Accounting Policies of HB Leasing & Finance Co Ltd. Company

Mar 31, 2025

3. Significant Accounting Policies

3.1 Use of estimates and judgement

The preparation of financial statements in conformity with Ind AS requires that
management make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of revenues, expenses, assets,
liabilities and disclosures of contingent assets and liabilities at the end of the reporting
period. The actual results could differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised
and in any future periods affected.

In partiular, information about significant areas of estimation, uncertainty and critical
judgements in applying accounting policies that have the most significant effect on
the amounts recognised in the financial statements is included in the following notes:

A) Effective Interest Rate (EIR) Method

The Company recognizes interest income / expense using a rate of return that
represents the best estimate of a constant rate of return over the expected life
of the loans given / taken. This estimation, by nature, requires an element of
judgement regarding the expected behaviour and life-cycle of the instruments,
as well as expected changes to other fee income/expense that are integral parts
of the instrument.

B) Impairment of loans portfolio

The measurement of impairment losses across all categories of financial assets
requires judgement, in particular, the estimation of the amount and timing of
future cash flows and collateral values when determining impairment losses
and the assessment of a significant increase in credit risk. These estimates are
driven by a number of factors, changes in which can result in different levels of
allowances. It has been the Company''s policy to regularly review its models in
the context of actual loss experience and adjust when necessary.

C) Defined employee benefit assets and liabilities

The cost of the defined benefit gratuity plan and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting
date.

D) Fair value measurement:

When the fair values of financial assets and financial liabilities recorded in the
balance sheet cannot be measured based on quoted prices in active markets,

their fair value is measured using various valuation techniques. The inputs to
these models are taken from observable markets where possible, but where
this is not feasible, a degree of judgment is required in establishing fair values.
Judgments include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported
fair value of financial instruments.

E) Other Estimates:

These include contingent liabilities, useful lives of tangible and intangible assets etc.

3.2 Financial Instruments

A) Initial Recognition and measurement

All financial assets and financial liabilities are recognised when the company
become a party to the contractual provisions of 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 the financial
assets and financial liabiities (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 Statement of profit and loss.

B) Classification and Subsequent measurement of financial assets-

The company classifies its financial assets into various measurements
categories. The classification depends on the contractual terms of the financial
assets'' cash flows and the company''s business model for managing financial
assets.

a. Amortised Cost

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

b. FVOCI- debt instruments

A debt instruments in nature of financial asset is measured at FVOCI when
the instrument is held within a business model, the objective of which is
achieved by both collecting contractual cash flows and selling financial
assets; and the contractual terms of the Financial Asset give rise on
specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

c. FVOCI- equity instruments

Equity instruments in nature of financial assets are measured at fair value
through profit or loss, unless the Company''s management has elected
to classify irrevocably some of its equity instruments at FVOCI, when
such instruments meet the definition of Equity under Ind AS 32 Financial
Instruments and are not held for trading.

Financial assets are not reclassified subsequent to their initial recognition,
except if and in the period the Company changes its business model for
managing financial assets.

d. FVTPL

A financial asset which is not classified in any of the above categories are
measured at FVTPL.

Subsequent Measurement of financial assets

Financial assets at amortised cost are subsequently measured at
amortised cost using effective interest method. The amortised cost is
reduced by impairment losses. Interest income, foreign exchange gains
and losses and impairment are recognised in Statement of profit and loss.
Any gain and loss on derecognition is recognised in Statement of profit
and loss.

Debt investment at FVOCI are subsequently measured at fair value.
Interest income under effective interest method, foreign exchange gains
and losses and impairment are recognised in Statement of profit and loss.
Other net gains and losses are recognised in OCI. On derecognition,
gains and losses accumulated in OCI are reclassified to Statement of
profit and loss.

For equity investments, the Company makes an election on an instrument-
by-instrument basis to designate equity investments as measured at
FVOCI. These elected investments are measured at fair value with
gains and losses arising from changes in fair value recognised in other
comprehensive income and accumulated in the reserves. The cumulative
gain or loss is not reclassified to Statement of profit and loss on disposal
of the investments. These investments in equity are not held for trading.
Instead, they are held for strategic purpose. Dividend income received on
such equity investments are recognised in Statement of profit and loss.

