Accounting Policies of LKP Finance Ltd. Company

Mar 31, 2025

2 Material accounting policies

(a) Basis of preparation

“The financial statements have been prepared in
accordance with Indian Accounting Standards
(Ind AS) as per the Companies (Indian Accounting
Standards) Rules, 2015 as amended from time to time
and notified under section 133 of the Companies
Act, 2013 (the Act) along with other relevant
provisions of the Act and the Master Direction -
Non-Banking Financial Company (Reserve Bank)
Directions, 2016 (‘the NBFC Master Directions’),
Circulars, guidelines and directions issued by RBI.
These financial statements have been prepared
on a going concern basis and presented under
the historical cost convention, on accrual basis
of accounting except for certain financial assets
and liabilities that are measured at fair values
at the end of each reporting period, as stated
in the accounting policies stated out below.
Accounting policies have been consistently
applied except where newly issued accounting
standard is initially adopted or a revision to an
existing accounting standard requires a change in
the accounting policy hitherto in use.”

Rounding of amounts

These financial statements are presented in Indian
Rupees (INR)/(RS), which is also its functional
currency and all values are rounded to the nearest
lakh as per the requirement of schedule III (except
per share data), unless otherwise stated ‘0’ (zero)
denotes amount less than thousand.

(b) Presentation of financial statements

The Company presents its Balance Sheet in order
of liquidity. The Company prepares and present its
Balance Sheet, the Statement of Profit and Loss and
the Statement of Changes in Equity in the format

prescribed by Division III of Schedule III to the Act.
The Statement of Cash Flows has been prepared
and presented as per the requirements of Ind AS 7
‘Statement of Cash Flows’. The Company generally
reports financial assets and financial liabilities on a
gross basis in the Balance Sheet. They are offset and
reported net only when Ind AS specifically permits the
same or it has an unconditional legally enforceable
right to offset the recognised amounts without
being contingent on a future event. Similarly, the
Company offsets incomes and expenses and reports
the same on a net basis when permitted by Ind AS
specifically unless they are material in nature. The
preparation of the Company’s financial statements
requires Management to make use of estimates and
judgments. In view of the inherent uncertainties
and a level of subjectivity involved in measurement
of items, it is possible that the outcomes in the
subsequent financial years could differ from those
based on Management’s estimates.

(c) Property, plant and equipment

Property, Plant and Equipment are stated at cost
less accumulated depreciation and accumulated
impairment losses if any. Cost comprises the
purchase price and any attributable cost of
bringing the asset to its working condition for its
intended use.

(d) Depreciation on property, plant and equipment

“Depreciable amount for property, plant and
equipment is the cost of an asset or other amount
substituted for cost less its estimated residual value.
Depreciation on property, plant and equipment is
provided on straight-line method as per the useful
life prescribed in Schedule II to the Companies
Act, 2013.”

(e) Derecognition of property, plant and equipment

The carrying amount of an item of property, plant
and equipment is derecognised on disposal or
when no future economic benefits are expected
from its use or disposal. The gain or loss arising
from the derecognition of an item of property,
plant and equipment is measured as the difference
between the net disposal in proceeds and the
carrying amount of the item and is recognised in
the Statement of Profit and Loss when the item is
derecognised.

(f) Lease Accounting and Right of Use Assets (ROU)
Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease. That
is, if the contract conveys the right to control the
use of an identified asset for a period of time in
exchange for consideration.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except
for short-term leases and leases of low-value
assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets
representing the right to use the underlying
assets.

(i) Right of Use Assets (ROU)

The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use). Right-of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount
of lease liabilities recognised, initial direct
costs incurred, and lease payments made at
or before the commencement date less any
lease incentives received. Right-of-use assets
are generally depreciated over the lease term
on a straight-line basis.

The right-of-use assets are also subject to
impairment. Refer to the material accounting
policies - Impairment of non-financial assets

(ii) Lease liabilities

(A) At the commencement date of the
lease, the Company recognises lease
liabilities measured at the present value
of lease payments to be made over the
lease term. The lease payments include
fixed payments (including insubstance
fixed payments) less any lease
incentives receivable, variable lease
payments that depend on an index or a
rate, and amounts expected to be paid
under residual value guarantees.

In calculating the present value of
lease payments, the Company uses
its incremental borrowing rate at the
lease commencement date. After the
commencement date, the amount of
lease liabilities is increased to reflect
the accretion of interest and reduced
for the lease payments made. In
addition, the carrying amount of lease
liabilities is remeasured if there is a
modification, a change in the lease
term, a change in the lease payments
(e.g., changes to future payments
resulting from a change in an index
or rate used to determine such lease
payments).

(B) Short-term leases and leases of low-
value assets

The Company applies the short-term
lease recognition exemption to its
short-term leases of rented premises
(i.e., those leases that have a lease
term of 12 months or less from the
commencement date and do not
contain a purchase option). It also
applies the lease of low-value assets
recognition exemption to leases of
office equipment that are considered to
be low value. Lease payments on short¬
term leases and leases of low-value
assets are recognised as expense on a
straight-line basis over the lease term.

(g) Impairment of non-financial assets

The carrying amounts of non financial assets are
reviewed at each balance sheet date if there is
any indication of impairment based on internal/
external factors. An asset is treated as impaired
when the carrying amount exceeds its recoverable
value. The recoverable amount is the greater of an
asset’s or cash generating unit’s, net selling price
and value in use. In assessing value in use, the
estimated future cash flows are discounted to the
present value using a pre-tax discount rate that
reflects current market assessment of the time
value of money and risks specific to the assets. An
impairment loss is charged to the statement ofprofit
and loss in the year in which an asset is identified
as impaired. After impairment, depreciation
is provided on the revised carrying amount
of the asset over its remaining useful life. The
impairment loss recognized in prior accounting
periods is reversed by crediting the statement of
profit and loss if there has been a change in the
estimate of recoverable amount.

(h) Cash and cash equivalents

(i) Cash and cash equivalents in the balance
sheet comprise cash at bank and on hand
and short-term deposit with original
maturity upto three months, which are
subject to insignificant risk of changes in
value.

(ii) For the purpose of presentation in the
statement of cash flows, cash and cash
equivalents consists of cash and short-term
deposit, as defined as they are considered
as integral part of Company’s cash
management.

