienced a significant increase in credit risk since initial recognition but are not credit-impaired, generally comprising assets overdue between 30 and 89 days past due. For such assets, lifetime ECL is recognised.

• Stage 3: Financial assets that are considered credit-impaired, including assets overdue for 90 days or more. Lifetime ECL is recognised for these assets.

Lifetime ECL represents the expected credit losses resulting from all possible default events over the expected life of the financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL arising from default events that are possible within 12 months from the reporting date.

The measurement of ECL reflects an unbiased and probability-weighted estimate of credit losses, considering historical experience, current conditions and forward-looking information.

2.7 Summary of Significant Accounting Policies

a) Revenue Recognition

Revenue is recognized to the extent it is probable that economic benefits will flow to the Company and revenues can reliably be measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and reduced for estimated customer returns, rebates, taxes or duties collected on behalf of the government and other similar allowances.

b) Interest Income

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the effective interest rate. Interest income is included under revenue from operation in the statement of profit and loss.

c) Net gain on fair value changes

The Company designates certain financial assets, such as investments in debt instruments, for subsequent measurement either at fair value through profit or loss (FVTPL) or at fair value through other comprehensive income (FVOCI), in accordance with the criteria specified under Ind AS 109. Gains or losses arising from changes in the fair value of financial assets measured at FVTPL, as well as realised gains on derecognition of financial assets measured at both FVTPL and FVOCI, are recognised by the Company on a net basis.

d) Other income

The Company recognises income from recoveries of financial assets that were previously written off either upon actual realisation or when the right to receive such amounts is established without any uncertainty regarding their recovery.

e) Other expense

Other expenses are recognised on an accrual basis, net of Goods and Services Tax (GST), except in cases where input tax credit is not statutorily permitted.

f) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss if any. The cost of property, plant & equipment''s comprises its purchase price, borrowing cost and any other cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

Depreciable amount for property, plant and equipment is the cost of property, plant and equipment less its estimated residual value.

Depreciation is provided on Written down value over the estimated useful lives of the property, plant and equipment, except Leasehold Improvements, prescribed under Schedule II to the Companies Act, 2013 on pro rata basis. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on internal technical evaluation.

The estimated useful lives, residual values and depreciation methods are reviewed by the management at each reporting date and adjusted if appropriate.

Property, plant and equipment are derecognised either on disposal or when no economic benefits are expected from its use or disposal. The gain or loss arising from disposal of property, plant and equipment are determined

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comparing the proceeds from disposal with the carrying amount of property, plant and equipment and recognised in the Statement of Profit and Loss in the year of occurrence.

g) Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that the 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 impairment loss (if any)

If the recoverable amount of asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expenses in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of an asset is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

h) Depreciation

Depreciation on fixed assets (including investment property) except leasehold improvements is provided on written down value in the manner and rates prescribed in Schedule II to the Companies Act, 2013. Depreciation is charged on a pro-rata basis for assets purchased / sold during the year.

i) Income Tax

i) Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with Indian Income Tax Act, 1961.

ii) Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the separate financial statements and their corresponding tax bases used to compute taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences, while deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available to utilize those differences. However, deferred tax assets and liabilities are not recognized for temporary differences arising from the initial recognition of assets or liabilities in a transaction (other than a business combination) that affects neither accounting profit nor taxable profit, and deferred tax liabilities are also not recognized for temporary differences arising from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is no longer probable that sufficient taxable profits will be available for recovery.

Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period of realization or settlement, based on laws that have been enacted or substantively enacted by the reporting date.

j) Borrowing Costs

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate applicable to the respective borrowing. Borrowing costs, allocated to qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset are capitalized upto the time all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready to its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

k) Financial Instruments

A financial instrument is any contract that gives rise to financial asset of one entity and financial liability or equity instrument of another entity.

