Accounting Policies of JJ Finance Corporation Ltd. Company

Mar 31, 2024

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'') as per the
Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 (''the Act'')
in conformity with generally accepted accounting principles in India and other relevant provisions of the Act.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities
which have been measured at fair value (refer accounting policy regarding financial instruments).

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

2.2 Estimates and Judgements

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments
and assumptions. These estimates, judgments and assumptions effect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the period. Application of accounting policies that
require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these
financial statements have been disclosed in Note 2.14. Accounting estimates could change from period to period. Actual
results may differ from those estimates. Appropriate changes in estimates are made as management becomes aware of
changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the
period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

2.3 Property, Plant and Equipment

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less accumulated
depreciation and accumulated impairment loss, if any.

The cost of an item of property, plant and equipment comprises of its purchase price, any costs directly attributable to
its acquisition and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it
is located, the obligation for which the company incurs when the item is acquired. 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 and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Depreciation on property, plant and equipment is calculated using the straight-line method. The useful lives estimated
for the major classes of property, plant and equipment are as follows:

The useful lives have been determined based on technical evaluation done by the management''s experts, which in some
cases may differ from the lives as specified by Schedule II to the Companies Act, 2013. The residual values are not more
than 5% of the original cost of acquisition of the asset including the assets as on the date of transition. The asset''s residual
values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

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 is included in the statement of profit and loss when the asset is derecognised.

2.4 Cash and Cash Equivalent

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits maturing
within twelve months from the date of Balance Sheet, which are subject to an insignificant risk of changes in value.

2.5 Financial Instruments

A. Financial Instruments -Initial recognition and measurement

Financial assets and financial liabilities are recognised in the company''s statement of financial position when
the company becomes a party to the contractual provisions of the instrument. The company determines the
classification of its financial assets and liabilities at initial recognition. All financial assets are recognised initially
at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial asset.

B. 1. Financial assets - Subsequent measurement

The Subsequent measurement of financial assets depends on their classification which is as follows:

a. Financial assets at fair value through profit or loss

Financial assets at fair value through profit and loss include financial assets held for sale in the near term and
those designated upon initial recognition at fair value through profit or loss.

b. Financial assets measured at amortised cost

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowance for estimated irrecoverable amounts based on the ageing of the
receivables balance and historical experience. Additionally, a large number of minor receivables are grouped
into homogenous groups and assessed for impairment collectively. Individual trade receivables are written
off when management deems them not to be collectible.

c. Financial assets at fair value through OCI

All equity investments, except investments in subsidiaries, joint ventures and associates, falling within the
scope of Ind AS 109, are measured at fair value through Other Comprehensive Income (OCI). The company
makes an irrevocable election on an instrument-by-instrument basis to present in other comprehensive income
subsequent changes in the fair value. The classification is made on initial recognition and is irrevocable.

If the company decides to designate an equity instrument at fair value through OCI, then all fair value changes
on the instrument, excluding dividends, are recognized in the OCI.

B. 2. Financial assets -Derecognition

The company derecognises a financial asset when the contractual rights to the cash flows from the assets expire
or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.

Upon derecognition of equity instruments designated at fair value through OCI, the associated fair value changes
of that equity instrument is transferred from OCI to Retained Earnings.

C. 1. Financial liabilities - Subsequent measurement

The Subsequent measurement of financial liabilities depends on their classification which is as follows:

a. Financial liabilities at fair value through profit or loss.

Financial liabilities at fair value through profit or loss include financial liabilities held for trading, if any.

b. Financial liabilities measured at amortised cost

Interest bearing loans and borrowings are subsequently measured at amortised cost using the effective
interest rate method (EIR). Amortised cost is calculated by taking into account any discount or premium on
acquisition and fee or costs that are integral part of the EIR. The EIR amortised is included in finance costs in
the statement of profit and loss.

