Accounting Policies of Prism Finance Ltd. Company

Mar 31, 2025

2. Summary of Significant Accounting Policies:-

2.1 Statement of Compliance and Basis of Preparation of Financial Statements: -

These Standalone financial statements are 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)read with Rule 7 in conformity with the accounting principles
generally accepted in India, and other relevant provisions of the act.

The accounting policies have been consistently applied, and financial statements are prepared on a going concern
basis. The company uses an accrual basis except for significant uncertainties. The financial statements have
been prepared on the historical cost basis except for certain financial instruments which are measured at fair
values at the end of each reporting period.

The financial statements are presented in Indian Rupees (‘INR’). Where changes are made in presentation, the
comparative figures of the previous year are regrouped and re-arranged accordingly.

These standalone or separate financial statements were approved by the Company’s Board of Directors and
authorized for issue on 30^th May 2025.

2.2 Measurement of Fair Values:

A number of Company’s accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities. The Company has established policies and procedures with
respect to the measurement of fair values. 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 and liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly or indirectly.

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

2.3 CRITICAL ACCOUNTING JUDGMENTS, ASSUMPTIONS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the Standalone Financial Statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions
are continuously evaluated and are based on management’s experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognized in the standalone financial statements:

(i) Determination of Functional Currency

Currency of the primary economic environment in which the Company operates (“the functional currency”) is
Indian Rupee (?) in which the company primarily generates and expends cash. Accordingly, the Management has
assessed its functional currency to be Indian Rupee (?).

(ii) Provisions and other contingent liabilities

The reliable measure of the estimates and judgements pertaining to litigations and the regulatory proceedings in
the ordinary course of the Company’s business are disclosed as contingent liabilities.

Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to
be reasonable under the circumstances.

(iii) Impairment of Financial Instrument

The measurement of impairment losses on loan assets and commitments, requires judgement, in estimating
the amount and timing of future cash flows and recoverability of collateral values while determining the
impairment losses and assessing a significant increase in credit risk.

The Company’s Expected Credit Loss (ECL) calculation is the output of a complex model with a number of
underlying assumptions regarding the choice of variable inputs and their interdependencies. Elements of the
ECL model that are considered accounting judgements and estimates include:

- The Company’s criteria for assessing if there has been a significant increase in credit risk

- The segmentation of financial assets when their ECL is assessed on a collective basis

- Development of ECL model, including the various formulae and the choice of inputs

- Selection of forward-looking macroeconomic scenarios and their probability weightings, to derive the
economic inputs into the ECL model

It has been the Company’s policy to regularly review its model in the context of actual loss experience and
adjust when necessary.

2.4 Revenue Recognition:

a) Recognition of interest income on loans

Interest income is recognised in Statement of profit and loss using the effective interest method for all
financial instruments measured at amortized cost. The ‘effective interest rate’ is the rate that exactly discounts
estimated future cash payments or receipts through the expected life of the financial instrument.

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

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

b) Rental Income:

In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire
purchase agreements. It is the company’s general policy to accrued income/ expenses as per the terms of
the agreement entered into with the lessee, lessors and hirers from time to time.

c) Dividend and Interest Income :

- Dividends are recognised in Statement of profit and loss only when the right to receive payment is
established, it is probable that the economic benefits associated with the dividend will flow to the
Company and the amount of the dividend can be measured reliably.

- Interest income from investments is recognised when it is certain that the economic benefits will flow to
the Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable.

d) Net Gain/(Loss) on Fair Value Changes:

Any differences between the fair values of the financial assets classified as fair value through the profit or
loss, held by the Company on the balance sheet date is recognised as annualized gain/loss in the statement
of profit and loss. In cases there is a net gain in aggregate, the same is recognised in “Net gains or fair value
changes” under revenue from operations and if there is a net loss the same is disclosed “Expenses”, in the
statement of profit and loss.

2.5 Property, Plant & Equipment & Depreciation :-

All Property, Plant & Equipment 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.

No depreciation has been provided on assets where WDV exceeds 95% of cost.