Financial Assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.

i) Initial recognition and measurement

All financial assets are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition of financial assets, which are not at fair value through profit or loss, are added to the fair value on initial recognition.

ii) Subsequent measurement and classification

"For the purpose of subsequent measurement, the financial assets are classified into three categories:

- Financial assets at amortised cost

- Financial assets at fair value through Other Comprehensive Income (FVTOCI)

- Financial assets at fair value through profit or loss (FVTPL) on the basis of its business model for managing the financial assets."

iii) Financial assets at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold assets for collecting contractual cash flows and the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method, less impairment, if any. The EIR amortisation is included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.

iv) Financial asset at Fair Value through other comprehensive income (FVTOCI)

A financial asset is measured at fair value through other comprehensive income (FVTOCI) if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets 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.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in OCI is reclassified from the equity to ‘other income’ in the Statement of Profit and Loss.

v) Financial asset at Fair Value through profit or loss (FVTPL)

A financial asset which are not classified in any of the above categories are measured at FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised as ‘other income’ in the Statement of Profit and Loss.

vi) Financial assets as Equity Investments

All equity instruments other than investment in subsidiaries and associate are initially measured at fair value; the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. A fair value change on an equity instrument is recognised as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised as ‘other income’ in the Statement of Profit and Loss.

vii) Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised (i.e. removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

In accordance with IND AS 109, a substantial renegotiation or modification of the contractual cash flows of a financial asset leads to the derecognition of the existing financial asset. When such a modification results in the derecognition of the original asset and the subsequent recognition of the modified asset, the modified asset is considered a ‘new’ financial asset.

viii) Impairment of financial assets

"The Company applies ‘Simplified Approach’ for measurement and recognition of impairment loss on the following financial assets and credit exposure:

- Financial assets that are debt instruments and are measured at amortised cost e.g. loans, deposits and bank balance

- Trade receivables

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime expected credit loss at each reporting date, right from its initial recognition."

Financial assets where no significant increase in credit risk has been observed are considered to be in ‘stage 1 ’ and for which a 12-month ECL is recognised. Financial assets that are considered to have significant increase in credit risk are considered to be in ‘stage 2’ and those which are in default or for which there is objective evidence of impairment are in ‘stage 3’. Lifetime ECL is recognised for stage 2 and stage 3 financial assets.

At initial recognition, allowance (or provision in the case of loan commitments) is required for ECL towards default events that are possible in the next 12 months, or less, where the remaining life is less than 12 months. In the event of a significant increase in credit risk, allowance (or provision) is required for ECL towards all possible default events over the expected life of the financial instrument (‘lifetime ECL’). Financial assets (and the related impairment loss allowances) are written off in full, when there is no realistic prospect of recovery.

Financial Liabilities

i) Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost.

ii) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in case of loans and borrowings and payables, net of directly attributable transaction costs.

iii) Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and transactions costs. The EIR amortisation is included as finance costs in the Statement of Profit and Loss. Gains and losses are recognised in Statement of Profit and Loss when the liabilities are derecognised.

iv) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Offsetting of Financial instruments

Financial assets and liabilities are offset and the net amount is presented in the balance sheet when there is a legally enforceable right to offset the recognized amounts and an intention to settle the liability simultaneously. This legally enforceable right must not be contingent on future events and must be enforceable both in the normal course of business and in the event of default, insolvency, or bankruptcy of the Company or the counterparty.

l) Earnings Per Share

In accordance with Ind AS 33 ‘Earnings per Share’, Basic Earnings Per Share (EPS) is calculated by dividing the profit or loss for the year attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS is determined by dividing the profit or loss attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the year, adjusted for the weighted average number of equity shares that would be issued upon the conversion of all dilutive potential equity shares into equity shares of the Company.

m) Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flow, cash and cash equivalents consists of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

n) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present obligation, whether legal or constructive, arising from a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. When a provision is measured based on the estimated cash flows required to settle the present obligation, its carrying amount represents the present value of those cash flows, provided the effect of the time value of money is material. The discount rate applied to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the specific risks associated with liability. Any increase in the provision due to the passage of time is recognized as an interest expense.

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 required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in the notes to the financial statements.

o) Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses.

Intangible Assets are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible is recognised in the statement of profit and loss account.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

p) Employee Benefits

i) Short — term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, performance incentives etc. are recognised at actual amounts due in the period in which the employee renders the related service. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognized as an expense as the related service is rendered by employees.

ii) Post Employment Benefits

Defined Benefit Plan : The cost of providing benefit like gratuity is determined using the actuarial valuation using the projected unit credit method carried out as at the balance sheet date. Actuarial gain or loss are recognised immediately in the Profit or Loss Account or Other comprehensive income.

All expenses represented by current service cost, past service cost, if any, and net interest expense / (income) on the net defined benefit liability / (asset) are recognised in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses are recognised immediately in Other Comprehensive Income (OCI).