Equity investments that are not designated as measured at FVOCI are
designated as measured at FVTPL and subsequent changes in fair value
are recognised in Statement of profit and loss.

Financial assets at FVTPL are subsequently measured at fair value.
Net gains and losses, including any interest or dividend income, are
recognised in Statement of profit and loss.

C. Financial Liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either
financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity
instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments issued
by Company are recognised at the proceeds received. Transaction costs of an
equity transaction are recognised as a deduction from equity.

Financial Liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL if it is classified as held-fortrading or
it is a derivative or it is designated as such on initial recognition. Other financial
liabilities are subsequently measured at amortised cost using the effective
interest method. Interest expense and foreign exchange gains and losses are
recognised in Statement of profit and loss. Any gain or loss on derecognition is
also recognised in Statement of profit and loss.

D. Derecognition
Financial Assets

The Company derecognises a financial asset when the contractual rights to the
cash flows from the financial asset expire, or it transfers the rights to receive
the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of the risks and rewards
of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised
on its balance sheet, but retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred assets are not derecognised.

Financial liabilities

A financial liability is derecognised when the obligation in respect of the liability
is discharged, cancelled or expires. The difference between the carrying value
of the financial liability and the consideration paid is recognised in Statement of
profit and loss.

E. Offsetting

Financial assets and financial liabilities are offset and the net amount presented
in the balance sheet when, and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends either to settle them on a
net basis or to realise the asset and settle the liability simultaneously.

F. Impairment

The Company recognises lifetime expected credit losses (ECL) when there
has been a significant increase in credit risk since initial recognition and when
the financial instrument is credit impaired. If the credit risk on the financial
instrument has not increased significantly since initial recognition, the Company
measures the loss allowance for that financial instrument at an amount equal to
12 month ECL. The assessment of whether lifetime ECL should be recognised
is based on significant increases in the likelihood or risk of a default occurring
since initial recognition. 12 month ECL represents the portion of lifetime ECL
that is expected to result from default events on a financial instrument that are
possible within 12 months after the reporting date.

3.3 Cash and cash equivalents

Cash and cash equivalents comprise of cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of
cash and short- term deposits, as defined above, net of outstanding bank overdrafts
if any, as they are considered an integral part of the Company''s cash management.

3.4 Property, plant and equipments (PPE)

Property, plant and equipment (PPE) are measured at cost less accumulated
depreciation and accumulated impairment, if any. Cost of an item of property, plant
and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade discounts and rebates, any directly

attributable cost of bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the site on which
it is located.

Advances paid towards the acquisition of fixed assets, outstanding at each reporting
date are shown under other non-financial assets. The cost of property, plant and
equipment not ready for its intended use at each reporting date are disclosed as
capital work-in-progress.

Subsequent expenditure related to the asset are added to its carrying amount or
recognised as a separate asset 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 on PPE is provided on straight-line basis in accordance with the useful
lives specified in Schedule II to the Companies Act, 2013 on a pro-rata basis.

Assets costing less than Rs.5000/- are fully depreciated in the period of purchase.

PPE 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 (caculated as
the differnce between the net disposal proceeds and the net carrying amount of the
asset) is recognised in other income / netted off from any loss on disposal in the
Statement of profit and loss in the year the asset is derecognised.

3.5 Intangible assets :

Intangible assets comprises of computer software which is amortized over the
estimated useful life. The amortization period is lower of license period or 36 months
which is based on management''s estimates of useful life. Amortisation is calcualted
using the straight line method to write down the cost of intangible assets over their
estimated useful lives.

3.6 Impairment of assets other than financial assets :

The Company reviews the carrying amounts of its tangible and intangible assets at
the end of each reporting period, to determine whether there is any indication that
those assets have impaired. If any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is determined for an individual asset, unless the asset does not
generate cash flows that are largely independent of those from other assets or group
of assets.

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

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less
than its carrying amount, the carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount.

