Accounting Policies of Beryl Securities Ltd. Company

Mar 31, 2024

Material Accounting Policies

I. Financial instruments

1. Financial Assets:

a) Initial Recognition and Measurement: All financial assets are recognised initially at fair value
when the parties become party to the contractual provisions of the financial asset. In case of
financial assets which are not recorded at fair value through profit or loss, transaction costs that are
directly attributable to the acquisition or issue of the financial assets, are adjusted to the fair value on
initial recognition.

b) Subsequent Measurement: The Company classifies its financial assets into various
measurement categories. The classification depends on the contractual terms of the financial
assets’ cash flows and the Company’s business model for managing financial assets.

Financial Assets Measured At Amortised Cost:

A financial asset is measured at Amortised Cost if it is held within a business model whose objective
is to hold the asset in order to collect contractual cash flows and the contractual terms of the
Financial Asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Financial Assets Measured At Fair Value Through Other Comprehensive Income (FVOCI):

A financial asset is measured at FVOCI if it is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets and contractual
terms of financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Financial Assets Measured At Fair Value Through Profit Or Loss (FVTPL):

A financial asset which is not classified in any of the above categories are measured at FVTPL.
c) Other Equity Investments: All other equity investments are measured at fair value, with value
changes recognised in Statement of Profit and Loss, except for those equity investments for which
the Company has elected to present the changes in fair value through other comprehensive income
(FVOCI).

2. Financial Liabilities:

a) Initial recognition and measurement: All financial liabilities are recognized initially at fair value
and, in the case of borrowings and payables, net of directly attributable transaction costs. The
company’s financial liabilities include trade and other payables.

b) Subsequent Measurement: Financial liabilities other than derivative financial instruments are
subsequently carried at amortized cost using the effective interest method.

3. Derecognition of Financial Assets And Liabilities:

a) Financial Asset:

The Company derecognizes a financial asset when the contractual cash flows from the asset expire or it
transfers its rights to receive contractual cash flows from the financial asset in a transaction in which
substantially all the risks and rewards of ownership are transferred. Any interest in transferred financial
assets that is created or retained by the Company is recognized as a separate asset or liability.

b) Financial Liability:

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or
expires. Where an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as de-recognition of the original liability and the recognition of a new liability. The
difference between the carrying value of the original financial liability and the consideration paid is
recognised in the Statement of profit and loss.

4. Offsetting

Financial assets and financial liabilities are generally reported gross in the balance sheet. Financial
assets and liabilities are offset and the net amount is presented in the balance sheet when the Company
has a legal right to offset the amounts and intends to settle on a net basis or to realise the asset and settle
the liability simultaneously in all the following circumstances:

a. The normal course of business

b. The event of default

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

5. Impairment of Financial Assets:

In accordance with IND AS 109, the Company uses ‘Expected Credit Loss’ model (ECL), for evaluating
impairment of financial assets other than those measured at Fair value through profit or loss.

Overview of the Expected Credit Loss (ECL) mode:

Expected Credit Loss, at each reporting date, is measured through a loss allowance for a financial asset:

a. At an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument
has increased significantly since initial recognition.

b. At an amount equal to 12-month expected credit losses, if the credit risk on a financial instrument
has not increased significantly since initial recognition.

Lifetime expected credit losses means expected credit losses that result from all possible default events
over the expected life of a financial asset.

12-month expected credit losses means the portion of Lifetime ECL that represent the ECLs that result
from default events on financial assets that are possible within the 12 months after the reporting date.

The Company performs an assessment, at the end of each reporting period, of whether a financial assets
credit risk has increased significantly since initial recognition. When making the assessment, the change
in the risk of a default occurring over the expected life of the financial instrument is used instead of the
change in the amount of expected credit losses.

Based on the above process, the Company categorises its loans into three stages as described below:
Stage 1 : All exposures where there has not been a significant increase in credit risk since initial
recognition or that has low credit risk at the reporting date and that are not credit impaired upon origination
are classified under this stage. The Company classifies all standard advances and advances upto 30
days default under this category. Stage 1 loans also include facilities where the credit risk has improved
and the loan has been reclassified from Stage 2 or Stage 3.

Stage 2: All exposures where there has been a significant increase in credit risk since initial recognition
but are not credit impaired are classified under this stage. 30 Days Past Due is considered as significant
increase in credit risk.