(i) Fair value measurement

The Company has an established control framework
with respect to the measurement of fair values.
The management regularly reviews significant
unobservable inputs and valuation adjustments.

All financial assets and financial 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:

• Level 1 — Quoted (unadjusted) market prices
in active markets for identical assets or
liabilities;

• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable, or

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

The Company recognises transfers between
levels of the fair value hierarchy at the end of the
reporting period during which the change has
occurred

(I) Financial instruments

Financial instruments is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

i Initial recognition

“Financial assets are recognized when the
Company becomes a party to the contractual
provisions of the financial instrument.
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 and loss) 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 and loss are recognised
immediately in the statement of profit and

lose ”

ii Subsequent measurement

Financial assets are classified into the
following specified categories: amortised
cost, financial assets at fair value through
profit and loss (FVTPL), Fair value through
other comprehensive income (FVTOCI). The
classification depends on the Company’s
business model for managing the financial
assets and the contractual terms of cash
flows.

Debt Instrument
Amortised Cost

A financial asset is subsequently measured at
amortised cost if it is held within a business
model whose objective is to hold the asset in
order to collect contractual cash flows and
the contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest
on the principal amount outstanding. This
category generally applies to cash and bank
balances, trade receivables, loans and other
financial assets

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method, less impairment, if any.
The EIR amortisation is included in finance
income in the Statement of Profit and Loss.
The losses arising from impairment are
recognised in the Statement of Profit and
Loss.

Fair value through other comprehensive
income (FVTOCI)

A ‘debt instrument’ is classified as at the
FVTOCI if both the following criteria
are met:

a. The objective of the business
model is achieved both by
collecting contractual cash flows
and selling the financial assets.

b. The asset’s contractual cash flows
represent solely payments of
principal and interest.

Debt instruments included within the
FVTOCI category are measured initially
as well as at each reporting date at
fair value. Fair value movements are
recognized in the other comprehensive
income (OCI). However, the Company

recognizes interest income, impairment
losses and reversals and foreign
exchange gain or loss in the statement of
profit and loss. On derecognition of the
asset, cumulative gain or loss previously
recognised in OCI is reclassified from
the equity to statement of profit and loss.
Interest earned whilst holding FVTOCI
debt instrument is reported as interest
income using the EIR method.

Fair value through Profit and Loss
(FVTPL)

FVTPL is a residual category for debt
instruments. Any debt instrument,
which does not meet the criteria
for categorization as at amortized
cost or as FVTOCI, is classified as at
FVTPL. In addition, the Company
may elect to designate a debt
instrument, which otherwise meets
amortized cost or FVTOCI criteria, as
at FVTPL. However, such election is
considered only if doing so reduces
or eliminates a measurement or
recognition inconsistency (referred to
as ‘accounting mismatch’).

Debt instruments included within the
FVTPL category are measured at fair
value with all changes recognized in
the statement of profit and loss.

Equity investments

The Company measures its equity
investments other than in subsidiary
at fair value through profit and loss.
However, where the Company’s
management makes an irrevocable
choice on initial recognition to
present fair value gains and losses on
specific equity investments in other
comprehensive income, there is no
subsequent reclassification, on sale
or otherwise, of fair value gains and
losses to statement of profit and loss.
When the investment is disposed of,
the cumulative gain or loss previously
accumulated in FVTOCI is transferred
from FVTOCI to Retained Earnings.

Investment in subsidiary

Investment in subsidiary is carried at
cost and are not adjusted to fair value
at the end of each reporting date. The
Company reviews at the end of each
reporting period, if there are any
indications, that the said investment

may be impaired. If so the Company
estimates the recoverable value/
amount of the investment and provides
for impairment, if any, i.e. deficit in the
recoverable value over cost.

Derivative financial instruments

Derivative financial instruments are
classified and measured at fair value
through profit and loss.

Purchased or originated credit-
impaired (POCI) financial assets

POCI financial assets are treated
differently because the asset is credit-
impaired at initial recognition. For
these assets, the Company recognises
all changes in lifetime ECL since initial
recognition as a loss allowance with
any changes recognised in Statement
of Profit and Loss. A favourable change
for such assets creates an impairment
gain.

iii Derecognition of financial assets

A financial asset is derecognised only when

i) The Company has transferred the
rights to receive cash flows from the
asset or the rights have expired ;

ii) The Company retains the contractual
rights to receive the cash flows of
the financial asset, but assumes
a contractual obligation to pay
the cash flows to one or more
recipients in an arrangement.

Where the entity has transferred an
asset, the Company evaluates whether
it has transferred substantially all
risks and rewards of ownership of
the financial asset. In such cases,
the financial asset is derecognised.
Where the entity has not transferred
substantially all risks and rewards of
ownership of the financial asset, the
financial asset is not derecognised.

Impairment of financial assets

The Company measures the expected
credit loss associated with its assets
based on historical trend, industry
practices and the business environment
in which the entity operates or any other
appropriate basis. The impairment
methodology applied depends on
whether there has been a significant
increase in credit risk.

Significant increase in credit risk

The Company monitors all financial
assets, issued irrevocable loan
commitments and financial guarantee
contracts that are subject to the
impairment requirements to assess
whether there has been a significant
increase in credit risk since initial
recognition. If there has been a
significant increase in credit risk
the Company will measure the
loss allowance based on lifetime
rather than twelve-months ECL. The
Company’s accounting policy is not
to use the practical expedient that
financial assets with ‘low’ credit risk
at the reporting date are deemed not
to have had a significant increase in
credit risk. As a result, the Company
monitors all financial assets, issued
irrevocable loan commitments and
financial guarantee contracts that are
subject to impairment for significant
increase in credit risk.

In assessing whether the credit risk on
a financial instrument has increased
significantly since initial recognition,
the Company compares the risk of
a default occurring on the financial
instrument at the reporting date based
on the remaining maturity of the
instrument with the risk of a default
occurring that was anticipated for
the remaining maturity at the current
reporting date when the financial
instrument was first recognised.
In making this assessment, the
Company considers both quantitative
and qualitative information that is
reasonable and supportable, including
historical experience and forward¬
looking information that is available
without undue cost or effort, based on
the Company’s historical experience
and expert credit assessment.