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in the Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

iii) Other long term employment benefits

The Company’s policy for earned leave provides that unavailed leave lapses if not utilised within the prescribed period and is not encashable. Accordingly, the liability for earned leave is recognised only to the extent of leave expected to be availed before lapse, and no long-term employee benefit obligation exists at the reporting date for unutilised leave expected to lapse.

2.7 Summary of Significant Accounting Policies

a) Revenue Recognition

Revenue is recognized to the extent 11 is probable that economic benefits will flow to the Company and revenues can reliably be measured, regardless of when the payment is being made. Revenue is measured al the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and reduced for estimated customer renirns, rebates, taxes or duties collected on behalf of the government and other similar allowances.

Interest Income . .

Interest income is recognised on a time proportion basis taking into account die amount outstanding and die applicable interest rate. Interest income is included

under the head “other income” in the statement of profit and loss.

Interest on financial assets subsequently measured a: fair value through profit or loss (FYTPL) is recognised at die contractual rate of interest Net gain on fair value changes

Financial assets arc subsequently measured, at fair value through profit or loss (FYTPL) or fair value through other comprehensive income (P\ < X-I). as applicable The Company recognises gains/losses on fan value change of financial assets measured as FYTPL and realised gains/losses on derecognition of financial asset measured at FVTPLand FVOCI.

Vll other revenues arc accounted on accrual basis.

b) Expenses

All expenses are accounted for on accrual basis.

c) Properly. Plant & Equipment

Property Plant & Equipments are stated ai cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss if any. The cost of properly, plant & equipment''s comprises its purchase price, borrowing cost and any other cost directly attributable to bringing the asset to its working condition for us intended use. Subsequent expending is capitalised only if u is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the ilem can be measured reliably.

I depreciable amount for property, plant and equipment is the cost of property, plant and equipment less its estimated residual value.

Depreciation is provided on Straight Line Method over the estimated useful lives of the property, plant and equipment, except Leasehold Improvements, prescribed under Schedule II to the Companies Act, 2013 on pro rata basis. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on internal technical evaluation.

Leasehold Improvements are amortized over the primary period of lease.

The estimated useful lives, residual values and depreciation methods are reviewed by the management at each reporting date and adiusted if appropriate.

Property, plant and equipment arc derecognised either on disposal or when no economic benefits are expected from its use or disposal I he gam or loss arising from disposal of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and recognised in the Statement of Profit and Loss in the year of occurrence.

d) Impairment of noil-financial assets

\t the end of each reporting period, the Company reviews the carrying amounts of us tangible anil intangible assets to determine whether there is any indication that the assets have suffered an impairment loss. If am such indication exists, the recoverable ''amount of the asset is estimated in order to determine the extent of impairment loss (if any'' .

If the recoverable amount of asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expenses in the Statement of Profit and Loss.

Vilien an impairment loss subsequently reverses, the carrying amount of an asset is ...creased to the revised estimate of ns recoverable amount, so that die ...creased earning amount docs not exceed the carrying amount il.at would have been determined had no impairment loss been recognised tor the asset m prior years A reversal ot an impairment loss is recognised immediately in the Statement of Profit and Loss

e) Depreciation

Depreciation on fixed assets (including investment property) except leasehold improvements is provided on straight line method in the manner and rates prescribed in Schedule II to the Companies Act, 2013. Depreciation is charged on a pro-rata basis for assets purchased / sold during the year.

Leasehold improvements are amortized over the primary period of lease.

f) Income Tax

'''' Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with Indian Income Tax Act, 1961

tij Deferred tax ts recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and art-capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date Deferred tax liabilities arc recognised for all timing differences Deferred tax assets in respect ol unabsorbed depreciation and earn- forward of losses are recognised only if there is \ irtual certainty that there will be sufficient fitnire taxable income available to realise such assets. Deferred tax assets are recognised far timing differences of odier items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets anti liabilities are offset if such items relate to taxes on income levied by the same governing tax law s and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reahsability.

g) Bp.rrovvingCoHS

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate applicable to the respective borrowing. Borrowing costs, allocated to qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset are capitalized upto the time all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. A qualifying asset is an asset that necessarily requires a substantial period of tunc to get ready to its intended use or sale. All other borrowing costs arc recognised as an expense in the period in which they are incurred.

It) Financial Instruments

\ financial instrument is any contract that gives rise to financial asset of one entity and financial liability or equity instrument of another entity.

