Pyxis Finvest Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. Material Accounting Policies

2.1. Statement of Compliance

The financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from
time to time) issued by Ministry of Corporate Affairs in exercise of the powers conferred by section 133 of the Companies Act,
2013. In addition, applicable regulations of Reserve Bank of India (RBI) and the guidance notes/announcements issued by the
Institute of Chartered Accountants of India (ICAI) are also applied along with compliance with other statutory promulgations.

2.2. Basis of preparation of financial statements [IndAS 1 ]

The financial statements have been prepared

i. on a historical cost basis, except for stock in trade that are measured lower of cost or net realizable value.

ii. on accrual basis of accounting (other than Statement of Cash Flows) except in case of significant uncertainties.

iii. on a going concern basis in accordance with the Ind AS 1. The Management is of the view that the Company shall

be able to continue its business for the near future and no material uncertainty exists that may cast significant doubt
on the going concern assumption. In making this assessment, the Management has considered a wide range of
information relating to present and future conditions, including future projections of profitability, cash flows and
capital resources.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use

2.3. Presentation of financial statements [Ind AS 1 ]

The Balance Sheet, Statement of Changes in Equity for the year and the Statement of Profit and Loss are prepared and presented
in the format prescribed in the Division III to Schedule III to the Companies Act, 2013 (“the Act”) applicable to NBFC. The
Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash Flows”. The
disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Division
III to Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes
required to be disclosed under the notified accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

Financial assets and financial liabilities are generally reported gross in the balance sheet. They are only offset and reported net
when, in addition to having an unconditional legally enforceable right to offset the recognised amounts without being contingent
on a future event, the parties also intend to settle on a net basis in all the following circumstances:

• The normal course of business

• The event of default

• The event of insolvency or bankruptcy of the Company and/or its counterparties

The amounts in financial statements are presented in lacs of Indian Rupees (INR), except where otherwise indicated.

2.4. Business Model

Classification and measurement of financial assets depends on the results of the Solely for payment of principal and interest
(SPPI) test and the business model test. The Company determines the business model at a level that reflects how groups of
financial assets are managed together to achieve a particular business objective. This assessment includes judgment used by the
Company in determining the business model including how the performance of the assets is evaluated and their performance
measured, the risks that affect the performance of the assets and how these are managed. The Company monitors financial assets
that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent
with the objective of the business for which the asset was held.

2.5. Financial instruments [Ind AS 32, 107 & 109 & Note 4,5,6 & 8]

Financial assets and financial liabilities are recognised in the Company’s balance sheet when the Company becomes a party to
the contractual provisions of the instrument.

Recognised 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 FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition.

A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally
enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle
the liability simultaneously.

i. Equity Instruments - Investments in equity instruments are classified as at Lower of Cost or Net Realizable Value (LCNRV),
unless the related instruments are not held for trading and the Company irrevocably elects on initial recognition to present
subsequent changes in fair value in other comprehensive income

ii. Financial assets - The Company assesses the classification and measurement of a financial asset based on the contractual
cash flow characteristics of the asset and the Company’s business model for managing the asset. For an asset to be classified
and measured at amortised cost, its contractual terms should give rise to cash flows that are Solely Payments of Principal and
Interest on the principal outstanding (SPPI).

The Company’s business model determines whether cash flows will result from collecting contractual cash flows, selling
financial assets or both. The Company considers all relevant information available when making the business model
assessment. However, this assessment is performed on the basis of scenarios that the Company expects to occur and not to
occur, such as so-called ‘worst case’ or ‘stress case’ scenarios. The Company takes into account all relevant evidence available
such as:

• how the performance of the business model and the financial assets held within that business model are evaluated and
reported to the entity’s key management personnel;

• the risks that affect the performance of the business model (and the financial assets held within that business model)
and, in particular, the way in which those risks are managed.

The Company reassess its business model each reporting period to determine whether the business models have changed since
the preceding period. If the business model under which the Company holds financial assets changes, the financial assets affected
are reclassified. The classification and measurement requirements related to the new category apply prospectively from the first
day of the first reporting period following the change in business model that results in the reclassification.

The Company considers sale of financial assets measured at amortised cost portfolio as consistent with a business model whose
objective is to hold financial assets in order to collect contractual cash flows if these sales are

• due to an increase in the assets’ credit risk or

• due to other reasons such as sales made to manage credit concentration risk (without an increase in the assets’ credit
risk) and are infrequent (even if significant in value) or insignificant in value both individually and in aggregate (even
if frequent).

