Accounting Policies of Jayabharat Credit Ltd. Company

Mar 31, 2024

MATERIAL accounting policies

1.1 COMPANY OVERVIEW

Jayabharat Credit Limited (referred to as "the Company” (CIN: L66000MH1943PLC003899) was incorporated under the
laws of the Republic of India under Companies Act, 1913 with its registered office at 19-20 Rajabahadur Mansion, 4^th
Floor, 22, Mumbai Samachar Marg, Opposite SBI Main Branch Mumbai Maharashtra 400023. Incorporated in 1943, the
Company was in the business of Hire Purchase and leasing and originally registered with RBI under the status of Non¬
Banking Finance Company (NBFC) with Deposit taking Company. The Company is now ceased to be Non-Banking
Finance Company (NBFC) as per RBI letter No. DNBS/ MRO1004/01.046/2019-20 dated 13^th January,2020.

1.2 GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IND AS

The Company is headquartered in Mumbai, India. The shares of the Company are listed on Bombay Stock Exchange
(BSE).

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (IND
AS) notified under Companies (Indian Accounting Standards) Rules, 2015.

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

I. Certain Financial Assets and Financial Liabilities and Contingent Consideration that are measured at fair value

II. Assets held for sale measured at lower of cost or fair value less cost to sell

III. Defined benefit plan assets measured at fair value

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

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.

All amounts disclosed in the financial statement and notes have been rounded off to the nearest '' in lakh up to two
decimals unless otherwise stated.

The Financial Statements for the year ended 31^st 2024 were authorized and approved for issue by the Board of Directors
on 22^nd May 2024.

NOTE - 2

SUMMARY OF MATERIAL ACCOUNTING POLICIES

The Financial Statements have been prepared using the Accounting Policies and measurement basis summarized below.

2.1 PROPERTY, PLANT AND EQUIPMENT

2.1.1 RECOGNITION

Property, Plant and Equipment are stated at historical cost, less accumulated depreciation/amortized and impairments,
if any. Historical cost includes taxes, duties, freight and other incidental expenses related to acquisition & installation.

2.1.2 SUBSEQUENT MEASUREMENT

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably.

All other repairs & maintenance are charged to profit or loss.

2.1.3 DEPRECIATION

Depreciation on Property, Plant and Equipment is charged on straight line method on useful life prescribed under Part
C of Schedule II of the Companies Act, 2013.

Property, Plant and Equipment individually costing upto '' 10,000 are fully depreciated in the year of acquisition.

The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.

2.1.4 DE-RECOGNITION

An item of Property, Plant and Equipment and any significant part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included
in the Statement of Profit and Loss account when the asset is derecognised.

2.2 IMPAIRMENT OF NON FINANCIAL ASSETS

Carrying amount of assets is reviewed at each reporting date where there is any indication of impairment based on
internal/ external indicators. An impairment loss is recognised in the Statement of Profit and Loss where carrying amount
exceeds recoverable amount of assets. Impairment loss is reversed, if, there is change in recoverable amount and such
loss either no longer exists or has decreased or indication on which impairment was recognised no longer exists.

2.3 FINANCIAL INSTRUMENTS

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.

2.3.1 FINANCIAL ASSETS

2.3.1.1 INITIAL RECOGNITION AND MEASUREMENT

Financial Assets are recognised when the Company becomes a party to the contractual provisions of the Financial
Instrument and are measured initially at fair value adjusted for transaction costs that are attributable to the acquisition
of the financial asset.

2.3.1.2 SUBSEQUENT MEASUREMENT

Debt Instruments at Amortised Cost- A ‘debt instrument’ is measured at the amortised cost if both the following conditions
are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,
and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such Financial Assets are subsequently measured at amortised cost using the Effective
Interest Rate (EIR) method. All other debt instruments are measured are Fair Value through Other Comprehensive
Income (FVOCI) or Fair value through Profit and Loss (FVTPL) based on Company’s business model.

2.3.1.3 IMPAIRMENT OF FINANCIAL ASSETS

I n accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on the financial assets that are debt instruments, and are measured at amortised cost.

• Financial Assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part
of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until

the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying
amount.

• Debt instruments measured at FVTPL: Since financial assets are already reflected at fair value, impairment
allowance is not further reduced from its value. The change in fair value is taken to the statement of Profit and
Loss.

