Accounting Policies of Kiduja India Ltd. Company

Mar 31, 2025

(a) Statement of Compliance and Basis of Preparation and Presentation of Financial Statements

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

The accounting policies are applied consistently to all the periods presented in the financial statements. The Balance Sheet and
Statement of Profit & Loss are prepared and presented in accordance with the format prescribed in the Division III to Schedule III
to the Act applicable for Non Banking Finance Companies (NBFC).

(b) Functional and Presentation Currency

The financial statements are presented in INR, the functional currency of the Company. All amounts disclosed in the financial
statements and notes have been rounded off to the nearest thousand as per the requirement of Schedule III, unless otherwise
stated.

(c) Basis of Measurement

The financial statements of the Company have been prepared on the Accrual basis of accounting and Historical cost convention
except for the following material items that have been measured at fair value as required by the relevant Ind AS:

(i) Certain Financial Assets and Liabilities are measured at Fair Value (Refer Note No. (h) and (i) below)

(d) Use of Estimates and Judgements

The preparation of the financial statements requires the Management to make judgments, estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period. The recognition, measurement, classification or disclosure
of an item or information in the financial statements is made relying on these estimates. The estimates and judgements used in
the preparation of the financial statements are continuously evaluated by the management and are based on historical experience
and various other assumptions and factors (including expectations of future events) that the management believes to be
reasonable under the existing circumstances. Actual results may differ from those estimates. Any revision to accounting estimates
is recognised prospectively in current and future periods.

(e) Property, Plant and Equipment (PPE)

Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if
any.

The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable
purchase taxes, after deducting trade discounts and rebates, any directly attributable costs of bringing the asset to its working
condition for its intended use and estimated costs of dismantling and removing the item and restoring the item and restoring the
site on which it is located.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement
of Profit and Loss.

(f) Intangible Assets

Intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

(g) Depreciation and Amortisation

(i) Property, Plant and Equipment

Depreciation has been provided on Written Down Value basis and in accordance with, method and useful life prescribed in
Schedule II to the Act. The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed at
the end of each financial year and adjusted prospectively, if appropriate.

(ii) Intangible Assets

The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intangible assets are amortised on a
straight-line basis over the period of their expected useful lives. The amortisation period and the amortisation method for finite life
intangible assets is reviewed at each financial year end and adjusted prospectively, if appropriate. For indefinite life intangible
assets, the assessment of indefinite life is reviewed annually to determine whether it continues, if not, it is impaired or changed
prospectively basis revised estimates.

(h) Financial Assets

Financial Assets are recognised when the Company becomes a party to the contractual provisions of the instruments.

Initial Recognition and Measurement - Financial Assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial
assets other than trade receivables are initially recognised at fair value plus transaction costs for all financial assets not carried at
fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value, and
transaction costs are expensed in the Statement of Profit and Loss.

Classification and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortized cost, fair value through Other Comprehensive
Income (“FVTOCI”) or fair value through profit or loss (“FVTPL”) on the basis of following:

(a) the entity''s business model for managing the financial assets and

(b) the contractual cash flow characteristics of the financial assets.

Amortised Cost:

A financial asset is classified and measured at amortized cost if both of the following conditions are met:

(i) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash
flows;

and

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

Fair Value Through Other Comprehensive Income (FVTOCI):

A financial asset is classified and measured at FVTOCI if both of the following conditions are met:

(i) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and

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

Fair Value Through Profit or Loss (FVTPL):

A financial asset is classified and measured at FVTPL unless it is measured at amortized cost or at FVTOCI.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the
classification of the financial assets.

Equity Instruments:

Considering the entity''s business model for managing equity instruments; the investments in equity shares are recognised at fair
value as on date of balance sheet. Where the Company''s management has elected to present fair value gain or losses on equity
instruments in other comprehensive income (OCI), there is no subsequent reclassification of fair value gain and losses to profit or
loss following the derecognition of the investment. Gain and loss on equity investment at FVPL are included in the Statement of
Profit and Loss.