In addition, the Company also considers sale of such financial assets as consistent with the objective of holding financial assets
in order to collect contractual cash flows if the sale is made close to the maturity of the financial assets and the proceeds from
sale approximate the collection of the remaining contractual cash flows.

a. Financial assets at amortised cost - Financial assets are subsequently measured at amortised cost using the Effective
Interest Rate (EIR) as per Ind AS 109 ‘Financial Instruments’ if these financial assets are held within a business model
whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

b. Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI) - Financial assets are measured at
fair value through other comprehensive income if these financial assets are held within a business model whose objective
is achieved by both collecting contractual cash flows that give rise on specified dates to sole payments of principal and
interest on the principal amount outstanding and by selling financial assets.

c. Lower of Cost or Net Realizable Value (LCNRV) - Financial assets are measured at LCNRV unless it is measured at
amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly
attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised
in profit or loss. Investments in equity instruments are classified as LCNRV, unless the related instruments are not held for
trading and the Company irrevocably elects on initial recognition of financial asset on an asset-by-asset basis to present
subsequent changes in fair value in other comprehensive income.

d. De-recognition - A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial
assets) is primarily de-recognised 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 or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; 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.

The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the
Company has retained.

iii. Financial liabilities - Financial liabilities, including derivatives, which are designated for measurement at FVTPL are
subsequently measured at fair value. All other financial liabilities are measured at amortised cost using Effective Interest Rate
(EIR) method as per Ind AS 109 ‘Financial Instruments’.

A financial liability is derecognised when the related obligation expires or is discharged or cancelled

2.6. Write off

Loans and debt securities are written off when the Company has no reasonable expectations of recovering the financial asset
(either in its entirety or a portion of it). This is the case when the Company determines that the borrower does not have assets
or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A write-off
constitutes a derecognition event. The Company may apply enforcement activities to financial assets written off. Recoveries
resulting from the Company’s enforcement activities are recorded in statement of profit and loss.

2.7. Impairment [Ind AS 36 & Note 17]

The Company recognises loss allowances for Expected Credit Losses (ECLs) on the financial instrument “Loans and advances
to customers” not measured at FVTPL.

Credit-impaired financial assets - A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact
on the estimated future cash flows of the financial asset have occurred. Credit-impaired financial assets are referred to as Stage
3 assets. Evidence of credit-impairment includes observable data about the following events:

• significant financial difficulty of the borrower or issuer;

• a breach of contract such as a default or past due event;

• the lender of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having
granted to the borrower a concession that the lender would not otherwise consider;

A loan is considered credit-impaired when a concession is granted to the borrower due to a deterioration in the borrower’s financial
condition, unless there is evidence that as a result of granting the concession, the risk of not receiving the contractual cash flows
has reduced significantly and there are no other indicators of impairment.

For financial assets where concessions are contemplated but not granted the asset is deemed credit impaired when there is
observable evidence of credit-impairment including meeting the definition of default. The definition of default, as defined below,
includes unlikeliness to pay indicators and a back-stop if amounts are overdue for more than 90 days. The 90-day criterion is
applicable unless there is reasonable and supportable information to demonstrate that a more lagging default criterion is more
appropriate.

“Default” - Critical to the determination of ECL is the definition of default. The definition of default is used in measuring the
amount of ECL and in the determination of whether the loss allowance is based on 12-month or lifetime ECL, as default is a
component of the probability of default (PD) which affects both the measurement of ECLs and the identification of a significant
increase in credit risk.

The Company considers the following as constituting an event of default

• the borrower is past due more than 90 days on any material credit obligation to the Company; or

• the borrower is unlikely to pay its credit obligations to the Company in full.

The forbearance granted to borrowers in accordance with COVID 19 Regulatory Package notified by the Reserve Bank of India
(RBI) is excluded in determining the period of default (Days Past Due) in the assessment of default.

When assessing if the borrower is unlikely to pay its credit obligation, the Company takes into account both qualitative and
quantitative indicators. The information assessed depends on the type of the asset, for example in corporate lending a qualitative
indicator used is the admittance of bankruptcy petition by National Company Law Tribunal, which is not relevant for retail
lending. Quantitative indicators, such as overdue status and non-payment on another obligation of the same counterparty are key
inputs in this analysis.

The Company uses a variety of sources of information to assess default which are either developed internally or obtained from
external sources. The definition of default is applied consistently to all financial instruments unless information becomes available
that demonstrates that another default definition is more appropriate for a particular financial asset.

With the exception of POCI financial assets (which are considered separately below), ECLs are required to be measured through
a loss allowance at an amount equal to:

• 12-month ECL, i.e. lifetime ECL that result from those default events on the financial instrument that are possible within 12
months after the reporting date, (referred to as Stage 1); or

• full lifetime ECL, i.e. lifetime ECL that result from all possible default events over the life of the financial instrument,
(referred to as Stage 2 and Stage 3).

A loss allowance for full lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has
increased significantly since initial recognition (and consequently to credit impaired financial assets). For all other financial
instruments, ECLs are measured at an amount equal to the 12-month ECL.