C. 2. Financial liabilities -Derecognition

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

D. OffseWng financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position,
if and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

E. Fair value measurement

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

¦ In the principal market for the assets or liability or

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

The principal or the most advantageous market must be accessible to the company.

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

2.6 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of
the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes,
duties or other charges collected on behalf of the government/authorities.

The specific recognition criteria for the various types of the company''s activities are described below:

Interest income

Interest on Loan is recognised using the effective interest rate method. The effective interest rate is that 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. While calculating the effective interest rate, the company estimates the expected cash flows by considering
all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but
does not consider the expected credit losses.

Dividends

Revenue is recognised when the Company''s right to receive the payment is established.

Other Income

Other Income is accounted for on accrual basis except, where the receipt of income is uncertain.

2.7 Employee benefits

Short Term employee benefits

Liabilities for wages, salaries and other employee benefits that are expected to be settled within twelve months of rendering
the service by the employees are classified as short-term employee benefits. Such short-term employee benefits are
measured at the amounts expected to be paid when the liabilities are settled.

Post-employment benefits
(a) Defined benefit plans

The liabilities recognised in the balance sheet in respect of defined benefit plan is the value of the defined benefit
obligation related to gratuity at the end of the year.

The liabilities in respect of defined benefit plan related to gratuity is calculated on accrual basis at the end of every
year and net changes in the liability is included in employee benefit expense in the statement of profit and loss.
Payment related to defined benefit plan related to gratuity is included in employee benefit expenses in the statement
of profit & loss.

2.8 Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.

Company as a Lessee

The Company recognises right-to-use asset representing its right to use the underlying asset for the lease term at the
lease commencement date. The cost of the right-to-use asset measured at inception shall comprise of the amount of the
initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less
any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-
to-use assets is subsequently measured at cost less any accumulated amortisation, accumulated impairment losses, if any

and adjusted for any remeasurement of the lease liability. The right-to-use assets is amortised from the commencement
date of lease over the period of lease term or useful life of right-to-use asset.

Right-to-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 "Leases" to short term leases of all assets that
have a lease term of 12 months or less and leases for which the underlying assets is of low value. The lease payments
associated with these leases are recognized as an expense on a straight-line basis over the lease term.

The Company recorded the lease liability at the present value of total remaining lease payments discounted at the
incremental borrowing rate as on the date of commencement of lease. The lease liability is amortised during the period
of lease. Payment against lease is divided into repayment of lease liabilities and interest cost on lease liabilities.
Company as a Lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The
Company recognises lease payments received under operating leases as income on a straight-line basis over the lease
term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor''s net investment in the lease.

2.9 Taxes

Current Tax

The current tax expense for the period is determined as the amount of tax payable in respect of taxable income for the
period, based on the applicable income tax rates.

Current tax relating to items recognised in other comprehensive income or equity is recognised in other comprehensive
income or equity, respectively.

Deferred Tax

Deferred tax is provided using the liability method 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. 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, the carry forward of unused tax credits and unused tax losses can be utilised.

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 at the reporting date.
Deferred tax relating to items recognised in other comprehensive income or equity is recognised in other comprehensive
income or equity, respectively.

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.

---

Mar 31, 2015

1.1 basis of preparation of financial statements

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India under the historical cost convention on accrual basis.

GAAP comprises applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. These financial statements comply in all material aspects with the Accounting Standards (Rules) notified under the companies (Accounting Standard) Rule, 2006 (as amended), to the extent applicable and the terms of " Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007" issued by Reserve Bank of India.

All Assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies' Act, 2013.

Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

1.2 USE OF ESTIMATES

The preparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in outcomes different from the estimates. Different between actual results and estimates are recognized in the period in which the results are known or materialize.

1.3 TANGIBLE FIXED ASSETS

Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

1.4 DEPRECIATION ON TANGIBLE FIXED ASSETS

Depreciation on tangible fixed assets is calculated on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

1.5 INVESTMENT

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

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.6 INVENTORIES

Inventories are valued at lower of cost or net realizable value.

