Rajkot Investment Trust Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1 CORPORATE INFORMATION

Rajkot Investment Trust Limited is a Company limited by shares, incorporated on 29/06/1982 and is domiciled in India. The Company is engaged in the business of lending. The Company has its Registered Office at 526, Star Chambers, Harihar Chowk, Rajkot, Gujarat, India and its principal place of business at M-23, Super Tex Tower. Opp., Kinney Talkies, Ring Road, Surat- 395002, Gujarat. Company is Registered with Reserve Bank of India (RBI) with effect from 05.08.1999 as non-deposit taking NBFC.

2 BASIS OF PREPRATION

i. Statement of Compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Inds AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the Companies Act 2013 (the Act) along with other relevant provisions of the Act and 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) issued by the RBI. The financial statements have been prepared on a going concern basis. The Company uses accrual basis of accounting except in case of significant uncertainties.

For the period up to and including the year ended 31st March 2017, the Company has prepared its financial statements in accordance with accounting standards notified under section 133of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 and Companies (Accounting Standards) Amendment Rule, 2016 and NBFC Master Direction (hereinafter referred as previous GAAP). Financial Statements for the year ended 31st March 2018 and onwards are prepared in accordance with Ind-AS.

ii. Presentation of Financial Information

The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income) and the Statement of Changes in Equity are prepared and presented in the format prescribed in Division III of Schedule III to the Companies Act 2013. The Statement of Cash Flow has been prepared and presented as per the requirement of Ind AS. The Financial Statements have been prepared on the historical cost basis expect for certain financial instruments that are measured at fair values at the end of each reporting period as explained in the accounting policies below.

Historic cost is generally based on the fair value of the consideration given in exchange for goods and services at the time of entering into the transaction.

ii i. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial

statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as value in use in Ind AS 36.

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

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

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

- Level 3 inputs are unobservable inputs for the asset or liability. iv Use of Estimates and Judgements

The preparation of the Financial Statements require the Management of the group to make judgements, assumptions and estimates that affect the reported balances of the assets and liabilities and disclosure relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses for the reporting period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgements and the use of assumptions in the Financial Statements have been disclosed as applicable in the respective notes to accounts. Changes in estimates are reflected in the Financial Statements in the period in which changes are made and , if material , their effects are disclosed in the notes to the Financial Statements.

Significant accounting judgements, estimates and assumptions used by management are as below :

- Useful lives of Investment Property and Property Plant and Equipment.

- Fair value measurements.

- Impairment of Financial Assets

- Provisions and Other Contingent Liabilities

- Provision for Tax Expenses

¦— -1 INCOME

i Interest Income

a) Interest Income from loan transactions is accounted for by applying the interest rate implicit in such contracts.

b) Service charges, documentation charges and other fees on loan transactions are recognized at the commencement of the contract.

c) Delayed payment charges, fee-based income and interest on trade advances, are recognized when they become measurable and when it is not unreasonable to expect their ultimate collection.

d) Income on business assets classified as Non-performing Assets, is recognized strictly in accordance with the guidelines issued by The Reserve Bank of India for Non Banking Financial Companies. Unrealized Interest recognized as income in the previous period is reversed in the month in which the asset is classified as Non-Performing.

ii Dividend Income

Dividend income on equity shares is recognized when the Company''s right to receive dividend is established.

iii Rental Income

Rental is recognized on straight-line basis over the lease term, except for increase in line with expected inflatory cost increase.

i_v Fees and Commission

The Company recognizes service and administration charges towards rendering of additional services to its customers on satisfactory completion of service delivery.

_v Taxes

Income are recognized net of Goods and Services Tax, wherever applicable

₂ EXPENDITURES i. Finance Cost

Borrowing cost on financial liabilities are accounted for by applying the interest rate implicit in such contracts.

ii Taxes

Expenses are recognized net of Goods and Services Tax, except where credit for the input tax is not statutorily permitted

3 CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the Balance Sheet comprise cash at banks 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 flows, cash and cash equivalents consist of cash and shortterm deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

4 FINANCIAL INSTRUMENTS Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities 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 or issue of financial assets and financial liabilities that are not at fair value through Statement of Profit and Loss are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement Non-derivative financial instruments Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset 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.

Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income 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. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

Financial assets at fair value through profit and loss (FVPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued through Statement of Profit and Loss.

Financial liabilities

For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments.

5 INVESTMENT IN SUBSIDIARIES

Investments in subsidiaries are carried at cost in the financial statements. Company does not have any subsidiary company.

6 TAXES

i Income Taxes

Income tax expense represents the sum of the tax currently payable and de ferred tax.

a. Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current tax relating to items recognized outside Profit and Loss is recognized outside Statement of Profit and Loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

b. Deferred tax

Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill.

Deferred tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss).

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current tax and deferred tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

c. Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the entity will pay normal income tax. Accordingly, MAT is recognized as an asset under Deferred tax asset/ liability in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the entity.

ii Goods and Service Tax

Goods and Service Tax input credit is accounted for in the books of accounts in the period in which the splly of goods or services received is accounted and when there is no uncertainty in availing/utilizing the credits.

7 PROPERTY, PLANT AND EQUIPMENTS

i Property, Plants and Equipment''s are carried at historical cost of acquisition less accumulated depreciation and impairment losses, consistent with the criteria specified in Ind AS Property, Plant and Equipment''s.

ii Depreciation method, estimated useful lives and residual values

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on property, plant and equipment''s is provided using straight line method over the useful lives of assets estimated by the Management. The Management estimates the useful lives for the fixed assets as follows:

	Useful lives
Particulars	estimated by the
	management
Computer *	3 years
CCTV Camera	5 Years

* For these class of assets, based on internal assessment and independent technical evaluation carried out by external valuers, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, the Management believes that the useful lives as given above best represent the period over which the Management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under Part C of Schedule II to the Companies Act, 2013.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount.

These are included in Statement of Profit and Loss.

In respect of leasehold building, depreciation has been provided over lower of useful lives or leasable period.

8 INVESTMENT PROPERTY

Investment properties are properties held to earn rentals (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16''s requirements for cost model.

Investment properties are depreciated using written-down value method over the useful lives. ^Investment properties generally have a useful life of 58-60 years. The useful life has been determined based on internal assessment and independent technical evaluation carried out by external valuer, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement.

V

For transition to Ind AS, the Company has elected to continue with the carrying value of its investment property recognized as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in Statement of Profit and Loss in the period in which the property is derecognized.

9 IMPAIRMENT OF TANGIBLE 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 those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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

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

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in Statement of Profit and Loss.

10 PROVISIONS AND CONTINGENCIES

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements but are disclosed.

11 SHARE CAPITAL

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are recognized as a deduction from equity, net of any tax effects.

12 DERECOGNITION OF FINANCIAL INSTRUMENTS

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de recognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

13 IMPAIRMENT OF FINANCIAL ASSETS

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through Statement of Profit and Loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in Statement of Profit and Loss.

14 OPERATING CYCLE AND BASIS OF CLASSIFICATION OF ASSETS AND LIABILITIES

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

Current versus non-current classification

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

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

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

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

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

15 EARNING PER SHARE

Basic earnings per share have been computed by dividing profit attributable to owners of the Company by the weighted average number of shares outstanding during the year. Diluted earnings per share has been computed using the weighted average number of shares and dilutive potential shares, except where the result would be anti-dilutive.

16 DIVIDENDS

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the company''s Board of Directors.

17 STATEMENT OF CASH FLOWS

Statement of Cash flows is prepared under Ind AS 7 ''Statement of Cash flows'' specified under Section 133 of the Act. Cash flows are reported using the indirect method, whereby profit / (loss) before tax and is adjusted for the effects of transactions of non-cash nature.

18 SECURITIES PREMIUM

Securities Premium is used to record the premium in issue of shares. It can be utilized only for limited purpose in accordance with the provisions of the Companies Act, 2013.

19 RESERVE FUND IN TERMS OF SECTION 45-I OF THE RESERVE BANK OF INDIA ACT, 1934

Reserve Fund is created as per ther terms of section 45-IC(1) of the Reserve Bank of India Act,1934 as a statutory reserve.

