Accounting Policies of Aagam Capital Ltd. Company

Mar 31, 2024

1. Significant Accounting Policies

A. Basis of Preparations

i. Statement of Compliance

These financial statements have been prepared in accordance with Indian
Accounting standards (hereinafter referred to asthe''lnd AS'') notified by the
Ministry of Corporate Affairsunder section 133ofthe CompaniesAct, 2013
(''Act'') read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 (as amended) along with other relevant provisions of the Act,
the Master Direction - Non Banking Financial Company - Systemically
Important Non- Deposit taking Company and Deposit taking Company and
Deposit taking Company (Reserve Bank) Directions, 2016.

Accordingly, the Company has prepared these Financial Statements which
comprise the Balance Sheet as at 31 March, 2024, the Statement of Profit
and Loss for the year ended 31 March 2024, the Statement of Cash Flows
for the year ended 31 March 2024 and the Statement of Changes in Equity
for the year ended as on that date, and accounting policies and other
explanatory information {together hereinafter referred to as ''financial
statements'').

The financial statements have been prepared on an accrual system, based
on the principle of going concern and under the historical cost convention,
unless otherwise stated.

ii. Functional and presentation currency

The Financial Statements have been presented in Indian Rupees (INR),
which is the Company''s functional currency. All financial information
presented in INR has been rounded off to the nearest rupee, unless
otherwise stated.

iii. Use of Estimates and Judgements

The preparation of Financial Statements in conformity with Ind AS requires
management to make certain judgments, estimates and assumptions
which affects the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and
liabilities at the date of the financial statements and reported amounts of
revenues and expenses during the period. Actual results may differ from
these estimates.

Continuous evaluation is done on the estimation and judgments based on
historical experience and other factors, including expectations of future
events that are believed to be reasonable. Revisions to accounting
estimates are recognised in financial statements in the period in which the
estimate is revised if the revision affects only that period or in the period of
the revision & Future period if revision affect both current and future
periods.

This note provides an overview of the areas where there is a higher degree
of judgment or complexity. Detailed information about each of these
estimates and judgments is included in relevant notes together with
information about the basis of calculation.

The areas involving critical estimates or judgements are

a. Impairment of Financial Assets such as Trade Receivable.

b. Impairment of Non-Financial Assets.

c. EstimatesofTaxExpensesand Liability.

d. Revenue recognitions.

Estimates and judgments are regularly revisited. Estimates are based on
historical experience and other factors, including futuristic reasonable
information that may have a financial impact on the company.

B. Revenue Recognition

Revenue from contracts with customers is recognized on transfer of control of
promised goods or services to a customer at an amount that reflects the
consideration to which the Company is expected to be entitled to in exchange for
those goods or services.

Revenue towards satisfaction of a performance obligation is measured at the
amount of transaction price (net of variable consideration) allocated to that
performance obligation. The transaction price of goods sold and services
rendered is net of variable consideration on account of various discounts and
schemes offered by the Company as part of the contract. This variable
consideration is estimated based on the expected value of outflow. Revenue (net
of variable consideration) is recognized only to the extent that it is highly probable
that the amount will not be subject to significant reversal when uncertainty
relating to its recognition is resolved.

i. Revenue is measured at the fair value of the consideration received or
receivable. The Company recognises revenue when the amount of
revenue can be reliably measured, it is probable that future economic
benefit will flow to the entity. The Company bases its estimates on historical
results, taking into consideration the type of customer, the type of
transaction and the specificof each agreement.

ii. Interest income is recognized on a time proportion basis taking into account
the amount outstanding and the effective interest rate applicable.

i. Initial Recognition & Measurement

Property, plant and equipment are stated at cost, net of recoverable taxes,
trade discount and rebates less accumulated depreciation and impairment
losses, if any. Such cost includes purchase price, borrowing costand any
cost directly attributable to bringing the assets to its working condition for its
intended use.

If significant parts of an item of property, plant and equipment have different
useful lives, then they are accounted for as separate items (major
components) of Property, plant and equipment.

Capital work-in-progress comprises cost of property, plant and equipment
and related expenses that are not yet ready for their intended use at the
reporting date. Advances given towards acquisition of property, plant and
equipment outstanding at each balance sheet date are disclosed as Capital
Advances under other non-current assets.

Gains or losses arising from derecognition of a property, plant and
equipment 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 derecognised.

ii. Subsequent Cost

Subsequent costs are included in the asset''s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the entity
and the cost can be measured reliably. All other repairs and maintenance
are charged to the Statement of Profit and Loss during the period in which
they are incurred.