Dividends on these investments in equity instruments are recognised in Statement of Profit and Loss when the Company''s right to
receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the
dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.
Dividends recognised in Statement of Profit and Loss are included in the ‘Other income''.

Impairment

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments,
trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value
through other comprehensive income are tested for impairment based on evidence or information that is available without undue
cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has
deteriorated significantly since initial recognition.

The Company''s Loans and trade receivables or contract revenue receivables do not contain significant financing component and
loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall,
being simplified approach for recognition of impairment loss allowance.

Under simplified approach, the Company does not track changes in credit risk. Rather it recognizes impairment loss allowance
based on the lifetime ECL at each reporting date right from its initial recognition. The Company uses a provision matrix to
determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically
observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates. At every
reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

For financial assets other than trade receivables, the Company recognises 12-months expected credit losses for all originated or
acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial
recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset
increases significantly since its initial recognition. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer significant increase in credit risks since initial recognition, then the Company reverts to recognizing impairment
loss allowance based on 12 months ECL. The impairment losses and reversals are recognised in Statement of Profit and Loss.
For equity instruments and financial assets measured at FVTPL, there is no requirement of impairment testing.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it
transfers rights to receive cash flows from an asset, 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.

(i) Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial
liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair value through profit
or loss.

The Company''s financial liabilities includes trade and other payables, loans and borrowings including bank overdrafts.

Subsequent Measurement

Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried at fair
value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

Loans & Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using EIR method.
Gains and losses are recognized in the Statement of Profit & Loss when the liabilities are derecognized as well as through EIR
amortization process.

Financial Guarantee Contracts

Financial guarantee contracts issued by the Company are those contracts that requires a payment to be made or to reimburse the
holder for a loss it incurs because the specified debtors fails to make payment when due in accordance with the term of a debt
instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee. Subsequently the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative adjustments.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. 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 derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

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.

(j) Fair Value Measurement

The Company measures financial instruments, such as, derivatives, investments at fair value at each balance sheet date. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

(i) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

(ii) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable

(iii) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

(k) Cash & Cash Equivalents

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term
highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of
changes in value where original maturity is three months or less.

(l) Foreign exchange transactions & translations

a) Initial Recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences
arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss of the year.

b) Measurement of Foreign Currency items at the Balance Sheet Date

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items are recorded at
the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to
the Statement of Profit and Loss.

(m) Revenue from Contracts with Customers:

Effective Interest Rate Method

Interest income is recognised in Statement of Profit and Loss using effective interest rate method for all financial instruments at
amortised cost, debt instrument measured at FVOCI and debt instrument designated at FVTPL..The ''effective interest rate'' is the
rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument.

Calculation of effective interest includes transaction cost and fees that are an integral part of the contract. Transaction cost include
incremental cost that are directly attributable to the acquisition of financial asset.

If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk, the adjustment is
recorded as positive or negative adjustment to the carrying amount of the asset, in the balance sheet, with an increase or
reduction in interest income. The adjustment is subsequently amortised through interest income in the Statement of profit and
loss. .

Interest

The Company calculates interest income related to financing business by applying the EIR to the gross carrying amount of
financial asset other than credit-impaired assets.

When a financial asset becomes credit- impaired, the Company calculates interest income by applying the effective interest rate to
the net amortised cost of the financial asset. If the financial assets cures and is no longer credit impaired, the Company reverts to
calculating interest income on a gross basis.

Dividend

Dividend Income is recognized when right to receive the same is established.

Gain on Sale of Investment / Financial Instruments

Net gain/loss on fair value changes and any realised gain or loss on sale of financial assets (including investments, derivatives and
stock in trade) being classified as fair value through profit or loss (“FVTPL”) is recognised as “Net gain or loss on fair value
changes” under “Revenue from operations” or " Expenses” respectively in the statement of profit and loss.

Similarly, any differences between the fair values of financial assets (including investments, derivatives and stock in trade) being
classified as fair value through profit or loss (“FVTPL”), held by the Company on the balance sheet date is recognised as an
unrealised gain / loss.

