Accounting Policies of Aravali Securities & Finance Ltd. Company

Mar 31, 2025

3 Material Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these financial
statements, unless otherwise indicated.

a) Property, Plant & Equipment

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably.

All items of property, plant and equipment are stated at historical cost less accumulated depreciation. Historical
cost comprises of purchase price including duties and taxes and expenditure that is directly attributable to the
acquisition of the items.

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 Company and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and maintenance are charged to the Statement of Profit
and Loss during the reporting period in which they are incurred.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in the Statement of Profit
and Loss.

Depreciation

Depreciation is calculated on cost of item of property, plant and equipment less their estimated residual values
over their estimated useful lives using the straight-line method and is generally recognised in the Statement of
Profit and Loss.

Freehold land is carried at historical cost less any accumulated impairment losses.

The estimated useful lives of items of property, plant and equipment are estimated by the management which are
equal to the life prescribed under Schedule II of the Companies Act, 2013. The residual values are not more than
5% of the original cost of the asset. The asset''s residual value & useful lives are reviewed & adjusted if
appropriate, at the end of each reporting period. Depreciation on additions and disposals are provided on pro rata
basis i.e. from/upto the date on which asset is ready for use or disposed off.

b) 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.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and
cash equivalents.

c) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a Lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low value assets. The Company recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased
asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment.

Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment
of an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets
and short-term leases. The Company recognises the lease payments associated with these leases as an expense
in profit or loss on a straight-line basis over the lease term. The related cash flows are classified as operating
activities in the Statement of Cash Flows.

Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of
an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the
lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent
rents are recognised as revenue in the period in which they are earned.

d) Financial Instruments

i. Recognition and initial measurement

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through
profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition.

ii. Classification and subsequent measurement
Financial assets

On initial recognition, a financial asset is classified as measured at

- Amortised Cost;

- Fair Value through Other Comprehensive Income (FVOCI) - equity investment ; or

- Fair Value through Profit & Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL :

- the asset is held within a business model whose objective is to hold assets 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.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to
present subsequent changes in the investment''s fair value in OCI (designated as FVOCI - equity investment).
This election is made on an investment by investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured
at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would
otherwise arise.

Subsequent measurement and gains and losses

Financial assets at These assets are subsequently measured at fair value. Net gains and losses, including
FVTPL any interest or dividend income, are recognised in profit or loss.

Financial assets at

th_{e amo}rti_sed _cost These assets are subsequently measured at amortised cost using effective interest

method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in profit or loss. Any gain or
loss on derecognition is recognised in profit or loss.

Equity investments at These assets are subsequently measured at fair value. Dividends are recognised as
FVOCI income in profit or loss unless the dividend clearly represents a recovery of part of the

cost of the investment. Other net gains and losses are recognised in OCI and are not
reclassified to profit or loss.

Financial liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities. A financial
liability is classified as at FVTPL if it is held for trading, or it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses
are recognised in profit or loss.

iii. Derecognition
Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially
all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither
transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the
financial asset. If the Company enters into transactions whereby it transfers assets recognised on its balance
sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred
assets are not derecognised.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or
expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the
modified terms are substantially different. In this case, a new financial liability based on the modified terms is
recognised at fair value. The difference between the carrying amount of the financial liability extinguished and
the new financial liability with modified terms is recognised in profit or loss.

iv. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when,
and only when, the Company currently has a legally enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

v. Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently re-measured to their fair value at each reporting date. Changes in the fair value of any derivative
instrument are recognised immediately in the statement of profit and loss and are included in other income or
expenses.

vi. Measurement of Fair Values

A number of the Company''s accounting policies and disclosures require measurement of fair values, for both
financial and non-financial assets and liabilities.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as
possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of nature of the characteristics, risk of assets or liabilities and the level of fair value hierarchy. As
explained above, this note summarizes accounting policies for fair value and the other fair value related
disclosures are given in relevant notes .

e) Valuation of Inventories:

Inventories are valued at cost or net realizable value whichever is lower.

f) Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of
disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or groups of assets (cash-generating units).

Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.

g) Employee Benefits

i. Short-Term Employee Benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the
period as the related service is provided. A liability is recognised for the amount expected to be paid, if the
Company has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee, and the amount of obligation can be estimated reliably.

ii. Defined Benefit Plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s
net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of
future benefit that employees have earned in the current and prior periods, discounting that amount and deducting
the fair value of any plan assets.

Gratuity liability is a defined benefit obligation and is provided for on the basis of a valuation on projected unit credit
method made at the end of each financial year. The Company has created an approved gratuity fund, which has
taken a group gratuity cum insurance policy with Life Insurance Corporation of India (LIC) for future payment of
gratuity to employees. The Company accounts for gratuity liability of its employees on the basis of actuarial
valuation carried out at the year end by the independent actuary. When calculation results in potential asset for the
Company, the recognized asset is limited to its present value of economic benefits available in the form of any
future refunds from the plan or reductions in future contributions to the plan (the asset ceiling) in order to calculate
present value of economic benefits, consideration is given to any minimum funding requirement.

Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan
assets (excluding interest), the effect of the asset ceiling, (excluding interest) are earnings through Other
Comprehensive Income in the period in which they occur.

iii. Defined Contribution Plans

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company recognizes
contribution payable to the scheme as an expenditure, when an employee renders the related service. The
Company has no obligation, other than the contribution payable to the respective funds.

iv. Compensated Absences

The employees can carry forward a portion of the unutilised accrued compensated absences and utilize it in future
service periods or receive cash compensation. Company treats compensated absences, as short-term employee
benefit. The Company records an obligation for such compensated absences in the period in which the employee
renders the services that increase this entitlement.

h) Revenue

i. Sale of Goods

Revenue from sale of goods is recognized when significant risk and rewards of ownership pass to the buyer, as
per the terms of the contract and it is probable that the economic benefits associated with the transaction will flow
to the Company.

ii. Revenue from Service

Revenue from services is recognized in the accounting period in which the services are rendered and when
invoices are raised.

iii. Rental Income

Rental Income from property is recognized as part of other income in the Statement of Profit and Loss.

iv. Dividend Income, Interest Income

Dividend income is recognized in profit or loss on the date on which the Company''s right to receive payment is
established.

v. Interest Income

Interest income is recognized on time apportionment basis using the effective interest method.

i) Borrowing Costs

Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily takes a
substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective
asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consists of
interest and other costs that an entity incurs in connection with the borrowing of funds.

j) Taxes on Income:

Tax expenses for the relevant period comprises of current tax and deferred tax. Current tax is the amount of tax
payable on the taxable income for the year as determined in accordance with the applicable tax rates and
provisions of the Income T ax Act, 1961 and other applicable tax laws.

Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax for the
year. The Company recognizes MAT credit available as an asset only to the extent it is probable that sufficient
taxable profit will be available to allow all or part of MAT credit to be utilized during the specified period, i.e., the
period for which such credit is allowed to be utilized. In the year in which the Company recognizes MAT credit as
an asset, it is created by way of credit to the Statement of Profit and Loss and shown as non-current asset. The
Company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent
that it is no longer probable that it will pay normal tax during the specified period.

Deferred tax is recognized, subject to consideration of prudence, on all timing difference between taxable income
and accounting income that originate in one period and are capable of being reversed in one or more subsequent
periods. The accumulated deferred tax liability is adjusted by applying the tax rates and tax laws applicable at the
year-end.

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Mar 31, 2024

1 Corporate Information

ARAVALI SECURITIES & FINANCE LIMITED (the ''Company'') having CIN: L67120HR1980PLC039125 is a public limited company domiciled in India, with its registered office situated at Plot No 136, Rider House, Ground Floor, Sector 44, Gurgaon -122003, Haryana. The Company has been incorporated under the provisions of Companies Act, 1956 and its equity shares are listed on the BSE Limited (BSE), in India.

The Company is presently engaged in providing Financial and Other Advisory Services besides dealing in Shares and Securities.

2 Basis of Preparation

A. Statement of Compliance

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 (''the Act'') and other relevant provision of the Act.

The financial statements were approved and authorised for issue in accordance with the resolution of the Company''s Board of Directors on 23rd May 2024.

B. Functional and Presentation Currency

These financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest hundred, except when otherwise indicated.