1.7 INCOME & EXPENDITURE RECOGNITION

Income & Expenditure unless otherwise stated, are accounted for on accrual basis except income from Dividends which is accounted for as and when actually received.

The Company has followed the prudential norms for income recognition and provisioning against non performing assets and Provision on Standard Assets as prescribed by the Reserve Bank of India for Non Banking Financial Companies.

1.8 RETIREMENT AND OTHER EMPLOYEE BENEFITS

Retirement benefit to employees such as Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and The Payment of Gratuity Act, 1972 are not applicable to the "company" as number of employee is below the Statutory limit as prescribed by the above Acts.

The company does not have the policy of extending leave encashment benefits to its employees.

1.9 TAXES ON INCOME

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in the one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset will be realized. Such assets are reviewed as at Balance Sheet date to reassess realizability thereof. 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 tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

1.10 EARNINGS PER SHARE (EPS)

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

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

1.11 PROVISIONS

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

1.12 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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

Contingent assets are neither recognized nor disclosed in the financial statements.

1.13 CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

---

Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. These financial statements comply in all material aspects with the Accounting Standards (Rules) notified under the companies (Accounting Standard) Rules, 2006 (as amended), to the extent applicable and the terms of "Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007" issued by Reserve Bank of India.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956.

Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

2.2 USE OF ESTIMATES :

The preparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in outcomes different from the estimates. Different between actual results and estimates are recognized in the period in which the results are known or materialize.

2.3 TANGIBLE FIXED ASSETS :

Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

2.4 DEPRECIATION ON TANGIBLE FIXED ASSETS :

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

2.5 INVESTMENT :

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

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

2.6 INVENTORIES :

Inventories are valued at lower of cost or net realizable value.

2.7 INCOME & EXPENDITURE RECOGNITION :

Income & Expenditure unless otherwise stated, are accounted for on accrual basis except income from Dividends which is accounted for as and when actually received.

The Company has followed the prudential norms for income recognition and provisioning against non performing assets and Provision on Standard Assets as prescribed by the Reserve Bank of India for Non Banking Financial Companies.

2.8 RETIREMENT AND OTHER EMPLOYEE BENEFITS :

Retirement benefit to employees such as Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and The Payment of Gratuity Act, 1972 are not applicable to the "company" as number of employee is below the Statutory limit as prescribed by the above Acts.

The company does not have the policy of extending leave encashment benefits to its employees.

2.9 TAXES ON INCOME :

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in the one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset will be realized. Such assets are reviewed as at Balance Sheet date to reassess realizability thereof. 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 tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

2.10 EARNINGS PER SHARE (EPS) :

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

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

2.11 PROVISIONS :

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

2.12 CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

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

Contingent assets are neither recognized nor disclosed in the financial statements.

2.13 CASH AND CASH EQUIVALENTS :

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

---

Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act. 1956 as adapted consistently by the Company. These financial statements comply in all material aspects with the Accounting Standards (Rules) notified under the companies (Accounting Standards) Rules, 2006(as amended), to the extent applicable, and the terms of "Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, "2007" issued by Reserve Bank of India

All assets and liabilities have been classified as current or Non-currenl as per the Company''s normal operating cycle and other criteria set out in the Schedule V! to the Companies Act. 1956.

Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

1.2 USE OF ESTIMATES

The preparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in outcomes different from the estimates. Difference between actual results and estimates are recognized in the period in which the results are known or materialize,

1.3 TANGIBLE FIXED ASSETS :

Fixed assets are stated at cost, net to accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price

Subsequent expenditure related to an item of fixed asset is added lo its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are

1.5 INVESTMENT : ''

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

On initial recognition, all investments are measured al cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. It an investment is acquired, or partly acquired by the issue of sharer or other securities the acquisition cost is the fair value of the issued if an investment is acquired in exchanges for another assets the acquaint which ever is more clearly evident.