ECLs are a probability-weighted estimate of the present value of credit losses. These are measured as the present value of the
difference between the cash flows due to the Company under the contract and the cash flows that the Company expects to receive
arising from the weighting of multiple future economic scenarios, discounted at the asset’s EIR.

The Company measures ECL on an individual basis, or on a collective basis for portfolios of loans that share similar economic
risk characteristics.

Significant increase in credit risk

The Company monitors all financial assets and financial guarantee contracts that are subject to the impairment requirements to
assess whether there has been a significant increase in credit risk since initial recognition. If there has been a significant increase
in credit risk the Company will measure the loss allowance based on lifetime rather than 12-month ECL.

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company
compares the risk of a default occurring on the financial instrument at the reporting date based on the remaining maturity of the
instrument with the risk of a default occurring that was anticipated for the remaining maturity at the current reporting date when
the financial instrument was first recognised.

In making this assessment, the Company considers both quantitative and qualitative information that is reasonable and
supportable, including historical experience and forward-looking information that is available without undue cost or effort, based
on the Company’s historical experience and expert credit assessment. Given that a significant increase in credit risk since initial
recognition is a relative measure, a given change, in absolute terms, in the Probability of Default (PD) will be more significant
for a financial instrument with a lower initial PD than compared to a financial instrument with a higher PD.

Hitherto, in respect of the Company’s corporate loan assets, the threshold for shifting to Stage 2 was being rebutted using historical
evidence from the Company’s own portfolio to 60 days past due.

For the purpose of counting of day past due for the assessment of significant increase in credit risk, the special dispensations to
any class of assets in accordance with COVID19 Regulatory Package notified by the Reserve Bank of India (RBI) has been
applied by the company.

Purchased or originated credit-impaired (POCI) financial assets

POCI financial assets are treated differently because the asset is credit-impaired at initial recognition. For these assets, the
Company recognises all changes in lifetime ECL since initial recognition as a loss allowance with any changes recognised in
profit or loss. A favourable change for such assets creates an impairment gain.

2.8. Modification and derecognition of financial assets

The introduction or adjustment of existing covenants of an existing loan may constitute a modification even if these new or
adjusted covenants do not yet affect the cash flows immediately but may affect the cash flows depending on whether the covenant
is or is not met (e.g. a change to the increase in the interest rate that arises when covenants are breached).

The Company renegotiates loans to customers in financial difficulty to maximise collection and minimise the risk of default. A
loan forbearance is granted in cases where although the borrower made all reasonable efforts to pay under the original contractual
terms, there is a high risk of default or default has already happened and the borrower is expected to be able to meet the revised
terms. The revised terms in most of the cases include an extension of the maturity of the loan, changes to the timing of the cash
flows of the loan (principal and interest repayment), reduction in the amount of cash flows due (principal and interest forgiveness)
and amendments to covenants.

When a financial asset is modified the Company assesses whether this modification results in derecognition. In accordance with
the Company’s policy a modification results in derecognition when it gives rise to substantially different terms. To determine if
the modified terms are substantially different from the original contractual terms the Company considers the extent of change in
interest rates, maturity, covenants etc.

If these do not clearly indicate a substantial modification, then;

(a) In the case where the financial asset is derecognised the loss allowance for ECL is remeasured at the date of derecognition to
determine the net carrying amount of the asset at that date. The difference between this revised carrying amount and the fair
value of the new financial asset with the new terms will lead to a gain or loss on derecognition. The new financial asset will have
a loss allowance measured based on 12-month ECL except in the rare occasions where the new loan is considered to be originated
credit impaired. This applies only in the case where the fair value of the new loan is recognised at a significant discount to its
revised par amount because there remains a high risk of default which has not been reduced by the modification. The Company
monitors credit risk of modified financial assets by evaluating qualitative and quantitative information, such as if the borrower
is in past due status under the new terms.

(b) When the contractual terms of a financial asset are modified and the modification does not result in derecognition, the
Company determines if the financial asset’s credit risk has increased significantly since initial recognition by comparing:

• the remaining lifetime PD estimated based on data at initial recognition and the original contractual

• terms; with the remaining lifetime PD at the reporting date based on the modified terms.

For financial assets modified, where modification did not result in derecognition, the estimate of PD reflects the Company’s
ability to collect the modified cash flows taking into account the Company’s previous experience of similar forbearance action,
as well as various behavioural indicators, including the borrower’s payment performance against the modified contractual terms.
If the credit risk remains significantly higher than what was expected at initial recognition the loss allowance will continue to be
measured at an amount equal to lifetime ECL. The loss allowance on forborne loans will generally only be measured based on
12-month ECL when there is evidence of the borrower’s improved repayment behaviour following modification leading to a
reversal of the previous significant increase in credit risk.