Stage 3: All exposures assessed as credit impaired when one or more events that have a detrimental
impact on the estimated future cash flows of that asset have occurred are classified in this stage. For
exposures that have become credit impaired, a lifetime ECL is recognised and interest revenue is
calculated by applying the effective interest rate to the amortised cost (net of provision) rather than the
gross carrying amount. 90 Days Past Due is considered as default for classifying a financial instrument as
credit impaired. If an event (for e.g. any natural calamity) warrants a provision higher than as mandated
under ECL methodology, the Company may classify the financial asset in Stage 3 accordingly.

In line with Reserve Bank of India Master Circular on Prudential norms on Income Recognition, Asset
Classification and Provisioning pertaining to Advances and Clarifications dated April 01,2023 borrower
accounts shall be flagged as overdue as part of the day-end processes for the due date, irrespective of the
time of running such processes. Similarly, classification of borrower accounts as Non-Performing Asset /
Stage 3 shall be done as part of day-end process for the relevant date i.e. more than 90 days overdue and
NPA/Stage 3 classification date shall be the calendar date for which the day end process is run. In other
words, the date of Non-Performing Asset / Stage 3 shall reflect the asset classification status of an
account at the day-end of that calendar date.

The Company has carried out the requirement in line with Reserve Bank of India Clarification and
accordingly the change in accounting policy is effective financial year 2023-24

II. Revenue from operations

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

Interest Income: The interest income is calculated by applying the EIR to the gross carrying amount of
non-credit impaired financial assets (i.e. at the amortised cost of the financial asset before adjusting for
any expected credit loss allowance).

For Credit Impaired financial assets the interest income is calculated by applying the EIR to the amortised
cost of the credit-impaired financial assets (i.e. the gross carrying amount less the allowance for expected
credit losses (ECLs)) and not recognized in Statement of Profit and loss account rather it is credited in a
separate ledger "Unrealized Interest On NPAAccounts” under the "Other Financial Liabilities” head.

III. Employee Benefits

Short Term Employee Benefit:

All employee benefits payable wholly within twelve months of rendering the service are classified as
short-term employee benefits. These benefits include short term compensated absences such as paid

annual leave. The undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by employees is recognised as an expense during the period.
Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia are recognised in
the period in which the employee renders the related service.

Post-employment employee benefits

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave
Encashment, ESI and Provident Fund to employee as in the opinion of the management neither the
Gratuity, ESI nor Provident Fund apply to the company nor any employee qualifies for entitlement of such
benefits.

IV. Other income and expenses

All other income and expense are recognised in the period they occur.

V. Taxes
Current Tax

Current tax assets and liabilities for the current and prior years are measured at the amount expected to
be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted, or substantively enacted, by the reporting date in the countries where
the Company operates and generates taxable income. Current income tax relating to items is recognised
outside the statement of profit and loss (either in other comprehensive income or in equity). Management
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred tax assets and liabilities are recognised for temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantively enacted by the reporting date and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are only recognised for temporary differences, if it is probable that future taxable
amounts will arise to utilise those temporary differences and losses. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax
assets and liabilities and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or
their tax assets and liabilities are realised simultaneously.

VI. Cash and Cash Equivalents

Cash and cash equivalents comprise of cash in hand, Balance with banks and Cheques in hand, which
are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash in hand,
Balance with banks and Cheques in hand as they are considered an integral part of the Company’s cash
management.

VII. Property, Plant and Equipment

Property, plant and equipment (PPE) are carried at historical cost of acquisition less accumulated
depreciation. The total cost of assets comprises its purchase price, freight, duties, taxes and any other
incidental expenses directly attributable to bringing the asset to the location and condition necessary for it
to be capable of operating in the manner intended by the management.

Subsequent expenditure related to an item of tangible asset are added to its gross value only if it
increases the future benefits of the existing asset, if it is probable that future economic benefit will flow to
the Company from that expenditure and cost can be measured reliably. Other repairs and maintenance
costs are expensed off as and when incurred.

Depreciation on Property, Plant and Equipment is calculated using written down value method (WDV) to
write down the cost of property and equipment to their residual values over their estimated useful lives
which is in line with the estimated useful life as specified in Schedule II of the Companies Act, 2013.

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Mar 31, 2015

(a) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/materialize.

(b) REVENUE RECOGNITION

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non-performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribed by the RBI.

b. Dividend declared by the respective companies' up to the close of the accounting period are accounted for as income, once the right to receive is established.

(c) CASH FLOW STATEMENT

The cash flow statement is prepared using the "Indirect method set out in Accounting Standard 3" Cash Flow statement, which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(d) FIXED ASSETS

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(e) DEPRECIATION

Depreciation is charged over the estimated useful life of fixed assets on written down value basis. Depreciation is provided based on useful life of the assets as prescribed in schedule II to the Companies Act ,2013.

