Accounting Policies of Brijlaxmi Leasing & Finance Ltd. Company

Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

1.1 Statement of compliance

The financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and
the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015
(as amended from time to time) issued by Ministry of Corporate Affairs in exercise of the powers conferred by
section 133 read with sub-section (1) of section 210A of the Companies Act, 2013. In addition, the guidance
notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied along with
compliance with other statutory promulgations require a different treatment.

The financial statements for the year ended March 31, 2024 of the Company is the financial statements prepared
in compliance with Ind AS.

Basis of preparation:

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the
Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section
133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act and the Master Direction -
Non-Banking Financial Company (Reserve Bank) Directions, 2016 (''the NBFC Master Directions'') issued by RBI.
These financial statements have been prepared and presented under the historical cost convention, on the accrual
basis of accounting except for certain financial assets and liabilities that are measured at fair values at the end of
each reporting period, as stated in the accounting policies stated out below.

The Financial statements have been prepared on a going concern basis. The Company presents its balance sheet in
order of Liquidity.

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

Fair value measurements under Ind AS are categorized into Level 1, 2, or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value measurement in
its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at reporting date

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

• Level 3 inputs are unobservable inputs for the valuation of assets or liabilities

1.2 Presentation of financial statements:

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

Amounts in the financial statements are presented in lakhs (INR) rounded off to zero decimal places as permitted
by Schedule III to the Companies Act, 2013. Per share data are presented in Indian Rupee to two decimal places.

1.3 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured and there exists reasonable certainty of its recovery. Revenue is measured at
the fair value of the consideration received or receivable as reduced for estimated customer credits and other
similar allowances.

Income from arbitrage comprises profit / loss on sale of securities held as stock-in-trade and profit / loss on equity
derivative instruments is accounted as per following:

i. Interest income is recognised in the Statement of Profit and Loss and for all financial instruments except for
those classified as held for trading or those measured or designated as at fair value through profit or loss
(FVTPL) is measured using the effective interest method (EIR).

The calculation of the EIR includes all fees and points paid or received between parties to the contract that
are incremental and directly attributable to the specific lending arrangement, transaction costs, and all other
premiums or discounts. For financial assets at FVTPL transaction costs are recognised in profit or loss at initial
recognition.

The interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired
financial assets (i.e. at the amortised cost of the financial asset before adjusting for any expected credit loss
allowance). For credit-impaired financial assets the interest income is calculated by applying the EIR to the
amortised cost of the credit-impaired financial assets (i.e. the gross carrying amount less the allowance for
expected credit losses (ECLs)). For financial assets originated or purchased credit-impaired (POCI) the EIR
reflects the ECLs in determining the future cash flows expected to be received from the financial asset.

ii. Dividend income is recognised when the Company''s right to receive dividend is established by the reporting
date and no significant uncertainty as to collectability exists.

iii. Fee and commission income and expense include fees other than those that are an integral part of EIR. The
fees included in the Company statement of profit and loss include among other things fees charged for
servicing a loan, non-utilisation fees relating to loan commitments when it is unlikely that these will result in a
specific lending arrangement and loan advisory fees.

iv. Profit / loss on sale of securities are determined based on the FIFO cost of the securities sold.

v. Profit / loss on FNO Segment and Commodity transactions is accounted for as explained below:

Initial and additional margin paid over and above initial margin for entering into contracts for Equity Index /
Stock Futures / Commodity Spot Trading/ Currency Futures and or Equity Index / Stock Options / Currency

Options, which are released on final settlement / squaring-up of underlying contracts, are disclosed under
"Other current assets". Mark-to-market margin-Equity Index / Stock Futures / Currency Futures representing
the amounts paid in respect of mark to market margin is disclosed under "Other current assets".

"Equity Index / Stock Option / Currency Option Premium Account" represents premium paid or received for
buying or selling the Options, respectively.

On final settlement or squaring up of contracts for Equity Index / Stock Futures / Currency Future, the realized
profit or loss after adjusting the unrealized loss already accounted, if any, is recognized in the Statement of
Profit and Loss. On settlement or squaring up of Equity Index / Stock Options / Currency Option, before
expiry, the premium prevailing in "Equity Index / Stock Option / Currency Option Premium Account" on that
date is recognized in the Statement of Profit and Loss.

