Accounting Policies of Kumbhat Financial Services Ltd. Company

Mar 31, 2025

2. Summary of Material accounting policies

This note provides a list of the Material accounting policies adopted in the preparation of these
financial statements. These policies have been consistently applied to all the years presented,
unless otherwise stated.

2.1 Revenue Recognition

(i) Interest income

The Company recognises interest income on an accrual basis, using Effective Interest Rate
(EIR) on all financial assets subsequently measured at amortised cost . The EIR is the rate that
exactly discounts estimated future cash receipts (including all fees, transaction costs and
other premiums or discounts paid or received) through the expected life of the financial
instrument to the carrying amount on initial recognition. Accordingly EIR is calculated by
considering all costs and incomes attributable to acquisition of a financial asset or assumption
of a financial liability.

The Company recognises interest income by applying the EIR to the gross carrying amount
of financial assets other than credit-impaired assets. In case of credit-impaired financial assets
regarded as ''stage 3'', the Company recognises interest income on the amortised cost net of
impairment loss of the financial asset at EIR. If the financial asset is no longer credit-impaired,
the Company reverts to calculating interest income on a gross basis.

Interest on financial assets subsequently measured at fair value through profit or loss (FVTPL)
is recognised at the contractual rate of interest. Delayed payment of interest (penal interest)
& Charges for Early Payment of Principal (Pre-Closure Charges), if any, levied on customers
for delay in repayments/nonpayment and early repayment of principal of contractual cash
flows as per the agreed terms and conditions of the loan, is recognised on realisation.

(ii) Dividend income

Dividend income on equity shares is recognised when the Company''s right to receive the
payment is established, it is probable that the economic benefits associated with the dividend
will flow to the Company and the amount of dividend be measured reliably.

(iii) Fair value gain

The Company recognises gains on fair value change of financial assets measured at fair value
through profit and loss (FVTPL) and realised gains on derecognition of financial asset measured
at fair value through profit and loss (FVTPL) on net basis.

(iv) Recoveries of financial assets written off

The Company recognises income on recoveries of financial assets written off on realisation
or when the right to receive the same without any uncertainties of recovery is established.

2.2 Cash and cash equivalents

Cash and cash equivalents include cash on hand, other short term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value, net of any cash credit balances
repayable on demand, as they are considered an integral part of the Company''s cash management.
Cash flow statements are reported using indirect method and the cash flows from operating,
investing and financing activities of the Company are segregated.

2.3 Financial instruments

A financial instrument is defined as any contract that gives rise to a financial asset for one entity
and a financial liability or equity instrument for another entity. Other payables, loan receivables,
investments in securities, debt securities and other borrowings are some examples of financial
instruments.

Financial Assets and Liabilities - Initial Recognition

The Company assesses on a forward looking basis the expected credit losses associated with its
financial assets held under amortised cost and at FVOCI. The impairment methodology applied
depends on whether there has been a significant increase in credit risk.All financial assets and
Liabilities are initially recognised at fair value.Transaction costs directly attributable to the
acquisition or issue of financial assets and financial liabilities that are measured at amortised cost
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 measured at fair value through profit or loss are recognised
immediately in profit or loss.For tradable securities, the Company recognises the financial
instruments under Settlement date Accounting.

Classification and Subsequent measurement

Financial Assets:

The Company classifies its financial assets as subsequently measured at either amortized cost or
fair value depending on the Company''s business model for managing the financial assets and the
contractual cash flow characteristics of the financial assets.

A financial asset is measured at Amortised Cost only if both of the following conditions are
met:

• The asset is held with a Business model whose objective is to hold them to collect contractual
cash flows and

• The contractual terms of the financial assets give rise on specified dates to cash flows that
are Solely Payments of Principal and Interest (SPPI) on the amount outstanding.

Such Financial assets are subsequently measured at amortised cost using the Effective Interest
rate method.

Financial assets are subsequently measured at Fair Value Through Other Comprehensive
Income (FVTOCI) if:

• The financial assets are held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and

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

Any financial instrument, which does not meet the criteria for categorization as amortized cost or
as Fair Value Through Other Comprehensive Income (FVTOCI), is classified as at Fair Value Through
P&L (FVTPL).