Depreciation on all the assets have been provided at the rates and in the
manner prescribed in Schedule II of the Act on Written Down Value Method.
Depreciation on additions to assets or on sale / disposal of assets is
calculated on the basis of Pro rata basis from date of such addition or up to
the month of such sale/ scrapped, as the case may be

The WDV of the assets have been reduced to 5% of the Cost during FY
2019-20, which is the estimated Scrap Value as per the Companies Act,
2013. Hence no depreciation is charged for FY 2023-24.

D. Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a
party to the contractual provisions of the instrument. Financial assets and
financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets or financial liabilities at
fair value through profit or loss are recognised immediately in profit or loss.

Financial assets and financial liabilities are offset against each other and the net
amount reported in the balance sheet if, and only if, there is a currently
enforceable legal right to offset the recognized amounts and there is an intention
to settle on a net basis, or to realize the assets and settle the liabilities
simultaneously.

i. FinancialAssets

The Company initially recognises loans and advances, deposits and debt
securities purchased on the date on which they originate. Purchases and
sale of financial assets are recognised on the trade date, which is the date
on which the Company becomes a party to the contractual provisions of the
instrument. All financial assets are recognised initially at fair value. In the
case of financial assets not recorded at FVTPL, transaction costs that are

directly attributable to its acquisition of financial assets are included
therein.

Financial assets are divided into the following categories:

a. financial assets carried atamortised cost

b. financial assets atfair value through other comprehensive income

c. financial assets at fair value through profit and loss;

Financial assets are assigned to the different categories by management
on initial recognition, depending on the nature and purpose of the financial
assets. The designation of financial assets is re-evaluated at every
reporting date at which a choice of classification or accounting treatment is
available.

Financial Assets like Investments in Subsidiaries are measured at Costas
allowed by Ind-AS 27 - Separate Financial Statements and hence are not
fair valued.

ii. Financial assets carried atamortised cost

A financial asset is subsequently measured at amortised cost if it is held
within a business model whose objective is to hold the asset in order to
collect contractual cashflows 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. These are non¬
derivative financial assets that are not quoted in an active market. Loans
and receivables (including trade and other receivables, bank and cash
balances) are measured subsequent to initial recognition at amortized cost
using the effective interest method, less provision for impairment. Any
change in their value through impairment or reversal of impairment is
recognized in the Statement of profit and loss.

In accordance with Ind AS 109: Financial Instruments, the Company
recognizes impairment loss allowance on trade receivables and content
advances based on historically observed default rates. Impairment loss
allowance recognized during the financial year is charged to Statement of
profit and loss.

iii. Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income are
non-derivative financial assets 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. Fair value movements are
recognized in the other comprehensive income (OCI). However, the
Company recognizes interest income, impairment losses in the statement
of profit and loss.

iv. Financial assets affair value through profit or loss

A financial asset which is not classified in any of the above categories are
subsequently fair valued through profit or loss. It includes non-derivative
financial assets that are either designated as such or do not qualify for
inclusion in any of the other categories of financial assets. Gains and losses
arising from investments classified under this category is recognized in the
Statement of profit and loss when they are sold or when the investment is
impaired.

v. Impairment of Financial Assets

In the case of impairment, any loss previously recognized in other
comprehensive income is transferred to the Statement of profit and loss.
Impairment losses recognized in the Statement of profit and loss on equity
instruments are not reversed through the Statement of profit and loss.
Impairment losses recognized previously on debt securities are reversed
through the Statement of profit and loss when the increase can be related
objectively to an event occurring after the impairment loss was recognized
intheStatementofprofitand loss.

When the Company considers that fair value of financial assets can be
reliably measured, thefairvaluesoffinancial instruments that are nottraded
in an active market are determined by using valuation techniques. The
Company applies its judgment to select a variety of methods and make
assumptions that are mainly based on market conditions existing at each

balance sheet date. Equity instruments measured atfair value through profit
or loss that do not have a quoted price in an active market and whose fair
value cannot be reliably measured are measured at costless impairment at
theend of each reporting period.