(f) INVESTMENT

All Investments which are held for more than one year from date of acquisition are classified as long term investment and are carried at cost.

(g) RETIREMENT BENEFIT

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits.

(h) BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to statement profit and loss as expenses, if any, incurred.

(i) EARNINGS PER SHARE

The company reports basic and diluted earning per shares computed in accordance with Accounting Standard- 20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(j) PRIOR PERIOD ITEM

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(k) TAXATION

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized in the profit and loss account.

3) Minimum Alternative Tax ('MAT') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss as per recommendations contained in the guidance notes issued by ICAI, the credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

(l) PROVISION AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized where there is a Present obligation as a result of past events and it is probable that there will be out flow of resources. Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(m) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(n) IMPAIRMENT OF ASSETS

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair value of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this, Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(o) Provision/ Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI. Provisions are made on Standard, Sub-Standard and Doubtful Assets at the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increased provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected during the year.

(p) STATUTORY RESERVES

Company has made an appropriation of Rs.899218.49 (P.Y. Rs.601938.79) out of the Profit for the year ended 31st March,2015 to the statutory reserve pursuant to the requirement of RBI guidelines.

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Mar 31, 2014

A) Basis of Preparation of Financial Statement

The accompanying financial statement have been prepared and presented under the historical cost convention and conform in all material aspects to the Generally Accepted Accounting Principles in India which encompasses applicable accounting standards notified by the Companies (Accounting Standards) Rules, 2006, prudential norms for Income recognition and provision for non performing assets as prescribed by Reserve Bank of India for Non Banking Financial Companies, complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 read with the General Circular 15 2013 dated 13th Sept.,2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 as adopted consistently by the company and other statutory provision and regulatory framework. The Company adopts the accrual concept in the preparation of Accounts.

(b) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/ materialize.

(c) REVENUE RECOGNITION

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non- performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribed by the RBI.

b. Interest on allotment/call money in arrears, on shares, is accounted as and when received due to practical difficulties.

c. Dividend declared by the respective companies'' up to the close of the accounting period are accounted for as income, once the right to receive is established.

(d) CASH FLOW STATEMENT

The cash flow statement is prepared using the "Indirect method set out in Accounting Standard 3" Cash Flow statement, which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(e) FIXED ASSETS

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(f) DEPRECIATION

Depreciation is charged over the estimated useful life of fixed assets on written down value basis. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(g) INVESTMENT

All Investments which are held for more than one year from date of acquisition are classified as long term investment and are carried at cost.

(h) RETIREMENT BENEFIT

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits.

(i) BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to profit and loss account as expenses, if any, incurred.

(j) EARNINGS PER SHARE

The company reports basic and diluted earning per shares computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(k) PRIOR PERIOD ITEM

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(l) TAXATION

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized in the profit and loss account.

3) Minimum Alternative Tax (''MAT'') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss as per recommendations contained in the guidance notes issued by ICAI, the credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

(m) PROVISION AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized where there is a Present obligation as a result of past events and it is probable that there will be out flow of resources. Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(n) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(o) IMPAIRMENT OF ASSETS

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair value of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this, Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(p) Provision/ Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI. Provisions are made on Standard, Sub-Standard and Doubtful Assets at the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increased provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected during the year.

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Mar 31, 2013

(A) Basis of Preparation of Financial Statement

a) The accompanying financial statement have been prepared and presented under the historical cost convention and conform in all material aspects to the Generally Accepted Accounting Principles in India which encompasses applicable accounting standards notified by the Companies (Accounting Standards) Rules, 2006, prudential norms for Income recognition and provision for non performing assets as prescribed by Reserve Bank of India for Non Banking Financial Companies, complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company and other statutory provision and regulatory framework.. The Company adopts the accrual concept in the preparation of Accounts.

(b) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS: - As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle.

(ii) It is held primarily for the purpose of being traded.

(iii) It is expected to be realized within 12 months of the reporting date or

(iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current position of the non current financial assets. All other Assets are classified as Non current.

LIABILITY: - A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(B) Use of Estimates

The preparation of financial statements require estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in preparation of financial statement are prudent and reasonable. Future results could differ from these estimates.

(C) Revenue Recognition

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non-performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribe by the RBI.

b. Interest on allotment/call money in arrears, on shares, are accounted as and when received due to

(i) Long term Investments are carried at acquisition cost.