• Debt instruments measured at FVTOCI: Since financial assets are already reflected at fair value, impairment
allowance is not further reduced from its value. Rather, ECL amount is presented as ‘Accumulated Impairment
Amount’ in the OCI. The Company does not have any Purchased or Originated Credit Impaired (POCI) financial
assets, i.e., financial assets which are credit impaired on purchase/ origination.

2.3.1.4 DE-RECOGNITION OF FINANCIAL ASSETS

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company’s balance sheet) when:

i. The rights to receive cash flows from the asset have expired, or

ii. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the

received cash flows in full without material delay to a third party under a ‘passthrough’ arrangement; and either

(a) The Company has transferred substantially all the risks and rewards of the asset, or

(b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but

has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.

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

2.3.2 FINANCIAL LIABILITIES

2.3.2.1 INITIAL RECOGNITION AND MEASUREMENT

Financial liabilities are classified at initial recognition as financial liabilities at fair value through Profit or Loss, Loans
and Borrowings, and Payables, net of directly attributable transaction costs. The Company’s financial liabilities include
Intercorporate Deposits received and Loans Other Payables.

All Financial Liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of
the Financial Liabilities is also adjusted. Financial Liabilities are classified as amortised cost.

The measurement of financial liabilities depends on their classification, as described below:

i. Financial liabilities at Fair Value Through Statement of Profit and Loss - Financial liabilities at Fair Value
through statement of Profit and Loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at Fair Value through statement of Profit and Loss. Financial liabilities are classified as
held for trading if they are incurred for the purpose of repurchasing in the near term.

ii. Loans and Borrowings - After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the Effective Interest Rate (hereinafter referred as EIR) method. Gains and
Losses are recognised in statement of profit and loss when the liabilities are derecognised as well as through
the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as Finance
Costs in the statement of profit and loss.

iii. Other Payables - These amounts represent liabilities for goods and services provided to the Company prior to the
end of financial year which are unpaid. Other payables are presented as current liabilities unless payment is not
due within 12 months after the reporting period.

2.3.2.2 SUBSEQUENT MEASUREMENT

Subsequent to initial recognition, these liabilities are measured at Amortised Cost using the Effective Interest Rate (EIR)
method.

2.3.2.3 DE-RECOGNITION OF FINANCIAL LIABILITIES

A Financial Liability is de-recognised when the obligation under the liability is discharged or cancelled or expired.
Consequently, write back of unsettled credit balances is done on the previous experience of Management and actual
facts of each case and recognised in Other Income. When an existing Financial Liability is replaced by another, from
the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

2.3.3 OFFSETTING OF FINANCIAL INSTRUMENTS

Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

2.6 CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents comprise cash in hand, Balances in Bank Account, Remittance in Transit, Cheques in hand
and demand deposits, together with other short-term, highly liquid investments (original maturity less than 3 months)
that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

2.5 TAXES

2.5.1 CURRENT INCOME TAX

Current Income Tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.

Current income tax relating to items recognised outside Profit or Loss is recognised outside profit or loss (either in
Other Comprehensive Income or in Equity). Current tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

2.5.2 DEFERRED TAX

Deferred Income Taxes are calculated using Balance Sheet Approach, on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that the temporary
differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences and the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either
in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Tax expense for the year comprises of current tax and deferred tax.

2.5.3 INDIRECT TAX

Expenses and assets are recognised net of the amount of GST/ Service Tax paid, except:

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

ii. When receivables and payables are stated with the amount of tax included, the net amount of tax recoverable
from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

2.6 EQUITY AND RESERVES

i. Share Capital represents the nominal value of shares that have been issued. Any transaction costs associated
with the issuing of shares are deducted from retained earnings, net of any related income tax benefits.

ii. Other Components of Equity includes Other Comprehensive Income (OCI) arising from actuarial gain or loss
on re-measurement of defined benefit liability and return on plan assets and Net (loss)/gain on FVTOCI equity
securities. The balance in OCI may be transferred from OCI to retained earnings when the asset is retired from
use or disposed by the Company.

iii. Retained Earnings include all current and prior period retained profits.

2.7 DIVIDEND PAYMENTS

Annual dividend distribution to shareholders is recognised as a liability in the period in which the dividend is approved
by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and
corresponding tax on Dividend Distribution is recognised directly in equity.