As at the Balance Sheet date, the Mark to Market / Unrealised Profit / (Loss) on all outstanding arbitrage
portfolio comprising of Securities and Equity / Currency Derivatives positions is determined on scrip basis with
net unrealized losses on scrip basis being recognized in the Statement of Profit and Loss and the net
unrealized gains on scrip basis are ignored.

vi. Other operational revenue represents income earned from the activities incidental to the business and is
recognised when the right to receive the income is established as per the terms of the contract.

1.4 Property, Plant and Equipments

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical
cost less depreciation less impairment loss, if any. Historical cost comprises of purchase price, including non¬
refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing
the item to its working condition for its intended use.

Subsequent costs are included in the asset''s carrying amount or recognized 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 statement of profit or loss
during the reporting period in which they are incurred.

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

Depreciation methods, estimated useful lives and residual value:

Depreciation is provided on the straight-line method over the estimated useful lives of the assets which in certain
cases may be different than the rate prescribed in Schedule II to the Companies Act, 2013, in order to reflect the
actual usages of the assets.

The asset''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period. The asset''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.

The assets'' residual values, useful lives and method of depreciation are reviewed, and adjusted if appropriate, at
the end of each reporting period.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is
greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized as
income or expense in the statement of profit and loss.

1.5 Intangible assets:

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the
asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at
original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment.
Direct expenses and administrative and other general overhead expenses that are specifically attributable to
acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets.

Intangible assets not ready for the intended use on the date of Balance Sheet are disclosed as "Intangible assets
under development".

Intangible assets are amortised on written down value method over the estimated useful life. The method of
amortisation and useful life are reviewed at the end of each accounting year with the effect of any changes in the
estimate being accounted for on a prospective basis.

An intangible asset is de-recognised on disposal, or when no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of an intangible asset are recognised in profit or loss when the
asset is derecognised.

1.6 Impairment of tangible and intangible assets other than goodwill

As at the end of each accounting year, the Company reviews the carrying amounts of its PPE and intangible assets
to determine whether there is any indication that those assets have suffered an impairment loss. If such indication
exists, the PPE, investment property and intangible assets are tested for impairment so as to determine the
impairment loss, if any. Goodwill and the intangible assets with indefinite life are tested for impairment each year.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable
amount is determined in the case of an individual asset, at the higher of the net selling price and the value in use.

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

If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such
deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount
of the asset (or cash generating unit) is reduced to its recoverable amount. For this purpose, the impairment loss
recognised in respect of a cash generating unit is allocated first to reduce the carrying amount of any goodwill
allocated to such cash generating unit and then to reduce the carrying amount of the other assets of the cash
generating unit on a pro-rata basis.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit),
except for allocated goodwill, is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been determined had no

impairment loss is recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss
(other than impairment loss allocated to goodwill) is recognised immediately in the Statement of Profit and Loss.

1.7 Employee benefits:

i. Short term employee benefits:

Employee benefits falling due wholly within twelve months of rendering the service are classified as short
term employee benefits and are expensed in the period in which the employee renders the related service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount
of the benefits expected to be paid in exchange for the related service.

ii. Post-employment benefits:

a) Defined contribution plans: The Company''s superannuation scheme, state governed provident fund
scheme, employee state insurance scheme and employee pension scheme are defined contribution
plans. The contribution paid/ payable under the schemes is recognised during the period in which the
employee renders the related service.

b) Defined benefit plans: The employees'' gratuity fund schemes and employee provident fund schemes
managed by board of trustees established by the Company, the post-retirement medical care plan and
the Parent Company pension plan represent defined benefit plans. The present value of the obligation
under defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit
Method.

The obligation is measured at the present value of the estimated future cash flows using a discount rate
based on the market yield on government securities of a maturity period equivalent to the weighted
average maturity profile of the defined benefit obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability or asset) and any change in the effect of asset
ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings
and the same is not eligible to be reclassified to profit or loss.

Defined benefit costs comprising current service cost, past service cost and gains or losses on
settlements are recognised in the Statement of Profit and Loss as employee benefit expenses. Interest
cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under
finance cost. Gains or losses on settlement of any defined benefit plan are recognised when the
settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or
curtailment and when the Company recognizes related restructuring costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the
defined benefit plans to recognise the obligation on a net basis.

iii. Long term employee benefits:

The obligation recognised in respect of long term benefits such as long term compensated absences is
measured at present value of estimated future cash flows expected to be made by the Company and is
recognised in a similar manner as in the case of defined benefit plans vide (ii) (b) above.

iv. lermination benefits:

Termination benefits such as compensation under employee separation schemes are recognised as expense
when the Company''s offer of the termination benefit is accepted or when the Company recognises the
related restructuring costs whichever is earlier.