- I''imndil Ast-us

Financial assets arc recognised when tlte Company becomes a party to the contractual provisions of the instrument,

i) Initial lecoimiiion and measurement

Ml financial assets are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition of financial assets, which are not at fair value through profit or loss, are added to the fair value chi initial recognition.

li) Subsequent measurement and classification

For the purpose of subsequent measurement, the financial assets are classified into three categories:

- Financial assets at amortised cost

• Financial assets at fair value through Other Comprehensive Income {FA’TOO

- Financial assets at fair value through profit or loss (FVTP1.) on the basis of its business model for managing the financial assets.

iii) Financial asftt?.AtaniL»,i:.tia‘A.CQ£i

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold assets for collecting contractual cash flows and the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method, less impairment, if any. Hie FIR amortisation ts included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognised m the Statement of Profit and Loss.

iv) Financial asset ai Fair Value ihromdi other comprehensive income IA I O'' 1

A financial asset is measured at fair value through other comprehensive income (FVTOCI) it it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets 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 pruicipal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements arc recognized in the other comprehensive income (OCI).

Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative gam or loss previously recognised in OCI is reclassified from the equity to ‘other income’ in the Statement of Profit and Loss

V) Financial asset at Fair Value through profit or loss TATPi .i

A financial asset which arc nor classified in any of the above categories are measured at l-VTt’l.. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised as ‘other income’ in die Statement of Profit and Loss.

vi) Financial assets as Equity Investments

All equity instruments odier than investment in subsidiaries and associate are initially measured at fair value: the Company may, on mittal recognition, irrevocably elect to measure the same cither at FA''OCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. A lair value change on an equity instrument is recognised as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCT. Fair value changes excluding dividends, on an equity instrument measured at FVOCI arc recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit anil Loss. Dividend income on the investments ui equity instruments are recognised as ‘other income’ in the Statement of Profit and Loss.

vii) Derecognition

A financial asset (or. where applicable, a part of a financial asset or part of a groxip of similar financial assets) is derecognised (i.e. removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset ami either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

viii) Impairmyiu/jf financial-as^te

The Company applies ‘Simplified Approach'' for measurement and recognition of impairment loss on the following financial assets and credit exposure.

- Financial assets that are debt instruments and are measured at amortised cost e g. loans, deposits and bank balance

- Trade receivables

''flie application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime expected credit loss at each reporting date, right from its initial recognition.

Financial assets where no significant increase in credit risk has been observed arc considered to be in ‘stage 1* and for which a 12 month ECL is recognised. Financial assets that are considered to have significant increase in credit risk are considered to be in ‘stage X and those which are in default or for which there is ail objective evidence of impairment arc considered to be in ‘stage 3*. Lifetime ECL Is recognised for stage 2 and stage 3 financial assets.

At initial recognition, allowance (or provision in the case of loan commitments) is required for ECL towards default events that are possible in the next 12 months, or less, where the remaining life is less than 12 months. In die event of a significant increase in credit risk, allowance (or provision) is required for KCL towards_/all possible default events over the expected life of tlu financial instrument (lifetime ELI.;. Financial assets ''and the related impairment loss allowances) are written off in full, when there is no realistic prospect of recover)*.

Interest income is recognised by applying the EIR to the net amortised cost amount i.e. gross carrying amount less ECL allowance.

— Financial Liabilities

0

The Company classifies all financial liabilities as subsequently measured at amortised cost, in .1 mini). andjmairmau

\11 financial liabilities are recognised initially at fair value and. in case of loans and borrowings and payables, net of directly attributable transaction costs.

*ii) Lmm.andJtorriwun;s

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR- method.

\mortised cost is calculated bv taking into account any discount or premium on acquisition and transactions costs. The EIR amortisation is included as finance costs .

in the Statement of Profit and Loss. Gams and losses are recognised in Statement of Profit and Loss when the liabilities are derecognised.

iv) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced b) another from the same lender oil substantially different terms, or die terms of an existing liability arc substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

