Accounting Policies of Glance Finance Ltd. Company

Mar 31, 2025

2 MATERIAL ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements of the Company have been prepared in accordance with
Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time). The financial statements have
been prepared under the historical cost convention, as modified by the application of fair
value measurements required or allowed by relevant Accounting Standards. Accounting
policies have been consistently applied to all periods presented, unless otherwise stated.

The preparation of financial statements requires the use of certain critical accounting
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues
and expenses and the disclosed amount of contingent liabilities. Areas involving a
higher degree of judgement or complexity, or areas where assumptions are significant to
the Company are discussed in Note 2.13 - material accounting judgements, estimates
and assumptions.

The financial statements are presented in Indian Rupees (INR).

2.2 Presentation of financial statements

The financial statements of the Company are presented as per Schedule III (Division III)
of the Companies Act, 2013 (the Act) applicable to NBFCs, as notified by the Ministry of
Corporate Affairs (MCA). Financial assets and financial liabilities are generally reported
on a gross basis except when, there is an unconditional legally enforceable right to offset
the recognised amounts without being contingent on a future event and the parties intend
to settle on a net basis in the following circumstances:

i. The normal course of business.

ii. The event of default.

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

2.3 Statement of compliance

The financial statements have been prepared in accordance with the Indian Accounting
Standards (Ind AS) on the historical cost basis except for certain financial instruments
that are measured at fair values at the end of each reporting period as explained in the
accounting policies below and the relevant provisions of the Act.

Accounting policies have been consistently applied except where a 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.

2.4 Financial instruments

i. Classification of financial instruments

The Company classifies its financial assets into the following measurement categories:

1. Financial assets to be measured at amortised cost.

2. Financial assets to be measured at fair value through profit or loss.

The classification depends on the contractual terms of the financial asset''s cash flows
and the Company''s business model for managing financial assets which are explained
below:

Business Model Assessment

The Company determines its business model at the level that best reflects how it manages
groups of financial assets to achieve its business objective.

The Company''s business model is not assessed on an instrument-by-instrument basis,
but at a higher level of aggregated portfolios and is based on observable factors such as:

- How the performance of the business model and the financial assets held within that
business model are evaluated and reported to the entity''s key management personnel

- The risks that affect the performance of the business model (and the financial
assets held within that business model) and the way those risks are managed.

- How managers of the business are compensated (for example, whether the
compensation is based on the fair value of the assets managed or on the contractual
cash flows collected)

- The expected frequency, value and timing of sales are also important aspects of the
Company''s assessment. The business model assessment is based on reasonably
expected scenarios without taking ‘worst case'' or ‘stress case'' scenarios into account.
If cash flows after initial recognition are realised in a way that is different from the
Company''s original expectations, the Company does not change the classification
of the remaining financial assets held in that business model, but incorporates such
information when assessing newly originated or newly purchased financial assets
going forward.

The Solely Payments of Principal and Interest (SPPI) test

As a second step of its classification process the Company assesses the contractual
terms of financial assets to identify whether they meet the SPPI test.

‘Principal'' for the purpose of this test is defined as the fair value of the financial asset at
initial recognition and may change over the life of the financial asset (for example, if
there are repayments of principal or amortisation of the premium/discount).

In making this assessment, the Company considers whether the contractual cash flows
are consistent with a basic lending arrangement i.e. interest includes only consideration
for the time value of money, credit risk, other basic lending risks and a profit margin that
is consistent with a basic lending arrangement. Where the contractual terms introduce
exposure to risk or volatility that are inconsistent with a basic lending arrangement, the

related financial asset is classified and measured at fair value through profit or loss.

The Company classifies its financial liabilities at amortised costs unless it has designated
liabilities at fair value through the profit and loss account or is required to measure liabilities
at fair value through profit or loss such as derivative liabilities.

ii. Financial assets measured at amortised cost

These financial assets comprises of bank balances, receivables, investments and
other financial assets.

Debt instruments

Debt instruments are measured at amortised cost where they have:

a) contractual terms that give rise to cash flows on specified dates, that represent
solely payments of principal and interest on the principal amount outstanding; and

b) are held within a business model whose objective is achieved by holding to collect
contractual cash flows.

These debt instruments are initially recognised at fair value plus directly attributable
transaction costs and subsequently measured at amortised cost.

iii. Financial Instruments at fair value through profit or loss (FVTPL)

Items at fair value through profit or loss comprise:

- Investments (including equity shares) held for trading;

- debt instruments with contractual terms that do not represent solely payments of
principal and interest. Financial instruments held at FVTPL are initially recognised
at fair value, with transaction costs recognised in the statement of profit and loss
as incurred. Subsequently, they are measured at fair value and any gains or losses
are recognised in the statement of profit and loss as they arise.

iv. Debt securities and other borrowed funds

After initial measurement, debt issued, and other borrowed funds are subsequently
measured at amortised cost. Amortised cost is calculated by taking into account any
discount or premium on issue funds, and costs that are an integral part of the Effective
Interest Rate (EIR).

v. Reclassification

If the business model under which the Company holds financial assets undergoes
changes, the financial assets affected are reclassified. The classification and
measurement requirements related to the new category apply prospectively from
the first day of the first reporting period following the change in business model that
result in reclassifying the Company''s financial assets. Changes in contractual cash
flows are considered under the accounting policy on Modification and derecognition
of financial assets described in subsequent paragraphs.

vi. Recognition and Derecognition of financial assets and liabilities
Recognition:

a) Loans and Advances are initially recognised when the Financial Instruments are

transferred to the customers.

b) Investments are initially recognised on the settlement date.

c) Debt securities and borrowings are initially recognised when funds are received by
the Company.

d) Other Financial assets and liabilities are initially recognised on the trade date, i.e.,
the date that the Company becomes a party to the contractual provisions of the
instrument. This includes regular way trades: purchases or sales of financial assets
that require delivery of assets within the time frame generally established by regulation
or convention in the market place.

Derecognition of financial assets due to substantial modification of terms and
conditions:

The Company derecognises a financial asset, such as a loan to a customer, when the
terms and conditions have been renegotiated to the extent that, substantially, it becomes
a new loan, with the difference recognised as a derecognition gain or loss, to the extent
that an impairment loss has not already been recorded. The newly recognised loans
are classified as Stage 1 for ECL measurement purposes, unless the new loan is deemed
to be Purchased or Originated as Credit Impaired (POCI).

If the modification does not result in cash flows that are substantially different, the
modification does not result in derecognition. Based on the change in cash flows
discounted at the original EIR, the Company records a modification gain or loss, to the
extent that an impairment loss has not already been recorded.

Derecognition of financial assets other than due to substantial modification

a) Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is derecognised when the rights to receive cash flows from
the financial asset have expired. The Company also derecognises the financial asset
if it has both transferred the financial asset and the transfer qualifies for derecognition.

The Company has transferred the financial asset if, the Company has transferred its
contractual rights to receive cash flows from the financial asset.

A transfer only qualifies for derecognition if either:

i. The Company has transferred substantially all the risks and rewards of the asset,
or

ii. The Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.

The Company considers control to be transferred if and only if, the transferee has the
practical ability to sell the asset in its entirety to an unrelated third party and is able to
exercise that ability unilaterally and without imposing additional restrictions on the
transfer.

When the Company has neither transferred nor retained substantially all the risks
and rewards and has retained control of the asset, the asset continues to be recognised
only to the extent of the Company''s continuing involvement, in which case, the

Company also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations
that the Company has retained.

b) Financial liabilities

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 a
derecognition 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 or Loss.

vii. Impairment of financial assets

Overview of the ECL principles

The Company records allowance for expected credit losses for all loans, other debt
financial assets not held at FVTPL, in this section all referred to as ‘financial
instruments. Equity instruments are not subject to impairment under Ind AS 109.

The ECL allowance is based on the credit losses expected to arise over the life of the
asset (the lifetime expected credit loss), unless there has been no significant increase
in credit risk since origination, in which case, the allowance is based on the 12 months''
expected credit loss.

Lifetime ECL are the expected credit losses resulting from all possible default events
over the expected life of a financial instrument. The 12-month ECL is the portion of
Lifetime ECL that represent the ECLs that result from default events on a financial
instrument that are possible within the 12 months after the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis
or a collective basis, depending on the nature of the underlying portfolio of financial
instruments. The Company has grouped its loan portfolio into Micro, Small and Medium
Enterprises (MSMEs) and Construction Finance.

The Company has established a policy to perform an assessment, at the end of each
reporting period, of whether a financial instrument''s credit risk has increased
significantly since initial recognition, by considering the change in the risk of default
occurring over the remaining life of the financial instrument. The Company does the
assessment of significant increase in credit risk at a borrower level. If a borrower has
various facilities having different past due status, then the highest days past due
(DPD) is considered to be applicable for all the facilities of that borrower.