The Company classifies financial assets which are held for trading under FVTPL category. Held for
trading assets are recorded and measured in the Balance Sheet at fair value. Interest and dividend
incomes are recorded in interest income and dividend income, respectively according to the terms
of the contract, or when the right to receive the same has been established. Gain and losses on
changes in fair value of debt and equity instruments are recognized on net basis through profit or
loss.

Financial Liabilities:

All financial liabilities are subsequently measured at amortised cost using the effective interest
rate method except for financial liabilities at FVTPL. A financial liability is classified as FVTPL if it is
held-fortrading or it is a derivative or it is designated as FVTPL on initial recognition. Interest
expense, foreign exchange gains (losses) and any gains and losses on de-recognition are
recognised in the profit or loss.

Derecognition of Financial Assets and Financial Liabilities
Financial Assets:

The Company derecognises a financial asset (or, where applicable, a part of a financial asset) when
and only when :

• The right to receive cash flows from the asset have expired, (or)

• The Company has transferred its right to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under

an assignment arrangement and the Company has transferred substantially all the risks and
rewards of the asset. Once the asset is derecognised, the Company does not have any
continuing involvement in the same.

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

On de-recognition of a financial asset, the difference between the carrying amount of the asset
and the consideration received is recognised in profit or loss.

Financial liabilities:

The Company de-recognises a financial liability when its contractual obligations are discharged,
cancelled or expired.

Impairment of financial assets

The Company assess on the forward looking basis the expected credit losses associated with its
financial assets held under amortised cost and at FVOCI. The impairment methodology applied
depends on whether there has been a significant increase in credit risk. Based on the methodology
the Company is formulating the risk evaluation based impairment framework.

Financial assets where no significant increase in credit risk has been observed are considered to
be in ''stage 1'' and for which a 12 month ECL is recognised.

Financial assets that are considered to have significant increase in credit risk are considered to be
in ''stage 2'' and those which are in default or for which there is an objective evidence of impairment
are considered to be in ''stage 3''. Lifetime ECL is recognised for stage 2 and stage 3 financial assets.

Financial assets (and the related impairment loss allowances) are written off in full, when there is
no realistic prospect of recovery.

Further, in accordance with RBI circular no. RBI/2019-20/170 dated March 13, 2020, the impairment
allowances as per ECL shall be compared with the required provisioning under IRACP. If the
impairment allowance under Ind AS 109 is lower than the provisioning required under IRACP the
difference is appropriated from net profit after tax to ''Impairment Reserve''.

Estimation of Expected Credit Loss

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

Probability of Default (PD) - The Probability of Default is an estimate of the likelihood of default
over a given time horizon. The Company uses historical information where available to determine
PD or determines based on comparable companies. Considering the different products and
schemes, the Company where required bifurcates its loan portfolio into various pools.

Exposure at Default (EAD) - The Exposure at Default is an estimate of the exposure at a future
default date, considering expected changes in the exposure after the reporting date, including
repayments of principal and interest, whether scheduled by contract or otherwise, expected
drawdowns on committed facilities, and accrued interest from missed payments.

Loss Given Default (LGD) - The Loss Given Default is an estimate of the loss arising in the case
where default occurs at a given time. It is based on the difference between the contractual cash
flows due and those that the lender would expect to receive, including from the realization of
any collateral.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet when, and only when,

• there is an enforceable legal right to offset the recognised amounts and

• an intention to settle on a net basis or to realise the assets and settle the liabilities
simultaneously.

During the financial year no offsetting of financial instruments has been made in the financial statements.

2.4 Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.

A number of the Company''s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities.

Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the
inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows :

• Level 1 inputs are quoted prices unadjusted in active markets for identical assets or liabilities
that the entity can access at the measurement date.

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable
for the asset or liability, either directly or indirectly and

• Level 3 inputs are unobservable inputs for the asset or liability.

2.5 Taxes

Income Tax expense represents the aggregate amount included in the determination of Profit or
Loss for the period in respect of Current Tax and Deferred Tax.

(i) Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid/ payable to the taxation authorities, in accordance with the Income Tax Act, 1961
and the Income Computation and Disclosure Standards (ICDS) prescribed therein. The tax
rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, by the reporting date.

Current tax relating to items recognised outside profit or loss is recognised in correlation to
the underlying transaction either in OCI or directly in other equity. Management periodically

evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred
tax assets are generally recognised for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised.