When an impairment loss subsequently reverses, the carrying amount of the asset
(or a cashgenerating unit) is increased to the revised estimate of its recoverable
amount such that the increased carrying amount does not exceed the carrying
amount that would have been determined if no impairment loss had been recognised
for the asset (or cash-generating unit) in prior years. The reversal of an impairment
loss is recognised in Statement of profit and loss.

3.7 Investments in subsidiaries and asociates :

Investments in subsidiaries and associate are measured at cost less accumulated
impairment, if any.

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Mar 31, 2024

3. Significant Accounting Policies

3.1 Use of Estimates and Judgement

The preparation of financial statements in conformity with Ind AS requires that
management make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of revenues, expenses, assets,
liabilities and disclosures of contingent assets and liabilities at the end of the reporting
period. The actual results could differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised
and in any future periods affected.

In partiular, information about significant areas of estimation, uncertainty and critical
judgements in applying accounting policies that have the most significant effect on
the amounts recognised in the financial statements is included in the following notes:

A) Effective Interest Rate (EIR) Method

The Company recognizes interest income / expense using a rate of return that
represents the best estimate of a constant rate of return over the expected life
of the loans given / taken. This estimation, by nature, requires an element of
judgement regarding the expected behaviour and life-cycle of the instruments,
as well as expected changes to other fee income/expense that are integral parts
of the instrument.

B) Impairment of loans portfolio

The measurement of impairment losses across all categories of financial assets
requires judgement, in particular, the estimation of the amount and timing of
future cash flows and collateral values when determining impairment losses
and the assessment of a significant increase in credit risk. These estimates are
driven by a number of factors, changes in which can result in different levels of
allowances. It has been the Company''s policy to regularly review its models in
the context of actual loss experience and adjust when necessary.

C) Defined employee benefit assets and liabilities

The cost of the defined benefit gratuity plan and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting
date.

D) Fair value measurement:

When the fair values of financial assets and financial liabilities recorded in the
balance sheet cannot be measured based on quoted prices in active markets,
their fair value is measured using various valuation techniques. The inputs to
these models are taken from observable markets where possible, but where
this is not feasible, a degree of judgment is required in establishing fair values.
Judgments include considerations of inputs such as liquidity risk, credit risk and

E) Other Estimates:

These include contingent liabilities, useful lives of tangible and intangible assets
etc.

3.2 Financial Instruments

A) Initial Recognition and measurement

All financial assets and financial liabilities are recognised when the company
become a party to the contractual provisions of 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 the financial
assets and financial liabiities (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 Statement of profit and loss.

B) Classification and Subsequent measurement of Financial Assets-

The company classifies its financial assets into various measurements
categories. The classification depends on the contractual terms of the financial
assets'' cash flows and the company''s business model for managing financial
assets.

a. Amortised Cost

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

b. FVOCI- debt instruments

A debt instruments in nature of financial asset is measured at FVOCI when the
instrument is held within a business model, the objective of which is achieved
by both collecting contractual cash flows and selling financial assets; and the
contractual terms of the Financial Asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding.

c. FVOCI- Equity Instruments

Equity instruments in nature of financial assets are measured at fair value
through profit or loss, unless the Company''s management has elected to
classify irrevocably some of its equity instruments at FVOCI, when such
instruments meet the definition of Equity under Ind AS 32 Financial Instruments
and are not held for trading.

Financial assets are not reclassified subsequent to their initial recognition,
except if and in the period the Company changes its business model for
managing financial assets.

d. FVTPL

A financial asset which is not classified in any of the above categories are
measured at FVTPL.

Subsequent Measurement of Financial Assets

Financial assets at amortised cost are subsequently measured at amortised
cost using effective interest method. The amortised cost is reduced by
impairment losses. Interest income, foreign exchange gains and losses and
impairment are recognised in Statement of profit and loss. Any gain and loss on
derecognition is recognised in Statement of profit and loss.

Debt investment at FVOCI are subsequently measured at fair value. Interest
income under effective interest method, foreign exchange gains and losses and
impairment are recognised in Statement of profit and loss. Other net gains and
losses are recognised in OCI. On derecognition, gains and losses accumulated
in OCI are reclassified to Statement of profit and loss.