C. Basis of Measurement

The financial statements have been prepared on the historical cost basis except for the following item which are measured on an alternative basis on each reporting date:

Items	Measurement basis
Invetments in Mutual Funds	- At Fair Value through OCI
Net defined benefit (asset)/ liability	- At fair value of plan assets less the present value of the defined benefit obligation

D. Use of Estimates

The preparation of the financial statements requires Management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the accompanying disclouseres. The Company based its assumptions and estimates on parameters available when the financial statements were prepared and are reviewed on on going basis.Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities. Revisions to accounting estimates are recognised prospectively. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are furnished in the relevant notes.

3 Summary of Material Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, unless otherwise indicated.

a) Property, Plant & Equipment

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

All items of property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost comprises of purchase price including duties and taxes and expenditure that is directly attributable to the acquisition of the items.

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 Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in the Statement of Profit and Loss.

Depreciation

Depreciation is calculated on cost of item of property, plant and equipment less their estimated residual values over their estimated useful lives using the straight-line method and is generally recognised in the Statement of Profit and Loss.

Freehold land is carried at hsitorical cost less any accumulated impairment losses.

The estimated useful lives of items of property, plant and equipment are estimated by the management which are equal to the life prescribed under Schedule II of the Companies Act, 2013. The residual values are not more than 5% of the original cost of the asset. The asset''s residual value & useful lives are reviewed & adjusted if appropriate, at the end of each reporting period. Depreciation on additions and disposals are provided on pro rata basis i.e. from/upto the date on which asset is ready for use or disposed off.

b) 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.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

c) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a Lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment.

Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognises the lease payments associated with these leases as an expense in profit or loss on a straight-line basis over the lease term.

Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

d) Financial Instruments

i. Recognition and initial measurement

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition.

ii. Classification and subsequent measurement Financial assets

On initial recognition, a financial asset is classified as measured at

- Amortised Cost;

- Fair Value through Other Comprehensive Income (FVOCI) - equity investment ; or

- Fair Value through Profit & Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL :

- the asset is held within a business model whose objective is to hold assets 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.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in OCI (designated as FVOCI - equity investment). This election is made on an investment by investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Subsequent measurement and gains and losses

Financial assets at These assets are subsequently measured at fair value. Net gains and losses, including FVTPL any interest or dividend income, are recognised in profit or loss.

Financial assets at

th_{e amo}rtised _cost These assets are subsequently measured at amortised cost using effective interest

method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Equity investments at These assets are subsequently measured at fair value. Dividends are recognised as FVOCI income in profit or loss unless the dividend clearly represents a recovery of part of the

cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to profit or loss.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss.

iii. Derecognition Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit or loss.

iv. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

v. Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. Changes in the fair value of any derivative instrument are recognised immediately in the statement of profit and loss and are included in other income or expenses.

e) Measurement of Fair Values

A number of the Company''s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of nature of the characteristics, risk of assets or liabilities and the level of fair value hierarchy. As explained above, this note summarizes accounting policies for fair value and the other fair value related disclosures are given in relevant notes .

f) Valuation of Inventories:

Inventories are valued at cost or net realizable value whichever is lower.

g) Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

h) Employee Benefits

i. Short-Term Employee Benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period as the related service is provided. A liability is recognised for the amount expected to be paid, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.

ii. Defined Benefit Plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

Gratuity liability is a defined benefit obligation and is provided for on the basis of a valuation on projected unit credit method made at the end of each financial year. The Company has created an approved gratuity fund, which has taken a group gratuity cum insurance policy with Life Insurance Corporation of India (LIC) for future payment of gratuity to employees. The Company accounts for gratuity liability of its employees on the basis of actuarial valuation carried out at the year end by the independent actuary. When calculation results in potential asset for the Company, the recognized asset is limited to its present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan (the asset ceiling) in order to calculate present value of economic benefits, consideration is given to any minimum funding requirement.

Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest), the effect of the asset ceiling, (excluding interest) are earnings through Other Comprehensive Income in the period in which they occur.

iii. Defined Contribution Plans

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company recognizes contribution payable to the scheme as an expenditure, when an employee renders the related service. The Company has no obligation, other than the contribution payable to the respective funds.

iv. Compensated Absences

The employees can carry forward a portion of the unutilised accrued compensated absences and utilize it in future service periods or receive cash compensation. Company treats compensated absences, as short-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement.

i) Revenuei. Sale of Goods

Revenue from sale of goods is recognized when significant risk and rewards of ownership pass to the buyer, as per the terms of the contract and it is probable that the economic benefits associated with the transaction will flow to the Company.

ii. Revenue from Service

Revenue from services is recognized in the accounting period in which the services are rendered and when invoices are raised.

iii. Rental Income

Rental Income from property is recognized as part of other income in the Statement of Profit and Loss.

j) Recognition of Dividend Income, Interest Income or Expense

Dividend income is recognized in profit or loss on the date on which the Company''s right to receive payment is established. Interest income or expense is recognized using the effective interest method.

k) Borrowing Costs

Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of funds.

l) Taxes on Income:

Tax expenses for the relevant period comprises of current tax and deferred tax. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and provisions of the Income Tax Act, 1961 and other applicable tax laws.

Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax for the year. The Company recognizes MAT credit available as an asset only to the extent it is probable that sufficient taxable profit will be available to allow all or part of MAT credit to be utilized during the specified period, i.e., the period for which such credit is allowed to be utilized. In the year in which the Company recognizes MAT credit as an asset, it is created by way of credit to the Statement of Profit and Loss and shown as non-current asset. The Company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.

Deferred tax is recognized, subject to consideration of prudence, on all timing difference between taxable income and accounting income that originate in one period and are capable of being reversed in one or more subsequent periods. The accumulated deferred tax liability is adjusted by applying the tax rates and tax laws applicable at the year-end.

m) Provision, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre- tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Expected future operating losses are not provided for.

Contingencies

Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are recognized when it is probable that a liability has been incurred and the amount can be estimated reliably.

Contingent Liabilities and Contingent Assets

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are recognized in the financial statements in the period in which if it is virtually certain that an inflow of economic benefits will arise.

n) Earnings per share

Basic Earnings Per Share (‘EPS'') is computed by dividing the net profit or loss for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential equity shares that are dilutive and that either reduce earnings per share or increase loss per share are included. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for the share splits.

o) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from regular revenue generating (operating activities), investing and financing activities of the Company are segregated.

p) Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in hand and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible(including interest thereon) to known amounts of cash and which are subject to an insignificant risk of changes in value.

q) Events after Reporting Date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

r) Recent Pornouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2024 MCA has not notified any new statdards or amendments to the existing Standards applicable to the Company.

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Mar 31, 2015

I) Accounting Concepts

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and in accordance with Accounting Standards as notified by (Accounting Standards) Rules, 2006.

ii) Uses of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liablities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue Recognition

a) All income is accounted on accrual basis.

b) Dividend declared within close of the accounting year are accounted for in respect of shares & securities held by the company.

iv) Expenses

All expenses are accounted on accrual basis.

v) In accordance with guidelines for Prudential Norms issued by the Reserve Bank of India to Non-Banking (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Dirctions,2007, provision is made for non - performing asstes in respect of income and debts/assets

vi) Depreciation

Depreciation is provided based on life assigned to each asset in accordance with Schedule 11 of the Companies Act, 2013.

vii) Fixed Assets

Fixed assets are stated at cost less depreciation.

viii) Investments

Long term investments are stated at cost plus incidental expenses thereto. Provision for diminution in value of investments is made by the company to recognise permanent decline, if any, in the value of each investment. Current investments are valued at lower of cost and market value.

ix) Inventories

Shares & Securities - At cost or net realisable value, whichever is lower, script wise.

x) Deferred Tax

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognised only to the extent there is a virtual certainty of its realisation.

xi) Employee Benefits

Liability for employee benefits, both short term and longterm,for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) -15 "Employees Benefits" as notified by Companies (Accounting Standard) Rules, 2006.

a) Gratuity

The company makes annual contribution to an approved gratuity fund covered by a policy with Life Insurance Corporation of India. The plan assets are sufficient to cover liability for gratuity fully.

b) Contribution to Provident & Other Funds

Contribution to Provident Fund and Employees State Insurance are recognised and expensed on accrual basis.

c) Compensated Absences

Liablity for leave is treated as a short term liability and is accounted for on accrual basis,

xii) Contingent Liabilities

Contingent liabilities are not provided for and are shown by way of notes in the Notes to Financial Statements.