Such deferred tax assets and liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business combination) of assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that
have been enacted or substantively enacted by the Balance Sheet date and are expected to
apply to taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect of changes in tax rates on deferred income tax assets and
liabilities is recognized as income or expense in the period that includes the enactment or
the substantive enactment date.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the assets to be recovered.

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

Current and deferred tax are recognised in Statement of Profit and Loss, except when they
relate to items that are recognised in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognised in other comprehensive income
or directly in equity respectively.

(iii) Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent
there is convincing evidence that the company will pay normal income tax during the specified
period. Such asset is reviewed at each Balance Sheet and the carrying amount of the MAT
credit asset is written down to the extent there is no longer a convincing evidence to the
effect that the companies will pay normal income tax during the specified period.

2.6 Property, Plant and Equipment (PPE)

Cost model is adopted for Property, Plant and Equipment. The cost of an item of property, plant
and equipment is recognised as an asset if, and only if,(a) it is probable that future economic

benefits associated with the item will flow to the entity and(b) the cost of the item can be measured
reliably.

The cost of property, plant and equipment comprises its purchase price net of any trade discounts
and rebates, any non-refundable import duties and other taxes, any directly attributable
expenditure on making the asset ready for its intended use by the Management, including relevant
borrowing costs for qualifying assets and any expected costs of decommissioning.

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. The carrying amount
of any component accounted for as a separate asset is derecognised when replaced. Expenditure
incurred after the property, plant and equipment have been put into operation, such as repairs
and maintenance, are charged to Statement of Profit and Loss in the period in which the costs are
incurred.

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sale proceeds and the carrying amount of the asset and is recognized
in Statement of Profit and Loss.

On transition to Ind AS, the Company has continued with the carrying value of all its PPE recognized
as at 01st April, 2018, measured as per previous GAAP and use that carrying value as its deemed
cost of the PPE as at that date.

2.7 Depreciation on Property, Plant and Equipment

Depreciation is recognised so as to write off the cost of assets less their residual values over their
useful lives, using the straight-line method. The useful life of an asset is the period over which an
asset is expected to be available for use by an entity.

Amortisation is recognised on a straight- line basis over the estimated useful lives.

Depreciation and amortization on property, plant and equipment added/disposed off during the
year has been provided on pro-rata basis with reference to the date of addition/disposal.

Depreciation and amortization methods, useful lives and residual values are reviewed periodically
as appropriate in the views of the management and also at the end of each reporting period and
adjusted if required.

There are no assets under Financial Lease during the Financial year.

Estimated useful lives of the assets are considered as prescribed in Schedule II to the Companies
Act, 2013 and in respect of an item of PPE having individual value up to Rs. 5,000/- is depreciated
fully in the financial year of purchase of asset.

2.8 Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment

loss based on the internal and external factors. Impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable amount where the recoverable amount is the higher
of the net selling price of the assets and their value in use.

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Mar 31, 2024

1. Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these
financial statements. These policies have been consistently applied to all the years presented, unless
otherwise stated.

1.1. Revenue Recognition

(i) Interest income

The Company recognises interest income on an accrual basis, using Effective Interest Rate (EIR) on all
financial assets subsequently measured at amortised cost or fair value through other comprehensive
income (FVoCI). The EIR is the rate that exactly discounts estimated future cash receipts (including all
fees, transaction costs and other premiums or discounts paid or received) through the expected life
of the financial instrument to the carrying amount on initial recognition. Accordingly EIR is calculated
by considering all costs and incomes attributable to acquisition of a financial asset or assumption of a
financial liability.

The Company recognises interest income by applying the EIR to the gross carrying amount of financial
assets other than credit-impaired assets. In case of credit-impaired financial assets regarded as ''stage 3'',
the Company recognises interest income on the amortised cost net of impairment loss of the financial
asset at EIR. If the financial asset is no longer credit-impaired, the Company reverts to calculating interest
income on a gross basis.

Interest on financial assets subsequently measured at fair value through profit or loss (FVTPL) is
recognised at the contractual rate of interest.

Delayed payment interest (penal interest), if any, levied on customers for delay in repayments/non-
payment of contractual cash flows as per the agreed terms and conditions of the loan, is recognised on
realisation.