An assessment for impairment is undertaken at least at each balance sheet
date.

vi. Investment in Equity Instruments

All investments in equity instruments classified under financial assets are
initially measured at fair value. The Company has made an election to
measure the same at fair value through other comprehensive income
(FVOCI) on an instrument-byinstrument basis. Fair value changes
excluding dividends, on an equity instrument measured at FVOCI are
recognised in OCI. Dividend income on the investments in equity
instruments are recognised as ''other income'' in the Statement of Profit and
Loss.

vii. Derecognition of Financial Assets

A financial asset is derecognized only where the contractual rights to the
cash flows from the asset expire or the financial asset is transferred and
that transferqualifies for derecognition. Afinancial asset is transferred if the
contractual rights to receive the cash flows of the asset have been
transferred or the Company retains the contractual rights to receive the
cash flows of the asset but assumes a contractual obligation to pay the cash
flows to one or more recipients. Afinancial asset that is transferred qualifies
for de-recognition if the Company transfers substantially all the risks and
rewards of ownership of the asset, or if the Company neither retains nor
transfers substantially all the risks and rewards of ownership but does
transfer control of that asset.

viii. Equity Instruments

An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments

issued by the Company are recognised at the proceeds received, net of
direct issue costs.

ix. Financial Liabilities

Financial liabilities are recognised when the Company becomes a party to
the contractual provisions of the instrument. Financial liabilities are initially
measured at the amortised cost unless at initial recognition they are
classified as financial liabilities at fair value through profit or loss.

x. Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the
EIR method. Financial liabilities carried at fair value through profit or loss
are measured at fair value with all changes in fair value recognised in the
Statement of Profit and Loss.

xi. De-recognition

A financial liability is derecognized only when the obligation is
extinguished, that is, when the obligation is discharged or cancelled or
expires. Changes in liabilities''fair valuethatare reported in profit or loss are
included in the Statement of profit and loss within finance costs or finance
income.

E. Inventory

Inventories, if any, are measured at the lower of cost and net realisable value after
providing for obsolescence. Cost of finished goods and work-in-progress include
all costs of purchases, conversion costs and other costs incurred in bringing the
inventories to their present location and condition. The net realisable value is the
estimated selling price in the ordinary course of business less the estimated costs
of completion and estimated costs necessary to make the sale.

F. Impairment of Non-Financial Assets-Property, Plant & Equipment

The Company assesses at each reporting dates as to whether there is any
indication that any property, plant and equipmentand Intangible Assets or group
of assets called Cash Generating Units (CGU) may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset''s recoverable amount to determine the extent of
impairment, ifany

An impairment loss is recognized in the Statement of the Profit and Loss to the
extent, asset''s carrying amount exceeds its recoverable amount. The
recoverable amount is higher of an asset''s fair value less cost of disposal and
value in use. Value in use is based on the estimated future cash flows, discounted
to their present value using pre-tax discount rate that reflects current market
assessments of the time value of money and risk specific to the assets.

The impairment loss recognised in prioraccounting period is reversed if there has
been a change in the estimate of recoverable amount.

G. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of time to get ready for its
intended use.

The Company determines the amount of borrowing costs eligible for
capitalisation as the actual borrowing costs incurred on that borrowing during the
year less any interest income earned on temporary investment of specific
borrowings pending their expenditure on qualifying assets, to the extent that an
entity borrows funds specifically for the purpose of obtaining a qualifying asset. In
case if the Company borrows generally and uses the funds for obtaining a
qualifying asset, borrowing costs eligible for capitalisation are determined by
applying a capitalisation rate to the expenditures on that asset. Borrowing cost
includes exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the finance cost.

All other borrowing costs are charged to the Statement of Profit and Loss in the
period in which they are incurred.

H. Cash and Cash Equivalent

Cash and cash equivalents include cash in hand, deposits held at call with banks,
other short term highly liquid investments which are readily convertible into
known amounts of cash and are subject to insignificant risk of changes in
value. Bank overdrafts are shown within borrowings in current liabilities on
the balance sheet.

I. Cash Flow Statement

Cash flow are reported using Indirect method, where by net profit before
tax is adjusted for the effects of transaction of non-cash nature any deferrals or
accruals of past or future operating cash receipts or payments and items of
income and expenses associates with investing or financing activity. The
cash flows from regular revenue generating, investing and financing
activities of the Company are segregated.

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Mar 31, 2014

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 of India (the ''Act'') and the relevant provisions of the Act and the regulations of Reserve Bank of India to the extent applicable. The significant accounting policies are as follows:

a. Basis of preparation of Financial Statements

The financial statements are prepared in accordance with the historical cost convention.

b. Fixed Assets and Depreciation/ Amortisation

Fixed Assets are stated at Cost less Depreciation. The Company capitalises all cost relating to acquisition and installation of Fixed Assets.

Depreciation is provided on Straight Line Method, pro rata for the period of use, at the rates specified in Schedule XIV to the Act or based on rates as per useful life of asset, whichever is higher.

Assets costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

c. Investments

Investments are classified as long term or current based on management''s intention at the time of purchase. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments.