1.2 227212.5% Fully Convertible Debentures of Rs.125 each alloted on 25th January, 1993 have not been converted into fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital will be made as and when allotment money is received.

1.3 Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled.

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Mar 31, 2014

I) Accounting Concepts

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and in accordance with Accounting Standards as notified by (Accounting Standards) Rules, 2006.

ii) Uses of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liablities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue Recognition

a) All income is accounted on accrual basis.

b) Dividend declared within close of the accounting year are accounted for in respect of shares & securities held by the company.

iv) Expenses

All expenses are accounted on accrual basis.

v) In accordance with guidelines for Prudential Norms issued by the Reserve Bank of India to Non-Banking (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions,2007, provision is made for non - performing asstes in respect of income and debts/assets.

vi) Depreciation

Depreciation is provided :

a) On assets acquired upto 30th June, 1987 on straight line method at the rates corresponding to the rates applicable under the Income Tax Rules,1962 in force at the time of acquisition/purchase of respective assets.

b) On assets acquired on and from 1st July,1987 on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 applicable at the time of acquisition/purchase of respective assets.

vii) Fixed Assets

Fixed assets are stated at cost less depreciation.

viii) Investments

Long term investments are stated at cost plus incidental expenses thereto. Provision for diminution in value of investments is made by the company to recognise permanent decline, if any, in the value of each investment. Current investments are valued at lower of cost and market value.

ix) Inventories

Shares & Securities- At cost or net realisable value, whichever is lower, script wise.

x) Deferred Tax

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognised only to the extent there is a virtual certainty of its realisation.

xi) Employee Benefits

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) - 15 "Employees Benefits" as notified by Companies (Accounting Standard) Rules, 2006.

a. Gratuity

The company makes annual contribution to an approved gratuity fund covered by a policy with Life Insurance Corporation of India. The plan assets are sufficient to cover liability for gratuity fully. .

b. Contribution to Provident & Other Funds

Contribution to Provident Fund and Employees State Insurance are recognised and expensed on accrual basis.

c. Compensated Absences

Liablity for leave is treated as a short term liability and is accounted for on accrual basis.

xii) Contingent Liabilities

Contingent liabilities are not provided for and are shown by way of notes in the Notes to Financial Statements.

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Mar 31, 2013

I) Accounting Concepts

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and in accordance with Accounting Standards as notified by (Accounting Standards) Rules, 2006.

ii) Uses of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liablities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue Recognition

a) All income is accounted on accrual basis.

b) Dividend declared within close of the accounting year are accounted for in respect of shares & securities held by the company

iv) Expenses

All expenses are accounted on accrual basis.

v) In accordance with guidelines for Prudential Norms issued by the Reserve Bank of India to Non-Banking (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Dirctions,2007, provision is made for non - performing asstes in respect of income and debts/assets

vi) Depreciation

Depreciation is provided :

a) On assets acquired upto 30th June, 1987 on straight line method at the rates corresponding to the rates applicable under the Income Tax Rules,1962 in force at the time of acquisition/purchase of respective assets.

b) On assets acquired on and from 1st July,1987 on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 applicable at the time of acquisition/purchase of respective assets.

vii) Fixed Assets

Fixed assets are stated at cost less depreciation.

viii) Investments

Long term investments are stated at cost plus incidental expenses thereto. Provision for diminution in value of investments is made by the company to recognise permanent decline, if any, in the value of each investment. Current investments are valued at lower of cost and market value.

ix) Inventories

Shares & Securities- At cost or net realisable value, whichever is lower, script wise.

x) Deferred Tax

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognised only to the extent there is a virtual certainty of its realisation.

xi) Employee Benefits

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) - 15 "Employees Benefits" as notified by Companies (Accounting Standard) Rules, 2006.

a. Gratuity

The company makes annual contribution to an approved gratuity fund covered by a policy with Life Insurance Corporation of India. The plan assets are sufficient to cover liability for gratuity fully. .

b. Contribution to Provident & Other Funds

Contribution to Provident Fund and Employees State Insurance are recognised and expensed on accrual basis.

c. Compensated Absences

Liability for leave is treated as a short term liability and is accounted for on accrual basis.

xii) Contingent Liabilities

Contingent liabilities are not provided for and are shown by way of notes in the Notes to Financial Statements.