For equity investments, the Company makes an election on an instrument-
by-instrument basis to designate equity investments as measured at FVOCI.
These elected investments are measured at fair value with gains and losses
arising from changes in fair value recognised in other comprehensive income
and accumulated in the reserves. The cumulative gain or loss is not reclassified
to Statement of profit and loss on disposal of the investments. These
investments in equity are not held for trading. Instead, they are held for strategic
purpose. Dividend income received on such equity investments are recognised
in Statement of profit and loss.

Equity investments that are not designated as measured at FVOCI are
designated as measured at FVTPL and subsequent changes in fair value are
recognised in Statement of profit and loss.

Financial assets at FVTPL are subsequently measured at fair value. Net
gains and losses, including any interest or dividend income, are recognised in
Statement of profit and loss.

C. Financial Liabilities and Equity instruments
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either
financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity
instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments issued
by Company are recognised at the proceeds received. Transaction costs of an
equity transaction are recognised as a deduction from equity.

Financial Liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL if it is classified as held-fortrading or
it is a derivative or it is designated as such on initial recognition. Other financial
liabilities are subsequently measured at amortised cost using the effective
interest method. Interest expense and foreign exchange gains and losses are
recognised in Statement of profit and loss. Any gain or loss on derecognition is
also recognised in Statement of profit and loss.

D. Derecognition
Financial Assets

The Company derecognises a financial asset when the contractual rights to the
cash flows from the financial asset expire, or it transfers the rights to receive
the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of the risks and rewards
of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets
recognised on its balance sheet, but retains either all or substantially all of
the risks and rewards of the transferred assets, the transferred assets are not
derecognised.

Financial Liabilities

A financial liability is derecognised when the obligation in respect of the liability
is discharged, cancelled or expires. The difference between the carrying value
of the financial liability and the consideration paid is recognised in Statement of
profit and loss.

E. Offsetting

Financial assets and financial liabilities are offset and the net amount presented
in the balance sheet when, and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends either to settle them on a
net basis or to realise the asset and settle the liability simultaneously.

F. Impairment

The Company recognises lifetime expected credit losses (ECL) when there
has been a significant increase in credit risk since initial recognition and when
the financial instrument is credit impaired. If the credit risk on the financial
instrument has not increased significantly since initial recognition, the Company
measures the loss allowance for that financial instrument at an amount equal to
12 month ECL. The assessment of whether lifetime ECL should be recognised
is based on significant increases in the likelihood or risk of a default occurring
since initial recognition. 12 month ECL represents the portion of lifetime ECL
that is expected to result from default events on a financial instrument that are
possible within 12 months after the reporting date.

3.3 Cash and Cash Equivalents

Cash and cash equivalents comprise of cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of
cash and short- term deposits, as defined above, net of outstanding bank overdrafts
if any, as they are considered an integral part of the Company''s cash management.

3.4 Property, Plant and Equipments (PPE)

Property, plant and equipment (PPE) are measured at cost less accumulated
depreciation and accumulated impairment, if any. Cost of an item of property, plant
and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade discounts and rebates, any directly
attributable cost of bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the site on which
it is located.

Advances paid towards the acquisition of fixed assets, outstanding at each reporting
date are shown under other non-financial assets. The cost of property, plant and
equipment not ready for its intended use at each reporting date are disclosed as
capital work-in-progress.

Subsequent expenditure related to the asset are added to its carrying amount or
recognised as a separate asset 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 on PPE is provided on straight-line basis in accordance with the useful
lives specified in Schedule II to the Companies Act, 2013 on a pro-rata basis.

The estimated useful lives used for computation of depreciation are as follows:

Assets costing less than Rs.5000/- are fully depreciated in the period of purchase.

PPE 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
(caculated as the differnce between the net disposal proceeds and the net carrying
amount of the asset) is recognised in other income / netted off from any loss on
disposal in the Statement of profit and loss in the year the asset is derecognised.