Long term investments are recorded at cost as on the date of transaction and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market/fair value, whichever is lower.

d. Revenue Recognition

i. Interest income is accounted on accrual basis.

ii. Dividend income is recognised when the right to receive dividend is established.

iii. Realised gains and losses in respect of equity securities and units of mutual funds are calculated as the difference between the net sales proceeds and their cost. Cost in respect of equity shares and units of mutual funds are computed using first in first out (FIFO) method.

e. Use of Estimates

The preparation of financial statements are in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known /materialised.

f. Equity Index / Stock Futures.

i) Margin Deposits representing margin paid for entering into a contract for equity index/stock futures which are released on final settlement/squaring up of the underlying contract, are disclosed under Loans and advances.

ii) Equity index/stock futures are marked to market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities respectively in the "Mark- to- Market Margin - Equity Index/Stock Futures account " represents the net amount paid or received on the basis of movement in the prices of index/stock futures till the Balance Sheet date.

iii) As on the Balance Sheet date profit/loss on open positions in equity index/stock futures in accounted for as follows:

* Credit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account" being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account.

* Debit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account", being the anticipated loss is adjusted in the Profit and Loss Account.

iv) On final settlement or squaring up of contracts for equity index/stock futures the profit or loss is calculated as the difference between the settlement/squaring up price and the contract price. Accordingly debit or credit balance pertaining to the settled/squared up contract in "Mark-to- Market Margin - Equity Index/stock Futures Account", after adjustment of the provision for anticipated losses is recognised in the Profit and Loss Account.

g. Equity Index / Stock Options

i) "Equity Index/Stock option premium account" represents premium paid or received for buying or selling the options, respectively.

ii) Margin deposits representing margin paid for entering into contract for equity index /stock options which are released on final settlement/squaring up of the underlying contracts are disclosed under Loans and Advances.

iii) As at the Balance Sheet date in the case of long positions provision is made for the amount by which the premium paid for those options exceeds the premium prevailing on the balance sheet date, and in the case of short positions for the amount by which the premium prevailing on the balance sheet date exceeds the premium received for those options and is reflected in "Provision for loss on equity Index/Stock Options Account."

iv) When the option contracts are squared up before the expiry of the options the premium prevailing on that date is recognised in the Profit and Loss Account.

On the expiry of the contracts and on exercising the options the difference between the final settlement price and the strike price is transferred to the Profit and Loss Account.

In both the cases, the premium paid or received for buying or selling the option as the case may be is recognized in the profit and loss account for the squared-up/settled contracts.

h. Taxes on Income

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Minimum Alternate Tax (MAT) eligible for set off in subsequent years, (as per tax laws) is recognized as an asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realisation. At each balance sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, 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 are recognised mainly on account of unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

I. Inventories

Inventory consists of shares and securities purchased for trading purposes. These are valued at lower of cost or net realizable value. Cost is computed on FIFO basis. For the purpose of determining net realizable value, the last quoted closing prices at the Bombay Stock Exchange Limited (''BSE'') are considered.

j. Employee Benefits

Defined Contribution Plans such as Provident Fund etc. are charged to the Profit & Loss Account as incurred.

Defined Benefit Plans - The present value of the obligation under such plan was determined based on an actuarial valuation which was carried out by an independent actuary. The actuarial valuation method used by the independent actuary for measuring the liability was the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation was recognized immediately in the Profit & Loss Account. However during the year as there is only one employee, the company has worked out the gratuity liability without actuarial valuation. The liability for the same is provided in the accounts.

Other Long term Employee Benefits are recognized in the same manner as Defined Benefit Plans. Termination benefits are recognized as and when incurred.

k. Operating Lease

Lease payments for assets on operating lease are recognized as an expense in Profit & Loss Account in accordance with Accounting Standard 19 - Leases.

l. Provisions and Contingent Liabilities

The Company recognises 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 resource is remote, no provision or disclosure is made.

m. Impairment of Assets

The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provision for non-performing assets as prescribed by the Reserve Bank of India under Non-Banking Financial (Non deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. During the year, these norms have been amended, mandating 0.25% provision against the outstanding standard assets.

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Mar 31, 2013

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 of India (the''Act'') and the relevant provisions of the Act and the regulations of Reserve Bank of India to the extent applicable. The significant accounting policies are as follows:

a. Basis of preparation of Financial Statements

The financial statements are prepared in accordance with the historical cost convention.

b. Fixed Assets and Depreciation/ Amortisation

Fixed Assets are stated at Cost less Depreciation. The Company capitalises all cost relating to acquisition and installation of Fixed Assets.