(ii) Current investments are carried at the lower of cost or fair value on an individual basis. However, appreciation if any, within the category, is available for set off.

(D) Fixed Assets :

Fixed Assets are stated at cost (inclusive of expenses incurred for acquisition thereof) less accumulated depreciation.

(E) Depreciation :

Depreciation has been provided on WDV method as per the rate and manner prescribed in Schedule XIV of the Companies Act, 1956.

(F) Investment:

All Investment are held for more than a year from date of acquisition are classified as long term investment and are carried at cost . Investment are classified non current investment and same are carried at carried at Carrying Cost without deducting the diminution in value of Rs.9986/- of PANJON LTD. of due to temporary in nature in the opinion of the management.

(G) Retirement Benefit:

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits. Management further stated that they are in process to determine the retirement benefit as per As-15 (Revised) and accordingly no provision was made in the accounts. Further they opined that same will be accounted on payment basis.

(H) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to profit and loss account as expenses if any incurred.

(I) Earnings per share

The earning considered to ascertain the Company''s EPS comprises the net profit after tax of the year and includes the past tax effect of any extra ordinary items.

(J) Prior Period Item

Prior period item (if any) has been separately disclosed in Profit & Loss Account as per AS-5.

(K) Taxation

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax Act. Deferred tax Asset is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income/expenditure that originate in one period and are capable of being reversed in one or more subsequent year(s).Deferred taxes are reviewed for their carrying values at each balance sheet dates.

(L) Provision and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized where there is a present obligation as a result of past events and if it is probable that there will be out flow of resources Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement. However In current year , Company have written back the provision of income tax for assessment year (2008-09) in the financial statement as per order received in favor of company. But Income Tax department has filled Second Appeal before ITAT Indore against 1st Appeal decided in favour of the Company.

(M) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(N) Impairment of Assets

An assets is treated as impaired when carrying cost of assets exceeds its recoverable amount. Thus based on such exercise, there is no impairment of assets, accordingly no adjustment in respect of loss as impairment of assets is required to be made in the accounts.

(O) Provision/ Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI Provisions are made on Standard, Sub-Standard and Doubtful Assets as the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the extent RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increase provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected in during the year.

(P ) PREVIOUS YEAR FIGURES

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Mar 31, 2012

(A) Basis of Preparation of Financial Statement

a) The accompanying financial statement have been prepared on a historical cost convention and conform in all material aspects to the Generally Accepted Accounting Principles in India which encompasses applicable accounting standards notified by the Companies (Accounting Standards) Rules, 2006, prudential norms for Income recognition and provision for non-performing assets as prescribed by Reserve Bank of India for Non-Banking Financial Companies, complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company and other statutory provision and regulatory framework.. The Company adopts the accrual concept in the preparation of Accounts.

b) Presentation & disclosure of financial statement

During the year ended 31st march, 2012 the revised schedule VI notified under the company Act, 1956 has become applicable to the company for preparation and presentation of its financial statement. The adaption of revised schedule VI does not impact recognition and measurement principle followed for preparation of financial statement. However it has significant impact on presentation and disclosure made in the financial statement. The company has also declared the previous year figures in accordance with the requirement applicable in the current year.

(B) Use of Estimates

The preparation of financial statements require estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in preparation of financial statement are prudent and reasonable. Future results could differ from these estimates.

(C) Revenue Recognition

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non-performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribe by the RBI.

b. Interest on allotment/call money in arrears, on shares, are accounted as and when received due to practical difficulties.

c. Dividend declared by the respective Companies till the close of the accounting period are accounted for as income, once the right to receive is established.

(D) Fixed Assets :

Fixed Assets are stated at cost (inclusive of expenses incurred for acquisition thereof) less accumulated depreciation.

(E) Depreciation :

Depreciation has been provided on WDV method as per the rate and manner prescribed in Schedule XIV of the Companies Act, 1956.

(F) Investment:

All Investment are held for more than a year from date of acquisition are classified as long term investment and are carried at cost. Investments are classified under two categories i.e. current and long term and are valued in according with the RBI Guidelines as applicable to Non-Banking Financial Companies (NBFCs) and Accounting Standard 13 on 'Accounting for Investment' as notified by the companies (accounting Standard) Rules, 2006.

(i) Long term Investments are carried at acquisition cost.

(ii) Current investments are carried at the lower of cost or fair value on an individual basis. However, appreciation if any, within the category, is available for set off.