2.8 REVENUE RECOGNITION

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive
schemes, if any, as per contracts with customers. Taxes collected from customers on behalf of Government are not
treated as Revenue.

2.9 INCOME RECOGNITION

2.9.1 INTEREST INCOME

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate
is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the
expected cash flows by considering all contractual terms of the financial instrument but does not consider the expected
credit losses.

2.9.2 OTHER INCOME

Other claims including interest on outstanding are accounted for when there is virtual certainty of ultimate collection.

2.10 EXPENDITURE

Expenses are accounted on accrual basis.

2.11 EMPLOYEE BENEFIT SCHEMES

2.11.1 SHORT-TERM EMPLOYEE BENEFITS

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term
employee benefits. These benefits include salaries and wages, performance incentives and compensated absences
which are expected to occur in next twelve months. The undiscounted amount of short-term employee benefits to be
paid in exchange for employee services is recognised as an expense as the related service is rendered by employees.

2.11.2 GRATUITY

Liabilities with regard to the gratuity benefits payable in future are determined by actuarial valuation at each Balance
Sheet date using the Projected Unit Credit method. Gratuity is unfunded.

Actuarial gains and losses arising from changes in actuarial assumptions are recognized in Other Comprehensive
Income and shall not be reclassified to the Statement of Profit and Loss in a subsequent period.

2.11.3 PROVIDENT FUND

Eligible employees of the Company receive benefits from a Provident Fund, which is a defined benefit plan. Both
the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified
percentage of the covered employee’s salary.

2.12 FUNCTIONAL AND PRESENTATION CURRENCY

The Financial Statements are presented in Indian Rupee (''), which is Company’s functional Currency and presentation
currency.

2.13 EARNINGS PER SHARE

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares.

i. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding during the period.

ii. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted
average number of equity shares outstanding for the effects of all dilutive potential equity shares.

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Mar 31, 2015

1 Basis of preparation of Financial Statements The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for categories of fixed assets acquired before 1 April, 2001, that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actua1 results and the estimates are recognised in the periods in which the results are known / materialise.

3 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises of cash balances in current account 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.

4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

5 Depreciation and amortisation

Effective from 1st April, 2014 the Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of schedule II of the Companies Act, 2013 further, based on transitional provision provided in note 7(b) of schedule II, an amount of Rs.11,94 Lacs has been adjusted against the Genral Reserves.

6 Revenue recognition

a. Income recognition from Asset Financing activity :-

Income is proportionately accounted on accrual basis over the period of the agreement. Overdue compensation collected is taken to the credit of sundry creditors considered as income on receipts of the total outstanding installments. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

b. Reserve Bank of India Guidelines:

The Company has complied with the guidelines issued by the Reserve Bank of India (RBI) in respect of Prudential Norms for Income Recognition and Provisions for Non-Performing Assets.

7 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

8 Investments

"Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties. Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment property is determined in accordance with the policy stated for Impairment of Assets."

9 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under :

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur."

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period In which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

10 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

12 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

13 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

14 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

15 Legal Cases

The Company has ongoing legal cases filed against customers for the recovery of dues amounting to Rs.669/- Lacs in various Courts. Any adjustment required will be done on conclusion of proceedings.

16 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS, 31ST MARCH 2015

Note 1 Corporate information

Jayabharat Cerdit Limited is in the business of Hire Purchase & Leasing and is registered with RBI under the Status of Non-Banking Finance Company (NBFC) with Deposit taking Company. The Company now as an Asset Finance Company. Deposit taking (NBFC) vide Certificate dated 3rd June, 2008.

Note 2

Disclosures under Accounting Standards

Accounting Standard 15: Employee benefit plans

Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 3,61,273/- (Year ended 31 March, 2014 Rs. 3,96,296/-) for Provident Fund contributions in the Statement of Profit and Loss During the year. The contributions payable to these plans by the Company are at rates specified In the rules of the schemes.

Note 3

DISCLOSURES UNDER ACCOUNTING STANDARDS

Accounting Standard 22: Accounting for Taxes on Income

In compliance with Accounting Standard 22 on 'Accounting for Taxes on income', the Company has not accounted for deferred tax assets on Business Loss under the Income Tax Act.1961 as there is no reasonable certainity as to when the assets can be realised, and is carrying forward the amount brought forward from earlier years as this amount is expected to be realised.