In cases there is a net gain in the aggregate, the same is recognised as “Net gain on fair value changes” under “Revenue from
operations” and if there is a net loss the same is disclosed as “Net loss on fair value changes” under “ Expenses” in the statement
of Profit and Loss.

(n) Employee Benefits

Liability towards leave entitlements (short term) of employees is determined as per rules of the Company and provided for. Liability
towards Gratuity entitlement is determined as per provisions of the Payment of Gratuity Act, 1972 and provided for.

(o) Taxes on Income

Income Tax comprises of current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to
the extent it relates to items directly recognized in equity or in other comprehensive income.

Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences
between accounting and tax treatments, and due to items that are never taxable or tax deductible. Tax provisions are included in
current liabilities. The Company offsets, the current tax assets and liabilities (on a year on year basis) where it has a legally
enforceable right and where it intends to settle such assets and liabilities on a net basis or to realise the assets and liabilities on
net basis.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for
deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in
financial statements. Deferred income tax asset are recognized 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. Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in the future.

The carrying amount of deferred income 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 income tax asset to be utilized. Deferred
income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized
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 items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

(p) Borrowing Cost

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets
are capitalized as a part of Cost of that assets, during the period till all the activities necessary to prepare the Qualifying assets for
its intended use or sale are complete during the period of time that is required to complete and prepare the assets for its intended
use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or
sale.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

(q) Earning Per Share

Basic Earning Per Share is calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per
share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2024

SUMMARY OF MATERIAL ACCOUNTING POLICIES

(a) Statement of Compliance and Basis of Preparation and Presentation of Financial Statements

These financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules as amended and notified under section 133 of the Companies Act, 2013 ("the Act"), in conformity with the accounting principles generally accepted in India and other provisions of the Act.

The accounting policies are applied consistently to all the periods presented in the financial statements. The Balance Sheet and Statement of Profit & Loss are prepared and presented in accordance with the format prescribed in the Division III to Schedule III to the Act applicable for Non Banking Finance Companies (NBFC).

(b) Functional and Presentation Currency

The financial statements are presented in INR, the functional currency of the Company. All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand as per the requirement of Schedule III, unless otherwise stated.

(c) Basis of Measurement

The financial statements of the Company have been prepared on the Accrual basis of accounting and Historical cost convention except for the following material items that have been measured at fair value as required by the relevant Ind AS:

(i) Certain Financial Assets and Liabilities are measured at Fair Value (Refer Note No. (h) and (i) below)

(d) Use of Estimates and Judgements

The preparation of the financial statements requires the Management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the management and are based on historical experience and various other assumptions and factors (including expectations of future events) that the management believes to be reasonable under the existing circumstances. Actual results may differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

(e) Property, Plant and Equipment (PPE)

Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any.

The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable costs of bringing the asset to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the item and restoring the site on which it is located.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(f) Intangible Assets

Intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

(g) Depreciation and Amortisation

(i) Property, Plant and Equipment

Depreciation has been provided on Written Down Value basis and in accordance with, method and useful life prescribed in Schedule II to the Companies Act, 2013. The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed at the end of each financial year and adjusted prospectively, if appropriate.

(ii) Intangible Assets

The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intangible assets are amortised on a straight-line basis over the period of their expected useful lives. The amortisation period and the amortisation method for finite life intangible assets is reviewed at each financial year end and adjusted prospectively, if appropriate. For indefinite life intangible assets, the assessment of indefinite life is reviewed annually to determine whether it continues, if not, it is impaired or changed prospectively basis revised estimates.

(h) Financial Assets

Financial Assets are recognised when the Company becomes a party to the contractual provisions of the instruments.

Initial Recognition and Measurement - Financial Assets

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

Classification and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortized cost, fair value through Other Comprehensive Income (“FVTOCI”) or fair value through profit or loss (“FVTPL”) on the basis of following:

(a) the entity''s business model for managing the financial assets and

(b) the contractual cash flow characteristics of the financial assets.