20 GENERAL RESERVE

Amount set aside from retained profits as a reserve to be utilized for permissible general purpose as per Law.

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Mar 31, 2024

3 SIGNIFICANT ACCOUNTING POLICIES
1 INCOME

1 Interest Income

a) Interest Income from loan transactions is accounted for by applying the interest rate implicit in
such contracts.

b) Service charges, documentation charges and other fees on loan transactions are recognized at the
commencement of the contract.

c) Delayed payment charges, fee-based income and interest on trade advances, are recognized when
they become measurable and when it is not unreasonable to expect their ultimate collection.

d) Income on business assets classified as Non-performing Assets, is recognized strictly in accordance
with the guidelines issued by The Reserve Bank of India for Non Banking Financial Companies.
Unrealized Interest recognized as income in the previous period is reversed in the month in which the
asset is classified as Non-Performing.

ii Dividend Income

Dividend income on equity shares is recognized when the Company''s right to receive dividend is
established.

X v

iii Rental Income

Rental is recognized on straight-line basis over the lease term, except for increase in line with expected
inflatory cost increase.

i_v Fees and Commission

The Company recognizes service and administration charges towards rendering of additional services
to its customers on satisfactory completion of service delivery.

_v Taxes

Income are recognized net of Goods and Services Tax, wherever applicable

2 EXPENDITURES
i. Finance Cost

Borrowing cost on financial liabilities are accounted for by applying the interest rate implicit in such
contracts.

ii Taxes

Expenses are recognized net of Goods and Services Tax, except where credit for the input tax is not
statutorily permitted

3 CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the Balance Sheet comprise cash at banks 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 flows, cash and cash equivalents consist 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.

₄ FINANCIAL INSTRUMENTS
Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets and liabilities 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 or issue of financial assets and
financial liabilities that are not at fair value through Statement of Profit and Loss are added to the fair
value on initial recognition. Regular way purchase and sale of financial assets are accounted for at
trade date.

Subsequent measurement
Non-derivative financial instruments
Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model
whose objective is to hold the asset 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.

Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income 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.
Further, in cases where the Company has made an irrevocable election based on its business model,
for its investments which are classified as equity instruments, the subsequent changes in fair value
are recognized in other comprehensive income.

Financial assets at fair value through profit and loss (FVPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued
through Statement of Profit and Loss.

Financial liabilities

For trade and other payables maturing within one year from the Balance Sheet date, the carrying
amounts approximate the fair value due to the short maturity of these instruments.

5 INVESTMENT IN SUBSIDIARIES

Investments in subsidiaries are carried at cost in the financial statements. Company does not have any
subsidiary company.

6 TAXES

i Income Taxes

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

a. Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date. Current tax relating to items recognized
outside Profit and Loss is recognized outside Statement of Profit and Loss (either in other
comprehensive income or in equity). Current tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

b. Deferred tax

Deferred tax is recognized on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are
not recognized if they arise from the initial recognition of goodwill.

Deferred tax is also not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither
accounting profit nor taxable profit (tax loss).

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted
by the end of the reporting period and are expected to apply when the related deferred tax asset is
realized or the deferred tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only
if it is probable that future taxable amounts will be available to utilize those temporary differences
and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset when
the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.

Current tax and deferred tax is recognized in Statement of Profit and Loss, except to the extent that it
relates to items recognized in other comprehensive income or directly in equity. In this case, the tax
is also recognized in other comprehensive income or directly in equity, respectively.

c. Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic
benefits in the form of adjustment to future income tax liability, is considered as an asset if there is
convincing evidence that the entity will pay normal income tax. Accordingly, MAT is recognized as an
asset under Deferred tax asset/ liability in the Balance Sheet when it is highly probable that future
economic benefit associated with it will flow to the entity.

ii Goods and Service Tax

Goods and Service Tax input credit is accounted for in the books of accounts in the period in which
the splly of goods or services received is accounted and when there is no uncertainty in
availing/utilizing the credits.