1.6 INVESTORIES:

invest TORIES ARE VALUED AT LOWER OF COST OR NET REALIZABLE VALUE.

1.7 INCOME & EXPENDITTURE RECOGNITION:

Income & Expenditure unless otherwise stated are accounted for on accrual basis except income from dividends which is accounted for as and when actually received.

The Company has followed the prudential norms for income recognition and provisioning against non performing assets and provision on standard assets as prescribed by the reserve bank of India for non banking FINACIAL COAMPNIES

1.8 RETIREMENT AND OTHER EMPLOYEE BENEFITS.

Retirement benefit to employees such as employees provident funds and miscellanies provisions Act 1952 and the payment of gratuity Act,1972 are not applicable to the company as number of employees is below the stature limit as prescribed by the above Acts.

1.9 TAXES ON INCOME

Tax expense companies current and differed tax current income tax is measured at the amount expected to be paid to the authorities in account either the income Act,1961 enacted in India the tax rates and tax laws used to compute the amount are those are enacted sustain enacted reporting

1.10 EARNINGS PER SHARE (EPS)

Basic EPS is calculated by dividing the net profit or loss for the period to equity shareholders by the weighted average number of equity share outstanding during the year.

1.11 PROVISIONS

A provision is recognized when the company has a present as a result of post event it is problem that an outflow of resources am bodying economic to settle obligation and a reliable estimate can be made of the amount of the obligation provision are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date these estimates are reviewed at each reporting date and adjusted to relief the current best estimate.

1.12 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent Liabilities and Contingent Assets is possible that arises from past event whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain events beyond the control of the company or a present obligation that is not recognized he cause it is nil probable that an outflow of resources will be contingent! liability also arises in extremely rare cases where there is a abate that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements. recognize Contingent assets are neither recognized nor disclosed in the financial statements.

1.13 CASH AND CASH EQUIVALENTS

chantry Cash (equivalents for the Purposes of cash flow statement comprise cash a! bank and in hand and short-term investments with an original maturity of three months or less

---

Mar 31, 2010

1.1 BASIS 0F PHEPARATION OF FINANCIAL STATEMENTS :

1.1.1 The financial statements have been prepared under the fianicial cost convention art accordance with the generally accepted accounting principles and the provisions of the Companies Act. 1956 as adopted consiciently by the Company.

1.1.2 Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles-

1.2 INCOME & EXPENDITURE RECOGNITION :

Income & Expenditure unless otherwise stared, are accounted for on accrual basis except income from Dividends which is accounted for as and when actually received.

1.3 EMPLOYEE BENEFITS :

Relurement benelit to employees such as Employees Provident Funds and Miscellaneous Provisions Act, 1952 and The Payment of Gratuity Act. 1972 are not applicable to the company as number of employee is below the Staiutory tinit as prescribed by the above Acts. However. Company is contrbuting, in Pubic Provident Fund and equal amount is being contnbuied by the employee(s) on every month and deposited in a Scheduled Bank.

The company does not have the policy of extending leave encashment benefits to its employees.

1.4 FIXED ASSETS :

Fixed Assets are stated at Cost, including cost of installation, less depreciation.

1.5 DEPRECIATION :

Depreciation has been provided on assets as per straight the fates as specified in Schedule XIV of the Companies Act. 1956.

1.6 INVESTMENT:

investments are being long term in nature, are elated at cost. Diminution in their values, unless considered to be of permanent nature, is not recognized and provided for in the accounts.

1.7 INVENTORIES

Inventories are valued at lower of cost or net realizable value.

1.8 TAXES ON INCOME :

Income tax expense comprises Currant tax and deferred tax change. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in the One period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized Only if there is reasonable certarity that sufficient future laxable income will be available against which such deferred tan asset will be resized. Such assets are reviewed as at Balance Sheet date to reassess realisability thereof-