Given that a significant increase in
credit risk since initial recognition is
a relative measure, a given change, in
absolute terms, in the probability of
default (PD) will be more significant
for a financial instrument with a lower
initial PD than compared to a financial
instrument with a higher PD.

Definition of default

Critical to the determination of ECL is
the definition of default. The definition
of default is used in measuring the
amount of ECL and in the determination
of whether the loss allowance is based on
12-month or lifetime ECL, as default is a
component of the probability of default
(PD) which affects both the measurement
of ECLs and the identification of a
significant increase in credit risk.

The Company considers the following
as constituting an event of default:

• the borrower is past due more
than 90 days on any material
credit obligation to the Company;
or

• the borrower is unlikely to pay its
credit obligations to the Company
in full.

The definition of default is
appropriately tailored to reflect
different characteristics of
different types of assets.

When assessing if the borrower is
unlikely to pay its credit obligation,
the Company takes into account
both qualitative and quantitative
indicators. The information
assessed depends on the type of
the asset.

Write-off

Loans and debt securities are written-
off when the Company has no
reasonable expectations of recovering
the financial asset (either in its entirety
or a portion of it). This is the case
when the Company determines that
the borrower does not have assets or
sources of income that could generate
sufficient cash flows to repay the
amounts subject to the write-off. A
write-off constitutes a derecognition
event. The Company may apply
enforcement activities to financial
assets written off. Recoveries resulting
from the Company’s enforcement
activities will result in impairment
gains.

Presentation of allowance for ECL in
the Balance Sheet

Loss allowances for ECL are presented
in the Balance Sheet as follows:

• for financial assets measured at
amortised cost: as a deduction
from the gross carrying amount
of the assets;

• for debt instruments measured
at FVTOCI: no loss allowance is
recognised in the Balance Sheet
as the carrying amount is at fair
value.

• where a financial instrument
includes both a drawn and an
undrawn component, and the
Company cannot identify the
ECL on the loan commitment
component separately from
those on the drawn component:
the Company presents a
combined loss allowance
for both components. The
combined amount is presented
as a deduction from the gross
carrying amount of the drawn
component.

Financial liabilities and equity instruments

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

Equity instruments

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by the Company
are recognised at the proceeds received, net
of direct issue costs.

Repurchase of the Company’s own equity
instruments is recognised and deducted
directly in equity. No gain or loss is
recognised on the purchase, sale, issue or
cancellation of the Company’s own equity
instruments.

Financial liabilities

i Classification

Financial liabilities are recognized
when Company becomes party
to contractual provisions of the
instrument. The Company determines
the classification of its financial
liability at initial recognition. All
financial liabilities are recognised
initially at fair value plus transaction
costs that are directly attributable to
the acquisition of the financial liability
except for financial liabilities classified
as fair value through profit or loss.
The Company classifies all financial
liabilities at amortised cost or fair value
through profit or loss.

ii Subsequent measurement

For the purposes of subsequent
measurement, financial liabilities are
classified in two categories:

i) Financial liabilities measured at
amortised cost

ii) Financial liabilities measured at
FVTPL (fair value through profit
or loss)

i) Financial liabilities

measured at amortised cost

After initial recognition,
financial liabilities are
subsequently measured at
amortized cost using the
EIR method. Gains and
losses are recognised in
the statement of profit and
loss when the liabilities
are derecognised as
well as through the EIR
amortization process.
Amortized cost is
calculated by taking into
account any discount or
premium on acquisition
and fee or costs that are
an integral part of the EIR.
The EIR amortisation is
included in finance costs in
the statement of profit and
loss.

ii ) Financial liabilities measured
at fair value through profit or
loss

A financial liability is
classified as at FVTPL if
it is classified as held for
trading or it is designated as
such on initial recognition.
Financial liabilities at
FVTPL are measured at
fair value and net gains
and losses, including
any interest expense, are
recognised in profit or loss.

Trade and other payables

These amounts represent
liabilities for goods and
services provided to the
Company prior to the end
of financial year which are
unpaid. For trade and other
payables maturing within
one year from the balance
sheet date, the carrying
amounts approximate fair
value due to the short¬
term maturity of these
instruments.

iii De-recognition of financial liabilities

A financial liability is de-recognised
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 de-recognition of the
original liability and the recognition
of a new liability. The difference in
the respective carrying amounts is
recognised in the statement of profit or
loss.

(j) Borrowing costs

Borrowing costs attributable to the acquisition or
construction of qualifying assets are capitalised
as part of cost of such assets. All other borrowing
costs are expensed in the period in which they
occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection
with the borrowing of funds and is measured with
reference to the effective interest rate applicable to
the respective borrowings.

---

Mar 31, 2024

1    Company information

LKP Finance Limited (“the Company’) is domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange (BSE) in India. The Company’s registered office is located at 203, Embassy Centre, Nariman Point, Mumbai 400021, Maharashtra, India. The Company is engaged in the business of finance and trading in shares and securities, derivatives etc. The Company obtained permission from the Reserve Bank of India (RBI ) for carrying on the business of Non-Banking Financial Institutions on 21 May 2009 vide Regn No. B.13.01282.

The separate financial statement (hereinafter referred to as “Financial Statements”or “Standalone Financial Statements”) of the Company for the year ended 31 March 2024 were authorised for issue by the Board of Directors at the meeting held on 26 April, 2024.

2    Material accounting policies

(a)    Basis of preparation

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act and the Master Direction -Non-Banking Financial Company (Reserve Bank) Directions, 2016 (‘the NBFC Master Directions’) issued by RBI. These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies stated out below.

The financial statements have been prepared on a going concern basis. The Company presents its Balance Sheet, the Statement of Changes in Equity, the Statement of Profit and Loss and disclosures are presented in the format prescribed under Division III of Schedule III of the Companies Act, as amended from time to time that are required to comply with Ind AS. The Statement of Cash Flows has been presented as per the requirements of Ind AS 7 Statement of Cash Flows.

Accounting policies have been consistently applied except where newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Rounding of amounts

These financial statements are presented in Indian Rupees (INR)/ (RS), which is also its functional currency and all values are rounded to the nearest lakh as per the requirement of schedule III (except per share data), unless otherwise stated ‘0’ (zero) denotes amount less than thousand.