Where a modification does not lead to derecognition the Company calculates the modification gain/loss comparing the gross
carrying amount before and after the modification (excluding the ECL allowance). Then the Company measures ECL for the
modified asset, where the expected cash flows arising from the modified financial asset are included in calculating the expected
cash shortfalls from the original asset.

The Company derecognises a financial asset only when the contractual rights to the asset’s cash flows expire (including expiry
arising from a modification with substantially different terms), or when the financial asset and substantially all the risks and
rewards of ownership of the asset are transferred to another entity. If the Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to control the transferred asset, the Company recognises 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 recognises a
collateralised borrowing for the proceeds received.

On derecognition 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/loss that had been recognised in OCI and accumulated in equity
is recognised in profit or loss, with the exception of equity investment designated as measured at FVTOCI, where the cumulative
gain/loss previously recognised in OCI is not subsequently reclassified to profit or loss.

On derecognition 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 recognises 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/loss allocated to it that had been
recognised in OCI is recognised in profit or loss. A cumulative gain/loss that had been recognised in OCI is allocated between
the part that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those
parts. This does not apply for equity investments designated as measured at FVTOCI, as the cumulative gain/loss previously
recognised in OCI is not subsequently reclassified to profit or loss.

2.9. Presentation of allowance for ECL in the Balance Sheet

Loss allowances for ECL are presented in the Balance Sheet for financial assets measured at amortised cost, as a deduction from
the gross carrying amount of the assets.

2.10. Derivative financial instruments

No Outstanding derivatives position as on 31^st March, 2025

2.11. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can
be reliably measured and there exists reasonable certainty of its recovery.

i. Interest and dividend income [Note 13]

Interest income is recognised in the statement of Profit and Loss using effective interest rate (EIR) as per Ind AS 109 ‘Financial
Instruments’ on all financial assets subsequently measured under amortised cost or fair value through other comprehensive
income (FVTOCI) except for those classified as held for trading. The calculation of the EIR includes all fees paid or received
between parties to the contract that are incremental and directly attributable to the specific lending arrangement, transaction
costs, and all other premiums or discounts. For financial assets at FVTPL transaction costs are recognised in profit or loss at
initial recognition.

The interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (i.e.
at the amortised cost of the financial asset before adjusting for any expected credit loss allowance). For credit-impaired financial
assets the interest income is calculated by applying the EIR to the amortised cost of the credit-impaired financial assets (i.e. the
gross carrying amount less the allowance for expected credit losses (ECLs)). For financial assets originated or purchased credit-
impaired (POCI) the EIR reflects the ECLs in determining the future cash flows expected to be received from the financial asset.
Interest on delayed payments by customers are on accrual basis. Dividend income is recognised when the Company’s right to
receive dividend is established by the reporting date and no significant uncertainty as to collectability exists.

ii. Net gain on fair value change [Note 24]

We use the Net Realizable value for stock in trade (inventory) which is the lower of cost or net realizable value. If there is a net
loss the same is disclosed “Expenses”, in the statement of profit and loss.

iii. Income from financial instruments at FVTPL

Income from financial instruments at LCNRV includes all gains and losses from changes in the fair value of financial assets and
financial liabilities at LCNRV except those that are held for trading. Interest income on financial assets held at LCNRV, is
recognised under “interest income on financial assets classified at fair value through profit or loss”.

2.12. Property, plant and equipment (PPE) [Ind AS 16 & Note 7]

PPE are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use. Subsequent costs incurred on an item of PPE
is recognised in the carrying amount thereof when those costs meet the recognition criteria as mentioned above. Repairs and
maintenance are recognised in profit or loss as incurred. Borrowing costs relating to acquisition of PPE which takes substantial
period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready
to be put to use. Gains or losses arising from de recognition of PPE 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 and loss when the asset is
derecognized.

Depreciation on PPE is provided on straight line method over the useful lives of assets as prescribed in Schedule II of the Act,
except for leasehold improvements. Leasehold improvements are amortised over a period of lease or useful life, whichever is
less. The residual values, useful lives and method of depreciation of PPE are reviewed at each financial year end and adjusted
prospectively, if appropriate.

2.13. Cash and cash equivalents [Note 3]

Cash and cash equivalents include cash on hand and other short term highly liquid investments with original maturities of upto
three months that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.

2.14. Securities premium account [Note 12]

Securities premium includes the difference between the face value of the equity shares and the consideration received in respect
of shares issued.

2.15. Accounting and reporting of information for Operating Segments [Ind AS 108]

The Company is engaged primarily in the business of financing and stock trading, and accordingly there are no separate
reportable segments as per Ind AS 108 ''Operating Segment’.

2.16. Taxation [Ind AS 12 & Note 20]

Current Tax - Tax on income for the current period is determined on the basis of taxable income (or on the basis of book profits
wherever minimum alternate tax is applicable) and tax credits computed in accordance with the provisions of the Income Tax
Act 1961, and based on the expected outcome of assessments/appeals.