3.5 Intangible Assets :

Intangible assets comprises of computer software which is amortized over the
estimated useful life. The amortization period is lower of license period or 36 months
which is based on management''s estimates of useful life. Amortisation is calcualted
using the straight line method to write down the cost of intangible assets over their
estimated useful lives.

3.6 Impairment of Assets other than Financial Assets :

The Company reviews the carrying amounts of its tangible and intangible assets
at the end of each reporting period, to determine whether there is any indication
that those assets have impaired. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment
loss (if any). Recoverable amount is determined for an individual asset, unless the
asset does not generate cash flows that are largely independent of those from other
assets or group of assets.

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

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less
than its carrying amount, the carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount.

When an impairment loss subsequently reverses, the carrying amount of the asset
(or a cashgenerating unit) is increased to the revised estimate of its recoverable
amount such that the increased carrying amount does not exceed the carrying
amount that would have been determined if no impairment loss had been recognised
for the asset (or cash-generating unit) in prior years. The reversal of an impairment
loss is recognised in Statement of profit and loss.

3.7 Investments in Subsidiaries and Associates :

Investments in subsidiaries and associate are measured at cost less accumulated
impairment, if any.

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Mar 31, 2015

1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS:-

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 the provisions of the Act (to the extent notified), guidelines issued by the Reserve Bank of India 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 are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 REVENUE RECOGNITION

1.3.1 All Income & Expenditure are accounted for on accrual basis.

1.3.2 Provision for loss in respect of open equity derivative instruments as at the balance sheet date is made indexwise/scrip wise. As a matter of prudence, any anticipated profit is ignored.

1.4 FIXED ASSETS

Fixed Assets are stated at cost less depreciation.

1.5 DEPRECIATION

Depreciation on tangible assets is provided on Straight Line method over the useful life of assets in the manner specified in Schedule II to the Companies Act, 2013.

1.6 STOCK IN TRADE

Stock in trade is valued scrip-wise at cost or fair market value/ralizable value whichever is lower.

1.7 INVESTMENTS

Non current/Long Term Investments are valued at cost. Provision for diminution in the value of Long term/Non current investments is made only if such a decline is other than temporary.

1.8 EMPLOYEE BENEFITS

1.8.1 Employee Benefits are recognized/accounted for on the basis of revised AS-15 detailed as under :-

1.8.2 Short Term Employee benefits are recognized as expense at the undiscounted amount in the Profit & Loss account of the year in which they are incurred.

1.8.3 Employee benefits under defined contribution plans comprise of contribution to Provident Fund and Superannuation. Contributions to Provident Fund are deposited with appropriate authorities and charged to Profit & Loss account. Contribution to Superannuation are funded with Life Insurance Corporation of India.

1.8.4 Employee Benefits under defined benefit plans comprise of gratuity and leave encashment which are accounted for as at the year end based on actuarial valuation by following the Projected Unit Credit (PUC) method. Liability for gratuity is funded with Life Insurance Corporation of India.

1.8.5 Termination benefits are recognized as an Expense as and when incurred.

1.8.6 The actuarial gains and losses arising during the year are recognized in the Profit & Loss account of the year without resorting to any amortization.

1.9 TAXATION

Tax expenses for the year comprises of Current tax and Deferred tax charge or credit. The Deferred Tax Asset and Deferred Tax Liability is calculated by applying tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred Tax Assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax law are recognised only if there is virtual certainty of its realisation. Other deferred tax assets are recognised only to the extent there is a reasonable certainty of realisation in future. Deferred Tax Assets/Liabilities are reviewed at each balance sheet date based on development during the year, further future expectations and available case laws to reassess realisation/ liabilities.

1.10IMPAIRMENT OF FIXED ASSETS

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's Fixed Assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the assets in prior years.

1.11 CONTINGENCIES:

The company creates a provision when there is present obligation as result of a past 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, requires an outflow of resources. When 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.

- Issued Share capital of the Company has only one class of shares referred to as equity shares having Par value of ' 10/. Each holder of Equity Shares is entitled to One vote per share.