(b)    Presentation of financial statements

The Company presents its Balance Sheet in order of liquidity. The Company prepares and present its Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity in the format prescribed by Division III of Schedule III to the Act. The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 ‘Statement of Cash Flows’. The Company generally reports financial assets and financial liabilities on a gross basis in the Balance Sheet. They are offset and reported net only when Ind AS specifically permits the same or it has an unconditional legally enforceable right to offset the recognised amounts without being

contingent on a future event. Similarly, the Company offsets incomes and expenses and reports the same on a net basis when permitted by Ind AS specifically unless they are material in nature. The preparation of the Company’s financial statements requires Management to make use of estimates and judgments. In view of the inherent uncertainties and a level of subjectivity involved in measurement of items, it is possible that the outcomes in the subsequent financial years could differ from those based on Management’s estimates.

(c)    Property, plant and equipment

Property, Plant and Equipments are stated at cost less accumulated depreciation and accumulated impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Right of Use Assets (ROU): The Company as a lessee records an ROU asset for each lease with an original term greater than 12 months. ROU assets includes Office premises, with the corresponding lease liabilities disclosed in the financial liabilities. Depreciation on ROU asset is being charged on the basis of lease term

(d)    Depreciation on property, plant and equipment

Depreciable amount for property, plant and equipment is the cost of an asset or other amount substituted for cost less its estimated residual value.

Depreciation on property, plant and equipment is provided on straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(e)    Derecognition of property, plant and equipment

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of property, plant and equipment is measured as the difference between the net disposal in proceeds and the carrying amount of the item and is recognised in the Statement of Profit and Loss when the item is derecognised.

(f)    Leases

(i) The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

 

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

(ii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of rented premises (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

(g)    Cash and cash equivalents

(i)    Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short-term deposit with original maturity upto three months, which are subject to insignificant risk of changes in value.

(ii)    For the purpose of presentation in the statement of cash flows, cash and cash equivalents consists of cash and short-term deposit, as defined as they are considered as integral part of Company’s cash management.

(h)    Fair value measurement

The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant unobservable inputs and valuation adjustments.

All financial assets and financial 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:

•    Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

•    Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable, or

•    Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(I) Financial instruments

Financial instruments is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets i Initial recognition

Financial assets are recognized when the Company becomes a party to the contractual provisions of the financial instrument.

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 and loss)

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 and loss are recognised immediately in the statement of profit and loss.

ii Subsequent measurement

Financial assets are classified into the following specified categories: amortised cost, financial assets at fair value through profit and loss (FVTPL), Fair value through other comprehensive income (FVTOCI). The classification depends on the Company’s business model for managing the financial assets and the contractual terms of cash flows.

Debt Instrument Amortised Cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. This category generally applies to trade and other receivables.

Fair value through other comprehensive income (FVTOCI)

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

a.    The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets.

b.    The asset’s contractual cash flows represent solely payments of principal and interest.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

Fair value through Profit and Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is considered only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’).

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.

Equity investments

The Company measures its equity investments other than in subsidiary at fair value through profit and loss. However where the Company’s management makes an irrevocable choice on initial recognition to present fair value gains and losses on specific equity investments in other comprehensive income, there is no subsequent reclassification, on sale or otherwise, of fair value gains and losses to statement of profit and loss.

Investment in subsidiary

Investment in subsidiary are carried at cost and are not adjusted to fair value at the end of each reporting date. The Company assess at the end of each reporting period, if there are any indications, that the said investment may be impaired. If so the Company estimates the recoverable value/ amount of the investment and provides for impairment, if any, i.e. deficit in the recoverable value over cost. Derivative financial instruments

Derivative financial instruments are classified and measured at fair value through profit and loss.

Purchased or originated credit-impaired (POCI) financial assets

POCI financial assets are treated differently because the asset is credit-impaired at initial recognition. For these assets, the Company recognises all changes in lifetime ECL since initial recognition as a loss allowance with any changes recognised in Statement of Profit and Loss. A favourable change for such assets creates an impairment gain. iii Derecognition of financial assets

A financial asset is derecognised only when

i)    The Company has transferred the rights to receive cash flows from the asset or the rights have expired ;

ii)    The Company retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients in an arrangement.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Significant increase in credit risk

The Company monitors all financial assets, issued irrevocable loan commitments and financial guarantee contracts that are subject to the impairment requirements to assess whether there has been a significant increase in credit risk since initial recognition. If there has been a significant increase in credit risk the Company will measure the loss allowance based on lifetime rather than twelve-months ECL. The Company’s accounting policy is not to use the practical expedient that financial assets with ‘low’ credit risk at the reporting date are deemed not to have had a significant increase in credit risk. As a result, the Company monitors all financial assets, issued irrevocable loan commitments and financial guarantee contracts that are subject to impairment for significant increase in credit risk.

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company compares the risk of a default occurring on the financial instrument at the reporting date based on the remaining maturity of the instrument with the risk of a default occurring that was anticipated for the remaining maturity at the current reporting date when the financial

instrument was first recognised. In making this assessment, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort, based on the Company’s historical experience and expert credit assessment.

Given that a significant increase in credit risk since initial recognition is a relative measure, a given change, in absolute terms, in the probability of default (PD) will be more significant for a financial instrument with a lower initial PD than compared to a financial instrument with a higher PD.

Definition of default

Critical to the determination of ECL is the definition of default. The definition of default is used in measuring the amount of ECL and in the determination of whether the loss allowance is based on 12-month or lifetime ECL, as default is a component of the probability of default (PD) which affects both the measurement of ECLs and the identification of a significant increase in credit risk.

The Company considers the following as constituting an event of default:

•    the borrower is past due more than 90 days on any material credit obligation to the Company; or

•    the borrower is unlikely to pay its credit obligations to the Company in full.

The definition of default is appropriately tailored to reflect different characteristics of different types of assets.

When assessing if the borrower is unlikely to pay its credit obligation, the Company takes into account both qualitative and quantitative indicators. The information assessed depends on the type of the asset, for example in corporate lending a qualitative indicator used is the admittance of bankruptcy petition by National Company Law Tribunal (NCLT), which is not relevant for retail lending. Quantitative indicators, such as overdue status and non-payment on another obligation of the same counterparty are key inputs in this analysis. The Company uses a variety of sources of information to assess default which are either developed internally or obtained from external sources. The definition of default is applied consistently to all financial instruments unless information becomes available that demonstrates that another default definition is more appropriate for a particular financial instrument.