Deferred Tax - Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the Company’s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using
the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits
will be available against which those deductible temporary differences can be utilised.

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 assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and
carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient
future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets in respect of
unutilised tax credits are recognised to the extent it is probable of such unutilised tax credits will get realised.

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 reporting period, to recover or settle the carrying amount of its assets and liabilities.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded
along with the tax as applicable.

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Mar 31, 2024

2. Material Accounting Policies

2.1. Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with 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 from time to time) and the presentation requirements of Schedule III to the act, as amended by the Companies
(Accounts) Amendment Rules, 2021 and made effective from April 01, 2021. As stated in the above notification, the Company
has made the disclosures specified in the Schedule III to the Act, to the extent those disclosures are applicable and reportable.

These financial statements have been prepared on a historical cost basis and on accrual basis of accounting except for certain
financial instruments which are measured at fair value

The Balance sheet and the Statement of profit and loss are prepared and presented in the format prescribed in the Division III of
Schedule III to the Act. The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7,
Statement of Cash Flows.

All amounts disclosed in the financial statements and notes are presented in ? hundred and have been rounded off to two decimal
as per the requirement of Division III of Schedule III to the Act, unless otherwise stated.

2.2. Presentation of financial statements

The Company presents its balance sheet in order of liquidity in compliance with the Division III of the Schedule III to the Act.
An analysis regarding recovery or settlement within 12 months after the reporting date (current) and more than 12 months after
the reporting date (non—current) is presented in Note 38.

Financial assets and financial liabilities are generally reported gross in the balance sheet. They are only offset and reported net
when, in addition to having an unconditional legally enforceable right to offset the recognised amounts without being contingent
on a future event, the parties also intend to settle on a net basis in all of the following circumstances:

• The normal course of business

• The event of default

• The event of insolvency or bankruptcy of the company and or its counterparties

2.3. Accounting judgments, assumptions and use of estimates

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets, liabilities, the accompanying disclosures including the disclosure of
contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods. The estimates and associated assumptions
are based on historical experience and various other factors that are believed to be reasonable under the circumstances existing
when the financial statements were prepared. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revision to accounting estimates is recognised in the year in which the estimates are revised and in any future year affected

Critical judgements in applying accounting policies

The following are the critical judgements, apart from those involving estimations that the management has made in the process
of applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the
standalone financial statements.

• Fair value measurement of financial instruments

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. When the fair values of financial assets and financial liabilities recorded in the
balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using appropriate
valuation techniques. The inputs for these valuations are taken from observable sources where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of various inputs
including liquidity risk, credit risk, volatility etc. Changes in assumptions/judgments about these factors could affect the reported
fair value of financial instruments.

• Impairment of financial assets using the expected credit loss method

The impairment provisions for financial assets are based on assumptions about risk of default, expected loss rates and loss given
defaults. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based
on the Company''s history, existing market conditions as well as forward looking estimates at the end of each reporting period.

• Business model assessment

Classification and measurement of financial assets depends on the results of the Solely for payment of principal and interest
(SPPI) test and the business model test The Company determines the business model at a level that reflects how groups of
financial assets are managed together to achieve a particular business objective. This assessment includes judgment used by the
Company in determining the business model including how the performance of the assets is evaluated and their performance
measured, the risks that affect the performance of the assets and how these are managed. The Company monitors financial assets
that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent
with the objective of the business for which the asset was held.

• Income taxes

Significant judgments are involved in estimating budgeted profits for the purpose of paying advance tax, determining the
provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

• Provisions and contingencies

Provisions and contingencies are recognized when they become probable and when there will be a future outflow of funds
resulting from past operations or events and the outflow of resources can be reliably estimated. The timing of recognition and
quantification of the provision and liability requires the application of judgement to existing facts and circumstances, which are
subject to change.

• Useful lives of property, plant and equipment:

The Company reviews the estimated useful lives of property, plant and equipment at the end of each reporting period.
Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.

2.4. Other accounting policies (refer related notes to the standalone financial statements)
a. Property, plant and equipment (PPE) [refer note 7]

PPE are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use. Subsequent costs incurred on an item of PPE
is recognised in the carrying amount thereof when those costs meet the recognition criteria as mentioned above. Repairs and
maintenance are recognised in profit or loss as incurred. Borrowing costs relating to acquisition of PPE which takes substantial
period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready
to be put to use. Gains or losses arising from de recognition of PPE 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 and loss when the asset is
derecognized.