- In the event of the Liquidation of the company, the holder of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all Preferential amounts.The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2014

1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -

The Financial Statements are prepared under the Historical Cost Convention method in accordance with the generally accepted Accounting Principles and the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

1.2 USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 REVENUE RECOGNITION

1.3.1 All Income & Expenditure are accounted for on accrual basis.

1.3.2 Provision for loss in respect of open equity derivative instruments as at the balance sheet date is made indexwise/scrip wise. As a matter of prudence,any anticipated profit is ignored.

1.4 FIXED ASSETS

Fixed Assets are stated at cost less depreciation.

1.5 DEPRECIATION

Depreciation is provided on Fixed Assets on Straight Line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

1.6 STOCK IN TRADE

Stock in trade is valued scrip-wise at cost or fair market value/realizable value whichever is lower.

1.7 INVESTMENTS

Non current/Long Term Investments are valued at cost. Provision for diminution in the value of Long term/Non current investments is made only if such a decline is other than temporary.

1.8 EMPLOYEE BENEFITS

1.8.1 Employee Benefits are recognized/accounted for on the basis of revised AS-15 detailed as under :-

1.8.2 Short Term Employee benefits are recognized as expense at the undiscounted amount in the Profit & Loss account of the year in which they are incurred.

1.8.3 Employee benefits under defined contribution plans comprise of contribution to Provident Fund and Superannuation. Contributions to Provident Fund are deposited with appropriate authorities and charged to Profit & Loss account. Contribution to Superannuation are funded with Life Insurance Corporation of India.

1.8.4 Employee Benefits under defined benefit plans comprise of gratuity and leave encashment which are accounted for as at the year end based on actuarial valuation by following the Projected Unit Credit (PUC) method. Liability for gratuity is funded with Life Insurance Corporation of India.

1.8.5 Termination benefits are recognized as an Expense as and when incurred.

1.8.6 The actuarial gains and losses arising during the year are recognized in the Profit & Loss account of the year without resorting to any amortization.

1.9 TAXATION

Tax expenses for the year comprises of Current tax and deferred tax charge or credit. The deferred Tax Asset and deferred Tax Liability is calculated by applying tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred Tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax law are recognised only if there is virtual certainty of its realisation. Other deferred tax assets are recognised only to the extent there is a reasonable certainty of realisation in future. Deferred Tax Assets/Liabilities are reviewed at each balance sheet date based on development during the year, further future expectations and available case laws to reassess realisation/ liabilities.

1.10 IMPAIRMENT OF FIXED ASSETS

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s Fixed Assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the assets in prior years.

1.11 CONTINGENCIES:

The company creates a provision when there is present obligation as result of a past 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, requires an outflow of resources. When 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.

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Mar 31, 2013

1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -

The Financial Statements are prepared under the Historical Cost Convention method in accordance with the generally accepted Accounting Principles and the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

1.2 USE OF ESTIMATES

The preparation of fnancial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of fnancial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 REVENUE RECOGNITION

1.3.1 All Income & Expenditure are accounted for on accrual basis.

1.3.2 Provision for loss in respect of open equity derivative instruments as at the balance sheet date is made indexwise/scrip wise. As a matter of prudence,any anticipated proft is ignored.

1.4 FIXED ASSETS

Fixed Assets are stated at cost less depreciation.

1.5 DEPRECIATION

Depreciation is provided on Fixed Assets on Straight Line method at the rates and in the manner specifed in Schedule XIV to the Companies Act, 1956.

1.6 STOCK IN TRADE

Stock in trade is valued scrip-wise at cost or fair market value/ralizable value whichever is lower.

1.7 INVESTMENTS

Non current/Long Term Investments are valued at cost. Provision for diminution in the value of Long term/Non current investments is made only if such a decline is other than temporary.

1.8 EMPLOYEE BENEFITS

1.8.1 Employee Benefts are recognized/accounted for on the basis of revised AS-15 detailed as under :- 1.8.2 Short Term Employee benefts are recognized as expense at the undiscounted amount in the Proft & Loss account of the year in which they are incurred.