(ii) Dividend income

Dividend income on equity shares is recognised when the Company''s right to receive the payment is
established, it is probable that the economic benefits associated with the dividend will flow to the
Company and the amount of dividend be measured reliably.

(iii) Other revenue from operations

The Company recognises revenue from contracts with customers (other than financial assets to which
Ind AS 109 ''Financial Instruments'' is applicable) based on a comprehensive assessment model as set
out in Ind AS 115. The Company identifies contract(s) with a customer and its performance obligations
under the contract, determines the transaction price and its allocation to the performance obligations
in the contract and recognises revenue only on satisfactory completion of performance obligations.
Revenue is measured at fair value of the consideration received or receivable.

(iv) Recoveries of financial assets written off

The Company recognises income on recoveries of financial assets written off on realisation or when the
right to receive the same without any uncertainties of recovery is established.

1.2. Cash and cash equivalents

Cash and cash equivalents include cash on hand, other short term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value net of outstanding bank Cash Credits repayable on
demand, as they are considered an integral part of the Company''s cash management.

Cash flow statements are reported using indirect method and the cash flows from operating, investing
and financing activities of the Company are segregated.

1.3. Financial instruments

A financial instrument is defined as any contract that gives rise to a financial asset for one entity and a
financial liability or equity instrument for another entity. Trade receivables and payables, loan receivables,
investments in securities and subsidiaries, debt securities and other borrowings, preferential and equity
capital etc. are some examples of financial instruments.

Financial Assets and Liabilities - Initial Recognition

Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments. All the financial instruments are recognised on the date when
the Company becomes party to the contractual provisions of the financial instruments.

All financial assets and Liabilities are initially recognised at fair value.

Transaction costs directly attributable to the acquisition or issue of financial assets and financial liabilities
that are measured at amortised cost 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
measured at fair value through profit or loss are recognised immediately in profit or loss.

For tradable securities, the Company recognises the financial instruments under Settlement date
Accounting.

Classification and Subsequent measurement
Financial Assets:

The Company classifies its financial assets as subsequently measured at either amortized cost or fair
value depending on the Company''s business model for managing the financial assets and the contractual
cash flow characteristics of the financial assets.

A financial asset is measured at Amortised Cost only if both of the following conditions are met:

• The asset is held with a Business model whose objective is to hold them to collect contractual cash
flows and

• The contractual terms of the financial assets give rise on specified dates to cash flows that are Solely
Payments of Principal and Interest (SPPI) on the amount outstanding.

Such Financial assets are subsequently measured at amortised cost using the Effective Interest rate
method.

Financial assets are subsequently measured at Fair Value Through Other Comprehensive Income
(FVTOCI) if:

• The financial assets are held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and

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

Any financial instrument, which does not meet the criteria for categorization as amortized cost or as
Fair Value Through other Comprehensive Income (FVToCI), is classified as at Fair Value Through P&L
(FVTPL).

The Company classifies financial assets which are held for trading under FVTPL category. Held for trading
assets are recorded and measured in the Balance Sheet at fair value. Interest and dividend incomes are
recorded in interest income and dividend income, respectively according to the terms of the contract,
or when the right to receive the same has been established. Gain and losses on changes in fair value of
debt and equity instruments are recognized on net basis through profit or loss.

Financial Liabilities:

All financial liabilities are subsequently measured at amortised cost using the effective interest rate
method except for financial liabilities at FVTPL. A financial liability is classified as FVTPL if it is held-for-
trading or it is a derivative or it is designated as FVTPL on initial recognition. Interest expense, foreign
exchange gains (losses) and any gains and losses on de-recognition are recognised in the profit or loss.

Derecognition of Financial Assets and Financial Liabilities
Financial Assets:

The Company derecognises a financial asset (or, where applicable, a part of a financial asset) when and
only when :

• The right to receive cash flows from the asset have expire, (or)

• The Company has transferred its right to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under an
assignment arrangement and the Company has transferred substantially all the risks and rewards of
the asset. once the asset is derecognised, the Company does not have any continuing involvement in
the same.

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

on de-recognition of a financial asset, the difference between the carrying amount of the asset and the
consideration received is recognised in profit or loss.