Depreciation on PPE is provided on straight line method over the useful lives of assets as prescribed in Schedule II of the Act,
except for leasehold improvements. Leasehold improvements are amortised over a period of lease or useful life, whichever is
less. The residual values, useful lives and method of depreciation of PPE are reviewed at each financial year end and adjusted
prospectively, if appropriate.

d. Revenue from operations [refer note 13]

Interest income

• Revenues are recognized and expenses are accounted for on accrual basis with necessary provisions for all known liabilities
and losses. Income from Non- Performing Assets is recognized only when it is realized. Interest on deposits and loans is
accounted for on the time proportion basis after considering reasonable certainty that the ultimate collection will be made.
Dividend income is recognized when right to receipts is established. Profit or loss on sale of securities is accounted on
settlement date basis.

• No revenue recognition has been postponed since there is no pending any uncertainties to be resolved.

Dividend income

Dividend income is recognised in profit or loss when the Company''s right to receive payment of the dividend is established, it is
probable that the economic benefits associated with the dividend will flow to the entity, and the amount of the dividend can be
measured reliably.

g. Financial instruments [refer note 17]

Date of recognition

Financial assets and financial liabilities, with the exception of borrowings are initially recognised on the trade date, i.e., the date
that the Company becomes a party to the contractual provisions of the instrument. This includes regular trades, purchases or
sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention.
The Company recognises borrowings when funds are received by the Company.

Initial measurement of financial 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.

Subsequent measurement of financial instruments

The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such
indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or
recoverable amount of the cash generating unit to which the assets belong is less than the carrying amount, the carrying amount
is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account.
If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount
is reassessed and the assets is reflected at the recoverable amount.

“Overdue “refers to interest and /or instalment remaining unpaid from the day it became receivable.

Unsecured Loans and advances (including transactions during the year) are subject to confirmation and/or reconciliation

Write-off policy

The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has
concluded there is no reasonable expectation of recovery.

i. Cash and cash equivalents [refer note 3]

Cash and cash equivalents comprise cash at bank and on hand, short-term deposits and highly liquid investments with an original
maturity of three months or less, which are readily convertible in cash and subject to insignificant risk of change in value. Bank
overdrafts are shown within borrowings in other financial liabilities in the balance sheet.

m. Income tax [refer note 20]

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based in accordance with
the Income Tax Act, 1961 adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

Current tax

The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the end of the reporting
period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate based on amounts expected to be paid to the tax
authorities.

Deferred tax

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance Sheet 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 assets and liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither
the taxable profit nor the accounting profit.

Deferred tax assets are also recognised with respect to carry forward of unused tax losses and unused tax credits (including
Minimum Alternative Tax credit) to the extent that it is probable that future taxable profit will be available against which the
unused tax losses and unused tax credits can be utilised.

It is probable that taxable profit will be available against which a deductible temporary difference, unused tax loss or unused tax
credit can be utilised when there are sufficient taxable temporary differences which are expected to reverse in the period of reversal
of deductible temporary difference or in periods in which a tax loss can be carried forward or back. When this is not the case,
deferred tax asset is recognised to the extent it is probable that:

• the entity will have sufficient taxable profit in the same period as reversal of deductible temporary difference or periods in
which a tax loss can be carried forward or back; or

• tax planning opportunities are available that will create taxable profit in appropriate periods.

The carrying amount of deferred tax assets is reviewed at each Balance Sheet date 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 assets and liabilities 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 Balance Sheet
date. 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 reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities, and when they relate to income taxes levied by the same taxation authority, and the Company intends to settle its
current tax assets and liabilities on a net basis.

Minimum alternate tax (MAT)

MAT paid in a year is charged to the statement of profit and loss as current tax for the year. The deferred tax asset is recognised
for MAT credit available only to the extent that it is probable that the concerned company will pay normal income tax and thereby
utilising MAT credit during the specified period, i.e., the period for which MAT credit is allowed to be carried forward and
utilised. In the year in which the company recognises MAT credit as an asset, it is created by way of credit to the statement of
profit and loss and shown as part of deferred tax asset. The company reviews the “MAT credit entitlement” asset at each reporting
date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.

Current and deferred tax for the year

Current tax are recognised in profit or loss.

Segment Reporting:

- The Company has only one reportable segment i.e financial activity

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Mar 31, 2015

Not Available

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Mar 31, 2014

I) Basis of preparation of financial statements - These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under Section 211(3 C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956. The Company follows prudential norms for income recognition; asset classification and provisioning for non-performing assets as prescribed by Reserve Bank of India vide Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

ii) Use of Estimates - The presentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reported period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialize.

iii) Fixed Assets - There are no fixed assets

iv) Depreciation - There are no fixed assets

v) Investments - There are no investments

vi) Income Recognition - Revenues are recognized and expenses are accounted for on accrual basis with necessary provisions for all known liabilities and losses. Income from Non- Performing Assets is recognized only when it is realized. Interest on deposits and loans is accounted for on the time proportion basis after considering reasonable certainty that the ultimate collection will be made. Dividend income is recognized when right to receipts is established. Profit or loss on sale of securities is accounted on trade date basis.

vii) Foreign Currency Transaction - There are no foreign currency transaction

viii) Borrowing Cost - Borrowing Costs that are directly attributable to the acquisition or production of qualifying assets are capitalized as the cost of the respective assets. Other Borrowing Costs are charged to the Profit and Loss Account in the period in which they are incurred.

ix) Employees benefits - All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service.