1.8 Financial instruments:

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

Recognised financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss.

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

1.9 Write off:

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

1.10 Impairment:

The Company recognises loss allowances for ECLs on the following financial instruments that are not measured at
FVTPL:

o Loans and advances to customers;
o Debt investment securities;
o Trade and other receivable;
o Lease receivables;

o Irrevocable loan commitments issued; and
o Financial guarantee contracts issued.

Credit-impaired financial assets

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

o significant financial difficulty of the borrower or issuer;
o a breach of contract such as a default or past due event;

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

o the disappearance of an active market for a security because of financial difficulties; or
o the purchase of a financial asset at a deep discount that reflects the incurred credit losses.

It may not be possible to identify a single discrete event instead; the combined effect of several events may have
caused financial assets to become credit-impaired. The Company assesses whether debt instruments that are
financial assets measured at amortised cost or FVTOCI are credit-impaired at each reporting date. To assess if
corporate debt instruments are credit impaired, the Company considers factors such as bond yields, credit ratings
and the ability of the borrower to raise funding.

A loan is considered credit-impaired when a concession is granted to the borrower due to a deterioration in the
borrower''s financial condition, unless there is evidence that as a result of granting the concession the risk of not
receiving the contractual cash flows has reduced significantly and there are no other indicators of impairment. For
financial assets where concessions are contemplated but not granted the asset is deemed credit impaired when
there is observable evidence of credit-impairment including meeting the definition of default. The definition of
default (see below) includes unlikeliness to pay indicators and a back-stop if amounts are overdue for 90 days or
more.

1.11 Cash and bank balances:

Cash and bank balances also include fixed deposits, margin money deposits, earmarked balances with banks and
other bank balances which have restrictions on repatriation. Short term and liquid investments being subject to
more than insignificant risk of change in value, are not included as part of cash and cash equivalents.

1.12 Securities premium account:

i. Securities premium includes:

• The difference between the face value of the equity shares and the consideration received in respect of
shares issued pursuant to Stock Option Scheme.

• The fair value of the stock options which are treated as expense, if any, in respect of shares allotted
pursuant to Stock Options Scheme.

ii. The issue expenses of securities which qualify as equity instruments are written off against securities premium
account.

1.13 Borrowing costs:

Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect
of assets acquired on finance lease and exchange differences arising from foreign currency borrowings, to the
extent they are regarded as an adjustment to interest costs.

Borrowing costs net of any investment income from the temporary investment of related borrowings, that are
attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of
such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are
recognised in profit or loss in the period in which they are incurred.

1.14 Accounting and reporting of information for Operating Segments:

Operating segments are those components of the business whose operating results are regularly reviewed by the
chief operating decision making body in the Company to make decisions for performance assessment and
resource allocation. The reporting of segment information is the same as provided to the management for the
purpose of the performance assessment and resource allocation to the segments. Segment accounting policies are
in line with the accounting policies of the Company.

1.15 Foreign currencies:

i. The functional currency and presentation currency of the Company is Indian Rupee. Functional currency of the
Company and foreign operations has been determined based on the primary economic environment in which the
Company and its foreign operations operate considering the currency in which funds are generated, spent and
retained.

ii. In currencies other than the Company''s functional currency are recorded on initial recognition using the exchange
rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the
prevailing closing spot rate. Non-monetary items that are measured in terms of historical cost in foreign currency
are not retranslated.

Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each
Balance Sheet date at the closing spot rate are recognised in the Statement of Profit and Loss in the period in
which they arise.

iii. Financial statements of foreign operations whose functional currency is different than Indian Rupees are
translated into Indian Rupees as follows -

A. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance
Sheet;

B. income and expenses for each income statement are translated at average exchange rates; and

C. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as
foreign currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign
operations.

1.16 Taxation:

Current Tax:

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

Deferred Tax:

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

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable
that taxable profit will be available against which those deductible temporary differences can be utilised. The
carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent

that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of
its assets and liabilities.

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

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Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

2. INVESTMENTS

Long Term Investments are carried at cost. No provision is made for diminution in value of such investments where, in opinion of the board, such diminution is temporary.

3. CLOSING STOCK OF SHARES

Closing Stock of shares has been valued at lower of cost or market value in case of quoted shares. Whereas unquoted shares are valued at cost. Stock in trade has been taken, valued and certified by the management.

4. REVENUE RECOGNITION

Income and Expenditure are generally recognized on accrual basis.

5. FIXED ASSETS

Fixed Assets have been stated at historical cost inclusive of incidental expenses, less accumulated depreciation.

6. DEPRECIATION / AMORTISATION

Depreciation has been provided on SLM method on pro rata basis at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956

7. EMPLOYEE BENEFITS

Gratuity / Retirement Benefits are accounted for on payment basis.

8. TAXATION

Tax expenses for a year comprise of current tax and deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

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Mar 31, 2013

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

2. INVESTMENTS

Long Term Investments are carried at cost. No provision is made for diminution in value of such investments where, in opinion of the board, such diminution is temporary.

3. CLOSING STOCK OF SHARES

Closing Stock of shares has been valued at lower of cost or market value in case of quoted shares. Whereas unquoted shares are valued at cost. Stock in trade has been taken, valued and certified by the management.

4. REVENUE RECOGNITION

Income and Expenditure are generally recognized on accrual basis.

5. FIXED ASSETS

Fixed Assets have been stated at historical cost inclusive of incidental expenses, less accumulated depreciation.

6. DEPRECIATION / AMORTISATION

Depreciation has been provided on SLM method on pro rata basis at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956

7. EMPLOYEE BENEFITS

Gratuity / Retirement Benefits are accounted for on payment basis.

8. TAXATION

Tax expenses for a year comprise of current tax and deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

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Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared as per historical cost convention and in accordance with the generally accepted accounting principle in India, the provisions of the Companies Act, 1956 and the applicable accounting standards issued by the ICAI.

2. INVESTMENTS

Long Term Investments are carried at cost. No provision is made for diminution in value of such investments where, in opinion of the board, such diminution is temporary.

3. CLOSING STOCK OF SHARES

Closing Stock of shares has been valued at lower of cost or market value in case of quoted shares. Whereas unquoted shares are valued at cost. Stock in trade has been taken, valued and certified by the management.

4. REVENUE RECOGNITION

Income and Expenditure are generally recognized on accrual basis.

5. FIXED ASSETS

Fixed Assets have been stated at historical cost inclusive of incidental expenses, less accumulated depreciation.

6. DEPRECIATION / AMORTISATION

Depreciation has been provided on SLM method on pro rata basis at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956

7. EMPLOYEE BENEFITS

Gratuity / Retirement Benefits are accounted for on payment basis.

8. TAXATION

Tax expenses for a year comprise of current tax and deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provision of Income Tax Act, 1961 and in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", issued by ICAI.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates. At each Balance Sheet date the company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

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Mar 31, 2010

I) System of Accounting:-

The company adopts accrual concept in the preparation of accounts.

ii)Inflation:-

Assets and Liabilities are recorded at historical costs to the company.

These costs are not adjusted to reflect the changing value in the purchasing power of money.

iii)Fixed Assets:-

Fixed assets are capitalized at cost.

iv)Depreciation:-

Depreciation is provided on Straight Line Method as per the rate prescribed in Schedule XIV of the Companies Act, 1956. It is provided proportionately from the date of acquisition in respect of ¦ assets acquired during the year.

v)Retirement Benefit: -

Under payment of Gratuity Act, 1972, provision for gratuity is required. As informed by the management the appropriate provision has been made by company

vi) Deferred tax resulting from riming differences between book and tax profit is accounted for at the current rate of tax , to the extent that the timing difference are expected to crystallize.

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Mar 31, 2009

I)System of Accounting:-

The company adopts accrual concept in the preparation of accounts.

ii)Irtflation:-

Assets and Liabilities are recorded at historical costs to the company.

These costs are not adjusted to reflect the changing value in the purchasing power of money.

iii)Fixed Assets;-

Fixed assets are capitalized at cost,

iv)Depreciation:-

Depreciation is provided on Straight Line Method as per the rate prescribed in Schedule XIV of the Companies Act, 1956. It is provided proportionately from the date of acquisition in respect of assets acquired during the year.

v) Retirement Benefitc-

Under payment of Gratuity Act, 1972, provision for gratuity is required. As informed by the management the appropriate provision has been made by company.

vii) Deferred tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax , to the extent that the timing difference are expected to crystallize.

B. Additional information pursuant to the provision of paragraph 3(c) (d) of Part II of the Schedule VI of the Companies Act 1956.

The quantitative details are not given since the nature of business is such, which involves numerous items and as such it is not possible to provide the details of each item.

b) Other Additional Information - Nil (Previous Year NIL)

c) Earnings & Expenditure in Foreign Currency - NIL (Previous year NIL)