Financial liabilities:

The Company de-recognises a financial liability when its contractual obligations are discharged, cancelled
or expired.

Impairment of financial assets

The Company assess on the forward looking basis the expected credit losses associated with its financial
assets held under amortised cost and at FVoCI. The impairment methodology applied depends on

whether there has been a significant increase in credit risk. Based on the methodology the Company is
formulating the risk evaluation based impairment framework.

Financial assets where no significant increase in credit risk has been observed are considered to be in
''stage 1'' and for which a 12 month ECL is recognised.

Financial assets that are considered to have significant increase in credit risk are considered to be in
''stage 2'' and those which are in default or for which there is an objective evidence of impairment are
considered to be in ''stage 3''. Lifetime ECL is recognised for stage 2 and stage 3 financial assets.

Financial assets (and the related impairment loss allowances) are written off in full, when there is no
realistic prospect of recovery.

Further, in accordance with RBI circular no. RBI/2019-20/170 dated March 13, 2020, the impairment
allowances as per ECL shall be compared with the required provisioning under IRACP. If the impairment
allowance under Ind AS 109 is lower than the provisioning required under IRACP the difference is
appropriated from net profit after tax to ''Impairment Reserve''.

Estimation of Expected Credit Loss

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

Probability of Default (PD) - The Probability of Default is an estimate of the likelihood of default over
a given time horizon. The Company uses historical information where available to determine PD.
Considering the different products and schemes, the Company has bifurcated its loan portfolio into
various pools.

Exposure at Default (EAD) - The Exposure at Default is an estimate of the exposure at a future default
date, considering expected changes in the exposure after the reporting date, including repayments of
principal and interest, whether scheduled by contract or otherwise, expected drawdowns on committed
facilities, and accrued interest from missed payments.

Loss Given Default (LGD) - The Loss Given Default is an estimate of the loss arising in the case where
default occurs at a given time. It is based on the difference between the contractual cash flows due and
those that the lender would expect to receive, including from the realization of any collateral.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet
when, and only when,

• there is an enforceable legal right to offset the recognised amounts and

• an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously.
During the financial year no offsetting of financial instruments has been made in the financial statements.

1.4. Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.

A number of the Company''s accounting policies and disclosures require the measurement of fair values,
for both financial and non-financial assets and liabilities

Fair value measurements are categorised into Level 1,2 or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows :

• Level 1 inputs are quoted prices unadjusted in active markets for identical assets or liabilities that the
entity can access at the measurement date.

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for
the asset or liability, either directly or indirectly and

• Level 3 inputs are unobservable inputs for the asset or liability.

1.5. Taxes

Income Tax expense represents the aggregate amount included in the determination of Profit or Loss for
the period in respect of Current Tax and Deferred Tax.

(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid/
payable to the taxation authorities, in accordance with the Income Tax Act, 1961 and the Income
Computation and Disclosure Standards (ICDS) prescribed therein. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, by the reporting date.

Current tax relating to items recognised outside profit or loss is recognised in correlation to the
underlying transaction either in oCI or directly in other equity. Management periodically evaluates
positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable
profit.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised.

Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been
enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect of
changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in
the period that includes the enactment or the substantive enactment date.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the assets to be recovered.

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

Current and deferred tax are recognised in Statement of Profit and Loss, except when they relate to
items that are recognised in other comprehensive income or directly in equity, in which case, the current
and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

(iii) Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is
convincing evidence that the company will pay normal income tax during the specified period. Such
asset is reviewed at each Balance Sheet and the carrying amount of the MAT credit asset is written down
to the extent there is no longer a convincing evidence to the effect that the companies will pay normal
income tax during the specified period.

1.6. Property, Plant and Equipment (PPE)

Cost model is adopted for Property, Plant and Equipment. The cost of an item of property, plant and
equipment is recognised as an asset if, and only if,

(a) it is probable that future economic benefits associated with the item will flow to the entity and

(b) the cost of the item can be measured reliably.

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and
rebates, any non-refundable import duties and other taxes, any directly attributable expenditure on
making the asset ready for its intended use by the Management, including relevant borrowing costs for
qualifying assets and any expected costs of decommissioning.

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. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced. Expenditure incurred after the
property, plant and equipment have been put into operation, such as repairs and maintenance, are
charged to Statement of Profit and Loss in the period in which the costs are incurred.

An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sale proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss.

on transition to Ind AS, the Company has continued with the carrying value of all its PPE recognized as
at 01st April, 2018, measured as per previous GAAP and use that carrying value as its deemed cost of
the PPE as at that date.

1.7. Intangible Assets

An intangible asset is recognised if, and only if (a) it is probable that the expected future economic
benefits that are attributable to the asset will flow to the entity and (b) the cost of the asset can be
measured reliably as per the assessment of the management.

Intangible assets with finite useful lives that are acquired separately are initially recognized at Cost
which comprises of the purchase price, including import duties and non-refundable purchase taxes and
any directly attributable costs of preparing the asset for its intended use, and subsequently carried at
cost less accumulated amortization and accumulated impairment losses.

In respect of Computer software, it is the policy of the Company to capitalize the Cost of the software
and recognised as intangible assets based on materiality, accounting prudence and significant benefits
expected to flow there from for a period longer than one year.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as
the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in
profit or loss when the asset is derecognised.

As at the date of the Financial Statements the Company doesn''t have any Intangible Assets in use.

1.8. Depreciation on Property, Plant and Equipment

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful
lives, using the straight-line method. The useful life of an asset is the period over which an asset is
expected to be available for use by an entity.

Amortisation is recognised on a straight- line basis over the estimated useful lives.

Depreciation and amortization on property, plant and equipment and intangible assets added/disposed
off during the year has been provided on pro-rata basis with reference to the date of addition/disposal.

Depreciation and amortization methods, useful lives and residual values are reviewed periodically as
appropriate in the views of the management and also at the end of each reporting period and adjusted
if required.

There are no assets under Financial Lease during the Financial year.

Estimated useful lives of the assets are considered as prescribed in Schedule II to the Companies Act,
2013 and in respect of an item of PPE having individual value up to Rs. 5,000/- is depreciated fully in the
financial year of purchase of asset.

1.9. Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss based on the internal and external factors. Impairment loss is recognised when the
carrying amount of an asset exceeds its recoverable amount where the recoverable amount is the
higher of the net selling price of the assets and their value in use.

There are no Intangible Assets with indefinite useful lives.

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Mar 31, 2014

1. ACCOUNTING CONVENTION:

1. The accounts have been prepared under the historical cost convention.

2. Income and Expenditure recognition:

a) Interest on loans are accounted for on accrual basis.

b) Dividend on shares and other incomes are accounted for on receipt basis.

c) All items of expenditure are accounted for on accrual basis.

3. The Company has followed the prudential norms as prescribed by the Reserve Bank of India under Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions 1998 as amended from time to time.

4. Depreciation / Amortisation policy : Depreciation on assets is provided on the Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956. The Cost of the leased assets is amortised during the lease period, for all the assets acquired since inception, as recommended in the "Guidance Note on Accounting for Leases (Revised)" issued by the Institute of Chartered Accountants of India.

Depreciation has not been provided on repossessed assets pending the sale and / or realization of the assets since the assets are not put into use after such repossession.

5. Valuation of Fixed Assets :

Fixed Assets are carried at historical cost less accumulated depreciation.

6. Inventory of Shares:

Shares and Securities are valued at Cost or market price whichever is lower.

7. Compliance with Accounting Standards:

Appropriate Accounting Standards have been duly considered while preparing the financial and other statements.

8. Retirements Benefits:

Retirement benefits are accounted for on Accural basis as per Revised Accounting Standard -15 on the basis of acturial valuation.

9. Accounting for Taxes on Income (AS 22)

Deferred Tax Assets / Liability is recognized as per Accounting Standard AS 22 on -Accounting for taxes on Income'' issued by The Institute of Chartered Accountants of India.

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Mar 31, 2012

1 The accounts have been prepared under the historical cost convention.

b) interest on loans are accounted for on accrual basis.

c) Dividend on shares and other incomes are accounted for on receipt basis.

d) All items of expenditure are accounted for on accrual basis

2) The Company has followed the prudential norms as prescribed by the Reserve Bank of indlunSon-Banking Financial Companies Prudential Norms (Reserve Bank) Directions 1998 as amended from time to time.

