Accounting Policies of Capital Finvest Ltd. Company

Mar 31, 2014

I The financial statements are prepared on accrual basis under the historical cost convention in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

ii The Company generally follows Mercantile System of accounting and recognises significant items of income and expenditure on accrual basis. All expenses debited to Statement of Profit & Loss are being accounted for on accrual basis. Dividend Income is accounted for on receipt basis.

iii Fixed Assets are stated at histrocial cost less accumulated depreciation.

iv Trade investments are the investments made to enhance the Company's business interests. All other investments other than trade. Investments are either classified as current or long-term, based on Management's intention at the time of purchase. Current investments are valued at lower of cost or fair market value on categorywise basis. Long term investments are valued at cost less permanent diminution, if any, of each investment.

v The Company follows "FIFO Method" for calculating the cost of each investment or stock sold by the Company for arriving at the profit/loss.

vi Inventories consisting of securities and commodities are valued at lower of cost or market price.

vii Preliminary Expenses are amortized over a period of five years.

viii Contingent Liabilities, if any, are not provided for in the accounts and are shown separately in Notes on Accounts.

ix Accounting Policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

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Mar 31, 2013

I The financial statements are prepared on accrual basis under the historical cost convention in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

ii The Company generally follows Mercantile System of accounting and recognises significant items of income and expenditure on accrual basis. All expenses debited to Statement of Profit & Loss are being accounted for on accrual basis. Dividend Income is accounted for on receipt basis.

iii Fixed Assets are stated at histrocial cost less accumulated depreciation.

iv Depreciation on Fixed Assets has been provided as per the WDV method at the rates prescribed in Rule 5 of the Income Tax Rules, 1962.

v Trade investments are the investments made to enhance the Company's business interests. All other investments are other than trade. Investments are either classified as current or long-term, based on Management's intention at the time of purchase. Current investments are valued at lower of cost or fair market value on categorywise basis. Long term investments are valued at cost less permanent diminution, if any, of each investment.

vi The Company follows "FIFO Method" for calculating the cost of each investment or stock sold by the Company for arriving at the profit/loss.

vii Inventories consisting of securities and commodities are valued at lower of cost or market price.

viii Preliminary Expenses are amortized over a period of five years.

ix Contingent Liabilities, if any, are not provided for in the accounts and are shown separately in Notes on Accounts.

x Accounting Policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

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Mar 31, 2012

I The financial statements are prepared on accrual basis under the historical cost convention in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

ii The Company generally follows Mercantile System of accounting and recognises significant items of income and expenditure on accrual basis. All expenses debited to Statement of Profit & Loss are being accounted for on accrual basis. Dividend Income is accounted for on receipt basis.

iii Fixed Assets are stated at histrocial cost less accumulated depreciation.

iv Depreciation on Fixed Assets has been provided as per the WDV method at the rates prescribed in Rule 5 of the Income Tax Rules, 1962.

v Trade investments are the investments made to enhance the Company's business interests. All other investments are other than trade. Investments are either classified as current or long-term, based on Management's intention at the time of purchase. Current investments are valued at lower of cost or fair market value on category wise basis. Long term investments are valued at cost less permanent diminution, if any, of each investment.

vi The Company follows "FIFO Method" for calculating the cost of each investment or stock sold by the Company for arriving at the profit/loss.

vii Inventories consisting of securities and commodities are valued at lower of cost or market price.

viii Preliminary Expenses are amortized over a period of five years.

ix Contingent Liabilities, if any, are not provided for in the accounts and are shown separately in Notes on Accounts.

x Accounting Policies not specifically referred to othen/vise, are consistent and in consonance with generally accepted accounting principles.