Write-off

Loans and debt securities are written-off when the Company has no reasonable expectations of recovering the financial asset (either in its entirety or a portion of it). This is the case when the Company determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A write-off constitutes a derecognition event. The Company may apply enforcement activities to financial assets written off. Recoveries resulting from the Company’s enforcement activities will result in impairment gains.

Presentation of allowance for ECL in the Balance Sheet

Loss allowances for ECL are presented in the Balance Sheet as follows:

•    for financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets;

•    for debt instruments measured at FVTOCI: no loss allowance is recognised in the Balance Sheet as the carrying amount is at fair value.

•    where a financial instrument includes both a drawn and an undrawn component, and the Company cannot identify the ECL on the loan commitment component separately from those on the drawn component: the Company presents a combined loss allowance for both components. The combined amount is presented as a deduction from the gross carrying amount of the drawn component.

Financial liabilities and equity instruments

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

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

Net Gain/ loss on fair value changes includes the effect of financial instruments held at fair value through Profit or loss ( FVTPL ) for continuing and discontinuing portfolio.

Financial liabilities

i    Classification

Financial liabilities are recognized when Company becomes party to contractual provisions of the instrument. The Company determines the classification of its financial liability at initial recognition. All financial liabilities are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial liability except for financial liabilities classified as fair value through profit or loss. The Company classifies all financial liabilities at amortised cost or fair value through profit or loss.

ii    Subsequent measurement

For the purposes of subsequent measurement, financial liabilities are classified in two categories:

i)    Financial liabilities measured at amortised cost

ii)    Financial liabilities measured at FVTPL (fair value through profit or loss)

i) Financial liabilities measured at amortised cost

After initial recognition, financial liability are subsequently measured at amortized cost using the EIR method. Gains and losses are recognised in the statement of profit and loss when the liabilities are derecognised as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the statement of profit and loss.

ii ) Financial liabilities measured at fair value through profit or loss

After initial recognition, loans, borrowings and deposits are subsequently measured at amortised cost using the effective interest

rate (EIR) method. Gains and losses are recognised in the statement of profit and loss when the liabilities are derecognised as well as through the EIR amortization process. The EIR amortisation is included in finance costs in the statement of profit and loss.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short-term maturity of these instruments.

iii De-recognition of financial liabilities

A financial liability is de-recognised 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 de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

(i)    Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate applicable to the respective borrowings.

(j)    Provisions, contingent liabilities and contingent assets

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.

If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements, however they are disclosed where the inflow of economic benefits is probable. When the realisation of income is virtually certain, then the related asset is no longer a contingent asset and is recognised as an asset.

(k)    Revenue recognition

The Companies (Indian Accounting Standards) Amendment Rules, 2018 issued by the Ministry of Corporate Affairs (MCA) notified Ind AS 115 “Revenue from Contracts with Customers” related to revenue recognition which replaces all existing revenue recognition standards and provide a single, comprehensive model for all contracts with

customers. The revised standard contains principles to determine the measurement of revenue and timing of when it is recognized. The amendment also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in those judgments as well as assets recognized from costs incurred to fulfil these contracts.

A. Revenue - Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of service rendered is net of variable consideration on account of various discount and schemes offered by the Company as part of contract .

a)    Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

b)    Dividend income is recognised when the Company’s right to receive dividend is established.

c)    Advisory fees is measured and recognised as per the terms of the agreement.

Transaction price is accounted net of GST. Since GST is not received by the Company on its own account, rather, it is collected by the Company on behalf of the government. Accordingly, it is excluded from revenue.

(d)    The Company designates certain financial assets for subsequent measurement at fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI). The Company recognises gains on fair value change of financial assets measured at FVTPL and realised gains on derecognition of financial asset measured at FVTPL and FVOCI on net basis in profit or loss.

(e)    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 .

B.    Contract Costs

In accordance with Ind AS - 115, incremental costs to obtain a contract are capitalized and amortized over the contract term if the cost are expected to be recoverable. The Company does not capitalize incremental costs to obtain a contract where the contract duration is expected to be one year or less.

C.    Arrangements with Multiple Performance Obligations

The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price, which is generally determined based on the price charged to customers.

D.    Contract assets and liabilities

Contract assets relate primarily to the Company’s rights to consideration for work completed but not billed at each reporting date. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Company issues an invoice to a customer.

Contract liabilities primarily relate to consideration received in advance from customers, for which the performance obligation is yet to be satisfied.

(l)    Retirement and other employee benefits

(i)    The Company operates both defined benefit and defined contribution schemes for its employees.

For defined contribution schemes the amount charged as expense is equal to the contributions paid or payable when employees have rendered services entitling them to the contributions.

For defined benefit plans, actuarial valuations are carried out at each balance sheet date using the Projected Unit Credit Method. All such plans are funded.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability/ (asset) are recognized in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability/ (asset) comprising actuarial gains and losses (excluding interest on the net defined benefit liability/ (asset)) are recognised in Other Comprehensive Income (OCI). Such remeasurements are not reclassified to the statement of profit and loss, in the subsequent periods.

(ii)    Short term employee benefits: All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability.

(m)    Accounting for taxes on income

Tax expense comprises of current and deferred tax.

Current tax

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Current tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. 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.

Current tax is recognized in the statement of profit and loss except to the extent that the tax relates to items recognized directly in other comprehensive income or directly in equity.

Deferred tax

Deferred tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred tax arises from the initial recognition of an asset or liability that effects neither accounting nor taxable profit or loss at the time of transition.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at 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.

Presentation of current and deferred tax

Current and deferred tax are recognized as income or an expense in the statement of profit and loss, except to the extent they relate to items that are recognized in other comprehensive income, in which case, the current and deferred tax income / expense are recognised in other comprehensive income.