Based on the above, the Company categorises its loans into Stage 1, Stage 2 and
Stage 3 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 up to 0-29 days default under this
category. Stage 1 loans also include facilities where the credit risk has reduced and
the loan has been reclassified from Stage 2.

Stage 2

All exposures where there has been a significant increase in credit risk since initial
recognition but is not credit impaired are classified under this stage. Financial assets
past due for 30 to 89 days are classified under this stage. Stage 2 loans also include
facilities where the credit risk has reduced, and the loan has been reclassified from
Stage 3.

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.

Credit-impaired financial assets:

At each reporting date, the company assesses whether financial assets carried at
amortised cost and debt financial assets carried at FVTOCI are credit-impaired. 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.

Evidence that a financial asset is credit-impaired includes the following observable
data:

a) Significant financial difficulty of the borrower or issuer;

b) A breach of contract such as a default or past due event;

c) The restructuring of a loan or advance by the company on terms that the company
would not consider otherwise;

d) It is becoming probable that the borrower will enter bankruptcy or other financial
reorganisation; or

e) The disappearance of an active market for a security because of financial
difficulties.

The mechanics of ECL:

The Company calculates ECLs based on probability-weighted scenarios to measure
the expected cash shortfalls, discounted at an approximation to the EIR. A cash
shortfall is the difference between the cash flows that are due to the Company in
accordance with the contract and the cash flows that the Company expects to
receive.

The mechanics of the ECL calculations are outlined below and the key elements are,
as follows:

Probability of Default (PD) - The Probability of Default is an estimate of the likelihood
of default over a given time horizon. A default may only happen at a certain time over
the assessed period, if the facility has not been previously derecognised and is still
in the portfolio.

Loss Given Default (LGD) - The Loss Given Default is an estimate of the loss arising
in the case where a default occurs at a given time. It is based on the difference
between the contractual cash flows due and those that the lender would expect to
receive, including from the realisation of any collateral. It is usually expressed as
a percentage of the EAD.

Exposure at Default (EAD) - The Exposure at Default is an estimate of the exposure
at a future default date including the undrawn commitments.

Collateral Valuation

To mitigate its credit risks on financial assets, the Company seeks to use collateral,
where possible. The collateral comes in various forms, such as the underlying asset
financed, cash, securities, letters of credit/guarantees, etc. However, the fair value of
collateral affects the calculation of ECLs. To the extent possible, the Company uses
active market data for valuing financial assets held as collateral.

Collateral repossessed

In its normal course of business, the Company does not physically repossess
properties or other assets in its retail portfolio, but engages its employees to recover
funds, to settle outstanding debt. Any surplus funds are returned to the customers/
obligors. As a result of this practice, assets under legal repossession processes are
not recorded on the balance sheet.

viii. Write-offs

The Company reduces the gross carrying amount of a financial asset when the
Company has no reasonable expectations of recovering a financial asset in its entirety
or a portion thereof. This is generally 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 subjected to write-offs. Any subsequent recoveries
against such loans are credited to the Statement of Profit and Loss.

ix. Determination of fair value

On initial recognition, all the financial instruments are measured at fair value. For
subsequent measurement, the Company measures certain categories of financial
instruments (as explained in note.) at fair value on each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the
asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset in
its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.

In order to show how fair values have been derived, financial instruments are classified
based on a hierarchy of valuation techniques, as summarised below:

Level 1 financial instruments - Those where the inputs used in the valuation are
unadjusted quoted prices from active markets for identical assets or liabilities that
the Company has access to at the measurement date. The Company considers
markets as active only if there are sufficient trading activities with regards to the
volume and liquidity of the identical assets or liabilities and when there are binding
and exercisable price quotes available on the balance sheet date.

Level 2 financial instruments - Those where the inputs that are used for valuation
are significant and are derived from directly or indirectly observable market data
available over the entire period of the instrument''s life. Such inputs include quoted
prices for similar assets or liabilities in active markets, quoted prices for identical
instruments in inactive markets and observable inputs other than quoted prices such
as interest rates and yield curves, implied volatilities, and credit spreads. In addition,
adjustments may be required for the condition or location of the asset or the extent
to which it relates to items that are comparable to the valued instrument. However, if
such adjustments are based on unobservable inputs which are significant to the
entire measurement, the Company will classify the instruments as Level 3.

Level 3 financial instruments - Those that include one or more unobservable
input that is significant to the measurement as whole.

The Company recognises transfers between levels of the fair value hierarchy at the
end of the reporting period during which the change has occurred.

Difference between transaction price and fair value at initial recognition

The best evidence of the fair value of a financial instrument at initial recognition is
the transaction price (i.e. the fair value of the consideration given or received) unless
the fair value of that instrument is evidenced by comparison with other observable
current market transactions in the same instrument (i.e. without modification or
repackaging) or based on a valuation technique whose variables include only data
from observable markets. When such evidence exists, the Company recognises the
difference between the transaction price and the fair value in profit or loss on initial

recognition (i.e. on day one).

When the transaction price of the instrument differs from the fair value at origination
and the fair value is based on a valuation technique using only inputs observable in
market transactions, the Company recognises the difference between the transaction
price and fair value in net gain on fair value changes. In those cases where fair value
is based on models for which some of the inputs are not observable, the difference
between the transaction price and the fair value is not recognised at the initial
recognition stage.

2.5 Revenue from operations

i. Interest Income

Interest income is recognised by applying EIR to the gross carrying amount of financial
assets other than credit- impaired assets and financial assets classified as measured
at FVTPL, taking into account the amount outstanding and the applicable interest
rate. For credit impaired financial assets, the company applies the EIR to the amortised
cost of the financial asset in subsequent reporting period.

The EIR is computed:

As the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial asset to the gross carrying amount of a financial
asset.

By considering all the contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) in estimating the cash flows

Including all fees paid or received between parties to the contract that are an
integral part of the effective interest rate, transaction costs, and all other premiums
or discounts.

Any subsequent changes in the estimation of the future cash flows is recognised in
interest income with the corresponding adjustment to the carrying amount of the
assets.

ii. Dividend Income

Dividend income is recognised when the right to receive the payment is established.

iii. Fees & Franchisee Income

Fees and Franchisee are recognised when the Company satisfies the performance
obligation, at fair value of the consideration received or receivable based on a five-
step model as set out below, unless included in the effective interest calculation:

Step 1: Identify contract(s) with a customer: A contract is defined as an agreement
between two or more parties that creates enforceable rights and obligations and sets
out the criteria for every contract that must be met.

Step 2: Identify performance obligations in the contract: A performance obligation is
a promise in a contract with a customer to transfer a goods or service to the customer.

Step 3: Determine the transaction price: The transaction price is the amount of
consideration to which the Company expects to be entitled in exchange for transferring

promised goods or services to a customer, excluding amounts collected on behalf of
third parties.

Step 4: Allocate the transaction price to the performance obligations in the contract:
For a contract that has more than one performance obligation, the Company allocates
the transaction price to each performance obligation in an amount that depicts the
amount of consideration to which the Company expects to be entitled in exchange
for satisfying each performance obligation.

Step 5: Recognise revenue when (or as) the Company satisfies a performance
obligation.

iv. Net gain on Fair value changes

Any differences between the fair values of financial assets classified as FVTPL held
by the Company on the reporting date is recognised as an unrealised gain / loss. In
cases there is a net gain in the aggregate, the same is recognised in “Net gains on
fair value changes" under Revenue from operations and if there is a net loss the
same is disclosed as “Net loss on fair value changes" under Expenses in the Statement
of Profit and Loss.

Similarly, any realised gain or loss on sale of financial instruments measured at FVTPL
is recognised in net gain/loss on fair value changes.

However, net gain/loss on derecognition of financial instruments classified as
amortised cost is presented separately under the respective head in the Statement
of Profit and Loss.

2.6 Expenses

i. Finance costs

Finance costs on borrowings is paid towards availing of loan, is amortised on EIR
basis over the life of loan. The EIR in case of a financial liability is computed

a. As the rate that exactly discounts estimated future cash payments through the
expected life of the financial liability to the gross carrying amount of the amortised
cost of a financial liability.

b. By considering all the contractual terms of the financial instrument in estimating
the cash flows

c. Including all fees paid between parties to the contract that are an integral part of
the effective interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows is recognised in
interest expense with the corresponding adjustment to the carrying amount of the
liability.

Interest expense includes issue costs that are initially recognized as part of the carrying
value of the financial liability and amortized over the expected life using the effective
interest method. These include fees and commissions payable to advisers and
other expenses such as external legal costs, Rating Fee etc., provided these are
incremental costs that are directly related to the issue of a financial liability.

ii. Retirement and other 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 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

a) Defined contribution schemes

All the eligible employees of the Company who have opted to receive benefits
under the Provident Fund and Employees State Insurance scheme, defined
contribution plans in which both the employee and the Company contribute monthly
at a stipulated rate. The Company has no liability for future benefits other than its
annual contribution and recognises such contributions as an expense in the period
in which employee renders the related service. If the contribution payable to the
scheme for service received before the Balance Sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognised as a
liability after deducting the contribution already paid. If the contribution already
paid exceeds the contribution due for services received before the Balance Sheet
date, then excess is recognised as an asset to the extent that the pre-payment
will lead to, for example, a reduction in future payment or a cash refund.

b) Defined Benefit schemes

The Company provides for the gratuity, a defined benefit retirement plan covering
all employees. The plan provides for lump sum payments to employees upon
death while in employment or on separation from employment after serving for
the stipulated years mentioned under ‘The Payment of Gratuity Act, 1972''. The
present value of the obligation under such defined benefit plan is determined
based on actuarial valuation, carried out by an independent actuary at each
Balance Sheet date, using the Projected Unit Credit Method, which recognizes
each period of service as giving rise to an additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash
flows. The discount rates used for determining the present value of the obligation
under defined benefit plan are based on the market yields on Government
Securities as at the Balance Sheet date.

Net interest recognized in profit or loss is calculated by applying the discount rate
used to measure the defined benefit obligation to the net defined benefit liability
or asset. The actual return on the plan assets above or below the discount rate is
recognized as part of re-measurement of net defined liability or asset through
other comprehensive income. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include

the determination of the discount rate, attrition rate, future salary increases and
mortality rates. Due to the complexities involved in the valuation and its long-term
nature, these liabilities are highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

Re-measurement, comprising of actuarial gains and losses and the return on
plan assets (excluding amounts included in net interest on the net defined benefit
liability), are recognized immediately in the balance sheet with a corresponding
debit or credit to retained earnings through OCI in the period in which they
occur. Re-measurements are not reclassified to profit and loss in subsequent
periods.

Other long-term employee benefits

Company''s liabilities towards compensated absences to employees are accrued on
the basis of valuations, as at the Balance Sheet date, carried out by an independent
actuary using Projected Unit Credit Method. Actuarial gains and losses comprise
experience adjustments and the effects of changes in actuarial assumptions and are
recognised immediately in the Statement of Profit and Loss.

The Company presents the Provision for compensated absences under provisions in
the Balance Sheet.

iii Rent Expense
Identification of Lease:

The determination of whether an arrangement is a lease, or contains a lease, is
based on the substance of the arrangement and requires an assessment of whether
the fulfilment of the arrangement is dependent on the use of a specific asset or
assets or whether the arrangement conveys a right to use the asset.

Recognition of lease payments:

A right-of-use asset representing the right to use the underlying asset and a lease
liability representing the obligation to make lease payments is recognized for all leases
over 1 year on initial recognition basis. Discounted committed & expected future
cash flows and depreciation on the asset portion on straight-line basis & interest on
liability portion (net of lease payments) on EIR basis is recognized over the expected
lease term. No right-of-use asset is created for short term leases (i.e. lease term less
than 1 year) and leases of low value items.

iv Other income and expenses

All Other income and expense are recognized on accrual basis in the period they
occur.

v Impairment of non-financial assets

The carrying amount of assets is reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the assets, net selling price and value in
use. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market

assessments of the time value of money and risks specific to the asset.

In determining net selling price, recent market transactions are taken into account, if
available. If no such transactions can be identified, an appropriate valuation model is
used. After impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.

vi 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 recognised outside profit or loss is recognised
outside profit or loss (either in other comprehensive income or in equity). Current tax
items are recognised in correlation to the underlying transaction either in OCI or
directly 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, unused tax losses
and unused tax credits 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.

Indirect Taxes

Goods and services tax /service tax/value added taxes paid on acquisition of assets
or on incurring expenses.

Expenses and assets are recognised net of the goods and services tax/service tax/
value added taxes paid, except:

i. When the tax incurred on a purchase of assets or services is not recoverable
from the taxation authority, in which case, the tax paid is recognised as part of
the cost of acquisition of the asset or as part of the expense item, as applicable.

ii. When receivables and payables are stated with the amount of tax included

The net amount of tax recoverable from, or payable to, the taxation authority is included
as part of receivables or payables in the balance sheet.

2.7 Cash and cash equivalents

Cash and cash equivalents comprise the net amount of short-term, highly liquid
investments that are readily convertible to known amounts of cash (short-term deposits
with an original maturity of three months or less) and are subject to an insignificant risk of
change in value. They are held for the purposes of meeting short-term cash commitments
(rather than for investment or other purposes).

For the purpose of the statement of cash flows, cash and cash equivalents consist of
cash and short- term deposits, as defined above.

2.8 Property, plant and equipment

Property, plant and equipment (PPE) are measured at cost less accumulated depreciation
and accumulated impairment, (if any). 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. Changes in the expected useful life are
accounted for by changing the amortisation period or methodology, as appropriate, and
treated as changes in accounting estimates.

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, beyond its previously assessed
standards of performance and cost can be measured reliably. Other repairs and
maintenance costs are expensed off as and when incurred.

Depreciation

"Depreciation is calculated using the straight line method 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 Act, except the useful life
of plant and machinery, life of which is estimated for the period of 5 years (as per contractual
terms). The estimated useful lives are as prescribed by Schedule II of the Act. The residual
values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.““Property
plant and equipment is derecognised on disposal or when no future economic benefits
are expected from its use. Any gain or loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds and the carrying amount of the
asset) is recognised in other income / expense in the statement of profit and loss in the
year the asset is derecognised. The date of disposal of an item of property, plant and
equipment is the date the recipient obtains control of that item in accordance with the
requirements for determining when a performance obligation is satisfied in Ind AS 115."

2.9 Intangible assets

An intangible asset is recognised only when its cost can be measured reliably, and it is
probable that the expected future economic benefits that are attributable to it will flow to
the Company.

Intangible assets acquired separately are measured on initial recognition at cost. The
cost of an intangible asset comprises its purchase price and any directly attributable
expenditure on making the asset ready for its intended use and net of any trade discounts
and rebates. Following initial recognition, intangible assets are carried at cost less any
accumulated amortisation and any accumulated impairment losses.

The useful lives of intangible assets are assessed to be either finite or infinite. Intangible
assets with finite lives are amortised over the useful economic life. The amortisation
period and the amortisation method for an intangible asset with a finite useful life are
reviewed at least at each financial year-end. Changes in the expected useful life, or the
expected pattern of consumption of future economic benefits embodied in the asset, are
accounted for by changing the amortisation period or methodology, as appropriate, which
are then treated as changes in accounting estimates. The amortisation expense on
intangible assets with finite lives is presented as a separate line item in the statement of
profit and loss. Amortisation on assets acquired/sold during the year is recognised on a
pro-rata basis to the Statement of Profit and Loss from / upto the date of acquisition/sale.

Amortisation is calculated using the straight-line method to write down the cost of intangible
assets to their residual values over their estimated useful lives. Intangible assets
comprising of software are amortised on a straight-line basis over a period of 3 years,
unless it has a shorter useful life.

Gains or losses from derecognition of intangible assets are measured as the difference
between the net disposal proceeds and the carrying amount of the asset are recognised
in the Statement of Profit and Loss when the asset is derecognised.

---

Mar 31, 2024

2 MATERIAL ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015 (as amended from time to time). The financial statements have been prepared
under the historical cost convention, as modified by the application of fair value measurements
required or allowed by relevant Accounting Standards. Accounting policies have been
consistently applied to all periods presented, unless otherwise stated.

The preparation of financial statements requires the use of certain critical accounting estimates
and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses
and the disclosed amount of contingent liabilities. Areas involving a higher degree of judgement
or complexity, or areas where assumptions are significant to the Company are discussed in
Note 2.13 - material accounting judgements, estimates and assumptions.

The financial statements are presented in Indian Rupees (INR).

2.2 Presentation of financial statements

The financial statements of the Company are presented as per Schedule III (Division III) of the
Companies Act, 2013 (the Act) applicable to NBFCs, as notified by the Ministry of Corporate
Affairs (MCA). Financial assets and financial liabilities are generally reported on a gross basis
except when, there is an unconditional legally enforceable right to offset the recognised amounts
without being contingent on a future event and the parties intend to settle on a net basis in the
following circumstances:

i. The normal course of business.

ii. The event of default.

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

2.3 Statement of compliance

The financial statements have been prepared in accordance with the Indian Accounting Standards
(Ind AS) on the historical cost basis except for certain financial instruments that are measured
at fair values at the end of each reporting period as explained in the accounting policies below
and the relevant provisions of the Act.

Accounting policies have been consistently applied except where a 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.

i. Classification of financial instruments

The Company classifies its financial assets into the following measurement categories:

1. Financial assets to be measured at amortised cost.

2. Financial assets to be measured at fair value through profit or loss.

The classification depends on the contractual terms of the financial asset''s cash
flows and the Company''s business model for managing financial assets which are
explained below:

Business Model Assessment

The Company determines its business model at the level that best reflects how it manages
groups of financial assets to achieve its business objective.

The Company''s business model is not assessed on an instrument-by-instrument basis,
but at a higher level of aggregated portfolios and is based on observable factors such as:

- How the performance of the business model and the financial assets held within that
business model are evaluated and reported to the entity''s key management personnel

- The risks that affect the performance of the business model (and the financial
assets held within that business model) and the way those risks are managed.

- How managers of the business are compensated (for example, whether the
compensation is based on the fair value of the assets managed or on the contractual
cash flows collected)

- The expected frequency, value and timing of sales are also important aspects of the
Company''s assessment. The business model assessment is based on reasonably
expected scenarios without taking ‘worst case'' or ‘stress case'' scenarios into account.
If cash flows after initial recognition are realised in a way that is different from the
Company''s original expectations, the Company does not change the classification
of the remaining financial assets held in that business model, but incorporates such
information when assessing newly originated or newly purchased financial assets
going forward.

The Solely Payments of Principal and Interest (SPPI) test

As a second step of its classification process the Company assesses the contractual
terms of financial assets to identify whether they meet the SPPI test.

‘Principal'' for the purpose of this test is defined as the fair value of the financial asset at
initial recognition and may change over the life of the financial asset (for example, if
there are repayments of principal or amortisation of the premium/discount).

In making this assessment, the Company considers whether the contractual cash flows
are consistent with a basic lending arrangement i.e. interest includes only consideration
for the time value of money, credit risk, other basic lending risks and a profit margin that
is consistent with a basic lending arrangement. Where the contractual terms introduce
exposure to risk or volatility that are inconsistent with a basic lending arrangement, the
related financial asset is classified and measured at fair value through profit or loss.

The Company classifies its financial liabilities at amortised costs unless it has designated

liabilities at fair value through the profit and loss account or is required to measure liabilities
at fair value through profit or loss such as derivative liabilities.

ii. Financial assets measured at amortised cost

These financial assets comprises of bank balances, receivables, investments and
other financial assets.

Debt instruments

Debt instruments are measured at amortised cost where they have:

a) contractual terms that give rise to cash flows on specified dates, that represent
solely payments of principal and interest on the principal amount outstanding; and

b) are held within a business model whose objective is achieved by holding to collect
contractual cash flows.

These debt instruments are initially recognised at fair value plus directly attributable
transaction costs and subsequently measured at amortised cost.

iii. Financial Instruments at fair value through profit or loss (FVTPL)

Items at fair value through profit or loss comprise:

- Investments (including equity shares) held for trading;

- debt instruments with contractual terms that do not represent solely payments of
principal and interest. Financial instruments held at FVTPL are initially recognised
at fair value, with transaction costs recognised in the statement of profit and loss
as incurred. Subsequently, they are measured at fair value and any gains or losses
are recognised in the statement of profit and loss as they arise.

iv. Debt securities and other borrowed funds

After initial measurement, debt issued, and other borrowed funds are subsequently
measured at amortised cost. Amortised cost is calculated by taking into account any
discount or premium on issue funds, and costs that are an integral part of the Effective
Interest Rate (EIR).

v. Reclassification

If the business model under which the Company holds financial assets undergoes
changes, the financial assets affected are reclassified. The classification and
measurement requirements related to the new category apply prospectively from
the first day of the first reporting period following the change in business model that
result in reclassifying the Company''s financial assets. Changes in contractual cash
flows are considered under the accounting policy on Modification and derecognition
of financial assets described in subsequent paragraphs.

vi. Recognition and Derecognition of financial assets and liabilities
Recognition:

a) Loans and Advances are initially recognised when the Financial Instruments are
transferred to the customers.

b) Investments are initially recognised on the settlement date.

c) Debt securities and borrowings are initially recognised when funds are received
by the Company.

d) Other Financial assets and liabilities are initially recognised on the trade date,
i.e., the date that the Company becomes a party to the contractual provisions of
the instrument. This includes regular way trades: purchases or sales of financial
assets that require delivery of assets within the time frame generally established
by regulation or convention in the market place.

Derecognition of financial assets due to substantial modification of terms and
conditions:

The Company derecognises a financial asset, such as a loan to a customer, when the
terms and conditions have been renegotiated to the extent that, substantially, it becomes
a new loan, with the difference recognised as a derecognition gain or loss, to the extent
that an impairment loss has not already been recorded. The newly recognised loans
are classified as Stage 1 for ECL measurement purposes, unless the new loan is deemed
to be Purchased or Originated as Credit Impaired (POCI).

If the modification does not result in cash flows that are substantially different, the
modification does not result in derecognition. Based on the change in cash flows
discounted at the original EIR, the Company records a modification gain or loss, to the
extent that an impairment loss has not already been recorded.

Derecognition of financial assets other than due to substantial modification

a) Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is derecognised when the rights to receive cash flows from
the financial asset have expired. The Company also derecognises the financial asset
if it has both transferred the financial asset and the transfer qualifies for derecognition.

The Company has transferred the financial asset if, the Company has transferred its
contractual rights to receive cash flows from the financial asset.

A transfer only qualifies for derecognition if either:

i. The Company has transferred substantially all the risks and rewards of the asset,
or

ii. The Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.

The Company considers control to be transferred if and only if, the transferee has the
practical ability to sell the asset in its entirety to an unrelated third party and is able to
exercise that ability unilaterally and without imposing additional restrictions on the
transfer.

When the Company has neither transferred nor retained substantially all the risks
and rewards and has retained control of the asset, the asset continues to be recognised
only to the extent of the Company''s continuing involvement, in which case, the
Company also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations
that the Company has retained.

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 a
derecognition 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 or Loss.

vii. Impairment of financial assets

Overview of the ECL principles

The Company records allowance for expected credit losses for all loans, other debt
financial assets not held at FVTPL, in this section all referred to as ‘financial
instruments. Equity instruments are not subject to impairment under Ind AS 109.

The ECL allowance is based on the credit losses expected to arise over the life of the
asset (the lifetime expected credit loss), unless there has been no significant increase
in credit risk since origination, in which case, the allowance is based on the 12 months''
expected credit loss.

Lifetime ECL are the expected credit losses resulting from all possible default events
over the expected life of a financial instrument. The 12-month ECL is the portion of
Lifetime ECL that represent the ECLs that result from default events on a financial
instrument that are possible within the 12 months after the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis
or a collective basis, depending on the nature of the underlying portfolio of financial
instruments. The Company has grouped its loan portfolio into Micro, Small and Medium
Enterprises (MSMEs) and Construction Finance.

The Company has established a policy to perform an assessment, at the end of each
reporting period, of whether a financial instrument''s credit risk has increased
significantly since initial recognition, by considering the change in the risk of default
occurring over the remaining life of the financial instrument. The Company does the
assessment of significant increase in credit risk at a borrower level. If a borrower has
various facilities having different past due status, then the highest days past due
(DPD) is considered to be applicable for all the facilities of that borrower.

Based on the above, the Company categorises its loans into Stage 1, Stage 2 and
Stage 3 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 up to 0-29 days default under this
category. Stage 1 loans also include facilities where the credit risk has reduced and
the loan has been reclassified from Stage 2.

Stage 2

All exposures where there has been a significant increase in credit risk since initial
recognition but is not credit impaired are classified under this stage. Financial assets
past due for 30 to 89 days are classified under this stage. Stage 2 loans also include
facilities where the credit risk has reduced, and the loan has been reclassified from
Stage 3.

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.

Credit-impaired financial assets:

At each reporting date, the company assesses whether financial assets carried at
amortised cost and debt financial assets carried at FVTOCI are credit-impaired. 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.

Evidence that a financial asset is credit-impaired includes the following observable
data:

a) Significant financial difficulty of the borrower or issuer;

b) A breach of contract such as a default or past due event;

c) The restructuring of a loan or advance by the company on terms that the company
would not consider otherwise;

d) It is becoming probable that the borrower will enter bankruptcy or other financial
reorganisation; or

e) The disappearance of an active market for a security because of financial
difficulties.

The mechanics of ECL:

The Company calculates ECLs based on probability-weighted scenarios to measure
the expected cash shortfalls, discounted at an approximation to the EIR. A cash
shortfall is the difference between the cash flows that are due to the Company in
accordance with the contract and the cash flows that the Company expects to
receive.

The mechanics of the ECL calculations are outlined below and the key elements are,
as follows:

Probability of Default (PD) - The Probability of Default is an estimate of the likelihood
of default over a given time horizon. A default may only happen at a certain time over
the assessed period, if the facility has not been previously derecognised and is still
in the portfolio.

Loss Given Default (LGD) - The Loss Given Default is an estimate of the loss arising
in the case where a default occurs at a given time. It is based on the difference
between the contractual cash flows due and those that the lender would expect to
receive, including from the realisation of any collateral. It is usually expressed as
a percentage of the EAD.

Exposure at Default (EAD) - The Exposure at Default is an estimate of the exposure
at a future default date including the undrawn commitments.

Collateral Valuation

To mitigate its credit risks on financial assets, the Company seeks to use collateral,
where possible. The collateral comes in various forms, such as the underlying asset
financed, cash, securities, letters of credit/guarantees, etc. However, the fair value of
collateral affects the calculation of ECLs. To the extent possible, the Company uses
active market data for valuing financial assets held as collateral.

Collateral repossessed

In its normal course of business, the Company does not physically repossess
properties or other assets in its retail portfolio, but engages its employees to recover
funds, to settle outstanding debt. Any surplus funds are returned to the customers/
obligors. As a result of this practice, assets under legal repossession processes are
not recorded on the balance sheet.

viii. Write-offs

The Company reduces the gross carrying amount of a financial asset when the
Company has no reasonable expectations of recovering a financial asset in its entirety
or a portion thereof. This is generally 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 subjected to write-offs. Any subsequent recoveries
against such loans are credited to the Statement of Profit and Loss.

ix. Determination of fair value

On initial recognition, all the financial instruments are measured at fair value. For
subsequent measurement, the Company measures certain categories of financial
instruments (as explained in note.) at fair value on each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the
asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset in
its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.

In order to show how fair values have been derived, financial instruments are classified
based on a hierarchy of valuation techniques, as summarised below:

Level 1 financial instruments - Those where the inputs used in the valuation are
unadjusted quoted prices from active markets for identical assets or liabilities that
the Company has access to at the measurement date. The Company considers
markets as active only if there are sufficient trading activities with regards to the
volume and liquidity of the identical assets or liabilities and when there are binding
and exercisable price quotes available on the balance sheet date.

Level 2 financial instruments - Those where the inputs that are used for valuation
are significant and are derived from directly or indirectly observable market data
available over the entire period of the instrument''s life. Such inputs include quoted
prices for similar assets or liabilities in active markets, quoted prices for identical
instruments in inactive markets and observable inputs other than quoted prices such
as interest rates and yield curves, implied volatilities, and credit spreads. In addition,
adjustments may be required for the condition or location of the asset or the extent
to which it relates to items that are comparable to the valued instrument. However, if
such adjustments are based on unobservable inputs which are significant to the
entire measurement, the Company will classify the instruments as Level 3.

Level 3 financial instruments - Those that include one or more unobservable
input that is significant to the measurement as whole.

The Company recognises transfers between levels of the fair value hierarchy at the
end of the reporting period during which the change has occurred.

Difference between transaction price and fair value at initial recognition

The best evidence of the fair value of a financial instrument at initial recognition is
the transaction price (i.e. the fair value of the consideration given or received) unless
the fair value of that instrument is evidenced by comparison with other observable
current market transactions in the same instrument (i.e. without modification or
repackaging) or based on a valuation technique whose variables include only data
from observable markets. When such evidence exists, the Company recognises the
difference between the transaction price and the fair value in profit or loss on initial
recognition (i.e. on day one).

When the transaction price of the instrument differs from the fair value at origination

and the fair value is based on a valuation technique using only inputs observable in
market transactions, the Company recognises the difference between the transaction
price and fair value in net gain on fair value changes. In those cases where fair value is
based on models for which some of the inputs are not observable, the difference between
the transaction price and the fair value is not recognised at the initial recognition stage.

2.5 Revenue from operations

i. Interest Income

Interest income is recognised by applying EIR to the gross carrying amount of financial
assets other than credit- impaired assets and financial assets classified as measured
at FVTPL, taking into account the amount outstanding and the applicable interest
rate. For credit impaired financial assets, the company applies the EIR to the amortised
cost of the financial asset in subsequent reporting period.

The EIR is computed:

As the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial asset to the gross carrying amount of a financial
asset.

By considering all the contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) in estimating the cash flows

Including all fees paid or received between parties to the contract that are an
integral part of the effective interest rate, transaction costs, and all other premiums
or discounts.

Any subsequent changes in the estimation of the future cash flows is recognised in
interest income with the corresponding adjustment to the carrying amount of the
assets.

ii. Dividend Income

Dividend income is recognised when the right to receive the payment is established.

iii. Fees & Franchisee Income

Fees and Franchisee are recognised when the Company satisfies the performance
obligation, at fair value of the consideration received or receivable based on a five-
step model as set out below, unless included in the effective interest calculation:

Step 1: Identify contract(s) with a customer: A contract is defined as an agreement
between two or more parties that creates enforceable rights and obligations and sets
out the criteria for every contract that must be met.

Step 2: Identify performance obligations in the contract: A performance obligation is
a promise in a contract with a customer to transfer a goods or service to the customer.

Step 3: Determine the transaction price: The transaction price is the amount of
consideration to which the Company expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts collected on behalf of
third parties.

Step 4: Allocate the transaction price to the performance obligations in the contract:

For a contract that has more than one performance obligation, the Company allocates
the transaction price to each performance obligation in an amount that depicts the
amount of consideration to which the Company expects to be entitled in exchange
for satisfying each performance obligation.

Step 5: Recognise revenue when (or as) the Company satisfies a performance
obligation.

iv. Net gain on Fair value changes

Any differences between the fair values of financial assets classified as FVTPL held
by the Company on the reporting date is recognised as an unrealised gain / loss. In
cases there is a net gain in the aggregate, the same is recognised in “Net gains on
fair value changes" under Revenue from operations and if there is a net loss the
same is disclosed as “Net loss on fair value changes" under Expenses in the Statement
of Profit and Loss.

Similarly, any realised gain or loss on sale of financial instruments measured at FVTPL
is recognised in net gain/loss on fair value changes.

However, net gain/loss on derecognition of financial instruments classified as
amortised cost is presented separately under the respective head in the Statement
of Profit and Loss.

2.6 Expenses

i. Finance costs

Finance costs on borrowings is paid towards availing of loan, is amortised on EIR
basis over the life of loan. The EIR in case of a financial liability is computed

a. As the rate that exactly discounts estimated future cash payments through the
expected life of the financial liability to the gross carrying amount of the amortised
cost of a financial liability.

b. By considering all the contractual terms of the financial instrument in estimating
the cash flows

c. Including all fees paid between parties to the contract that are an integral part of
the effective interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows is recognised in
interest expense with the corresponding adjustment to the carrying amount of the
liability.

Interest expense includes issue costs that are initially recognized as part of the carrying
value of the financial liability and amortized over the expected life using the effective
interest method. These include fees and commissions payable to advisers and
other expenses such as external legal costs, Rating Fee etc., provided these are
incremental costs that are directly related to the issue of a financial liability.

ii. Retirement and other 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 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

a) Defined contribution schemes

All the eligible employees of the Company who have opted to receive benefits under
the Provident Fund and Employees State Insurance scheme, defined contribution
plans in which both the employee and the Company contribute monthly at a stipulated
rate. The Company has no liability for future benefits other than its annual contribution
and recognises such contributions as an expense in the period in which employee
renders the related service. If the contribution payable to the scheme for service
received before the Balance Sheet date exceeds the contribution already paid, the
deficit payable to the scheme is recognised as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services
received before the Balance Sheet date, then excess is recognised as an asset to
the extent that the pre-payment will lead to, for example, a reduction in future payment
or a cash refund.

b) Defined Benefit schemes

The Company provides for the gratuity, a defined benefit retirement plan covering all
employees. The plan provides for lump sum payments to employees upon death
while in employment or on separation from employment after serving for the stipulated
years mentioned under ‘The Payment of Gratuity Act, 1972''. The present value of the
obligation under such defined benefit plan is determined based on actuarial valuation,
carried out by an independent actuary at each Balance Sheet date, using the Projected
Unit Credit Method, which recognizes each period of service as giving rise to an
additional unit of employee benefit entitlement and measures each unit separately to
build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows.
The discount rates used for determining the present value of the obligation under
defined benefit plan are based on the market yields on Government Securities as at
the Balance Sheet date.

Net interest recognized in profit or loss is calculated by applying the discount rate
used to measure the defined benefit obligation to the net defined benefit liability or
asset. The actual return on the plan assets above or below the discount rate is
recognized as part of re-measurement of net defined liability or asset through other
comprehensive income. An actuarial valuation involves making various assumptions
that may differ from actual developments in the future. These include the determination
of the discount rate, attrition rate, future salary increases and mortality rates. Due to
the complexities involved in the valuation and its long-term nature, these liabilities
are highly sensitive to changes in these assumptions. All assumptions are reviewed
at each reporting date.

Re-measurement, comprising of actuarial gains and losses and the return on plan
assets (excluding amounts included in net interest on the net defined benefit liability),
are recognized immediately in the balance sheet with a corresponding debit or credit
to retained earnings through OCI in the period in which they occur. Re-measurements
are not reclassified to profit and loss in subsequent periods.

Other long-term employee benefits

Company''s liabilities towards compensated absences to employees are accrued on the
basis of valuations, as at the Balance Sheet date, carried out by an independent actuary
using Projected Unit Credit Method. Actuarial gains and losses comprise experience
adjustments and the effects of changes in actuarial assumptions and are recognised
immediately in the Statement of Profit and Loss.

The Company presents the Provision for compensated absences under provisions in the
Balance Sheet.

iii Rent Expense
Identification of Lease:

The determination of whether an arrangement is a lease, or contains a lease, is based on
the substance of the arrangement and requires an assessment of whether the fulfilment
of the arrangement is dependent on the use of a specific asset or assets or whether the
arrangement conveys a right to use the asset.

Recognition of lease payments:

A right-of-use asset representing the right to use the underlying asset and a lease liability
representing the obligation to make lease payments is recognized for all leases over 1
year on initial recognition basis. Discounted committed & expected future cash flows and
depreciation on the asset portion on straight-line basis & interest on liability portion (net
of lease payments) on EIR basis is recognized over the expected lease term. No right-of-
use asset is created for short term leases (i.e. lease term less than 1 year) and leases of
low value items.

iv Other income and expenses

All Other income and expense are recognized on accrual basis in the period they occur.

v Impairment of non-financial assets

The carrying amount of assets is reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the assets, net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and risks specific to the asset.

In determining net selling price, recent market transactions are taken into account, if
available. If no such transactions can be identified, an appropriate valuation model is
used. After impairment, depreciation is provided on the revised carrying amount of the
asset over its remaining useful life.

vi 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 recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income or in equity). Current tax items are
recognised in correlation to the underlying transaction either in OCI or directly 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, unused tax losses
and unused tax credits 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.

Indirect Taxes

Goods and services tax /service tax/value added taxes paid on acquisition of assets or
on incurring expenses.

Expenses and assets are recognised net of the goods and services tax/service tax/value
added taxes paid, except:

i. When the tax incurred on a purchase of assets or services is not recoverable from
the taxation authority, in which case, the tax paid is recognised as part of the cost of
acquisition of the asset or as part of the expense item, as applicable.

ii. When receivables and payables are stated with the amount of tax included

The net amount of tax recoverable from, or payable to, the taxation authority is included
as part of receivables or payables in the balance sheet.

2.7 Cash and cash equivalents

Cash and cash equivalents comprise the net amount of short-term, highly liquid
investments that are readily convertible to known amounts of cash (short-term deposits

with an original maturity of three months or less) and are subject to an insignificant risk of
change in value. They are held for the purposes of meeting short-term cash commitments
(rather than for investment or other purposes).

For the purpose of the statement of cash flows, cash and cash equivalents consist of
cash and short- term deposits, as defined above.

2.8 Property, plant and equipment

Property, plant and equipment (PPE) are measured at cost less accumulated depreciation
and accumulated impairment, (if any). 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. Changes in the expected useful life are
accounted for by changing the amortisation period or methodology, as appropriate, and
treated as changes in accounting estimates.

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, beyond its previously assessed
standards of performance and cost can be measured reliably. Other repairs and
maintenance costs are expensed off as and when incurred.

Depreciation

"Depreciation is calculated using the straight line method 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 Act, except the useful life
of plant and machinery, life of which is estimated for the period of 5 years (as per contractual
terms). The estimated useful lives are as prescribed by Schedule II of the Act. The residual
values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.““Property
plant and equipment is derecognised on disposal or when no future economic benefits
are expected from its use. Any gain or loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds and the carrying amount of the
asset) is recognised in other income / expense in the statement of profit and loss in the
year the asset is derecognised. The date of disposal of an item of property, plant and
equipment is the date the recipient obtains control of that item in accordance with the
requirements for determining when a performance obligation is satisfied in Ind AS 115."

2.9 Intangible assets

An intangible asset is recognised only when its cost can be measured reliably, and it is
probable that the expected future economic benefits that are attributable to it will flow to
the Company.

Intangible assets acquired separately are measured on initial recognition at cost. The
cost of an intangible asset comprises its purchase price and any directly attributable
expenditure on making the asset ready for its intended use and net of any trade discounts
and rebates. Following initial recognition, intangible assets are carried at cost less any
accumulated amortisation and any accumulated impairment losses.

The useful lives of intangible assets are assessed to be either finite or infinite. Intangible
assets with finite lives are amortised over the useful economic life. The amortisation

period and the amortisation method for an intangible asset with a finite useful life are
reviewed at least at each financial year-end. Changes in the expected useful life, or the
expected pattern of consumption of future economic benefits embodied in the asset, are
accounted for by changing the amortisation period or methodology, as appropriate, which
are then treated as changes in accounting estimates. The amortisation expense on
intangible assets with finite lives is presented as a separate line item in the statement of
profit and loss. Amortisation on assets acquired/sold during the year is recognised on a
pro-rata basis to the Statement of Profit and Loss from / upto the date of acquisition/sale.

Amortisation is calculated using the straight-line method to write down the cost of intangible
assets to their residual values over their estimated useful lives. Intangible assets
comprising of software are amortised on a straight-line basis over a period of 3 years,
unless it has a shorter useful life.

Gains or losses from derecognition of intangible assets are measured as the difference
between the net disposal proceeds and the carrying amount of the asset are recognised
in the Statement of Profit and Loss when the asset is derecognised.

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Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These financial statements of the company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with the Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and underthe historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.2 USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

1.3 RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized.

a) Income from Professional Services

Income from Professional Services are accounted for as and when the relevant services are rendered and revenue is recognized using completed service contract method except where the recovery is uncertain in which case it is accounted for on receipt.

b) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Revenue from operation" in the statement of profit and loss. Delayed Payment charges, Penal Interest, Other Penal Charges, etc, are in accordance with the guidelines issued by the Reserve Bank of India for Non-Banking Finance Companies, income on business assets classified as Non-performing Assets, is also recognised on receipt basis.

c) Dividend

Dividend Income is recognized when the Company's Right to Receive dividend is established by the reporting date.

d) Profit / Loss on sale of Investments / Inventories

Profit / Loss on the sale of Investments / inventories is dealt with at the time of actual sale/ redemption.

1.4 INVENTORIES:

The Securities acquired with the intention of trading are considered as stock in trade and disclosed as current assets. The Securities held as Stock in Trade under current asset and are valued at lower of Cost or Market value, whichever is less on FIFO Basis.

1.5 TANGIBLE FIXED ASSETS:

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to it's working condition for it's intended use.

1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:

Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing on or after April 1, 2014, the Company has re-worked depreciation with reference to the useful lives of fixed assets prescribed by PART 'C of Schedule II to the Act or the useful lives of assets as estimated by the Company, whichever is lower. Where the remaining useful life of an asset is Nil, the carrying amount of the asset after retaining the residual value (net of deferred tax), as atApril 1,2014 has been adjusted to the Retained Earnings. In other cases, the carrying values have been depreciated over the remaining useful lives of the assets using Straight Line Method and the same is recognised in the Statement of Profit and Loss.

1.7 FOREIGN CURRENCYTRANSACTIONS

a) Initial recognition

Foreign Currency Transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the statement of Profit & loss.

b) Conversion

Monetary assets and liabilities denominated in the foreign currencies as at the Balance Sheet date are translated at the closing exchange rates on that date. The exchange differences, if any, are recognised in the Statement of profit & loss account and related assets and liabilities are accordingly restated in the Balance Sheet.

1.8 INVESTMENTS:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. In the case of Mutual funds, the net asset value of units declared by the Mutual funds is considered as the fairvalue.

On disposal of investments, the difference between into carrying amount and the net disposal proceeds is charged or credited to the statement of profit & loss.

1.9 FUTURESAND OPTION CONTRACT

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

b) As at the Balance Sheet date, the profit / loss on open positions, if any, in Equity Index/Stock Futures are accounted for as follows:

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

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

c) On final settlement or squaring-up of contracts for Equity Index/Stock Futures, the profit or loss is calculated as difference between settlement/ squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled/ squared-up contract in "Mark-to-Market Margin - Equity Index/ Stock Futures Account" is recognized in the Statement of Profit and Loss upon expiry of the contracts. When more than one contract in respect of the relevant series of Equity Index/ Stock Futures contract to which the squared-up contract pertains is outstanding at the time of the squaring up of the contract, the contract price of the contract so squared up is determined using First In First Out Method for calculating profit/ loss on squaring-up.

1.10 RETIREMENT BENEFITS:

The Company has adopted Revised Accounting Standard 15- Employee Benefits. The policy followed by the Company in respect of its employee benefit scheme is set out below:

a) Gratuity

The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides for lump sum payments to employees at retirement, death while in employment or on termination of employment. The liability for gratuity are provided for in accordance with actuarial valuation.

b) Leave Encashment

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to the Statement of Profit and Loss.

1.11 SEGMENT REPORTING POLICIES

Identification of segments:

The Company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Unallocated Items:

Unallocated items include income and expenses which are not allocated to any business segment.

Segment Policies:

The company prepares its segment information in conformity with the accounting policies for preparing and presenting the financial statements of the company as a whole.

1.12 EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earning pershare.

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The Weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share.

1.13 PROVISION FOR CURRENT TAX AND DEFERRED TAX

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) The deferred tax charge or benefit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed depreciation or carried forward loss undertaxation laws, deferred tax assets are recognized only if there is a virtual certainty of realisation of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.

1.14 IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.15 CONTINGENT LIABILITY:

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurency or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognized in the financial statements. However contingent assets as assessed continually and if it is virtually certain that an economic benefit will rise, asset and related income are recognized in the period in which the change occurs.

1.16 PROVISIONS:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amounts of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

1.17 CASH & CASH EQUIVALENTS:

Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less, as per Accounting Standard 3 "Cash Flows".

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Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company. The financial statements have been prepared on an accrual basis and underthe historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.2 USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

1.3 RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized.

a) Income from Professional Services

Income from Professional Services are accounted for as and when the relevant services are rendered and revenue is recognized using completed service contract method except where the recovery is uncertain in which case it is accounted for on receipt.

b) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included underthe head "Revenue from operation" in the statement of profit and loss.

c) Dividend

Dividend Income is recognized when the Company''s Right to Receive dividend is established by the reporting date.

d) Profit / Loss on sale of Investments / Inventories

Profit / Loss on the sale of Investments / inventories is dealt with at the time of actual sale/redemption.

1.4 INVENTORIES:

The Securities acquired with the intention of trading are considered as stock in trade and disclosed as current assets. The Securities held as Stock in Trade undercurrent asset and are valued at lower of Cost or Market value, whichever is less on FIFO Basis.

1.5 TANGIBLE FIXED ASSETS :

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to it''s working condition for it''s intended use.

1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:

Depreciation on tangible fixed assets is provided on a Straight Line Method. In respect of assets sold, depreciation is provided upto the date of disposal. Depreciation is charged at the rates prescribed in the Schedule XIV to the Companies Act, 1956.

1.7 FOREIGN CURRENCYTRANSACTIONS

a) Initial recognition

Foreign Currency Transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the statement of Profit & loss.

b) Conversion

Monetary assets and liabilities denominated in the foreign currencies as at the Balance Sheet date are translated at the closing exchange rates on that date. The exchange differences, if any, are recognised in the Statement of profit & loss account and related assets and liabilities are accordingly restated in the Balance Sheet.

1.8 INVESTMENTS:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. In the case of Mutual funds, the net asset value of units declared by the Mutual funds is considered as the fair value.

In accordance with the Revised Schedule VI to the Companies Act, 1956, the portion of the Long Term Investments classified above, and expected to be realised within 12 months of the reporting date, have been classified as current investments.

On disposal of investments, the difference between into carrying amount and the net disposal proceeds is charged or credited to the statement of profit & loss.

1.9 FUTURESAND OPTION CONTRACT

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

b) As at the Balance Sheet date, the profit / loss on open positions, if any, in Equity Index/ Stock Futures are accounted for as follows:

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

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

On final settlement or squaring-up of contracts for Equity Index/ Stock Futures, the profit or loss is calculated as difference between settlement/ squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled/ squared-up contract in "Mark to-Market Margin - Equity Index/ Stock Futures Account" is recognized in the Statement of Profit and Loss upon expiry of the contracts. When more than one contract in respect of the relevant series of Equity Index/ Stock Futures contract to which the squared-up contract pertains is outstanding at the time of the squaring up of the contract, the contract price of the contract so squared up is determined using First In First Out Method for calculating profit/ loss on squaring-up.

1.10 RETIREMENT BENEFITS:

The Company has adopted Revised Accounting Standard 15- Employee Benefits. The policy followed by the Company in respect of its employee benefit scheme is set out below:

a) Gratuity

The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides for lump sum payments to employees at retirement, death while in employment or on termination of employment. The liability for gratuity are provided for in accordance with actuarial valuation.

b) Leave Encashment

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to the Statement of Profit and Loss.

1.11 SEGMENT REPORTING POLICIES

Identification of segments:

The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Unallocated Items:

Unallocated items include income and expenses which are not allocated to any business segment.

Segment Policies:

The company prepares its segment information in conformity with the accounting policies for preparing and presenting the financial statements of the company as a whole.

1.12 EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earning per share prescribed by the Companies (Accounting Standards) Rules, 2006.

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The Weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share spilit, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share.

1.13 PROVISION FORCURRENTTAXAND DEFERRED TAX

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions ofthe Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) The deferred tax charge or benefit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realisation ofthe assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.

1.14 IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on the revised carrying amount ofthe asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.15 CONTINGENT LIABILITY:

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurency or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognized in the financial statements. However contingent assets as assessed continually and if it is virtually certain that an economic benefit will rise, asset and related income are recognized in the period in which the change occurs.

1.16 PROVISIONS:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amounts of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

1.17 CASH & CASH EQUIVALENTS:

Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less, as per Accounting Standard 3 "Cash Flows".

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Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements of the company have been prepared m accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the a ceo tinting standards notified under ihe Companies (Accounting Standards) Rules 2006, (as amended) and the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India (RBI) as applicable to a Non Banking Finance Company The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.2 USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect Ihe reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on Ihe management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities m future periods.

1.3 RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized to the extent that is probable lhat the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized

a) Income from Professional Services

Income from Professional Services are accounted for as and when the relevant services are rendered and revenue is recognized using completed service contract method except where the recovery is uncertain in which case it is accounted for on receipt.

b i interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate Interest income is included under the head "Revenue from operation* in the statement of profit and loss.

c) Dividend

Dividend Income is recognized when Ihe Company''s Right to Receive dividend is established by the reporting dace.

d) Profit/ Loss on sale of In vestments / Inventories

Profit / Loss on the sale of Investments / inventories is dealt with at the time of actual sale/redemption.

1.4 INVENTORIES:

The Securities acquired with the intention of trading are considered as stock in trade and disclosed as current assets. The Securities haid as Slock in Trade under currant asset and are valued at lower of Cost or Market value, whichever is less or FIFO Basis.

1.5 TANGIBLE FIXED ASSETS ;

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets comprises purchase price end any attributable cost of hringing the asset to it''s working condition for it''s intended use.

1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:

Depredation on tangible Fixed assets is provided on a Straight Line Method in respect of assets sold, depreciation Is provided uplo the date of disposal. Depreciation is charged at the rales prescribed in the Schedule XIV to the Companies Act, f956.

1.7 FOREIGNCURRENCY TFtANSACTIONS

a] Initial recognition

Foreign Currency Transactions are recorded in Ihe reporting currency, by applying to the Foreign currency amount the exchange rate between the reporting currency and the foreign currency at the dale of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the statement of Profits. Loss.

b) Conversion

Monetary assets and liabilities denominated in the foreign currencies as at the Balance Sheet date are translated at the dosing exchange rates on that date. The exchange differences, if any. are recognized in the statement of profit & toss account and related assets and liabilities are accordingly restated in the Balance Sheet.

1.B INVESTMENTS:

Investments, which are readily realizable and intended lo be held for not more than one year from the date on which such investments are made, are classified as current investments. Ail other investments are classified as long term investments,

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of (he investments. In the case of Mutual funds. Ihe net asset value of untls declared by the Mutual funds is considered as the fair value. 1 In accordance with the Revised Schedule VI to the Companies Act, 1956, Ihe portion of the Long Term Investments classified above, and expected to be realised within 12 months of the reporting date, have been classified as current investments.

On disposal of investments, the difference between Into carrying amount and the net disposal proceeds is charged or credited to the statement of profit & loss.

1,9 FUTURES AND OPTION CONTRACT

a) Equity Index I Slock Futures are marked-to-market on a daity basis. Debit or credit balances, "if any, disclosed under Loans and Advances or Current Liabilities respectively, in the "Mark-to-Market Margin - Index / Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index / Stock Futures till the Balance Sheet date. As at the Balance Sheet date, the profit i loss on open positions. If any, in Equity Index / Stock Futures are accounted for as follows:

Credit balance in frte "Marfc-lo-Market Equity Index t Stock Futures Account", being anticipated profit, is ignored and no credit is taken in the statement of Profit and Loss.

Debit balance in the "Ma rk-to-Market Equity Index I Slock Futures Account", being antici pated toss Js recogn ized in Ihe stalemen t of Profit and Loss.

c) On final settlement or squaring-up or contracts for Equity Index /Stock Futures, the profit or loss is calculated as difference between settlement / squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled t squared-up contract In "Mark lo-Markel Margin - Equity Index ! Slock Futures Account" is recognized in the Statement of Profit and Loss upon expiry of the contracts. When more lhan one contract in respect of Ihe relevant series of Equity Index / Stock Futures contract to which the squared-up contract pertains is outstanding at the time of the squaring up of the contract, the contract pnce of the contract so squared up Is determined using First In First Out Method far calculating profit/ lass an squaring-up.

1.10 RETIREMENT BENEFITS:

The Company has adopted Revised Accounling Standard 15- Employee Benefils. The policy foilowed by the Company in respect of its employee benefit scheme is set out below:

a) Gratuity

The Company provides for the gratuity, a defined benefit retirement plan covenng all employees The plan provides for lump sum payments to employees at retirement, death while in employment or on termination of employment. The liability for gratuity are provided for in accordance wilh actuarial valuation.

b) Leave Encashment

Provision for Leave encashment is made on accrual basis on estimates as at the year end an d is cha rged to I he State ment of Pf ofil and Loss.

1.11 SEGMENT REPORTING POLICIES

Identification of segments:

The Company''s operating businesses are organized and menaced separately according lo the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Unallocated Items:

Unallocated items include income and expenses which are not allocated to any business segment.

Segment Policies:

The company prepares its segment information in conformity with the accounting polices for preparing and presenting the financial statements of the company as a whole,

1.12 EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earning per share prescribed by the Companies (Accounting Standards) Rules, 2006

Basic earnings per share are calculated by dividing the net profit or loss far the period attributable lo equity shareholders (after deducting preferences dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share the extent [hat they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The Weighted average number of equity shares outstanding during the period is adjusted far events such as bonus issue, bonus element in a nghls issue, share spill, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources

For the purpose oF calculating diluted earnings per share, the net profit or loss for ine period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share

1.13 PROVISION FOR CURRENT TAX AND DEFERRED TAX

a) Provision for current lax Is made and retained in the accounts on the hasis of estimated tan liability as per applicable provisions of the Income Tax Act. 1961 and considering assessment orders and decision of appellate authorities,

b) The deferred tax change or benefit and the corresponding deferred lax liabilities and assets are recognized using the tax rales that have been enaclad or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty lhat the asset can be realised in Future; however, where there is unabsorbed depreciation or earned forward loss under taxation laws, deferred lax assets are recognized only if there is a virtual certainly of realisation of the assets. Deferred tax assets are reviewed as at each balance sheet dale and written down or written up io reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.

1.14 IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss Is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use In assessing value in use, the estimated future cash Hows a re discounted to their present value at the weighted average cost of capital

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However Ihe carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.15 CONTINGENT LIABILITY:

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurency or nan occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements

Contingent assets are not recogmzed m the financial statements. However contingent assets as assessed continually and if it is virtually certain that an economic benefit will rise, asset and related Income are recognized m the period in which the change occurs.

1.16 PROVISIONS:

The company creates a provision when Ihere is present obligation as a result of a past event thai probably requires an outflow of resources and a reliable estimate can be made of the amounts of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle Ihe obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current besl estimates. If it is no longer probable thai the outflow of resources would be required to settle the obligation, the provision is reversed.

1.17 CASH & CASH EQUIVALENTS .

Cash and Cash Equivalents for the purposes of cash flow statement compnse cash at bank and in hand and short term investments with an original maturity of three months or less, as per Accounting Standard 3 "Cash Flows".

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Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared and presented under the historical cost convention, on accrual basis, in accordance with the Indian Generally Accepted Accounting Principles (GAAP), the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of financial statemensts (in conformity with generally accepted accounting principles) requires the management to make estimations and assumptions that affect (i) the reported amount of assets and liabilities, (ii) the result of operations during and at the end of the reporting period, and (iii) the disclosures of contingent liabilites at the date of the financial statements. As these estimates are based on the management's best knowledge of events and actions at the relevant period of time, the actual results could differ from these estimates.

3. RECOGNITION OF INCOME & EXPENDITURE:

Items of Income & Expenditure are recognized on accrual basis, as they are earned or incurred.

4. FIXED ASSETS AND DEPRECIATION:

a) Fixed assets are stated at cost of acquisition less accumulated depreciation.

b) Depreciation on fixed assets has been provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

c) Impairment of Assets :

The Company identifies impairable assets at the year-end in terms of para-5 to 13 of AS - 28 issued by ICAI for the purpose of arriving at impairment loss thereon; being the difference between the book value and recoverable value and impairment loss is recognised.

5. INVESTMENT:

The Long Term Investment has been valued at cost and the short Term Investment has been valued at cost or Market Price whichever is lower. Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

6. Stock in Trade:

Stock in trades are valued at cost or market value whichever is lower on FIFO basis in case of quoted securities and at cost in case of unquoted securities.

7. Futures and Option Contract

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

b) As at the Balance Sheet date, the profit/loss on open positions, if any, in Equity Index/Stock Futures are accounted for as follows :

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

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

c) On final settlement or squaring-up of contracts for Equity Index/Stock Futures, the profit or loss is calculated as difference between settlement/ squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled/squared-up contract in "Mark-to- Market Margin-Equity Index/Stock Futures Account" is recognized in the Profit and Loss Account upon expiry of the contracts. When more than one contract in respect of the relevant series of Equity Index / Stock Futures Contract to which the squared-up contract pertains is outstanding at the time of the squaring up of the contract, the contract price of the contract so squared up is determinded using First In First Out Method for calculating profit/loss on squaring-up.

8. Provision for Current tax and Deferred tax :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) Deferred tax is recognized subject to the consideration of prudence, on time difference being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods in due cognizance of AS - 22 issued by ICAI.

9. Earning per share :

The earnings considered in ascertaining the Company's EPS comprises the Net Profit after Tax and includes the Post Tax effect of any extraordinary items. The Number of Shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

10. Exchange Fluctuation :

Foreign currency assets / liabilities are translated in rupees at the rate ruling at the year end and the exchange difference arising on such transactions is dealt with in the Profit & Loss Account.

11. Retirement Benefits:

i) Gratuity :

The liability for gratuity are provided for in accordance with actuarial valuation.

ii) Leave Encashment :

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to Profit & Loss Account.

12. Contingent Liability :

Contingent Liabilities are not provided for in the accounts, but are disclosed in the Notes, if any.

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Mar 31, 2010

1. Basis of Accounting :

The financial statements are prepared and presented under the historical cost convention, on accrual basis, in accordance with the Indian Generally Accepted Accounting Principles (GAAP), the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Recognition of Income & Expenditure:

Items of Income & Expenditure are recognized on accrual basis, as they are earned or incurred.

3. Use of Estimates :

The preparation of financial statements (in conformity with generally accepted accounting principles) requires the management to make estimations and assumptions that affect (i) the reported amount of assets and liabilities, (ii) the result of operations during and at the end of the reporting period, and (iii) the disclosures of contingent liabilities at the date of the financial statements. As these estimates are based on the managements best knowledge of events and actions at the relevant period of time, the actual results could differ from these estimates.

4. Fixed Assets and Depreciation:

a) Fixed assets are stated at cost of acquisition less accumulated depreciation.

b) Depreciation on fixed assets has been provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

c) Impairment of Assets :

The Company identifies impairable assets at the year-end in terms of para-5 to 13 of AS - 28 issued by ICAI for the purpose of arriving at impairment loss thereon; being the difference between the book value and recoverable value and impairment loss is recognised.

5. Investment:

The Long Term Investment has been valued at cost and the short Term Investment has been valued at cost or Market Price whichever is lower. Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

6. Stock in Trade:

Stock in trades are valued at cost or market value whichever is lower on FIFO basis in case of listed securities and at cost in case of non-listed securities.

7. Futures and Option Contract

In respect of futures and option contracts gain/losses on settlement are recognized on settlement dates for the completed contracts. In respect of open contracts of futures and options at the end of the year, the losses are provided in the books at the end of the year, but profit is booked on realization by following global approach. (as per the terms of Guidance Note of the Institute of Chartered Accountants of India.)

8. Provision for Current tax and Deferred tax :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) Deferred tax is recognized subject to the consideration of prudence, on time difference being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods in due cognizance of AS - 22 issued by ICA1.

9. Earning per share :

The earning considered in ascertaining the Companys EPS comprises the Net Profit after Tax and includes the Post Tax effect of any extraordinary items. The Number of Shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

10. Exchange Fluctuation :

Foreign currency assets / liabilities are translated in rupees at the rate ruling at the year end and the exchange difference arising on such transactions is dealt with in the Profit & Loss Account.

11. Retirement Benefits: i) Gratuity :

The liability for gratuity are provided for in accordance with actuarial valuation. ii) Leave Encashment :

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to Profit & Loss Account.

12. Contingent Liability :

Contingent Liabilities are not provided for in the accounts, but are disclosed in the Notes, if any.