7 PROPERTY, PLANT AND EQUIPMENTS

i Property, Plants and Equipment''s are carried at historical cost of acquisition less accumulated
depreciation and impairment losses, consistent with the criteria specified in Ind AS Property, Plant
and Equipment''s.

ii Depreciation method, estimated useful lives and residual values

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value. Depreciation on property, plant and equipment''s is provided using straight
line method over the useful lives of assets estimated by the Management. The Management estimates
the useful lives for the fixed assets as follows:
* For these class of assets, based on internal assessment and independent technical evaluation carried
out by external valuers, taking into account the nature of the asset, the estimated usage of the asset,
the operating conditions of the asset, past history of replacement, the Management believes that the
useful lives as given above best represent the period over which the Management expects to use these
assets. Hence the useful lives for these assets is different from the useful lives as prescribed under
Part C of Schedule II to the Companies Act, 2013.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount.

These are included in Statement of Profit and Loss.

In respect of leasehold building, depreciation has been provided over lower of useful lives or leasable

p^eriod.

8 INVESTMENT PROPERTY

Investment properties are properties held to earn rentals (including property under construction for
such purposes). Investment properties are measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16''s
requirements for cost model.

Investment properties are depreciated using written-down value method over the useful lives.
Investment properties generally have a useful life of 58-60 years. The useful life has been determined
based on internal assessment and independent technical evaluation carried out by external valuer,
taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of
the asset, past history of replacement.

For transition to Ind AS, the Company has elected to continue with the carrying value of its investment
property recognized as of April 1, 2016 (transition date) measured as per the previous GAAP and use
that carrying value as its deemed cost as of the transition date.

An investment property is derecognized upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from the disposal. Any
gain or loss arising on derecognition of the property (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in Statement of Profit and Loss in
the period in which the property is derecognized.

9 IMPAIRMENT OF TANGIBLE 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 those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any). When it is not possible to estimate the
recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash
generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be
identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units for which a reasonable and consistent
allocation basis can be identified.

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

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

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss
is recognized immediately in Statement of Profit and Loss.

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Mar 31, 2013

1 ACCOUNTING POLICIES :

The accounts are prepared in accordance with Accounting Policies and principles generally accepted in India. The Company follow accrual method of Accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies not holding Public Deposits.

The Company has followed all the prudential norms , to the extent applicable, as prescribed by Reserve Bank of India for Non Banking Financial Companies not Holding Public Deposits.

(a) Fixed Assets:

All fixed assets are stated at cost less depreciation.

(b) Depreciation:

Depreciation is provided under the straight line method at rates provided by Schedule - XIV to the Companies Act, 1956

(c) Inventory:

Stock-in-trade (Shares, Debentures and Bonds) are valued as under :

(1) Quoted Scrips - at lower of market value or cost (FIFO)

(2) Unquoted Scrips - at cost (FIFO)

(d) Recognition of Income & Expenditure :

(i) As in the past, on the prudent basis, Dividend and interest on Shares/Debentures are being accounted for as and when received.

(ii) There are few expenditure (like Insurance, Subscription, which though warranting provision for accounting on accrual basis have not been so provided as the impact of non-provision is not material on the profit/ loss of the year.

(e) Investment:

(i) All Investments are intended to be kept as long term investments as per the guidelines by Reserve Bank of India.

(ii) Investments are stated at cost. The Market Value of Quoted Investments as at 31-3-2013 is Rs.6366024/ - as against Cost of Rs.4098077/-.

(iii) Cost of those shares which are received by the company consequent upon part/full redemption of debentures/bonds as taken at the nominal amount of the redeemed portion of debentures/bonds and the premium if any charged by the issuing company.

(iv) Bonus Shares received on Trading Stocks are considered as Capital Receipt and are treated as Investment.

(f) Taxation

Current Tax

Provision is made for Income-tax on yearly basis, under the tax payable method, based on tax liability, as computed after taking credit for allowances and exemptions.

Deferred Tax

Deferred tax liability or assets is recognized 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 periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient taxable income will be available to realize these assets.