1.8.3 Employee benefts under defned contribution plans comprise of contribution to Provident Fund and Superannuation. Contributions to Provident Fund are deposited with appropriate authorities and charged to Proft & Loss account. Contribution to Superannuation are funded with Life Insurance Corporation of India.

1.8.4 Employee Benefts under defned beneft plans comprise of gratuity and leave encashment which are accounted for as at the year end based on actuarial valuation by following the Projected Unit Credit (PUC) method. Liability for gratuity is funded with Life Insurance Corporation of India.

1.8.5 Termination benefts are recognized as an Expense as and when incurred.

1.8.6 The actuarial gains and losses arising during the year are recognized in the Proft & Loss account of the year without resorting to any amortization.

1.9 TAXATION

Tax expenses for the year comprises of Current tax and deferred tax charge or credit. The deferred Tax Asset and deferred Tax Liability is calculated by applying tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred Tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax law are recognised only if there is virtual certainty of its realisation. Other deferred tax assets are recognised only to the extent there is a reasonable certainty of realisation in future. Deferred Tax Assets/Liabilities are reviewed at each balance sheet date based on development during the year, further future expectations and available case laws to reassess realisation/ liabilities.

1.10 IMPAIRMENT OF FIXED ASSETS

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s Fixed Assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash fows are discounted to their present value based on an appropriate discount factor. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the assets in prior years.

1.11 CONTINGENCIES:

The company creates a provision when there is present obligation as result of a past event that probably requires an outfow 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, requires an outfow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outfow of resources is remote, no provision or disclosure is made.

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Mar 31, 2012

1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -

The Financial Statements are prepared under the Historical Cost Convention method in accordance with the generally accepted Accounting Principles and the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

1.2 USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 REVENUE RECOGNITION

1.3.1 All Income & Expenditure are accounted for on accrual basis.

1.3.2 Provision for loss in respect of open equity derivative instruments as at the balance sheet date is made index wise/scrip wise. As a matter of prudence, any anticipated profit is ignored.

1.4 FIXED ASSETS

Fixed Assets are stated at cost less depreciation.

1.5 DEPRECIATION

Depreciation is provided on Fixed Assets on Straight Line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

1.6 STOCK IN TRADE

Stock in trade is valued scrip-wise at cost or fair market value/realizable value whichever is lower.

1.7 INVESTMENTS

Non current/Long Term Investments are valued at cost. Provision for diminution in the value of Long term/Non current investments is made only if such a decline is other than temporary.

1.8 EMPLOYEE BENEFITS

1.8.1 Employee Benefits are recognized/accounted for on the basis of revised AS-15 detailed as under :- 1.8.2 Short Term Employee benefits are recognized as expense at the undiscounted amount in the Profit & Loss account of the year in which they are incurred.

1.8.3 Employee benefits under defend contribution plans comprise of contribution to Provident Fund and Superannuation. Contributions to Provident Fund are deposited with appropriate authorities and charged to Profit & Loss account. Contribution to Superannuation are funded with Life Insurance Corporation of India.

1.8.4 Employee Benefits under defend benefit plans comprise of gratuity and leave encashment which are accounted for as at the year end based on actuarial valuation by following the Projected Unit Credit (PUC) method. Liability for gratuity is funded with Life Insurance Corporation of India.

1.8.5 Termination benefits are recognized as an Expense as and when incurred.

1.8.6 The actuarial gains and losses arising during the year are recognized in the Profit & Loss account of the year without resorting to any amortization.

1.9 TAXATION

Tax expenses for the year comprises of Current tax and deferred tax charge or credit. The deferred Tax Asset and deferred Tax Liability is calculated by applying tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred Tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax law are recognised only if there is virtual certainty of its realisation. Other deferred tax assets are recognised only to the extent there is a reasonable certainty of realisation in future. Deferred Tax Assets/Liabilities are reviewed at each balance sheet date based on development during the year, further future expectations and available case laws to reassess realisation/ liabilities.

1.10 IMPAIRMENT OF FIXED ASSETS

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's Fixed Assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the assets in prior years.

1.11 CONTINGENCIES:

The company creates a provision when there is present obligation as result of a past 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, requires an outfow of resources. When 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.