Depreciation is provided on Straight Line Method, pro rata for the period of use, at the rates specified in Schedule XIV to the Act or based on rates as per useful life of asset, whichever is higher. Air conditioners and office equipment are depreciated over 7 years, which is different from rates specified from Schedule XIV.

Leasehold improvements are depreciated on straight line basis over the period of lease.

Assets costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

c. Investments

Investments are classified as long term or current based on management''s intention at the time of purchase. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments.

Long term investments are recorded at cost as on the date of transaction and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market/fair value, whichever is lower.

d. Revenue Recognition

i. Interest income is accounted on accrual basis.

ii. Dividend income is recognised when the right to receive dividend is established.

iii. Realised gains and losses in respect of equity securities and units of mutual funds are calculated as the difference between the net sales proceeds and their cost. Cost in respect of equity shares and units of mutual funds are computed using first in first out (FIFO) method.

e. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known /materialised.

f. Equity Index/Stock Futures.

i) Margin Deposits representing margin paid for entering into a contract for equity index/stock futures which are released on final settlement/squaring up of the underlying contract, are disclosed under Loans and advances.

ii) Equity index/stock futures are marked to market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities respectively in the "Mark- to- Market Margin - Equity Index/Stock Futures account " represents the net amount paid or received on the basis of movement in the prices of index/stock futures till the Balance Sheet date.

iii) As on the Balance Sheet date profit/loss on open positions in equity index/stock futures in accounted for as follows:

Credit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account" being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account. Debit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account", being the anticipated loss is adjusted in the Profit and Loss Account.

iv) On final settlement or squaring up of contracts for equity index/stock futures the profit or loss is calculated as the difference between the settlement/squaring up price and the contract price. Accordingly debit or credit balance pertaining to the settled/squared up contract in "Mark-to- Market Margin - Equity Index/stock Futures Account", after adjustment of the provision for anticipated losses is recognised in the Profit and Loss Account.

g. Equity Index/Stock Options

i) "Equity Index/Stock option premium account" represents premium paid or received for buying or selling the options, respectively.

ii) Margin deposits representing margin paid for entering into contract for equity index /stock options which are released on final settlement/squaring up of the underlying contracts are disclosed under Loans and Advances.

iii) As at the Balance Sheet date in the case of long positions provision is made for the amount by which the premium paid for those options exceeds the premium prevailing on the balance sheet date, and in the case of short positions for the amount by which the premium prevailing on the balance sheet date exceeds the premium received for those options and is reflected in "Provision for loss on equity Index/Stock Options Account."

iv) When the option contracts are squared up before the expiry of the options the premium prevailing on that date is recognised in the Profit and Loss Account.

On the expiry of the contracts and on exercising the options the difference between the final settlement price and the strike price is transferred to the Profit and Loss Account.

In both the cases, the premium paid or received for buying or selling the option as the case may be is recognized in the profit and loss account for the squared-up/settled contracts.

h. Taxes on Income

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Minimum Alternate Tax (MAT) eligible for set off in subsequent years, (as per tax laws) is recognized as an asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realisation. At each balance sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, 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 are recognised mainly on account of unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

I. Inventories

Inventory consists of shares and securities purchased for trading purposes. These are valued at lower of cost or net realizable value. Cost is computed on FIFO basis. For the purpose of determining net realizable value, the last quoted closing prices at the Bombay Stock Exchange Limited (''BSE'') are considered.

j. Employee Benefits

Defined Contribution Plans such as Provident Fund etc. are charged to the Profit & Loss Account as incurred.

Defined Benefit Plans - The present value of the obligation under such plan was determined based on an actuarial valuation which was carried out by an independent actuary. The actuarial valuation method used by the independent actuary for measuring the liability was the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation was recognized immediately in the Profit & Loss Account. However during the year as there is only one employee, the company has worked out the gratuity liability without actuarial valuation. The liability for the same is provided in the accounts.

Other Long term Employee Benefits are recognized in the same manner as Defined Benefit Plans. Termination benefits are recognized as and when incurred.

k. Operating Lease

Lease payments for assets on operating lease are recognized as an expense in Profit & Loss Account in accordance with Accounting Standard 19 - Leases.

I. Provisions and Contingent Liabilities

The Company recognises 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. Adisclosu re 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 resource is remote, no provision or disclosure is made.

m. Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset 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 the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

n. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provision for non-performing assets as prescribed by the Reserve Bank of India under Non-Banking Financial (Non deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. During the year, these norms have been amended, mandating 0.25% provision against the outstanding standard assets.