2.6 Financial instruments:

a) Financial Assets

i) Debt Instruments at Amortised Cost

The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level
of aggregated portfolios being the level at which they are managed. The financial asset is held with the
objective to hold financial asset in order to collect contractual cash flows as per the contractual terms that
give rise on specified dates to cash flows that are solely payment of principal and interest (SPPI) on the
principal amount outstanding. Accordingly, the Company Measures Bank balances, and other financial
instruments at amortized cost.

ii) Debt Instruments at FVTPL

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

iii) Equity Instruments at FVTPL

All equity investments other than in subsidiaries, joint ventures, associates and Unlisted entities are
measured at fair value. Equity instruments which are held for trading are classified as at FVTPL.

iv) De-Recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
asset expires, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party.

On de-recognition of a financial asset in its entirety, the difference between the carrying amount (measured
at the date of de-recognition) and the consideration received (including any new asset obtained less any
new liability assumed) is recognised in profit or loss.

b) Financial Liabilities

i) Recognition

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-for trading or it is a derivative or it is designated as such on initial
recognition. Other financial liabilities are subsequently measured at amortized cost using the effective
interest method. Interest expense and foreign exchange gains and losses are recognised in Statement
of profit and loss. Any gain or loss on de-recognition is also recognised in Statement of profit and loss.

ii) De-Recognition

A financial liability is de-recognised when the obligation in respect of the liability is discharged, cancelled
or expires. The difference between the carrying value of the financial liability and the consideration paid
is recognised in statement of profit and loss.

iii) Off-setting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

2.7 Finance Cost:

Finance costs include interest expense computed by applying the effective interest rate on respective financial
instruments measured at Fair Value. Financial instruments include Inter-Corporate Loans from related parties
measured at Fair Value through Profit and Loss Account (FVTPL) or Amortized Cost. Finance costs are charged
to the Statement of profit and loss. It also includes Interest charged by government authorities on late payment of
Tax.

2.8 Taxation - Current and deferred tax
a) Current tax:

Current tax comprises amount of tax payable in respect of the taxable income or loss for the year determined
in accordance with Income Tax Act, 1961 and any adjustment to the tax payable or receivable in respect of
previous years. The Company’s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

b) Deferred tax:

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences
between the carrying values of assets and liabilities and their respective tax bases. Deferred tax liabilities
and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the
tax consequence that would follow from the manner in which the Company expects, at the end of the
reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available
against which the deductible temporary difference could be utilized. Such deferred tax assets and liabilities
are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred
tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
However, in despite of absence of certainty of future Taxable Profits we have made Provision for deferred
Tax as per Ind AS 12.

---

Mar 31, 2024

2. Summary of Significant Accounting Policies:-

2.1 Statement of Compliance and Basis of Preparation of Financial Statements: -

These Standalone financial statements are 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 CompaniesAct, 2013 (the Act)read with Rule 7 in conformity with the accounting principles
generally accepted in India,and other relevant provisions of the act.

The accounting policies have been consistently applied and financial statements are prepared on going concern
basis. The company uses accrual basis except for significant uncertainties.The financial statements have been
prepared on the historical cost basis except for certain financial instruments which are measured at fair values at
the end of each reporting period.

The financial statements are presented in Indian Rupees (‘INR''). Where changes are made in presentation, the
comparative figures of the previousyear are regrouped and re-arranged accordingly.

These standalone or separate financial statements were approved by the Company''s Board of Directors and authorised
for issue on 30^th May, 2024.

2.2 Measurement of Fair Values:

A number of Company''s accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities. The Company has established policies and procedures with
respect to the measurement of fair values. 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 and liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly or indirectly.

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

2.3 CRITICAL ACCOUNTING JUDGMENTS, ASSUMPTIONS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the Standalone Financial Statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions
are continuously evaluated and are based on management''s experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognized in the standalone financial statements:

(i) Determination of Functional Currency

Currency of the primary economic environment in which the Company operates (“the functional currency”) is
Indian Rupee (?) in which the company primarily generates and expends cash. Accordingly, the Management has
assessed its functional currency to be Indian Rupee (?).

(ii) Provisions and other contingent liabilities

The reliable measure of the estimates and judgements pertaining to litigations and the regulatory proceedings in
the ordinary course of the Company''s business are disclosed as contingent liabilities.

Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to
be reasonable under the circumstances.

(iii) Impairment of Financial Instrument

The measurement of impairment losses on loan assets and commitments, requires judgement, in estimating
the amount and timing of future cash flows and recoverability of collateral values while determining the
impairment losses and assessing a significant increase in credit risk.