(n)    Impairment of non-financial assets

The carrying amounts of non financial assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying amount exceeds its recoverable value. The recoverable amount is the greater of an asset’s or cash generating unit’s, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value using a pre-tax discount rate that reflects current market assessment of the time value of money and risks specific to the assets. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. The impairment loss recognized in prior accounting periods is reversed by crediting the statement of profit and loss if there has been a change in the estimate of recoverable amount.

(o)    Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the period. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period, except when the results would be anti-dilutive.

(p)    Contributed equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

(q)    Provisions

Provision is recognised when an enterprise has a present obligation (legal or constructive) as a result of a 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 determined based on management estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions.These are reviewed at the balance sheet date and adjusted to reflect the current management estimates.

(r)    Dividend

Provision is made for the amount of any dividend declared on or before the end of the reporting period but remaining undistributed at the end of the reporting period, where the same has been appropriately authorised and is no longer at the discretion of the entity.

(s)    Trade receivables

The Company applies the Ind AS 109 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

(t)    Exceptional items

In certain occasions, the size, type, or incidences of the item of income or expenses pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, Such income or expenses are classified as an exceptional item and accordingly, disclosed in the financial statements.

(u)    Critical accounting judgment and estimates

The preparation of financial statements requires management to exercise judgment in applying the Company’s accounting policies. It also requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and the acCompanying disclosures including disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis, with revisions recognised in the period in which the estimates are revised and in any future periods affected. a Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that have a low probability of crystallising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not provided for in the financial statements. There can be no assurance regarding the final outcome of these legal proceedings. b Useful lives and residual values

The Company reviews the useful lives and residual values of property, plant and equipment at each financial year end. c Impairment testing

Judgment is also required in evaluating the likelihood of collection of customer debt after revenue has been recognised. This evaluation requires estimates to be made, including the level of provision to be made for amounts with uncertain recovery profiles. Provisions are based on historical trends in the percentage of debts which are not recovered or on more detailed reviews of individually significant balances.

Determining whether the carrying amount of these assets has any indication of impairment also requires judgment. If an indication of impairment is identified, further judgment is required to assess whether the carrying amount can be supported by the net present value of future cash flows forecast to be derived from the asset. This forecast involves cash flow projections and selecting the appropriate discount rate.

d Tax

The Company’s tax charge is the sum of the total current and deferred tax charges. The calculation of the Company’s total tax charge necessarily involves a degree of estimation and judgment in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process.

Accruals for tax contingencies require management to make judgments and estimates in relation to tax related issues and exposures.

The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of temporary differences can be deducted. Where the temporary differences are related to losses, the availability of the losses to offset against forecast taxable profits is also considered. Recognition therefore involves judgment regarding the future financial performance of the particular legal entity or tax Company in which the deferred tax asset has been recognized.

e    Defined benefit obligation

The costs of providing pensions and other post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during which benefit is derived from the employees’ services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates. The same is disclosed in Note 35, ‘Employee benefits plan’.

f    Fair value measurement

A number of Company’s accounting policies and disclosures require the measurement of fair values for both financial and non- financial assets and liabilities. When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

-Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. -Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). -Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of a fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of reporting year during which the change has occurred.

g Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company revises the lease term if there is a change in the non-cancellable period of a lease. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

h Determining whether an arrangement contains a lease

In determining whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is or contains a lease date if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset, even if that right is not explicitly specified in the arrangement.

i Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2019

1 Significant Accounting Policies

i Basis of preparation

The financial statements are prepared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material aspects with its accounting standards specified under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the Companies (Accounting Standards) Amendment Rules, 2016, the provisions of the Act) and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those of previous year

ii Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the financial statements and the reported amount of revenue and expenses for the year. Actual results could differ from these estimates. Any revision to estimates is recognised in the period in which the results are known/materalized.

iii Property, Plant and Equipments

Property, Plant and Equipments are stated at cost less accumulated depreciation, and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

iv Depreciation on Property, Plant and equipments

(a) Depreciation on Property, Plant and equipments is provided on straight line method based on the useful life specified in Schedule II of the Companies Act, 2013.

(b) Leasehold improvements are amortised over the period of lease.

v Impairment of Property, Plant and Equipments

At each Balance Sheet date, the Company reviews the carrying amount of assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

vi Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets till the time such assets are ready for its intended use or sale are capitalised as part of the cost of the assets. All other borrowing costs are expensed in the period they occur.

vii Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

viii Investments

(a) Investments intended to be held for more than one year, from the date of acquisition, are classified as long term and are carried at cost. All other investments are considered as current investments. Provision for diminution in value of long term investments is made to recognize a decline other than temporary. Current investments are carried at cost or market value, whichever is lower.

(b) Unquoted investments are valued at cost and provision for diminution in the value of investments is made based on the guidelines prescribed by the Reserve Bank of India or based on the judgement of the management, whichever is higher.

ix Inventories

Shares and Securities acquired with intention of trading are considered as stock-in-trade and are valued at cost or market value, whichever is lower. Cost is determined on weighted average cost basis.

x Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(a) Interest income is recognised on a time proportion basis considering the amount outstanding and the applicable interest rate.

(b) Dividend income is recognized when the Company’s right to receive dividend is established.

(c) Profit or loss on sale of investments/ inventories are recognised on sale net of cost determined on weighted average cost

xi Non - Performing Assets (NPA)

The Company follows the directions of Reserve Bank of India on Prudential Norms for income recognition, provisioning for bad and doubtful debts, provision for contingencies, Accounting of investments etc.

xii Foreign currency transactions

(a) Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction. Foreign currency monetary assets and liabilities are tranlated using the exchange rate prevailing at the reporting date. Non-monetary foreign currency items are carried at cost.

(b) Gains or losses arising on settlement/translation of foreign currency monetary assets and liabilities at the year-end rate are recognized in the Statement of Profit and Loss.

xiii Derivative transactions

(a) Initial and additional margin paid over and above initial margin, for entering into contracts for Equity Index/ Stock Futures/ Commodity futures and Equity Index/ Stock Options/ Commodity Options which are released on final settlement/squaring-up of underlying contracts are disclosed under Other current assets/ Other current liabilities.

(b) “Equity Index/Stock Option Premium/ Commodity Option Premium” represents premium paid or received for buying or selling the options, respectively.

(c) On final settlement or squaring up of contracts for Equity Index / Stock Futures/ Commodity Futures, the realised profit or loss after adjusting the unrealised loss already accounted, if any, is recognised in the Statement of Profit and Loss.