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Mar 31, 2012

I) Accounting Concepts

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and in accordance with Accounting Standards as notified by (Accounting Standards) Rules, 2006.

ii) Uses of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liablities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue Recognition

a) All income is accounted on accrual basis.

b) Dividend declared within close of the accounting year are accounted for in respect of shares & securities held by the company.

iv) Expenses

All expenses are accounted on accrual basis.

v) In accordance with guidelines for Prudential Norms issued by the Reserve Bank of India to Non-Banking (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Dirctions,2007, provision is made for non - performing asstes in respect of income and debts/assets

vi) Depreciation

Depreciation is provided :

a) On assets acquired upto 30th June, 1987 on straight line method at the rates corresponding to the rates applicable under the Income Tax Rules,1962 in force at the time of acquisition/purchase of respective assets.

b) On assets acquired on and from 1st July, 1987 on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 applicable at the time of acquisition/purchase of respective assets.

vii) Fixed Assets

Fixed assets are stated at cost less depreciation.

viii) Investments

Long term investments are stated at cost plus incidental expenses thereto. Provision for diminution in value of investments is made by the company to recognise permanent decline, if any, in the value of each investment. Current investments are valued at lower of cost and market value.

ix) Inventories

Shares & Securities- At cost or net realisable value, whichever is lower, script wise.

x) Deferred Tax

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognised only to the extent there is a virtual certainty of its realisation.

xi) Employee Benefits

Liablity for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) - 15 "Employees Benefits" as notified by Companies (Accounting Standards) Rules, 2006.

a. Gratuity

The company makes annual contribution to an approved gratuity fund covered by a policy with Life Insurance Corporation of India. The plan assets are sufficient to cover liability for gratuity fully. .

b. Contribution to Provident & Other Funds

Contribution to Provident Fund and Employees State Insurance are recognised and expensed on accrual basis.

c. Compensated Absences

Liablity for leave is treated as a short term liablity and is accounted for on accrual basis,

xii) Contingent Liabilities

Contingent liabilities are not provided for and are shown by way of notes in the Notes to Financial Statements.

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Mar 31, 2010

I) Accounting Concepts

The financial statements are -prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and in accordance with Accounting Standards as notified by (Accounting Standards) Rules, 2006.

ii) Uses of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liablities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue Recognition

a) All income is accounted on accrual basis.

b) Dividend declared within close of the accounting year are accounted for in respect of shares & securities held by the company.

iv) Expenses

All expenses are accounted on accrual basis.

v) In accordance with guidelines for Prudential Norms issued by the Reserve Bank of India to Non-Banking Financial Companies, provision is made for non - performing assets in respect of income and debts/assets.

vi) Depreciation

Depreciation is provided :

a) On assets acquired upto 30th June, 1987 on straight line method at the rates corresponding to the rates applicable under the Income Tax Rules,1962 in force at the time of acquisition/purchase of respective assets.

b) On assets acquired on and from 1st July, 1987 on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 applicable at the time of acquisition/purchase of respective assets.

vii) Fixed Assets

Fixed assets are stated at cost less depreciation.

viii) Investments

Long term investments are stated at cost plus incidental expenses thereto. Provision for diminution in value of investments is made by the company to recognise permanent decline, if any, in the value of each investment. Current investments are valued at lower of cost and market value.

ix) Inventories

Shares & Securities - At cost or net realisable value, whichever is lower, script wise

x) Deferred Tax

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognised only to the extent there is a virtual certainty of its realisation.

xi) Employee Benefits

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) - 15 "Employees Benefits" as notified by Companies (Accounting Standards) Rules, 2006.

a. Gratuity

The company makes annual contribution to an approved gratuity fund covered by a policy with Life Insurance Corporation of India. The plan assets are sufficient to cover liability for gratuity fully.

b. Contribution to Provident & Other Funds

Contribution to Provident Fund and Employees State Insurance are recognised and expensed on accrual basis.

c. Compensated Absences

Liability for leave is treated as a short term liablity and is accounted for on accrual basis

xii) Contingent Liabilities

Disputed liabilities and claims are treated as contingent liabilities. Claims against the Company are reduced by amounts payable by lessees/ hirers or insurance companies and counter claims of the company in order to determine contingent liability.