Post Employment Benefits - All eligible employees of the Company are entitled to receive benefits under the provident fund and Gratuity is accounted for as and when paid.

x) Inventories - Funds deployed by the Company for short term trading in Quoted securities are held as stock in trade and are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their present condition. Costs of inventories are determined by using the First-In First-Out Method (FIFO).

xi) Accounting for taxes on Income

i) Income tax comprises the current tax and net change in deferred tax assets, which are made in accordance with the provisions as per the Income T ax Act, 1961.

ii) Deferred T ax resulting from timing differences between accounting income and taxable income for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

Leased Assets

Assets acquired on leases where a significant portion of the risks and rewards of the ownership are retained by the lessor, are classified as Operating Leases. The rental and all other expenses of leased assets are treated as revenue expenditure.

xii) Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

xiii) Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account. If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount.

xiv) Cash and cash equivalents

The Company considers bank balances and Fixed Deposit Receipts to be cash equivalents.

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Mar 31, 2013

I) Basis of preparation of financial statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956. The Company follows prudential norms for income recognition, asset classification and provisioning for non-performing assets as prescribed by Reserve Bank of India vide Non- Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

ii) Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reported period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialize.

iii) Fixed Assets

Fixed Assets, wherever present, are stated at cost of acquisition less accumulated depreciation thereon. Fixed Assets are accounted at cost of acquisition inclusive of inward freight, duties taxes and other incidental expenses related to acquisition and installation of Fixed Assets incurred to bring the assets to their working condition for their intended use. There are no fixed assets as at end of financial year.

iv) Depreciation

Depreciation is provided for in the books on written down value method as per the rates prescribed under Schedule XIV of the Companies Act 1956.

v) Investments

Investments made by the Company with a long term prospective in Quoted and Unquoted securities are held as investments and are valued at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of the investments. Currently, the investments are NIL

vi) Income Recognition

Revenues are recognized and expenses are accounted for on accrual basis with necessary provisions for all known liabilities and losses. Income from Non- Performing Assets is recognized only when it is realized. Interest on deposits and loans is accounted for on the time proportion basis after considering reasonable certainty that the ultimate collection will be made. Dividend income is recognized when right to receipts is established. Profit or loss on sale of securities is accounted on trade date basis.

vii) Foreign Currency Transaction

Foreign currency transactions are recorded in the books at exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the period are recognized as income or expense in the profit and loss account of the same period.

Foreign currency assets and liabilities are translated at the period end rates and the resultant exchange differences, are recognized in the profit and loss account.

viii) Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition or production of qualifying assets are capitalized as the cost of the respective assets. Other Borrowing Costs are charged to the Profit and Loss Account in the period in which they are incurred.

ix) Employees benefits

All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service.

Post Employment Benefits

All eligible employees of the Company are entitled to receive benefits under the provident fund and Gratuity is accounted for as and when paid.

x) Inventories

Funds deployed by the Company for short term trading in Quoted securities are held as stock in trade and are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their present condition. Costs of inventories are determined by using the First-In First-Out Method (FIFO).

xi) Accounting for taxes on Income

i) Income tax comprises the current tax and net change in deferred tax assets, which are made in accordance with the provisions as per the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing differences between accounting income and taxable income for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

Leased Assets

Assets acquired on leases where a significant portion of the risks and rewards of the ownership are retained by the lessor, are classified as Operating Leases. The rental and all other expenses of leased assets are treated as revenue expenditure.

xii) Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

xiii) Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account. If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount.

xiv) Cash and cash equivalents

The Company considers bank balances and Fixed Deposit Receipts to be cash equivalents.

Additional information to the financial statements 18 The management has asked for confirmation from its suppliers regarding their registration with competent authorities under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED). However, No one has confirmed their registration under the Act. Accordingly no further information is submitted in this regards. The Auditors have relied on the said submission of the management. Details are as under.