— » offsetting of Financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts ami there is an intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

i) fair value measurement /

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of 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 in the accessible principal market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate ui the circumstances and for which sufficient data is available to measure fair value, maximising die use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy into Level I, Level II and Uwcl III based on the lowest level input that is significant to the fair value measurement as a whole For a detailed information on the fair value hierarchy, refer note no. 31.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company determines whether Transfers have occurred between levels in the hierarchy by re assessing categorisation -based on the lowest level input that .issignificant to the fair value measurement as a whole) at the end of eacli reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

j) Earnings Per Share

Hisic earnings per share are calculated bv dividing the no. profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstandmg duruig the pctiotl. For the purpt.se of calculating diluted earnings per share, the net profit or loss tor the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

k) Cash and Cash Equivalents , , , , , , • ,

Cash and cash equivalents ... the balance sheet comprise cash a. bank and on hand and short term deposits with an original mammy of three months or less, which are subject to an insignificant rtsk of changes in value. For the purpose of the statement of cash flow, cash and cash equivalents consists of cash and short term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the (.ompany s cash management

A) Fixed Assets are stated at cost less Depreciation. Depreciation on fixed asstes is provided as per the straight Line Method on pro rata basis at the rates and in the manner prescribed by the schedule XIV of the companies act 1956

b) The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amounts of revenue and expenses during the reporting period, the reported amount of assets & liabilities and the disclosures relating to the contingent liabilities on the date of the financial statements. Examples of such estimates include useful lives of provisions for doubtful debts/advances, deferred tax etc. Actual results could differ from those estimates, such difference is recognised in the period/s in which results are known / materialised.

c) The accounts are prepared on the basis of going concern under historical cost convention as also accrual basis and in accordance with Accounting Standards referred to in Section 211 (3C) of the Companies Act 1956, which have been prescribed by the Companies (Accounting Standards) Rules 2006, and the relevant provisions of the Companies Act, 1956.

d) Stock in Trade is valued at Cost or Market Value, whichever is lower.

e) Long term Investments are carried at cost less provisions, if any, for permanent diminution in value of such investment.

No Provision is considered necessary for temporary diminision in value of such investments.

f) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provision of Income Tax Act, 1981

g) In view of smallness of liability and uncertainty, retirement benefit have not been provided for as per AS 15.

h) If internal / external indications suggest that an asset of the company may be impaired, the recoverable amount of asset / cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of net selling price and value in use of such assets / cash generating unit, which is determined by the present value otthe estimated future Cash Flows. As at the Balance Sheet date, there was no such indication.

i) Transferred to statutory reserves u/s (45 IC) of RBI Act amounting to Rs. 3,49,366/- for current year, where as Rs.1,68,21,728/- pertains to prior years.

j) The Company has no other Segment except that of securities. Therefore, segment accounting as of AS-17 is not required.

l) Income and expenditure pertaining to prior period, wherever material, are disclosed separately.

m) The Company recognised as Provisions, the liabilities being present obligations arising from past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

n) Contingent Assets are neither recognised nor disclosed.

o) Contingent Liability is disclosed by way of note to the financial statements after careful evaluation by the management of the fact and legal aspect of the matters involved.

A) The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amounts of revenue and expenses during the reporting period, the reported amount of assets 3 liabilities and We .disclosures relating to the contingent liabilities (in the date of the .financial statements: Examples. of surfs) estimates: include, useful lives of provisions for doubt-: debts/advances, deferred tax etc. Actual results could differ from those estimates, such difference is. recognized in the period/s in which results are known /materialized.

b) The accounts are prepared on the basis of going concern under historical cost convention as also accrual basis and in accordance with Accounting Standards referred to in Section 21t{3C) of the Companies Act 1955, which have been pranced by the Companies (Accounting Standards) Rules 20C6, and the relevant provisions of the Companies Act. 1956.

c) Stock in Trade is valued at Cost or Market Value, whichever is lower:

d) Long term Investments are carried at cost less provisions, if any, for permanent diminution in value of such investment. No provision is considered necessary for temporary; .dominate. in value of such investments.

e) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provision of Income 1 ax Act, 1S61

f) No DTA / DTL is necessary in this year.

in view of smallness of liability and uncertainty, retirement benefit have not been provided for as per AS 15.

h) If internal I external indications suggest that an asset of the company may be impaired, the recoverable amount of asset / cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of net selling price and value In use of such assets/cash generating unit, which is determined by the present value of the estimated future Cash Flows. As at the Balance Sheet date, there was no such indication.

i) Transcended to statutory reserves u/s (45 1C) of RBI Act amounting to Rs, Nil for current year,

j) The Company has no other Segment except that of securities. Therefore, segment accounting as of AS-17 is not required,

k) income and expenditure pertaining to poor period, wherever material, are disclosed separately.

l) The Company recognized as Provisions, the liabilities being present obligations arising from past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation,

m) Contingent Assets are neither recognized nor disclosed.

n) Contingent Liability is disclosed by way of note to the financial statements after careful evaluation by the management of the fact and legal aspect of the matters involved.