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Mar 31, 2012

1 ACCOUNTING POLICIES :

The accounts are prepared in accordance with Accounting Policies and principles generally accepted in India. The Company follow accrual method of Accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies not holding Public Deposits.

The Company has followed all the prudential norms , to the extent applicable, as prescribed by Reserve Bank of India for Non Banking Financial Companies not Holding Public Deposits.

(a) Fixed Assets:

All fixed assets are stated at cost less depreciation.

(b) Depreciation:

Depreciation is provided under the straight line method at rates provided by Schedule - XIV to the Companies Act, 1956

(c) Inventory:

Stock-in-trade (Shares, Debentures and Bonds) are valued as under :

(1) Quoted Scrips - at lower of market value or cost (FIFO)

(2) Unquoted Scrips - at cost (FIFO)

(d) Recognition of Income & Expenditure :

(i) As in the past, on the prudent basis, Dividend and interest on Shares/Debentures are being accounted for as and when received.

(ii) There are few expenditure (like Insurance, Subscription, which though warranting provision for accounting on accrual basis have not been so provided as the impact of non-provision is not material on the profit/ loss of the year.

(e) Investment:

(i) All Investments are intended to be kept as long term investments as per the guidelines by Reserve Bank of India.

(ii) Investments are stated at cost. The Market Value of Quoted Investments as at 31-3-2012 is Rs.8400972/- as against Cost of Rs.430350/-.

(iii) Cost of those shares which are received by the company consequent upon part/full redemption of debentures/bonds as taken at the nominal amount of the redeemed portion of debentures/bonds and the premium if any charged by the issuing company.

(iv) Bonus Shares received on Trading Stocks are considered as Capital Receipt and are treated as Investment.

(f) Taxation

Current Tax

Provision is made for Income-tax on yearly basis, under the tax payable method, based on tax liability, as computed after taking credit for allowances and exemptions.

Deferred Tax

Deferred tax liability or assets is recognized 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 periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient taxable income will be available to realize these assets.

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Mar 31, 2011

1 ACCOUNTING POLICIES :

The accounts are prepared in accordance with Accounting Policies and principles generally accepted in India. The Company follow accrual method of Accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies not holding Public Deposits.

The Company has followed all the prudential norms , to the extent applicable, as prescribed by Reserve Bank of India for Non Banking Financial Companies not Holding Public Deposits.

(a) Fixed Assets:

All fixed assets are stated at cost less depreciation.

(b) Depreciation:

Depreciation is provided under the straight line method at rates provided by Schedule - XIV to the Companies Act, 1956

(c) Inventory:

Stock-in-trade (Shares, Debentures and Bonds) are valued as under :

(1) Quoted Scrips - at lower of market value or cost (FIFO)

(2) Unquoted Scrips - at cost (FIFO)

(d) Recognition of Income & Expenditure :

(i) As in the past, on the prudent basis, Dividend and interest on Shares/Debentures are being accounted for as and when received.

(ii) There are few expenditure (like Insurance, Subscription, which though warranting provision for accounting on accrual basis have not been so provided as the impact of non-provision is not material on the profit/ loss of the year.

(e) Investment:

(i) All Investments are intended to be kept as long term investments as per the guidelines by Reserve Bank of India.

(ii) Investments are stated at cost. The Market Value of Quoted Investments as at 31-3-2013 is Rs.6366024/ - as against Cost of Rs.4098077/-.

(iii) Cost of those shares which are received by the company consequent upon part/full redemption of debentures/bonds as taken at the nominal amount of the redeemed portion of debentures/bonds and the premium if any charged by the issuing company.

(iv) Bonus Shares received on Trading Stocks are considered as Capital Receipt and are treated as Investment.

(f) Taxation

Current Tax

Provision is made for Income-tax on yearly basis, under the tax payable method, based on tax liability, as computed after taking credit for allowances and exemptions.

Deferred Tax

Deferred tax liability or assets 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 periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only to the extent that there is virtual certainty that sufficient taxable income will be available to realise these assets. All other deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient taxable income will be available to realise these assets.