(d) On settlement or squaring up of Equity Index / Stock Options/ Commodity Options before expiry, the premium prevailing in “Equity Index/Stock Option/ Commodity Option Premium” on that date is recognised in the Statement of Profit and Loss.

xiv Retirement and other employee benefits

(a) Short-term employee benefits are expensed at the undiscounted amount in the Statement of profit and loss, in the year the employee renders the service.

(b) Post employment and other long term employee benefits are recognised as an expense in the Statement of profit and loss at the present value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the Statement of profit and loss.

(c) Payments to defined contribution retirement benefit schemes are expensed as and when they fall due.

xv Accounting for taxes on income

(a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates and laws

(c) Minimum Alternate Tax (MAT) paid in accordance with tax laws, which give rise to furture economic benefits in the form of adjustment of future tax liability, is recognised as an asset only when, based on convincing evidence, it is probable that the future economic benefits associated with it will flow to the Company and the assets can be measured reliably.

xvi Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except when the results would be anti-dilutive.

xvii Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2018

1 Significant Accounting Policies

i Basis of preparation

The financial statements are prepared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material aspects with its accounting standards specified under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the Companies (Accounting Standards) Amendment Rules, 2016, the provisions of the Act) and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those of previous year

ii Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the financial statements and the reported amount of revenue and expenses for the year. Actual results could differ from these estimates. Any revision to estimates is recognised in the period in which the results are known/materalized.

iii Property, Plant and Equipments

Property, Plant and Equipments are stated at cost less accumulated depreciation, and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

iv Depreciation on Property, Plant and equipments

(a) Depreciation on Property, Plant and equipments is provided on straight line method based on the useful life specified in Schedule II of the Companies Act, 2013.

(b) Leasehold improvements are amortised over the period of lease.

v Impairment of Property, Plant and Equipments

At each Balance Sheet date, the Company reviews the carrying amount of assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

vi Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets till the time such assets are ready for its intended use or sale are capitalised as part of the cost of the assets. All other borrowing costs are expensed in the period they occur.

vii Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

viii Investments

(a) Investments intended to be held for more than one year, from the date of acquisition, are classified as long term and are carried at cost. All other investments are considered as current investments. Provision for diminution in value of long term investments is made to recognize a decline other than temporary. Current investments are carried at cost or market value, whichever is lower.

(b) Unquoted investments are valued at cost and provision for diminution in the value of investments is made based on the guidelines prescribed by the Reserve Bank of India or based on the judgement of the management, whichever is higher.

ix Inventories

Shares and Securities acquired with intention of trading are considered as stock-in-trade and are valued at cost or market value, whichever is lower. Cost is determined on weighted average cost basis.

x Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(a) Interest income is recognised on a time proportion basis considering the amount outstanding and the applicable interest rate.

(b) Dividend income is recognized when the Company’s right to receive dividend is established.

(c) Profit or loss on sale of investments/ inventories are recognised on sale net of cost determined on weighted average cost

xi Non - Performing Assets

The Company follows the directions of Reserve Bank of India on Prudential Norms for income recognition, provisioning for bad and doubtful debts, provision for contingencies, Accounting of investments etc.

xii Foreign currency transactions

(a) Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction. Foreign currency monetary assets and liabilities are tranlated using theexchange rate prevailing at the reporting date. Nonmonetary foreign currency items are carried at cost.

(b) Gains or losses arising on settlement/translation of foreign currency monetary assets and liabilities at the year-end rate are recognized in the Statement of Profit and Loss.

xiii Derivative transactions

(a) Initial and additional margin paid over and above initial margin, for entering into contracts for Equity Index/ Stock Futures/ Commodity futures and Equity Index/ Stock Options/ Commodity Options which are released on final settlement/squaring-up of underlying contracts are disclosed under Other current assets/ Other current liabilities.

(b) “Equity Index/Stock Option Premium/ Commodity Option Premium” represents premium paid or received for buying or selling the options, respectively.

(c) On final settlement or squaring up of contracts for Equity Index / Stock Futures/ Commodity Futures, the realised profit or loss after adjusting the unrealised loss already accounted, if any, is recognised in the Statement of Profit and Loss.

(d) On settlement or squaring up of Equity Index / Stock Options/ Commodity Options before expiry, the premium prevailing in “Equity Index/Stock Option/ Commodity Option Premium” on that date is recognised in the Statement of Profit and Loss.

xiv Retirement and other employee benefits

(a) Short-term employee benefits are expensed at the undiscounted amount in the Statement of profit and loss, in the year the employee renders the service.

(b) Post employment and other long term employee benefits are recognised as an expense in the Statement of profit and loss at the present value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the Statement of profit and loss.

(c) Payments to defined contribution retirement benefit schemes are expensed as and when they fall due.

xv Accounting for taxes on income

(a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates and laws .

(c) Minimum Alternate Tax (MAT) paid in accordance with tax laws, which give rise to furture economic benefits in the form of adjustment of future tax liability, is recognised as an asset only when, based on convincing evidence, it is probable that the future economic benefits associated with it will flow to the Company and the assets can be measured reliably.

xvi Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except when the results would be anti-dilutive.

xvii Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2017

1. Basis of Accounting

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ( GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the Companies Act,2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board if India(SEBI) and the guidelines issued by the Reserve Bank of India (‘RBI’) as applicable to a Non Banking Finance Company (‘NBFC’). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

The Company follows the practice of accounting for Income on accrual basis except dividend. In respect of loans and advances, interest is accrued on standard advances and on others are accounted on the basis of certainty of collection, and/or receipt basis. In respect of loans classified as NPA’s interest is not accrued from the date the loan is recognized as NPA.

4. Fixed Assets & Depreciation

All Fixed Assets are capitalized at cost inclusive of legal and/ or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation on straight line basis on the basis of useful lives of assets as specified in Schedule II to the Companies Act, 2013.

Depreciation on assets sold / purchased during the year is proportionately charged.