Amortised Cost:

A financial asset is classified and measured at amortized cost if both of the following conditions are met:

(i) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows;

and

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

Fair Value Through Other Comprehensive Income (FVTOCI):

A financial asset is classified and measured at FVTOCI if both of the following conditions are met:

(i) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

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

Fair Value Through Profit or Loss (FVTPL):

A financial asset is classified and measured at FVTPL unless it is measured at amortized cost or at FVTOCI.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

Equity Instruments:

Considering the entity''s business model for managing equity instruments; the investments in equity shares are recognised at fair value as on date of balance sheet. Fair value movements are recognised in the other comprehensive income (OCI).

Dividends on these investments in equity instruments are recognised in Statement of Profit and Loss when the Company''s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably. Dividends recognised in Statement of Profit and Loss are included in the ‘Other income''.

Impairment

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

The Company''s Loans and trade receivables or contract revenue receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall, being simplified approach for recognition of impairment loss allowance.

Under simplified approach, the Company does not track changes in credit risk. Rather it recognizes impairment loss allowance based on the lifetime ECL at each reporting date right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

For financial assets other than trade receivables, the Company recognises 12-months expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. If, in a subsequent period, credit quality of the instrument improves such that there is no longer significant increase in credit risks since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12 months ECL. The impairment losses and reversals are recognised in Statement of Profit and Loss. For equity instruments and financial assets measured at FVTPL, there is no requirement of impairment testing.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers rights to receive cash flows from an asset, 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.

(i) Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair value through profit or loss.

The Company''s financial liabilities includes trade and other payables, loans and borrowings including bank overdrafts.

Subsequent Measurement

Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

Loans & Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using EIR method. Gains and losses are recognized in the Statement of Profit & Loss when the liabilities are derecognized as well as through EIR amortization process.

Financial Guarantee Contracts

Financial guarantee contracts issued by the Company are those contracts that requires a payment to be made or to reimburse the holder for a loss it incurs because the specified debtors fails to make payment when due in accordance with the term of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative adjustments.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. 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 derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

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.

(j) Fair Value Measurement

The Company measures financial instruments, such as, derivatives, investments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

(i) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

(ii) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

(iii) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

(k) Cash & Cash Equivalents

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value where original maturity is three months or less.

(l) Foreign exchange transactions & translations

a) Initial Recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss of the year.

b) Measurement of Foreign Currency items at the Balance Sheet Date

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit and Loss.

(m) Revenue from Contracts with Customers:

Effective Interest Rate Method

Interest income is recognised in Statement of Profit and Loss using effective interest rate method for all financial instruments at amortised cost, debt instrument measured at FVOCI and debt instrument designated at FVTPL.The ''effective interest rate'' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument.

Calculation of effective interest includes transaction cost and fees that are an integral part of the contract. Transaction cost include incremental cost that are directly attributable to the acquisition of financial asset.

If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk, the adjustment is recorded as positive or negative adjustment to the carrying amount of the asset, in the balance sheet, with an increase or reduction in interest income. The adjustment is subsequently amortised through interest income in the Statement of profit and loss

Interest

The Company calculates interest income related to financing business by applying the EIR to the gross carrying amount of financial asset other then credit-impaired assets.

When a financial asset becomes credit- impaired, the Company calculates interest income by applying the effective interest rate to the net amortised cost of the financial asset. If the financial assets cures and is no longer credit impaired, the Company reverts to calculating interest income on a gross basis.

Dividend

Dividend Income is recognized when right to receive the same is established.

Gain on Sale of Investment / Financial Instruments

Net gain/loss on fair value changes and any realised gain or loss on sale of financial assets (including investments, derivatives and stock in trade) being classified as fair value through profit or loss (“FVTPL”) is recognised as “Net gain or loss on fair value changes” under “Revenue from operations” or " Expenses” respectively in the statement of profit and loss.

Similarly, any differences between the fair values of financial assets (including investments, derivatives and stock in trade) being classified as fair value through profit or loss (“FVTPL”), held by the Company on the balance sheet date is recognised as an unrealised gain / loss.

In cases there is a net gain in the aggregate, the same is recognised as “Net gain on fair value changes” under “Revenue from operations” and if there is a net loss the same is disclosed as “Net loss on fair value changes” under “ Expenses” in the statement of Profit and Loss.

(n) Employee Benefits

Liability towards leave entitlements (short term) of employees is determined as per rules of the Company and provided for. Liability towards Gratuity entitlement is determined as per provisions of the Payment of Gratuity Act, 1972 and provided for.

(o) Taxes on Income

Income Tax comprises of current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences between accounting and tax treatments, and due to items that are never taxable or tax deductible. Tax provisions are included in current liabilities. Interest and penalties on tax liabilities are provided for in the tax charge. The Company offsets, the current tax assets and liabilities (on a year on year basis) where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis or to realise the assets and liabilities on net basis.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements. Deferred income tax asset are recognized 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. Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in the future.

The carrying amount of deferred income 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 income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized 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 items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

(p) Borrowing Cost

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of Cost of that assets, during the period till all the activities necessary to prepare the Qualifying assets for its intended use or sale are complete during the period of time that is required to complete and prepare the assets for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

(q) Earning Per Share

Basic Earning Per Share is calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2015

1. BASIS OF PREPARATION OF ACCOUNTS:

The financial statements are prepared on the basis of historical cost convention, on a going concern basis and in accordance with applicable Accounting Standards as specified in the Companies (Accounting Standards) Rules 2006 ("the Rules") and the relevant provisions of the Companies Act, 1956, read with the general circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013 to the extent applicable. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

2. USE OF ESTIMATES:

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

3. REVENUE RECOGNITION:

i) Income from sale / redemption of securities is recognized as and when risks and rewards therein are transferred as per the terms of the contracts.

ii) Interest income is recognized on accrual basis. Overdue interest is recognized as income ' on realization.

iii) Dividend income is accounted on an accrual basis when the Company's right to receive the dividend is established.

iv) The Company complies with prudential norms for income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for Non Banking Financial Companies. In addition, the Company adopts an approach to provisioning that is based on the past experience, realization of security, erosion over time in value of security and other related factors.

4. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation.

5. IMPAIRMENT OF ASSET:

At each Balance Sheet date where there is any indication that any asset including goodwill may be impaired, the carrying value of such asset is reduced to its recoverable amount and the amount of such impairment loss is charged to Statement of Profit and Loss. If at the balance sheet date, there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

6. DEPRECIATION:

"Depreciation on Fixed assets is provided on Straight Line Method at the rates and in the manner specified in Schedule II to the Companies Act, 2013."

7. INVESTMENTS:

Long Term Investments are stated at cost and other incidental cost of acquisition. In case, there is a diminution in value other than temporary, provision for the sam§-%'^Fdf in the accounts on individual investment basis. Current Investments are valued at lower of cost or market/fair value.

8. INVENTORY:

Inventory is valued at lower of the cost or market value.

9. BORROWING COSTS:

Borrowing costs attributable to the acquisition or construction of capital assets are capitalized as part of the cost of such assets upto the date when such asset is ready for its intended use. Other borrowing costs are recognized as expenses in the period in which they are incurred.

10. EMPLOYEE BENEFITS:

i) Liability towards Leave entitlements (short term) of employees is determined as per the rules of the Company and provided for.

ii) Liability towards Gratuity entitlement is determined as per the provisions of Payment of Gratuity Act, 1972 and provided for.

11. TAXATION:

i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income-tax Act, 1961 and considering assessment orders and decisions of appellate authorities in the Company's case. Tax credit is recognized in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of the Income-tax Act, 1961 based on convincing evidence that the Company will pay normal Income Tax within the statutory time frame and is reviewed at each balance sheet date.

ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

i) A provision is recognized when there is a present obligation as a result of past event 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 are not discounted to its present value and are determined based on 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.

ii) Disclosures for a Contingent Liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources.

iii) Contingent Assets are neither recognized nor disclosed in the financial statements.

13. GENERAL:

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

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Mar 31, 2014

1. BASIS OF PREPARATION OF ACCOUNTS:

The financial statements are prepared on the basis of historical cost convention, on a going concern basis and in accordance with applicable Accounting Standards as specified in the Companies (Accounting Standards) Rules 2006 ("the Rules'') and the relevant provisions of the Companies Act, 1956, read with the general circular 15/2013 dated 13"'' September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013 to the extend applicable. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

2. USE OF ESTIMATES:

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

3. REVENUE RECOGNITION:

i) Income from sale / redemption of securities is recognized as and when risks and rewards therein are transferred as per the terms of the contracts.

ii) Interest income is recognized on accrual basis. Overdue interest is recognized as income on realization.

iii) Dividend income is accounted on an accrual basis when the Company''s right to receive the dividend is established.

iv) The Company complies with prudential norms for income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for Non Banking Financial Companies. In addition, the Company adopts an approach to provisioning that is based on the past experience, realization of security, erosion over time in value of security and other related factors.

4. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation.

5. IMPAIRMENT OF ASSET:

At each Balance Sheet date where there is any indication that any asset including goodwill may be impaired, the carrying value of such asset is reduced to its recoverable amount and the amount of such impairment loss is charged to Statement of Profit and Loss. If at the balance sheet date, there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

6. DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

7. INVESTMENTS:

Long Term Investments are stated at cost and other incidental cost of acquisition. In case, there is a diminution in value other than temporary, provision for the same is made in the accounts on individual investment basis. Current Investments are valued at lower of cost or market/fair value.

8. INVENTORY:

Inventory is valued at lower of the cost or market value.

9. BORROWING COSTS:

Borrowing costs attributable to the acquisition or construction of capital assets are capitalized as part of the cost of such assets upto the date when such asset is ready for its intended use. Other borrowing costs are recognized as expenses in the period in which they are incurred.

10. EMPLOYEE BENEFITS:

i) Liability towards Leave entitlements (short term) of employees is determined as per the rules of the Company and provided for.

ii) Liability towards Gratuity entitlement is determined as per the provisions of Payment of Gratuity Act, 1972 and provided for.

11. TAXATION:

i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income-tax Act. 1961 and considering assessment orders and decisions of appellate authorities in the Company''s case. Tax credit is recognized in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of the Income-tax Act, 1961 based on convincing evidence that the Company will pay normal Income Tax within the statutory time frame and is reviewed at each balance sheet date.

ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

i) A provision is recognized when there is a present obligation as a result of past event 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 are not discounted to its present value and are determined based on 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.

ii) Disclosures for a Contingent Liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources.

iii) Contingent Assets are neither recognized nor disclosed in the financial statements.

13. GENERAL:

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

Company is issued one class of equrty shares having a face value of Rs.10 per share. Each shareholder has right to vote in resolution Peace of Profile Company and his voting right on a poll shall be in proportion to the share of the paid-up equrty capital of the Company. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after payments to secured and unsecured creditors, in proportion io their shareholding.

a) Loan from a Body Corporale is secured by way of lien marked on the Units of Venture Capital Funds, further secured by way of mortgage of properties of a Whole Time Director & an associate body corporate and personal guarantee ol the Managing Director of the Company. The rate of interest applicable on the loan amount is 15.75% p.a.till 26th August. 2013 and thereafter 21% p.a. (previous year 15.75% p.a.)

b) There are no defaults in repayment of the loan

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Mar 31, 2012

1. GENERAL .

The financial statements are prepared on the basis of historical cost convention, in accordance with applicable accounting standards referred to in Section 211 (3C) of Companies Act, 1956 and on the accounting principles of a going concern. All expenses and income to the extent payable and receivable, respectively, with reasonable certainty are accounted for on accrual basis.

2. USE OF ESTIMATES :

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

3. REVENUE RECOGNITION :

i) Income from sale / redemption of securities is recognized as and when risks and rewards therein are transferred as per the terms of the contracts.

ii) Interest income is recognized on accrual basis. Overdue interest is recognized as income on realization.

iii) Fees and commission income are recognized when due.

iv) Dividend income is accounted on an accrual basis when the Company's right to receive the dividend is established.

v) The Company complies with prudential norms for income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for Non Banking Financial Companies. In addition, the Company adopts an approach to provisioning that is based on the past experience, realization of security, erosion over time in value of security and other related factors.

4. FIXED ASSETS:

i) Fixed Assets are stated at cost less accumulated depreciation.

ii) IMPAIRMENT OF ASSET : At each Balance Sheet date where there is any indication that any asset may be impair arraying value of such asset is reduced to its recoverable amount and, of such impairment loss is charged to Profit and Loss Statement/'Want the balance sheet date, there is any indication that a previously assessed longer exists, then such loss is reversed and the asset. 5. BORROWING COSTS :

Borrowing costs attributable to the acquisition or construction of capital assets are capitalized as part of the cost of such assets upto the date when such asset is ready for its intended use. Other borrowing costs are recognised as expenses in the period in which they are incurred.

6. DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

7. INVESTMENTS.

Long Term Investments are stated at cost. In case, there is a diminution in value other than temporary, provision for the same is made in the accounts. Current Investments are valued at cost.

8. INVENTORY:

Inventory is valued at lower of the cost or market value.

9. EMPLOYEE BENEFITS :

i) Liability towards Leave entitlements (short term) of employees is determined as per the rules of the Company and provided for.

ii) Liability towards Gratuity entitlement is determined as per the provisions of Payment of Gratuity Act, 1972 and provided for.

10. TAXATION:

i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income-tax Act, 1961. Tax credit is recognised in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of the Income-tax Act, 1961 based on convincing evidence that the Company will pay normal Income Tax within the statutory time frame and is reviewed at each balance sheet date.

ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

11. EQUITY INDEX / STOCK FUTURES / OPTIONS.

i) "Initial Margin - Equity Derivative Instrument", representing initial margin paid for entering into contracts for equity index/ stock futures which are released on final settlement/ squaring-up of underlying contracts, are disclosed under Loans and Advances.

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

iii) On final settlement or squaring-up of contracts for equity index / stock futures, the profit or loss is calculated as the difference between the settlement / squaring-up price and the contract price. Accordingly, debit or credit balance pertaining to the settled / squared-up contract in "Mark-to-Market Margin - Equity Index / Stock Futures Account" after adjustment of provision for anticipated losses is recognized in the Profit and Loss Account.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes on accounts. Contingent assets are not recognised or disclosed in the financial statements.

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Mar 31, 2010

1. GENERAL:

The financial statements are prepared on the basis of historical cost convention, in accordance with applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent payable and receivable, respectively, with reasonable certainty are accounted for on accrual basis.

2. USE OF ESTIMATES:

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

3. REVENUE RECOGNITION

i) Income from sale / redemption of securities is recognized as and when risks and rewards therein are transferred as per the terms of the contracts.

ii) Interest income is recognized on accrual basis. Overdue interest is recognized as income on realization.

iii) Fees and commission income are recognized when due.

iv) Divided income is accounted on an accrual basis when the Companys right to receive the dividend is established.

v) The Company complies with prudential norms for income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for Non Banking Financial Companies. In addition, the Company adopts an approach to provisioning that is based on the past experience, realization of security, erosion over time in value of security and other related factors.

4. FIXED ASSETS:

i) Fixed Assets are stated at cost less accumulated depreciation.

ii) IMPAIRMENT OF ASSET : At each Balance Sheet date where there is any indication that any asset may be impaired, the carrying value of such asset is reduced to its recoverable amount and the amount of such impairment loss is charged to profit and loss account. If at the balance sheet date, there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

5. BORROWING COSTS :

Borrowing costs attributable to the acquisition or construction of capital assets are capitalized as part of the cost of such assets upto the date when such asset is ready for its intended use. Other borrowing costs are recognised as expenses in the period in which they are incurred.

6. DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

7. INVESTMENTS:

Long Term Investments are stated at cost. In case, there is a diminution in value other than temporary, provision for the same is made in the accounts.

8. VALUATION OF INVENTORY:

Inventory is valued at lower of the cost or market value.

9. EMPLOYEE BENEFITS:

i) Liability towards Leave entitlements (short term) of employees is determined as per the rules of the Company and provided for.

ii) Liability towards Gratuity entitlement is determined as per the provision of Payment of Gratuity Act, 1972 and provided for.

10.TAXATION:

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income-tax Act, 1961. Tax credit is recognised in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of the Income-tax Act, 1961 based on convincing evidence that the Company will pay normal Income Tax within the statutory time frame and is reviewed at each balance sheet date.

ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws mat have been enacted or substantively enacted as of the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

11. EQUITY INDEX / STOCK FUTURES / OPTIONS:

i) "Initial Margin - Equity Derivative Instrument", representing initial margin paid for entering into contracts for equity index/ stock futures which are released on final settlement/ squaring-up of underlying contracts, are disclosed under Loans and Advances.

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

iii) On final settlement or squaring-up of contracts for equity index / stock futures, the profit or loss is calculated as the difference between the settlement / squaring-up price and the contract price. Accordingly, debit or credit balance pertaining to the settled / squared-up contract in "Mark-to- Market Margin - Equity Index / Stock Futures Accounf after adjustment of provision for anticipated losses is recognized in the Profit and Loss Account.

12.PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS : A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes on accounts. Contingent assets are not recognised or disclosed in the financial statements.

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Mar 31, 2009

1. GENERAL:

2. USE OF ESTIMATES :

The preparation of financial statements in conformity with generally accepted account princ i p lles (GAAP) and Accounting Standard (AS) requires management to make estimates and assumptions that affect the reported amounts of assets and iabilities and the disclosures of contingent liaexilptiens on accounting estimates is recognised prospectively.

3. REVENUE RECOGNITION :

4. Interest income is recognized on accrual basis. Overdue interest is recognzed as income on realization.

iv) Divided income is accounted on an accrual basis when the Companys right receive the dividend Is established.

v) The Company complies with prudential norms for income recognition and provisoning for non-performing assets as prescribed by the Reserve Bank of India for Non Banking Financ ial Companies. In addition, the Company adopts an approach to provisioning that is based on the past experience realization of security, erosion over time irr value of security and other related factors.

4. FIXED ASSETS:

i) Fixed Assets are stated at cost less accumulated depreciation.

ii) IMPAIRMENT OF ASSET : At each Balance Sheet date where there is any indication that any asset may be impaired, the carrying value of such asset is

5. BORROWING COSTS:

Are as part of the cost of such assets upto the date when such asset

6. DEPRECIATION :

7. INVESTMENTS:

8. VALUATION OF INVENTORY :

Inventory is valued at lower of the cost or market value.

9. EMPLOYEE BENEFITS :

i) Liability towards Gratuity entitlement is determined as per the provision of Payment of Gratuity Act, 1972 and provided for.

10. TAXATION:

1961. Tax credit is recognised in Aspect of Minmum Alternate Tax (MAT) as cotrthe ngeristals of Section 11eJAAof th« rncom^tw Actm 1961 based

ii) Deferred tax for timing differences between tax profitsland book profits is recognised to the extent there is reasonable certainty that these assets can be realised in future.

ii ) The Provision of Fringe Benefit Tax has been made in respect of employees benefits and other specified expenses as determined under the Income-tax Act, 1961.

11. EQUITY INDEX / STOCK FUTURES / OPTIONS:

"Initial Margin - Equity Derivative Instrumenf, representing initial margin disclosed under Loans and Advances.

Respectively, in the "Mark-to tarket Margin - Equity Index/ Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of index/stock futures till the Balance Sheet date.

ii) On final settlement or squaring-up of contracts for equity index / stock credit balance pertaining to the settled / squared-up contract in "Mark-to Market Margin Equity index / Stock Futures Account" after adjustment of provision for anticipated losses is recognized in the Profit and Loss Account.

12. PROVISIONS, CONTINGENT LABILITIES AND CONTINGENT ASSETS :

A provision is made based on a reliable estimate when it is probabte that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed b/way of notes on accounts. Contingent assets are not recognised or discloyed in the financial statements.