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Mar 31, 2011

(a) i) The Financial Statements have been prepared under the Historical Cost Convention

method in accordance with the generally accepted Accounting Principles and the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956. ii) USE OF ESTIMATES :- The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

(b) Income and expenditure are accounted for on accrual basis.

(c) Depreciation has been charged on all assets at the rates specified in Schedule-XIV to the Companies Act, 1956 on straight line method.

(d) Stock-in-trade is valued scrip-wise at cost or fair market value/realizable value whichever is lower.

(e) Investments : - Long term Investments are stated at cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is other than temporary.

(f) Provision for loss in respect of open equity derivative instruments as at the Balance Sheet date is made indexwise/scripwise. As a matter of prudence, any anticipated profit is ignored.

(g) Employee Benefits : - Employee Benefits are recognized/accounted for on the basis of revised AS-15 detailed as under :- i) Short Term Employee benefits are recognized as expense at the undiscounted amount

in the Profit & Loss account of the year in which they are incurred.

ii) Employee benefits under defined contribution plans comprise of contribution to Provident Fund which are deposited with appropriate authorities and charged to Profit & Loss account.

iii) Employee Benefits under defined benefit plans comprise of gratuity and leave encashment which are accounted for as at the year end based on actuarial valuation by following the Projected Unit Credit (PUC) method. Liability for gratuity is funded with Life Insurance Corporation of India.

iv) Termination benefits are recognized as an Expense as and when incurred.

v) The actuarial gains and losses arising during the year are recognized in the Profit & Loss account of the year without resorting to any amortization.

(h) Tax expenses for the period comprises of current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognise, only if there is a virtual certainty of its realisation. Other deferred tax assets are recognised only to the extent there is a reasonable certainty of realisation in future. Deferred tax assets/liabilities are reviewed at each balance sheet date based on developments during the period, further future expectations and available case laws to reassess realisation/liabilities.

(i) Impairment of Fixed Assets : Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's Fixed Assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.

(j) Contingencies : - 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 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. When 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.

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Mar 31, 2010

(a) i) The Financial Statements have been prepared under the Historical Cost Convention method in accordance with the generally accepted Accounting Principles and the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

ii) USE OF ESTIMATES :- The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

(b) Income and expenditure are accounted for on accrual basis.

(c) Depreciation has been charged on all assets at the rates specified in Schedule-XIV to the Companies Act, 1956 on straight line method.

(d) Stock-in-trade is valued scrip-wise at cost or fair market value/realizable value whichever is lower.

(e) Investments :- Long term Investments are stated at cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is other than temporary.

(f) Provision for loss in respect of open equity derivative instruments as at the Balance Sheet date is made indexwise/scripwise. As a matter of prudence, any anticipated profit is ignored.

(g) Employee Benefits :- Employee Benefits are recognized/accounted for on the basis of revised AS-15 detailed as under :-

i) Short Term Employee benefits are recognized as expense at the undiscounted amount in the Profit & Loss account of the year in which they are incurred.

ii) Employee benefits under defined contribution plans comprise of contribution to Provident Fund which are deposited with appropriate authorities and charged to Profit & Loss account.

iii) Employee Benefits under defined benefit plans comprise of gratuity and leave encashment which are accounted for as at the year end based on actuarial valuation by following the Projected Unit Credit (PUC) method. Liability for gratuity is funded with Life Insurance Corporation of India.

iv) Termination benefits are recognized as an Expense as and when incurred.

v) The actuarial gains and losses arising during the year are recognized in the Profit & Loss account of the year without resorting to any amortization.

(h) Tax expenses for the period comprises of current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognise, only if there is a virtual certainty of its realisation. Other deferred tax assets are recognised only to the extent there is a reasonable certainty of realisation in future. Deferred tax assets/ liabilities are reviewed at each balance sheet date based on developments during the period, further future expectations and available case laws to reassess realisation/liabilities.

(i) Impairment of Fixed Assets : Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company’s Fixed Assets. If any indication exists, an asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.

(j) Contingencies :- 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 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. When 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.