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Mar 31, 2014

1.1 Basis of preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for categories of fixed assets acquired before 1 April, 2001, that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises of cash balances in current account 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.

1.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.5 Depreciation and amortisation

Depreciation has been provided on the written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.6 Revenue recognition

a. Income recognition from Asset Financing activity :-

Income is proportionately accounted on accrual basis over the period of the agreement. Overdue compensation collected is taken to the credit of sundry creditors considered as income on receipts of the total outstanding installments. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

b. Reserve Bank of India Guidelines:

The Company has complied with the guidelines issued by the Reserve Bank of India (RBI) in respect of Prudential Norms for Income Recognition and Provisions for Non- Performing Assets.

1.7 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.8 Investments

"Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties. Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment property is determined in accordance with the policy stated for Impairment of Assets."

1.9 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post- employment medical benefits.

Defined contribution plans

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term employee benefits

"The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under :

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur."

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

1.10 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

1.12 Taxes on income

"Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability. "

1.13 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.14 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.15 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

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Mar 31, 2012

1.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for categories of fixed assets acquired before 1 April, 2001, that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Cash and cash equivalents (for the purposes of Cash Flow Statement)

Cash comprises cash balances in current accounts 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.

1.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.5 Depreciation and amortisation

Depreciation has been provided on the written down value meathod as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.6 Revenue recognition

a. Income recognition from Asset Financing activity :-

Income is proportionately accounted on accrual basis over the period of the agreement. Overdue compensation collected is taken to the credit of sundry creditors considered as income on receipts of the total outstanding installments. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

b. Reserve Bank of India Guidelines:

The Company has complied with the guidelines issued by the Reserve Bank of India (RBI) in respect of Prudential Norms for Income Recognition and Provisions for Non- Performing Assets.

1.7 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.8 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment property is determined in accordance with the policy stated for Impairment of Assets.

1.9 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post- employment medical benefits.

Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

1.10 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

1.12 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originates in one period and is capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.13 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2011

1. Basis of Preparation of Financial Statements

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles ('GAAP') and in compliance with the Accounting Standards specified in the Companies (Accounting Standards) Rules, 2006 notified by the Central Government and the other provisions of the Companies Act, 1956. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

2. Use of Estimates

The preparation of financial statements in conformity with GAAP requires the management of the Company make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liability and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. Wherever changes in presentation are made, comparative figures of the previous year are regrouped accordingly.

3. Fixed Assets

A. On assets related to asset financing business:

The assets are not capitalised on payment to supplier on purchase since the titles and possessions are with the hirer and the same is refected as current assets on entering into an Asset Financing agreement for the said assets.

B. On other assets:

a. Capitalised at acquisition cost including directly attributable cost such as freight, insurance and specific installation charges for bringing the assets to its working condition and use.

b. Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the performance / life of the assets, as assessed earlier.

c. Fixed assets are eliminated from financial statement, either on disposal or when retired from active use and such retired assets are disposed off soon thereafter.

4. Impairment of Assets

a. The carrying amount of assets, other than Stock on hire is reviewed at each balance sheet date, to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the assets is estimated.

b. An impairment loss is recognized, whenever the carrying amount of assets or its cash generating units exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use which is determined based on the estimated future cash flow generated from continuing use of an asset and from its disposal at the end of its useful life, discounted to its present value.

c. An impairment loss is reversed, if there has been a change in the estimates made to determine and recognize the recoverable amount in the earlier year.

5. Investments

a. Long term investments are valued at cost after providing for any diminution in value, if such diminution is of other than temporary in nature.

b. Current investments are carried at lower of cost or market value. The determination of carrying costs such investments is done on the basis of specific identification.

6. Foreign currency transactions:

a. The reporting currency of the Company is Indian Rupee.

b. Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of transaction. At each balance sheet, foreign currency monetary items are reported using closing rate. Exchange difference that arises on settlement of monetary items are recognized as income or expense in the period in which they arise in other cases.

7. Revenue Recognition

a. Income recognition from Asset Financing activity:

Income is proportionately accounted on accrual basis over the period of the agreement.