3 Depreciation / Amortisation policy : Depreciation on assets is provided on the Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act,1956 of the leased assets is amortised during the lease period, for all assets acquit since inception, as recommended in the "Guidance Note on Accounting for Leases (Revised)" issued by the Institute of Chartered Accountants of India. Depreciation has not been provided on repossessed assets pending the sale and /or realization of the assets since the assets are not put into use after such repossession.

4. Valuation of Fixed Assets;

Fixed Assets are carried at historical cost less accumulated depreciation.

5 Inventory of Shares:

Shares and Securities are valued at Cost or market price whichever is lower.

6 Detainee with Accounting Standards Appropriate Accounting Standards have been duly considered while prepping the financial and other statements.

7. Retirements Benefits:

Retirement benefits are accounted for on Accrual basis as per Revised Accounting Standard -15 on the basis of actuarial valuation.

8. Accounting for Taxes on Income (AS 22)

Deferred Tax Assets / Liability is recognized as per Accounting Standard AS 22 on Accounting for taxes on Income'' Skied by The Institute of Chartered Accountants of India.

8. Contingent Liabilities. : Nil

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Mar 31, 2011

1. The accounts have been prepared under the historical cost convention.

2. income and Expenditure recognition :

a) Lease Income is accounted as per the terms of the respective lease agreements.

b) Interest on loans are accounted for on accrual basis.

c) Dividend on shares and other incomes are accounted for on receipt basis.

d) All items of expenditure are accounted for on accrual basis.

3. The Company has followed the prudential norms as prescribed by the Reserve Bank of India under Non-Banking financial Companies Prudential Norms (Reserve Bank) Directions 1998 as amended from time to time.

4. Depreciation / Amortization policy : Depreciation on assets is provided on the Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956. The Cost of the leased assets is amortized during the lease period, for all the assets acquired since inception, as recommended in the "Guidance Note on Accounting for Leases (Revised)" issued by the Institute of Chartered Accountants of India.

Depreciation has not been provided on repossessed assets pending the sale and / or realization of the assets since the assets are not put into use after such repossession.

5. Valuation of Fixed Assets :

Fixed Assets are carried at historical cost less accumulated depreciation.

6. Inventory of Shares:

Shares and Securities are valued at Cost or market price whichever is lower.

7. Compliance with Accounting Standards:

Appropriate Accounting Standards have been duly considered while preparing the financial and other statements.

8. Retirements Benefits:

Retirement benefits are accounted for on Accrual basis as per Revised Accounting Standard -15 on the basis of actuarial valuation.

9. Accounting for Taxes on Income (AS 22)

Deferred Tax Assets / Liability is recognized as per Accounting Standard AS 22 on 'Accounting for taxes on Income' issued by The Institute of Chartered Accountants of India.

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Mar 31, 2010

1. The accounts have been prepared under the historical cost convention.

2. Income and Expenditure recognition :

a) Lease Income is accounted as per the terms of the respective lease agreements.

b) Interest on loans are accounted for on accrual basis.

c) Dividend on shares and other incomes are accounted for on receipt basis.

d) All items of expenditure are accounted for on accrual basis.

3. The Company has followed the prudential norms as prescribed by the Reserve Bank of India under Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions 1998 as amended from time to time.

4. Depreciation /Amortisation policy: Depreciation on assets is provided on the Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

The Cost of the leased assets is amortised during the lease period, for all the assets acquired since inception, as recommended in the "Guidence Note on Accounting for Leases (Revised)" issued by the Institute of Chartered Accountants of India.

Depreciation has not been provided on repossessed assets pending the sale and / or realization of the assets since the assets are not put into use after such repossession.

5. Valuation of Fixed Assets :

Fixed Assets are carried at historical cost less accumulated depreciation.

6. Inventory of Shares:

Shares and Securities are valued at Cost or market price whichever is lower.

7. Compliance with Accounting Standards :

Appropriate Accounting Standards have been duly considered while preparing the financial and other statements.

8. Retirements Benefits:

Retirement benefits are accounted for on Accural basis as per Revised Accounting Standard -15 on the basis of acturial valuation.

9. Accounting for Taxes on Income (AS 22)

Deferred Tax Assets / Liability is recognized as per Accounting Standard AS 22 on Accounting for taxes on Income issued by The Institute of Chartered Accountants of India.