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Mar 31, 2012

I) Basis of preparation of financial statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956. The Company follows prudential norms for income recognition; asset classification and provisioning for non-performing assets as prescribed by Reserve Bank of India vide Non- Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Direction 2007.

ii) Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reported period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialize.

iii) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation thereon. Fixed Assets are accounted at cost of acquisition inclusive of inward freight, duties taxes and other incidental expenses related to acquisition and installation of Fixed Assets incurred to bring the assets to their working condition for their intended use.

iv) Depreciation

Depreciation is provided for in the books on written down value method as per the rates prescribed under Schedule XIV of the Companies Act 1956.

v) Investments

Investments made by the Company with a long term prospective in Quoted and Unquoted securities are held as investments and are valued at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of the investments

vi) Income Recognition

Revenues are recognized and expenses are accounted for on accrual basis with necessary provisions for all known liabilities and losses. Income from Non- Performing Assets is recognized only when it is realized. Interest on deposits and loans is accounted for on the time proportion basis after considering reasonable certainty that the ultimate collection will be made. Dividend income is recognized when right to receipts is established. Profit or loss on sale of securities is accounted on trade date basis.

vii) Foreign Currency Transaction

Foreign currency transactions are recorded in the books at exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the period are recognized as income or expense in the profit and loss account of the same period.

Foreign currency assets and liabilities are translated at the period end rates and the resultant exchange differences, are recognized in the profit and loss account.

viii) Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition or production of qualifying assets are capitalized as the cost of the respective assets. Other Borrowing Costs are charged to the Profit and Loss Account in the period in which they are incurred.

ix) Employees benefits

All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service.

Post Employment Benefits

All eligible employees of the Company are entitled to receive benefits under the provident fund and Gratuity is accounted for as and when paid.

x) Inventories

Funds deployed by the Company for short term trading in Quoted securities are held as stock in trade and are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their present condition. Costs of inventories are determined by using the First-In First-Out Method (FIFO).

xi) Accounting for taxes on Income

i) Income tax comprises the current tax and net change in deferred tax assets, which are made in accordance with the provisions as per the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing differences between accounting income and taxable income for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

xii) Leased Assets

Assets acquired on leases where a significant portion of the risks and rewards of the ownership are retained by the lessor, are classified as Operating Leases. The rental and all other expenses of leased assets are treated as revenue expenditure.

xiii) Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

xiv) Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account. If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount.

xv) Cash and cash equivalents

The Company considers bank balances and Fixed Deposit Receipts to be cash equivalents.

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Mar 31, 2011

I) Basis of preparation of financial statements :

The financial statements are prepared on historical cost convention complying with the relevant provisions of the Companies Act, 1956 and the Accounting Standards issued by the Institute of Chartered Accountants of India, as applicable. The company follows prudential norms for income recognition; asset classification and provisioning for non-performing assets as prescribed by Reserve Bank of India vide Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Direction 2007.

ii) Use of Estimates :

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reported period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialize.

iii) Fixed Assets :

Fixed Assets are stated at cost of acquisition less accumulated depreciation thereon. Fixed Assets are accounted at cost of acquisition inclusive of inward freight, duties taxes and other incidental expenses related to acquisition and installation of Fixed Assets incurred to bring the assets to their working condition for their intended use.

iv) Depreciation :

Depreciation is provided for in the books on written down value method as per the rates prescribed under Schedule XIV of the Companies Act 1956.

v) Investments :

Investments made by the Company with a long term prospective in Quoted and Unquoted securities are held as investments and are valued at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of the investments.

vi) Income Recognition :

Revenues are recognized and expenses are accounted on accrual basis with necessary provisions for all known liabilities and losses. Income from Non- Performing Assets is recognized only when it is realized. Interest on deposits and loans is accounted for on the time proportion basis after considering reasonable certainty that the ultimate collection will be made. Dividend income is recognized when right to receipts is established. Profit or loss on sale of securities is accounted on trade date basis.

vii) Foreign Currency Translation :

Foreign currency transactions are recorded in the books at exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized as income or expense in the profit and loss account of the same period.

Foreign currency assets and liabilities are translated at the yearend rates and the resultant exchange differences, are recognized in the profit and loss account.

viii) Borrowing Cost :

Borrowing Costs that are directly attributable to the acquisition or production of qualifying assets are capitalized as the cost of the respective assets. Other Borrowing Costs are charged to the Profit and Loss Account in the year in which they are incurred.

ix) Employees benefits :

All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service.

Post Employment Benefits

All eligible employees of the Company are entitled to receive benefits under the provident fund and Gratuity is accounted for as and when paid.

x) Inventories

Funds deployed by the Company for short term trading in Quoted securities are held as stock in trade and are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their present condition. Costs of inventories are determined by using the First-In First-Out Method (FIFO).

xi) Accounting for taxes on Income :

i) Income tax comprises the current tax and net change in deferred tax assets, which are made in accordance with the provisions as per the Income T ax Act, 1961.

ii) Deferred Tax resulting from timing differences between accounting income and taxable income for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

xii) Leased Assets :

Assets acquired on leases where a significant portion of the risks and rewards of the ownership are retained by the lessor, are classified as Operating Leases. The rental and all other expenses of leased assets are treated as revenue expenditure.

xiii) Provisions and Contingent Liabilities :

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A

disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

xiv) Impairment of Assets :

The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account. If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount.