Accounting Policies of Gold Rock Investments Ltd. Company

Mar 31, 2024

NOTE-2 Significant Accounting Policies

The accounting policies, as set out in the following paragraphs of this note, have been consistently
applied, by the Company, to all the periods presented in the said financial statements. The
preparation of the said financial statements requires the use of certain critical accounting
estimates and judgments. It also requires the management to exercise judgment in the process
of applying the Company’s accounting policies. The areas where estimates are significant to the
financial statements, or areas involving a higher degree of judgment or complexity.

Further, for the purpose of clarity, various items are aggregated in the statement of profit and loss
and balance sheet. Nonetheless, these items are disaggregated separately in the notes to the
financial statements, where applicable or required. All the amounts included in the financial
statements are reported in Indian Rupees (‘Rupees’), which is the Company’s functional currency.
All financial information presented in INR is in absolute terms except per share data and unless
stated otherwise.

2.01 Basis of Preparation of Standalone Financial Statements:

These standalone financial statements have been prepared in accordance with Indian Accounting
Standards ("Ind AS") notified under Section 133 of the Companies Act 2013 ("the Act"), read with
the Companies (Indian Accounting Standards) Rules, 2015 as amended.

The financial statements have been prepared in accordance with Indian Accounting Standards
(Ind AS) under the historical cost convention on the accrual basis except for certain financial
instruments which are measured at fair values, and on the basis of accounting principle of a going
concern in accordance with generally accepted accounting principles (GAAP). 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. The Financial Statements are presented in Lakhs or decimal
thereof unless otherwise specified.

The financial statements have been presented in accordance with schedule III-Division III General
Instructions for Preparation of financial statements of a Non-Banking Financial Company (NBFC)
that is required to comply with Ind AS.

2.02 Functional And Presentation Currency:

Items included in the financial statements of the company are measured using the currency of the
primary economic environment in which the company operates ("the functional currency”). Indian
rupee is the functional currency of the company. All amounts are rounded to two decimal places
to the nearest lakh, unless otherwise stated.

2.03 Use of Estimates:

The preparation of standalone financial statements in conformity with the recognition and
measurement principles of Ind AS requires management of the Company to make judgments,
estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures
including disclosures of contingent assets and contingent liabilities as at the date of financial
statements and the reported amounts of revenues and expenses during the period. Actual results
may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in which the
estimates are revised and in future periods which are affected.

Key sources of estimation of uncertainty at the date of the standalone financial statements, which
may cause a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, is in respect of fair valuation of unquoted equity investments, impairment of
financial instruments, impairment of property, plant & equipment, useful lives of property, plant &
equipment, provisions and contingent liabilities and long term retirement benefits.

2.04 Historical Cost Convention

The financial statements have been prepared on the accrual and going concern basis, and the
historical cost convention except where the Ind AS requires a different accounting treatment. The
principal variations from the historical cost convention relate to financial instruments classified as
fair value for the followings:

(a) certain financial assets and liabilities and contingent consideration that is measured at
fair value;

(b) assets held for sale measured at fair value less cost to sell;

Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services.

2.05 Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current
classification. An asset is treated as current when it is:

a) Expected to be realized or intended to be sold or consumed in normal operating cycle

b) Held primarily for the purpose of trading, or

c) Expected to be realized within twelve months after the reporting period other than for (a)
above, or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

a) It is expected to be settled in a normal operating cycle.

b) It is held primarily for the purpose of trading.

c) It is due to be settled within twelve months after the reporting period other than for (a) above,
or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.

All other liabilities are classified as non-current.

2.06 Fair Value Measurement

The Company measures financial instruments, such as, derivatives at fair value at 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.

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, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.

The Company categorizes assets and liabilities measured at fair value into one of three levels as
follows:

> Level 1 — quoted (unadjusted): This hierarchy includes financial instruments measured
using quoted prices.

> Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.

> Level 3 - They are unobservable inputs for the asset or liability reflecting significant
modifications to observable related market data or Company’s assumptions about pricing
by market participants. Fair values are determined in whole or in part using a valuation
model based on assumptions that are neither supported by prices from observable current
market transactions in the same instrument nor are they based on available market data.

2.07 Financial Instruments Classification

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. The financial instruments are recognized in the
balance sheet when the Company becomes a party to the contractual provisions of the financial
instrument. The Company determines the classification of its financial instruments at initial
recognition.

Financial assets, other than equity, are classified into, financial assets at fair value through other
comprehensive income (FVOCI) or fair value through profit and loss account (FVTPL) or at
amortised cost. Financial assets that are equity instruments are classified as FVTPL or FVOCI.
Financial liabilities are classified as amortised cost category and FVTPL.

Business Model assessment and Solely payments of principal and interest (SPPI) test:

Classification and measurement of financial assets depends on the business model and results
of SPPI test. The Company determines the business model at a level that reflects how groups of
financial assets are managed together to achieve a particular business objective. This
assessment includes judgment reflecting all relevant evidence including;

• 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, in particular, 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.

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.

Initial recognition and measurement

The classification of financial instruments at initial recognition depends on their contractual terms
and the business model for managing the instruments.

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

Financial assets and financial liabilities, with the exception of loans, debt securities and deposits
are recognised on the trade date i.e. when a Company becomes a party to the contractual
provisions of the instruments. Loans, debt securities and deposits are recognised when the funds
are transferred to the customers account. Trade receivables are measured at the transaction
price.

Subsequent measurement

i. Financial assets measured at amortized cost

Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortized cost using the effective
interest rate (‘EIR’) method (if the impact of discounting / any transaction costs is significant).
Interest income from these financial assets is included in finance income.

ii. Debt Instruments at FVOCI

Debt instruments that are measured at FVOCI have contractual terms that give rise on specified
dates to cash flows that are solely payments of principal and interest on principal outstanding and
that are held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets. These instruments largely comprise long-term
investments made by the Company.

FVOCI debt instruments are subsequently measured at fair value with gains and losses arising
due to changes in fair value recognised in OCI. Interest income and gains and losses are
recognised in profit or loss in the same manner as for financial assets measured at amortised
cost. On derecognition, cumulative gains or losses previously recognised in OCI are reclassified
from OCI to profit or loss.

iii. Equity investments at FVOCI

These include financial assets that are equity instruments as defined in Ind AS 32 "Financial
Instruments: Presentation” and are not held for trading and where the Company’s management
has elected to irrevocably designated the same as Equity instruments at FVOCI upon initial
recognition. Subsequently, these are measured at fair value and changes therein are recognised
directly in other comprehensive income, net of applicable income taxes.

Gains and losses on these equity instruments are never recycled to profit or loss.

Dividends from these equity investments are recognised in the statement of profit and loss when
the right to receive the payment has been established.

iv. Financial assets at fair value through profit or loss (‘FVTPL’)

All financial assets that do not meet the criteria for amortized cost or at FVOCI on initial recognition
are measured at fair value through profit or loss. Interest (basis EIR method) income from financial
assets at fair value through profit or loss is recognized in the statement of profit and loss within
finance income/ finance costs separately from the other gains/ losses arising from changes in the
fair value.

De-recognition

A financial asset is de-recognized only when

> The Company has transferred the rights to receive cash flows from the financial asset or

> retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, it evaluates whether it has transferred substantially
all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de¬
recognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is de-recognized if the
Company has not retained control of the financial asset. Where the Company retains control of
the financial asset, the asset is continued to be recognized to the extent of continuing involvement
in the financial asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of Impairment loss on the following financial assets and credit risk
exposure:

a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans,
debt securities, deposits, trade receivables and bank balance

b) Financial assets that are debt instruments and are measured as at FVTOCI

c) Trade receivables or any contractual right to receive cash or another financial asset that
result from transactions that are within the scope of Ind AS 11 and Ind AS 18

d) Loan commitments which are not measured as at FVTPL

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:

> Trade receivables or contract revenue receivables; and

> All lease receivables resulting from transactions within the scope of Ind AS 17

ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the statement of profit and loss (P&L).

2.08 Financial liabilities

Financial liabilities equity instruments issued by the company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability
and an equity instrument.

2.09 Trade and Other Payables

These amounts represent liabilities for goods and services provided to the Company prior to the
end of the financial period which are unpaid. Trade and other payables are presented as current
liabilities unless payment is not due within 12 months after the reporting period. They are
recognized initially at their fair value.

2.10 Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the
liabilities are derecognized as well as through the EIR amortization process.

2.11 Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires.

2.12 Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying assets are capitalized as part of the cost of such assets. Other borrowing costs are
recognized as an expense in the period in which they are incurred.

Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds.

2.13 Property Plant and Equipment and Intangible Assets

Property, plant and equipment and intangible assets are stated at cost of acquisition less
accumulated depreciation / amortisation. Cost includes all expenses incidental to the acquisition
of the Property, plant and equipment and intangible assets and any attributable cost of bringing
the asset to its working condition for its intended use.

2.14 Depreciation and amortization of property, plant and equipment and intangible
assets

Depreciation on following tangible fixed assets has been provided on the straight-line method as
per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the
furniture and fixtures, in which case the life of the assets has been assessed taking into account
the nature of the assets, the estimated usage of the asset on the basis of the managements best
estimation of getting economic benefits from such assets.

The residual values, useful lives, and method of Depreciation of property, plant and equipment
are reviewed at each financial year end. 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.

The property plant and equipment are derecognized 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 recognized 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.

2.15 Impairment of non - financial assets

The carrying amounts of the Company’s property, plant & equipment and intangible assets are
reviewed at each reporting period to determine whether there is any indication of impairment. If
any such indication exists, the asset’s recoverable amounts are estimated in order to determine
the extent of impairment loss, if any. An impairment loss is recognised whenever the carrying
amount of an asset exceeds its recoverable amount. The impairment loss, if any, is recognised
in the statement of profit and loss in the period in which impairment takes place.

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

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased
to the revised estimate of its recoverable amount, however subject to the increased carrying
amount not exceeding the carrying amount that would have been determined (net of amortisation
or depreciation) had no impairment loss been recognised for the asset in prior accounting periods.
A reversal of an impairment loss is recognized immediately in profit or loss.

2.16 Investments

Investments that are readily realizable and intended to be held for not more than a year are
classified as financial investments. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the investments. Financial Investments
are carried at lower of cost and fair value and determined on an individual investment basis.

2.17 Investments in subsidiaries, associates, and joint ventures

The Company records the investments in subsidiaries, associates, and joint ventures at cost.

When the Company issues financial guarantees on behalf of subsidiaries, initially it measures the
financial guarantees at their fair values and subsequently measures at the higher of the amount
of loss allowance determined as per impairment requirements of Ind AS 109 and the amount
recognized less cumulative amortization.

The Company records the initial fair value of the financial guarantee as deemed investment with
a corresponding liability recorded as deferred revenue. Such deemed investment is added to the
carrying amount of investment in subsidiaries.

Deferred revenue is recognized in the Statement of Profit and Loss over the remaining period of
financial guarantee issued.

2.18 Taxation

The income tax expense or credit for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses, if any.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period. Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of amounts expected to be paid to the
tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the Standalone
Financial Statement. However, deferred tax liabilities are not recognized if they arise from the
initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at the
time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are expected to apply when the related deferred
income tax asset is realized or the deferred income tax liability is settled.

The carrying amount of deferred tax assets are reviewed at the end of each reporting period and
are recognized only if it is probable that future taxable amounts will be available to utilize those
temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and liabilities and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on a net basis, or to realize the asset and settle the
liability simultaneously.

In respect of Other Comprehensive Income, Provision for Taxation will be calculated on Long
Term Capital Gain basis.

2.19 Revenue Recognition

a. Interest income

Interest is recognised as income on an accrual basis where income is recognized when the
right to receive payment is established.

b. Dividend income

Dividend income is recognised when the Company''s right to receive the payment is
established, which is generally when shareholders approve the dividend.

c. Net gain on fair value changes

Investments are subsequently measured at fair value through other comprehensive income
(FVOCI) or fair value through profit or loss (FVTPL), as applicable. The company recognises
gains/losses on fair value change of investments measured as FVOCI or FVTPL. The
realised gains/losses on subsequent sale of investments are recognized as Capital Gain and
reverse the pervious recognized FVOCI or FVTPL as applicable.

2.20 Employee Benefits
Short Term Employee Benefits

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related
service are recognized in respect of employees’ services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities
are presented as current employee benefit obligations in the balance sheet

2.21 Earnings Per Share (‘EPS’)

The Company presents the Basic and Diluted EPS data. Basic earnings per share are computed
by dividing the net profit after tax by the weighted average number of equity shares outstanding
during the period. Diluted earnings per share is computed by dividing the profit after tax by the
weighted average number of equity shares considered for deriving basic earnings per share and
also the weighted average number of equity shares that could have been issued upon conversion
of all dilutive potential equity shares.

2.22 Cash & Cash Equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of cash and which are subject
to insignificant risk of changes in value.

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Mar 31, 2013

I) Basis of Preparation of financial Statements

The financial statement are prepared in accordance with Indian Generally Accepted Accounting Principle ("GAAP") under the historical cos convention on the accrual basis GAAP comprises Notified Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 as amended'', the provisions of'' the Companies Act 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision of an existing accounting standard requires a change in the accounting policy hitherto in use.

ii) Use of Estimates

The preparation of the financial statements in conformity with GAAP require the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans. income taxes. and the useful lives of fixed assets. and intangible assets. The difference between the actual result and estimate are recognised in the period in which results are know or materialised.

iii) Revenue Recognition

Interest is accounted for on accrual basis. Dividend is accounted for on cash basis,

iv)

Fixed assets are stated at cost less accumulated depreciation and net of impairment loss if any, All costs relating to the acquisition and installation of fixed assets are capitalized,

v) Depreciation

The Company provides depreciation on WDV method at the rates specified in Schedule XIV of the Companies Act, 1956. Leasehold 1 and is amortized over the period of lease.

vi) Investments

investments are classified into Current Investment and Long Term Investments. Current Investments are carried at lower of the cost or fair / quoted value.

The Long Term investments are stated al cost, Cost is inclusive of brokerage. fees and duties. The decline in the market quotation of the investments other than temporary is provided wherever considered necessary,

vii) Impairment of Assets

The fined assets are reviewed for Impairment ai each balance sheet day. In case of am such indication, the recoverable amount of these assets is determined. and if such recoverable amount of the asset or cash-generating unit to which the asset belongs is less than it''s carrying amount, the impairment Loss is recognized by writing dawn such assets to their recoverable amount, An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or his decreased.

viii) Employee Benefits

Short-term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Gratuity and Leave Encash item is accounted on cash basis,

ix) Earning per Share

Earning per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.

x) Income-tax

a) Income tax expense comprises current tax and deferred tax .

b) Deferred tax asset and liabilities are recognised for the future tax consequences of timing differences, subject to the consideration of prudence Deferred tax assets and liabilities are measured using the tax rate enacted or substantively enacted by the balance sheet date at the carrying amount of deferred tax asset / liability are reviewed at each balance sheet date.

e) Deferred tax asset arising mainly on account of brought forward Losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence.

Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation,

xi) Prior Period items

Prior period income/expenses are accounted under the respective heads. Material items, if any. are disclosed separately under the respective heads.

xii) Provisions & Contingent Liabilities:

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimated can be made of the amount of the obligation, A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of out flow of resources is remote, no provision or disclosure is made,

xiii) Other Accounting Policies

These are consistent with the generally accepted accounting practices.

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Mar 31, 2012

I) Basis of preparation of Financial statements.

The financial statements are prepared in accordance with Indian Generally Accepted Accounting principles ("GAAP") under the historical cost conversion on the accrual basis GAAP comprises Notified Accounting standard by the companies (Accounting standard)Rules 2006 as amended the provisions of the companies Act,1956 and guide lines issued by the section and exchanges of the companies (SEBI) issued accounting standard is initially adopted or a revision of an existing accounting stand requires a changes in the accounting policy hitherto infuse.

ii) Use of Estimates.

The preparation of the financial statements in conformity with GAAP requires the management to make and assumptions that affect the reported balances of assets and liability and disclosures relating amount of income and expenses during the period examples of such estimates including provisions for doubtful debits future obligations under employee benefit planes income and debits of fixed assets and intangible assets the difference between the actual result and estimate are recognized in the period in which results are know or materialized.

iii) Revenue Recognition

Interest is accounted for on accrual basis

Dividend is accounted for on cash basis.

iv) Fixed Assets

Fixed assets are stated at cost less accumulated deprecations and net of impairment loss, if any All costs relating to the acquisition and installation of fixed assets are capitalized.

v) Depreciation

The company provides depreciation on WDV withhold at the rates specified in schedule XIV of the companies Act,1956 Leasehold land is amortized over the period of lease.

vi) Investments

Investments are classified in to current investment and long term investments current investments are carried at lower of the cost or fair/ quoted value.

The long term investments are stated at cost is inclusive of brokerage fees and duties the decline in the market quotation of the investments other than temporary is provided wherever considered necessary.

vii) Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date in case of any such indication the recoverable amount of these assets is determined and if such recoverable amount of the asset or cash generating unit to which the a asset belongs is less than it''s carrying amount the impairment loss is recognized by writing down such assets to their recoverable amount An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.

viii) Employee Benefits

Short term employee benefits are changed off at the undiscounted amount in the year in which the related services is rendered.

Gratuity and leave Encashment is accounted on cash basis.

ix) Earnings per share

Earnings per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average member of shares outstanding during the year.

x) Income-tax

a) Income tax expense companies current tax and deferred tax.

b) Deferred tax asset and liability are recognized for the future tax consequences of timing differences. subject to the consideration of rate enacted or substantively enacted by the balance sheet date at the carrying amount of deferred tax asset liability are reviewed at cash balance sheet date.

c) Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized only if there is a virtual certainty of its realization supported by convincing evidence.

Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

xi) Prior period items

prior period income expenses are accounted under the respective heads material items if any are disclosed separately under respective heads.

xii) Provisions & contingent Liabilities

The company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation A disclosed for a contingent liability is made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources. where there is a possible obligation ago a present obligation in respect of which he likelihood of outflow of resources is remote. no provision or disclosure is made.

xiii) other Accounting policies

These are consistent with the generally accepted accounting practices.

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Mar 31, 2011

I) Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accrual basis except for Dividend Income and Employee Retirement Benefits. Which are accounted on cash basis GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI"), the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision of an existing accounting standard requires a change in the accounting policy hitherto in use.

ii) Use of Estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets. The difference between the actual result and estimate are recognised in the period in which results are known or materialised.

iii) Revenue Recognition

Interest is accounted for on accrual basis.

Dividend is accounted for on cash basis.

All other income is accounted fro on accrual basis.

iv) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and net of impairment loss, if any. All costs relating to the acquisition and installation of Fixed assets are capitalized.

v) Depreciation

The Company provides depreciation on WDV method at the rates specified in Schedule XIV of the Companies Act, 1956

Leasehold Land is amortized over the period of lease.

vi) Investments

Investments are classified into Current Investment and Long Term Investments Current Investments are carried at lower of the cost or fair / quoted value. Long Term Investments are carried at cost. Provision for diminution in the value is made only if, in the opinion of the management, such a decline is other than temporary.

vii) Stock in Trade

Stock of shares is valued at cost of market value whichever is lower.

viii) Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. In case of any such indication, the recoverable amount of these assets is determined, and if such recoverable amount of the asset or cash-generating unit to which the asset belongs is less than its carrying amount, the impairment loss is recognized by writing down such assets to their recoverable amount. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.

ix) Employee Benefits

Short-term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Gratuity and Leave Encashment is accounted on cash basis.

x) Earning Per Share

In accordance with the Accounting Standard 20 ( AS - 20) "Earnings Per Share" issued by the Institute of Chartered Accountants of India, basic / diluted earnings per share is computed using the weighted average number of shares outstanding during the period.

xi) Income-tax

a) Income lax expense comprises current tax and deferred tax.

b) Deferred tax asset and liabilities are recognised for the future tax consequences of liming differences, subject to Ihe consideration of prudence. Deferred lax assets and liabilities are measured using the tax rate enacted or substantively enacted by the balance sheet date at the carrying amount of deferred tax asset / liability are reviewed at each balance sheet date.

c) Deferred tax asses arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence.

Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation.

xii) Prior Period items

Prior period income/ expenses are accounted under the respective heads. Material items, if any, are disclosed separately under the respective heads.

xiii) Preliminary Expenditure

Preliminary expenses are written off over a period five years

xiv) Provisions & Contingent Liabilities:

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

xv) Other Accounting Policies

These are consistent with the generally accepted accounting practices.