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Mar 31, 2012

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 of India (the 'Act') and the relevant provisions of the Act and the regulations of Reserve Bank of India to the extent applicable. The significant accounting policies are as follows:

a. Basis of preparation of Financial Statements

The financial statements are prepared in accordance with the historical cost convention.

b. Fixed Assets and Depreciation/Amortisation

Fixed Assets are stated at Cost less Depreciation. The Company capitalises all cost relating to acquisition and installation of Fixed Assets.

Depreciation is provided on Straight Line Method, pro rata for the period of use, at the rates specified in Schedule XIV to the Act or based on rates as per useful life of asset, whichever is higher. Air conditioners and office equipment are depreciated over 7 years, which is different from rates specified from Schedule XIV.

Leasehold improvements are depreciated on straight line basis over the period of lease.

Assets costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

c. Investments

Investments are classified as long term or current based on management intention at the time of purchase. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments.

Long term investments are recorded at cost as on the date of transaction and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market/fair value, whichever is lower.

d. Revenue Recognition

i. Interest income is accounted on an accrual basis.

ii. Dividend income is recognised when the right to receive dividend is established.

iii. Realised gains and losses in respect of equity securities and units of mutual funds are calculated as the difference between the net sales proceeds and their cost. Cost in respect of equity shares and units of mutual funds is computed using the first in first out (FIFO) method.

e. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

f. Equity Index/Stock Futures.

i) Margin Deposits representing margin paid for entering into a contract for equity index/stock futures which are released on final settlement/squaring up of the underlying contract, are disclosed under Loans and advances.

ii) Equity index/stock futures are marked to market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities respectively in the "Mark- to- Market Margin - Equity Index/Stock Futures account " represents the net amount paid or received on the basis of movement in the prices of index/stock futures till the Balance Sheet date.

iii) As on the Balance Sheet date profit/loss on open positions in equity index/stock futures in accounted for as follows:

- Credit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account" being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account.

- Debit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account", being the anticipated loss is adjusted in the Profit and Loss Account.

iv) On final settlement or squaring up of contracts for equity index/stock futures the

profit or loss is calculated as the difference between the settlement/squaring up price and the contract price. Accordingly debit or credit balance pertaining to the settled/squared up contract in "Mark-to- Market Margin - Equity Index/stock Futures Account", after adjustment of the provision for anticipated losses in recognised in the Profit and Loss Account.

g. Equity Index/Stock Options

i) "Equity Index/Stock option premium account" represents premium paid or received for buying or selling the options, respectively.

ii) Margin deposits representing margin paid for entering into contract for equity index/stock options which are released on final settlement/squaring up of the underlying contracts are disclosed under Loans and Advances.

iii) As at the Balance Sheet date in the case of long positions provision is made for the amount by which the premium paid for those options exceeds the premium prevailing on the balance sheet date, and in the case of short positions for the amount by which the premium prevailing on the balance sheet date exceeds the premium received for those options and is reflected in "Provision for loss on equity Index/Stock Options Account.

iv) When the option contracts are squared up before the expiry of the options the premium prevailing on that date is recognised in the Profit and Loss Account.

On the expiry of the contracts and on exercising the options the difference between the final settlement price and the strike price is transferred to the Profit and Loss Account.

In both the cases, the premium paid or received for buying or selling the option as the case may be is recognized in the profit and loss account for the squared- up/settled contracts.

h. Taxes on Income

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Minimum Alternate Tax (MAT) eligible for set off in subsequent years, (as per tax laws) is recognized as an asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realisation. At each balance sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, 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 are recognised mainly on account of unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i. Inventories

Inventory consists of shares and securities purchased for trading purposes. These are valued at lower of cost or net realizable value. Cost is computed on FIFO basis. For the purpose of determining net realizable value, the last quoted closing prices at the BSE Limited ('BSE') is considered.

j. Employee Benefits

Defined Contribution Plans such as Provident Fund etc. are charged to the Profit & Loss Account as incurred.

Defined Benefit Plans - The present value of the obligation under such plan is determined based on an actuarial valuation which is carried out by an independent actuary. The actuarial valuation method used by the independent actuary for measuring the liability is the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit & Loss Account.

Other Long term Employee Benefits are recognized in the same manner as Defined Benefit Plans. Termination benefits are recognized as and when incurred.

k. Operating Lease

Lease payments for assets on operating lease are recognized as an expenses in Profit & Loss Account in accordance with Accounting Standard 19 - Leases.

l. Provisions and Contingent Liabilities

The Company recognises 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 resource is remote, no provision or disclosure is made.

m. Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset 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 the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

n. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provision for non-performing assets as prescribed by the Reserve Bank of India under Non-Banking Financial (Non deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. During the year, these norms have been amended, mandating 0.25% provision against the outstanding standard assets.