A) The financial statements for the year ended 31/3/2011 had been prepared as per the then applicable pre-revised Schedule VI of the Companies, Act 1956.Consequent to the notification of Revised Schedule VI under Companies Act 1956, financial statements for the year ended 31/03/2012 are prepared as per Revised Schedule VI. Accordingly the previous years figures have also been reclassified / regrouped to conform to this year''s classifications. The adoption of Revised Sechdule VI does not impact recognition and measurement principles followed for the preparation of the financial statements.

b) The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimate and assumptions to be made that affect the reported amounts of revenue and expenses during the reporting period, the reported amount of assets & liabilities and the disclosures relating to the contingent liabilities on the date of the financial statements. Examples of such estimates include useful lives of provisions for doubtful debts/advances, deferred tax etc. Actual results could differ from those estimates, such difference is recognised in the period/s in which results are known / materialised.

c) The accounts are prepared on the basis of going concern under historical cost convention as also accrual basis and in accordance with Accounting Standards referred to in Section 211 (3C) of the Companies Act 1956, which have been precribed by the Companies (Accounting Standards) Rules 2006, and the relevant provisions of the Companies Act. 1956.

d) Stock in Trade is valued at Cost or Market Value, whichever is lower.

e) Long term Investments are carried at cost less provisions, if any, for permanent diminution in value of such investment. No provision is considered necessary for temporary diminution in value of such investments.

f) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provision of Income Tax Act, 1961

g) No DTA / DTL is necessary in this year.

h) In view of smallness of liability and uncertainty, retirement benefit have not been provided for as per AS 15.

i) If internal / external indications suggest that an asset of the company may be impaired, the recoverable amount of asset I cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of net selling price and value of such assets / cash generating unit, which is determined by the present value of the estimated future Cash Flows. As at the Balance Sheet date, there was no such indication.

j) Transferred to statutory reserved u/s (45 IC) of RBI Act amounting to Rs.75,743/- for current year, where as Rs.16,745,984/- pertains to prior years.

k) The Company has no other Segment except that of securities. Therefore, segment accounting as of AS-17 is not required.

I) Income and expenditure pertaining to prior period , wherever material, are disclosed separately.

m) The Company recognised as Provisions, the liabilities being present obligations arising from past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

n) Contingent Assets are neither recognised nor disclosed.

o) Contingent Liability is disclosed by way of note to the financial statements after careful evaluation by the management of the fact and legal aspect of the matters involved.

A) The Company follows the Accrual System of accounting for ail Income, Expenditure, Assets & Liabilities.

b) Stock in Trade is valued at Cost or Market Value, whichever is lower.

c) Long term Investments are carried at cost less provisions, if any, for permanent domination in value of such investment.

d) Fixed Assets are stated at Cost less Depreciation.

e) Depreciation on Fixed Assets is provided for as per the Straight Line Method on pro-rata basis at the rates and in the manner prescribed by the Schedule XTV of the Companies Act, 1986.

f) Current Tax is the amount of tax payable on toe taxable income for the year as determined in accordance with the provision of Income Tax Act, 1961

g) Deferred Tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one-or more subsequent period. Deferred tax assets/ Liabilities in respect of depreciation on fixed assets is recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets / liabilities. Moreover deferred tax is shown net of deferred tax assets and deferred tax liabilities. Dep as per I tax Rs 1,304,900/- Dep as per Co R» 1,546,012/- BalRs 241,112- DTA= "33.99% 81.954/-.

h) h view of smallness of liability and uncertainty, retirement benefit have not been provided for as per AS 15.

i) If internal / external indications suggest that an asset of the company may be impaired, the recoverable amount of asset / cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount The recoverable amount is measured as the higher of net selling price and value in use of such assets / cash generating unit, which is determined by the present value of the estimated future Cash Flows. As at the Balance Sheet date, there was no such indication.

j ) The Company has no other Segment except that of securities. Therefore, segment accounting as of AS-17 is not required.