Overdue compensation collected is taken to the credit of sundry creditors considered as income on receipts of the total outstanding installments. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

b. Reserve Bank of India Guidelines:

The Company has complied with the guidelines issued by the Reserve Bank of India (RBI) in respect of Prudential Norms for Income Recognition and Provisions for Non-Performing Assets.

8. Employee benefits

A. Short-term employee benefits

a. All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, short term compensated absences etc. and expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

b. The obligation for leave encashment is made on actual basis and the same is not payable on retirement.

B. Defned contribution plan

Company's contributions paid / payable during the year to provident fund are recognized in the profit and loss account.

C. Defned benefit plan

Company's liabilities towards gratuity is determined using the Projected Unit Credit Method, which considers each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Actuarial gain and losses are recognized immediately in the profit and loss account as income or expenses.

9. Depreciation

Depreciation on fixed assets has been provided on written down value method, at the rates and in the manner specified in Schedule XIV of the Companies Act,1956.

10. Securitization transactions

The Company enters into securitisation transaction through direct assignment route, where such portfolios of receivables are assigned directly to the purchaser. Such securitised receivables are de-recognised in the balance sheet when they are sold (true sale criteria) and sale consideration is received from the purchaser.

Gain or loss from the sale of receivables is computed as a difference between sale consideration and book value. Any loss arising on account of the sale is accounted accordingly and refected in the profit and loss account for the period during which the sale is effected and profit/ premium, if any, arising on account of sale is amortised over the life of the securitised receivables. Expenses of securitisation transaction are, however, accounted upfront as required by guidelines issued by the RBI on securitization vide Circular No. DBOD.NO.BP.BC.60/ 21.04.048/ 2005-06 dated 1st February, 2006.

11. Borrowing costs

a. Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such asset till such time as the asset is ready for its intended use or sale.

b. All other borrowing costs are recognized as an expense in the period in which they are incurred.

12. Taxes on income

a Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessments/appeals.

b Deferred tax is recognized on timing difference between the accounting income and taxable income for the year, and quantified using the tax rates and laws enacted or substantially enacted as on the balance sheet date.

c Deferred tax assets relating to unabsorbed depreciation / business losses/ losses under the head “ capital gains” are recognized and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

d Deferred tax assets are recognized and carried forward only to the extend that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

13. Events occurring after the date of balance sheet

Events occurring after the date of balance sheet are considered upto the date of adoption of the accounts, where material.

14. Provisions and contingent liabilities

a. Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

i) the Company has a present obligation as a result of a past event;

ii) a probable outflow of resource is expected to settle the obligation; and

iii) the amount of the obligation can be reliably estimated.

b. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

c. Contingent liability is disclosed in the case of:

i) a present obligation arising from a past event, when it is not probable that an outflow of resource will be required to settle the obligation; and

ii) a possible obligation, unless the probability of outflow of resource is remote contingent assets are neither recognized nor disclosed.

d. Provisions and contingent liabilities are reviewed at each balance sheet date.

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Mar 31, 2010

1. Basis of Preparation of Financial Statements

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standards specifiedin the Companies (Accounting Standards) Rules, 2006 notifed by the Central Government and the other provisions of the Companies Act, 1956. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

2. Use of Estimates

The preparation of financial statements in conformity with GAAP requires the management of the Company make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liability and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixedassets, provision for doubtful debts/advances, future obligations in respect of retirement beneft plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. Wherever changes in presentation are made, comparative fgures of the previous year are regrouped accordingly.

3. Fixed Assets

A. On assets related to asset financing business:

The assets are not capitalised on payment to supplier on purchase since the titles and possessions are with the hirer and the same is refected as current assets on entering into an Asset Financing agreement for the said assets.

B. On other assets:

a. Capitalised at acquisition cost including directly attributable cost such as freight, insurance and specifc installation charges for bringing the assets to its working condition and use.

b. Expenditure relating to existing fixedassets is added to the cost of the assets where it increases the performance / life of the assets, as assessed earlier.

c. Fixed assets are eliminated from financial statement, either on disposal or when retired from active use and such retired assets are disposed off soon thereafter.