---

Mar 31, 2011

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 of India (the ‘Act') and the relevant provisions of the Act and the regulations of Reserve Bank of India to the extent applicable. The significant accounting policies are as follows:

a. Basis of preparation of Financial Statements

The financial statements are prepared in accordance with the historical cost convention.

b. Fixed Assets and Depreciation/ Amortisation

Fixed Assets are stated at Cost less Depreciation. The Company capitalises all cost relating to acquisition and installation of Fixed Assets.

Depreciation is provided on Straight Line Method, pro rata for the period of use, at the rates specified in Schedule XIV to the Act or based on rates as per useful life of asset, whichever is higher. Air conditioners and office equipment are depreciated over 7 years, which is different from rates specified from Schedule XIV.

Leasehold improvements are depreciated on straight line basis over the period of lease.

Assets costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

c. Investments

Investments are classified as long term or current based on management intention at the time of purchase. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments.

Long term investments are recorded at cost as on the date of transaction and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market/fair value, whichever is lower.

d. Revenue Recognition

i. Interest income is accounted on an accrual basis.

ii. Dividend income is recognised when the right to receive dividend is established.

iii. Realised gains and losses in respect of equity securities and units of mutual funds are calculated as the difference between the net sales proceeds and their cost. Cost in respect of equity shares and units of mutual funds is computed using the first in first out (FIFO) method.

e. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known /materialised.

f. Equity Index / Stock Futures.

i) Margin Deposits representing margin paid for entering into a contract for equity index/stock futures which are released on final settlement/squaring up of the underlying contract, are disclosed under Loans and advances.

ii) Equity index/stock futures are marked to market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities respectively in the "Mark- to- Market Margin - Equity Index/Stock Futures account " represents the net amount paid or received on the basis of movement in the prices of index/stock futures till the Balance Sheet date.

iii) As on the Balance Sheet date profit/loss on open positions in equity index/stock futures in accounted for as follows:

- Credit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account" being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account.

- Debit balance in the "Mark-to-Market Margin–Equity Index/Stock Futures Account", being the anticipated loss is adjusted in the Profit and Loss Account.

iv) On final settlement or squaring up of contracts for equity index/stock futures the profit or loss is calculated as the difference between the settlement/squaring up price and the contract price. Accordingly debit or credit balance pertaining to the settled/squared up contract in "Mark-to- Market Margin – Equity Index/stock Futures Account", after adjustment of the provision for anticipated losses in recognised in the Profit and Loss Account.

g. Equity Index / Stock Options

i) "Equity Index/Stock option premium account" represents premium paid or received for buying or selling the options, respectively.

ii) Margin deposits representing margin paid for entering into contract for equity index /stock options which are released on final settlement/squaring up of the underlying contracts are disclosed under Loans and Advances.

iii) As at the Balance Sheet date in the case of long positions provision is made for the amount by which the premium paid for those options exceeds the premium prevailing on the balance sheet date, and in the case of short positions for the amount by which the premium prevailing on the balance sheet date exceeds the premium received for those options and is reflected in "Provision for loss on equity Index/Stock Options Account."

iv) When the option contracts are squared up before the expiry of the options the premium prevailing on that date is recognised in the Profit and Loss Account.

On the expiry of the contracts and on exercising the options the difference between the final settlement price and the strike price is transferred to the Profit and Loss Account.

In both the cases, the premium paid or received for buying or selling the option as the case may be is recognized in the profit and loss account for the squared–up/settled contracts.

h. Taxes on Income

Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Minimum Alternate Tax (MAT) eligible for set off in subsequent years, (as per tax laws) is recognized as an asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realisation. At each balance sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, 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 are recognised mainly on account of unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i. Stock-in-Trade

Stock-in-Trade consists of shares and securities purchased for trading purposes. These are valued at lower of cost and net realizable value. Cost is computed on FIFO basis. For the purpose of determining net realizable value, the last quoted closing prices at the Bombay Stock Exchange Limited (‘BSE') is considered.

j. Employee Benefits

Defined Contribution Plans such as Provident Fund etc. are charged to the Profit & Loss Accounts as incurred.

Defined Benefit Plans - The present value of the obligation under such plan is determined based on an actuarial valuation which is carried out by an independent actuary. The actuarial valuation method used by the independent actuary for measuring the liability is the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit & Loss Account.