Impairment of Assets

Impairment losses, if any, are recognized in accordance with the Accounting Standard. Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

5. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed under the head current assets. The initial cost of securities comprises actual cost of acquisition and other charges such as brokerage, fees, tax, duty or cess.

b) Securities comprises listed securities and unlisted securities. Listed Securities are classified into :

(i) shares;

(ii) debt securities;

(iii) convertible securities; and

(iv) others

c) Method of Valuation

Listed securities are valued at initial acquisition cost or net realizable value at the close of the year, whichever is lower. Unlisted securities are valued at initial acquisition cost.

6. Non Current Investments

Securities which are intended to be held for more than one year are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the acquisition cost plus brokerage, fees, tax, duty or cess. Provision for diminution in value is made in case the same is other than temporary. Profit or loss on these investments are accounted as and when realized

7. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

8. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Minimum Alternative Tax : In the event the income tax liability as per normal provisions of the Income Tax Act, 1961 is lower than the tax payable as per section 115J ( Minimum Alternative Tax ), tax is provided as per Section 115J.

c) Deferred Tax : In accordance with the Accounting Standard, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

9. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

10. Derivative Transactions.

a) Equity, Currency & Commodity Futures : Gains/Losses on futures transactions are recognized on continuous basis.

b) Options Contracts : Premium on Options contracts are recognized on date of Purchase / Sale. Gains/Losses on options contracts are recognized on squaring off/settlement day.

c) At the close of the financial year, open position of equity instruments and in commodity exchange are disclosed in the notes to accounts.

11. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.

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Mar 31, 2015

1. Basis of Accounting

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the Companies Act,2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board if India(SEBI) and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company (''NBFC''). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date ofthe financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

The Company follows the practice of accounting for Income on accrual basis except dividend. In respect of loans and advances, interest is accrued on standard advances and on others are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets are capitalized at cost inclusive of legal and/ or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation on straight line basis on the basis of useful lives of assets as specified in Schedule II to the Companies Act, 2013.

Depriciation on assets sold / purchased during the year is proportionately charged.

Impairment of Assets

Impairment losses, if any, are recognized in accordance with the Accounting Standard. Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

5. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds as at 31st March, 2015 is considered as market value.

6. Non Current Investments

Securities which are intended to be held for more than one year are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or loss on these investments are accounted as and when realized

7. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

8. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Minimum Alternative Tax : In the event the income tax liability as per normal provisions of the Income Tax Act, 1961 is lower than the tax payable as per section 115J ( Minimum Alternative Tax ), tax is provided as per Section 115J.

c) Deferred Tax : In accordance with the Accounting Standard, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

9. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

10. Derivative Transactions.

a. Equity & Commodity Futures :Gains/Losses on futures transactions are recognized on continous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

11. a. Contingent Liabilities are disclosed by way of a note to

the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.

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Mar 31, 2014

1. Basis of Accounting

The financial statements have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company (''NBFC''). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Company''s general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other business interest the Company follows the practice of accounting for such Income on accrual basis ''except dividend, delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation. The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Impairment of Assets

Impairment losses, if any, are recognized in accordance with Accounting Standard 28(AS 28). Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

6. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds as at 31st March, 2014 is considered as market value.

7. Non Current Investments

Securities which are intended to be held for one year or more are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or Loss on these investments are accounted as and when realized.

8. Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- (Earning per Share) prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

9. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

10. Employee Benefits

Short Term Employee Benefits: (i.e.J benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

11. Derivative Transactions.

a. Equity & Commodity Futures : Gains/Losses on futures transactions are recognized on continuous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

12. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved. b. Contingent Assets are neither recognized nor disclosed.

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Mar 31, 2013

1. Basis of Accounting

The financial statements have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act,1956 and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company (''NBFC''). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Company''s general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other business interest the Company follows the practice of accounting for such Income on accrual basis except dividend,delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Impairment of Assets

Impairment losses, if any, are recognized in accordance with Accounting Standard 28(AS 28). Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

6. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds as at 31st March, 2013 is considered as market value.

7. Non Current Investments

Securities which are intended to be held for one year or more are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losse on these investments are accounted as and when realized

8. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- (Earning per Share) prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

9. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

10. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them. Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

11. Derivative transactions.

a. Equity & Commodity Futures :Gains/Losses on futures transactions are recognized on continous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

12. a. Contingent Liabilities are disclosed by way of a note to the

financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.

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Mar 31, 2012

1. Basis of Accounting

The financial accounts have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956 and the guidelines issue by the Reserve Bank of India ('RBI') as applicable To a Non Banking Finance Company ('NBFC'). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Company's general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other business interests the Company follows the practice of accounting for such Income on accrual basis except delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation as under:

a) On assets for own use: On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Impairment of Assets

Impairment losses, if any, are recognized in accordance with Accounting Standard 28(AS 28). Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

6. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds is considered as market value.

7. Non Current Investments

Securities which are intended to be held for one year or more are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losses on investments are accounted as and when realized

8. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- Earning per Share prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

9. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

10. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

11. Derivative Transactions.

a. Equity & Commody Futures :Gains/Losses on futures transactions are recognized on continuous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

12. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.

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Mar 31, 2011

1. Basis of Accounting

The accounts have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956 and the guidelines issue by the Reserve Bank of India (RBI) as applicable To a Non Banking Finance Company (NBFC). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Companys general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other heads of income the Company follows the practice of accounting for such Income on accrual basis except delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Stock in Trade

a) The securities acquired with the intention of short term holding and trading positions are considered as stock-in-trade and disclosed as current assets.

b) The securities held as stock-in-trade under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds is considered as market value.

6. Investments

Securities which are intended to be held for one year or more are classified as Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losses on investments are accounted as and when realized

7. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- Earning per Share prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

8. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22. "Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

9. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

10. Derivative Transactions—Equity & Commodities Futures and Options

Gains are recognized only on settlement /expiry of derivative instruments.

All open positions are marked to market and unrealized losses are provided for. Unrealized gains, if any, on marked to market are not recognized.

11. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.

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Mar 31, 2010

1. The accounts have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules,2006 notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956.

2. a) In respect of lease and hire purchase agreement it is the

Companys general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

b) In respect of other heads of income the Company follows the practice of accounting for such Income on accrual basis except delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

3. The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

4. All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

5. The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16* December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

6. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losses on investments are accounted as and when realized.

7. a. Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b. Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of, India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

8 Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

9 a. Contingent Liabilities are disclosed by way of a note to

the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.