4. Impairment of Assets

a. The carrying amount of assets, other than Stock on hire is reviewed at each balance sheet date,

to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the assets is estimated.

b. An impairment loss is recognized, whenever the carrying amount of assets or its cash generating units exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use which is determined based on the estimated future cash flow generated from continuing use of an asset and from its disposal at the end of its useful life, discounted to its present value.

c. An impairment loss is reversed, if there has been a change in the estimates made to determine and recognize the recoverable amount in the earlier year.

5. Investments

a. Long term investments are valued at cost after providing for any diminution in value, if such diminution is of other than temporary in nature.

b. Current investments are carried at lower of cost or market value. The determination of carrying costs such investments is done on the basis of specifc identifcation.

6. Foreign currency transactions :

a. The reporting currency of the Company is Indian Rupee.

b. Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of transaction. At each balance sheet, foreign currency monetary items are reported using closing rate. Exchange difference that arises on settlement of monetary items are recognized as income or expense in the period in which they arise in other cases.

7. Revenue Recognition

a. Income recognition from Asset Financing activity :

Income is proportionately accounted on accrual basis over the period of the agreement.

Overdue compensation collected is taken to the credit of sundry creditors considered as income on receipts of the total outstanding installments. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

b. Reserve Bank of India Guidelines:

The Company has complied with the guidelines issued by the Reserve Bank of India (RBI) in respect of Prudential Norms for Income Recognition and Provisions for Non-Performing Assets.

8. Employee benefts

A. Short-term employee benefts

a. All employee Benefitspayable wholly within twelve months of rendering the services are classifed as short term employee benefts. Benefitssuch as salaries, short term compensated absences etc. and expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

b. The obligation for leave encashment is made on actual basis and the same is not payable on retirement.

B. Defned contribution plan

Companys contributions paid / payable during the year to provident fund are recognized in the profitand loss account.

C. Defned beneft plan

Companys liabilities towards gratuity is determined using the Projected Unit Credit Method, which considers each period of service as giving rise to additional unit of beneft entitlement and measures each unit separately to build up the finalobligation. Actuarial gain and losses are recognized immediately in the profitand loss account as income or expenses.

9. Depreciation

Depreciation on fixedassets has been provided on written down value method, at the rates and in the manner specifiedin Schedule XIV of the Companies Act,1956.

10. Securitization transactions

The Company enters into securitisation transaction through direct assignment route, where such portfolios of receivables are assigned directly to the purchaser. Such securitised receivables are de-recognised in the balance sheet when they are sold (true sale criteria) and sale consideration is received from the purchaser.

Gain or loss from the sale of receivables is computed as a difference between sale consideration and book value. Any loss arising on account of the sale is accounted accordingly and refected in the profitand loss account for the period during which the sale is effected and profit/ premium, if any, arising on account of sale is amortised over the life of the securitised receivables. Expenses of securitisation transaction are, however, accounted upfront as required by guidelines issued by the RBI on securitization vide Circular No. DBOD.NO.BP.BC.60/ 21.04.048/ 2005-06 dated 1st February, 2006.

11. Borrowing costs

a. Borrowing costs that are attributable to the acquisition, construction or production of qualifying

assets are capitalised as part of the cost of such asset till such time as the asset is ready for its intended use or sale.

b. All other borrowing costs are recognized as an expense in the period in which they are incurred.

12. Taxes on income

a Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessments/appeals.

b Deferred tax is recognized on timing difference between the accounting income and taxable income for the year, and quantifed using the tax rates and laws enacted or substantially enacted as on the balance sheet date.

c Deferred tax assets are recognized and carried forward only to the extend that there is a reasonable certainty supported by convincing evidence that suffcient future taxable income will be available against which such deferred tax assets can be realized.

13. Events occurring after the date of balance sheet

Events occurring after the date of balance sheet are considered upto the date of adoption of the accounts, where material.

14. Provisions and contingent liabilities

a. Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

i) the Company has a present obligation as a result of a past event;

ii) a probable outflowof resource is expected to settle the obligation; and

iii) the amount of the obligation can be reliably estimated.

b. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

c. Contingent liability is disclosed in the case of:

i) a present obligation arising from a past event, when it is not probable that an outflowof resource will be required to settle the obligation; and

ii) a possible obligation, unless the probability of outflowof resource is remote contingent assets are neither recognized nor disclosed.

d. Provisions and contingent liabilities are reviewed at each balance sheet date.