(G) Retirement Benefit:

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits. Management further stated that they are in process to determine the retirement benefit as per As-15 (Revised) and accordingly no provision was made in the accounts. Further they opined that same will be accounted on payment basis.

(H) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to profit and loss account as expenses if any incurred.

(I) Earnings per share

The earning considered to ascertain the Company's EPS comprises the net profit after tax of the year and includes the past tax effect of any extra ordinary items.

(J) Prior Period Item

Prior period item has been separately disclosed in Profit & Loss Account as per AS-5.

(K) Taxation

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax Act. Deferred tax Asset is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income/expenditure that originate in one period and are capable of being reversed in one or more subsequent year(s). Deferred taxes are reviewed for their carrying values at each balance sheet dates.

(L) Provision and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized where there is a present obligation as a result of past events and if it is probable that there will be out flow of resources Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(M) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(N) Impairment of Assets

An assets is treated as impaired when carrying cost of assets exceeds its recoverable amount. Thus based on such exercise, there is no impairment of assets, accordingly no adjustment in respect of loss as impairment of assets is required to be made in the accounts.

(O) Provision/Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI Provisions are made on Standard, Sub-Standard and Doubtful Assets as the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/written off as per the extent RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increase provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected in during the year.

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Mar 31, 2010

(A) System of Accounting

a. The financial statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company. The Company adopts the accrual concept in the preparation of Accounts.

b. The Company has followed the prudential norms for Income recognition and provision for non performing assets as prescribed by Reserve Bank of India for Non Banking Financial Companies.

(B) Revenue Recognition

a. Income & Expenditures are recognized and accounted on accrual basis. Interest from customer/debtors who are not repaying the installment/loan are accounted when received and appropriated. Moreover revenue recognition is postponed to a later year only when it is not able to estimate if with reasonable accuracy.

b. Interest on allotment/call money in arrears, on shares, are accounted as and when received due to practical difficulties.

c. Dividend is accounted when the right to receive payment is established.

d. Income on NPA has been recognized as and when received.

e. Gratuity and Retirement Benefits for the employee are accounted for on payment basis.

(C) Fixed Assets :

Fixed Assets are stated at cost (inclusive of expenses incurred for acquisition thereof) less accumulated depreciation.

(D) Depreciation :

Depreciation has been provided on WDV method as per the rate and manner prescribed in Schedule XIV of the Companies Act, 1956.

(E) Investment:

Investments are classified as Long Term Investment and shown at cost. No Provision has been made for diminution in the value of investment as all the investments are long term and in the boards opinion the decline is temporary.

(G) Non Performing Assets and Provision:

All loan where the installment are over due for more than six months from the date of demand are classified as non performing assets in accordance with the prudential norms prescribed by the Reserve Bank of India Provision for non performing assets has been made as per RBI Norm. However, the advances by way of loans are stated before provision for NPA & Doubtful Debts.

(H) Retirement Benefit:

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits. Management further stated that they are in process to determine the retirement benefit as per As-15 (Revised) and accordingly no provision was made in the accounts. Further they opined that same will be accounted on payment basis.

(I) Borrowing Cost:

Borrowing costs relating to working capital are charged to profit and loss account as expenses if any incurred.

(J) Earning per share

The earning considered to ascertain the Companys EPS comprises the net profit after tax of the year and includes the past tax effect of any extra ordinary items.

(K) Prior Period Item

Prior period item has been separately disclosed in Profit & Loss Account as per AS-5.

(L) Accounting for taxes on income.

Provision for current tax are computed as per provision under the Income Tax Act, 1961 Deferred tax liability is recognized if any subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of being reversed in one or more subsequent period.

(M) Provision , Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized where there is a present obligation as a result of past events and if it is probable that there will be out flow of resources Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(N) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(O) Impairment of Assets

An assets is treated as impaired when carrying cost of assets exceeds its recoverable amount. Thus based on such exercise, there is no impairment of assets, accordingly no adjustment in respect of loss as impairment of assets is required to be made in the accounts.

(P) Loans & Advances

Loans & Advances granted by the company are repayable on demand. Hence the same are not classified between different categories.

(Q) Provision/ Write Off against Loans & Advances and Debtors

(a) All NPA, Loans & Advances & Debtors are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI. Provision has been made on the Sub-Standard and Doubtful Assets as the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the extent RBI guidelines. Additional provision on some Advances & Debtors has not been made due to recoverable in the opinion of the Management.

(b) NPA Provision has been written back of those accounts whose recovery is affected in during the year.