Other Long term Employee Benefits are recognized in the same manner as Defined Benefit Plans. Termination benefits are recognized as and when incurred.

k. Operating Lease

Lease payments for assets on operating lease are recognized as an expenses in Profit & Loss Account in accordance with Accounting Standard 19 – Leases.

l. Provisions and Contingent Liabilities

The Company recognises 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 resource is remote, no provision or disclosure is made.

m. Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset 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 the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

n. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provision for non-performing assets as prescribed by the Reserve Bank of India under Non-Banking Financial (Non deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. During the year, these norms have been amended, mandating 0.25% provision against the outstanding standard assets.

---

Mar 31, 2010

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 of India (the Act) and the relevant provisions of the Act. The significant accounting policies are as follows:

a. Basis of preparation of Financial Statements

The financial statements are prepared in accordance with the historical cost convention.

b. Fixed Assets and Depreciation/ Amortisation

Fixed Assets are stated at Cost less Depreciation. The Company capitalises all cost relating to acquisition and installation of Fixed Assets.

Depreciation is provided on Straight Line Method pro rata for the period of use, at the rates specified in Schedule XIV to the Act.

Assets costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

c. Investments

Investments are classified as long term or current based on management intention at the time of purchase. Investments which are intended to be held for one year or more are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments.

Long term investments are recorded at cost as on the date of transaction and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market/fair value,.whichever is lower.

d. Revenue Recognition

i. Interest income is accounted on an accrual basis.

ii. Dividend income is recognised when the right to receive dividend is established.

iii. Realised gains and losses in respect of equity securities and units of mutual funds are calculated as the difference between the net sales proceeds and their cost. Cost in respect of equity shares and units of mutual funds is computed using the first in first out (FIFO) method.

e. Equity Index / Stock Futures.

i) Margin Deposits representing margin paid for entering into a contract for equityindex/stock futures which are released on final settlement/squaring up of the underlying contract, are disclosed under Loans and advances.

Schedule forming part of the Balance Sheet as at March 31, 2010 and the Profit and Loss Account for the year ended March 31, 2010

ii) Equity index/stock futures are marked to market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities respectively in the "Mark- to- Market Margin - Equity Index/Stock Futures account " represents the net amount paid or received on the basis of movement in the prices of index/stock futures till the Balance Sheet date.

iii) As on the Balance Sheet date profit/loss on open positions in equity index/stock futures in accounted for as follows:

- Credit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account" being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account.

- Debit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account", being the anticipated loss is adjusted in the Profit and Loss Account.

iv) On final settlement or squaring up of contracts for equity index/stock futures the profit or loss is calculated as the difference between the settlement/squaring up price and the contract price. Accordingly debit or credit balance pertaining to the settled/squared up contract in "Mark-to- Market Margin - Equity Index/stock Futures Account", after adjustment of the provision for anticipated losses in recognised in the Profit and Loss Account.

f. Equity Index / Stock Options

i) Margin deposits representing margin paid for entering into contract for equity index /stock options which are released on final settlement/ squaring up of the underlying contracts are disclosed under Loans and Advances.

ii) Equity Index/Stock Option Premium Account represents the premium paid or received for buying or selling the options respectively.

iii) As at the Balance Sheet date in the case of long positions provision is made for those options exceeds the premium prevailing on the balance sheet date, and in the case of short positions for the amount by which the premium prevailing on the balance sheet date exceeds the premium received for those options and is reflected in "Provision for loss on equity Index/Stock Options Account."

iv) When the option contracts are squared up before the expiry of the options the premium prevailing on that date is recognised in the Profit and Loss Account.

On the expiry of the contracts and on exercising the options the difference between the final settlement price and the strike price is transferred to the Profit and Loss Account.

In both the cases, the premium paid or received for buying or selling the option as the case may be is recognized in the profit and loss account for the squared-up/settled contracts.

g. Taxes on Income

Provision for tax for the year is made on the assessable income at the tax rate applicable to the relevant year.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, 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 are recognised for unabsorbed depreciation and carry forward of losses to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

h. Stoek-in-Trade

Stock-in-Trade consists of shares and securities purchased for trading purposes. These are valued at lower of cost and market price. For the purpose of determining market value, the last quoted closing prices at the Stock Exchange, Mumbai CBSET is considered.

The Company assesses at each Balance Sheet date whether there is any indication that asset 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 the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment Ioss and is recognised in the Profit and Loss Account.

i. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provision for non-performing assets as prescribed by the Reserve Bank of India under Non-Banking Financial (Non deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.