The Company''s Expected Credit Loss (ECL) calculation is the output of a complex model with a number of
underlying assumptions regarding the choice of variable inputs and their interdependencies. Elements of the
ECL model that are considered accounting judgements and estimates include:

- The Company''s criteria for assessing if there has been a significant increase in credit risk

- The segmentation of financial assets when their ECL is assessed on a collective basis

- Development of ECL model, including the various formulae and the choice of inputs

- Selection of forward-looking macroeconomic scenarios and their probability weightings, to derive the
economic inputs into the ECL model

It has been the Company''s policy to regularly review its model in the context of actual loss experience and
adjust when necessary.

2.4 Revenue Recognition:

a) Recognition of interest income on loans

Interest income is recognised in Statement of profit and loss using the effective interest method for all
financial instruments measured at amortized cost. The ‘effective interest rate'' is the rate that exactly discounts
estimated future cash payments or receipts through the expected life of the financial instrument.

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

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

b) Rental Income:

In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire
purchase agreements. It is the company''s general policy to accrued income/ expenses as per the terms of
the agreement entered into with the lessee, lessors and hirers from time to time.

c) Dividend and Interest Income :

- Dividends are recognised in Statement of profit and loss only when the right to receive payment is
established, it is probable that the economic benefits associated with the dividend will flow to the
Company and the amount of the dividend can be measured reliably.

- Interest income from investments is recognised when it is certain that the economic benefits will flow to
the Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable.

d) Net Gain/(Loss) on Fair Value Changes:

Any differences between the fair values of the financial assets classified as fair value through the profit or
loss, held by the Company on the balance sheet date is recognised as annualized gain/loss in the statement
of profit and loss. In cases there is a net gain in aggregate, the same is recognised in “Net gains or fair value
changes” under revenue from operations and if there is a net loss the same is disclosed “Expenses”, in the
statement of profit and loss.

2.5 Property, Plant & Equipment & Depreciation :-

All Property, Plant & Equipment 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 isproportionately charged.

No depreciation has been provided on assets where WDV exceeds 95% of cost.

2.6 Financial instruments:

a) Financial Assets

i) Debt Instruments at Amortised Cost

The Company''s business model is not assessed on an instrument-by-instrument basis, but at a higher level
of aggregated portfolios being the level at which they are managed. The financial asset is held with the
objective to hold financial asset in order to collect contractual cash flows as per the contractual terms that
give rise on specified dates to cash flows that are solely payment of principal and interest (SPPI) on the
principal amount outstanding. Accordingly, the Company Measures Bank balances, and other financial
instruments at amortized cost.

ii) Debt Instruments at FVTPL

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

iii) Equity Instruments at FVTPL

All equity investments other than in subsidiaries, joint ventures, associates and Unlisted entities are
measured at fair value. Equity instruments which are held for trading are classified as at FVTPL.

iv) De-Recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party.

On de-recognition of a financial asset in its entirety, the difference between the carrying amount (measured
at the date of de-recognition) and the consideration received (including any new asset obtained less any
new liability assumed) is recognised in profit or loss.

b) Financial Liabilities

i) Recognition

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-for trading or it is a derivative or it is designated as such on initial
recognition. Other financial liabilities are subsequently measured at amortized cost using the effective
interest method. Interest expense and foreign exchange gains and losses are recognised in Statement
of profit and loss. Any gain or loss on de-recognition is also recognised in Statement of profit and loss.

ii) De-Recognition

A financial liability is de-recognised when the obligation in respect of the liability is discharged, cancelled
or expires. The difference between the carrying value of the financial liability and the consideration paid
is recognised in statement of profit and loss.

iii) Off-setting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

2.7 Finance Cost:

Finance costs include interest expense computedby applying the effective interest rate on respective financial
instruments measured at Fair Value. Financial instruments include Inter-Corporate Loans from related parties
measured at Fair Value through Profit and Loss Account (FVTPL) or Amortized Cost. Finance costs are charged
to the Statement of profit and loss. It also includes Interest charged by government authorities on late payment of
Tax.

2.8 Taxation - Current and deferred tax
a) Current tax:

Current tax comprises amount of tax payable in respect of the taxable income or loss for the year determined
in accordance with Income Tax Act, 1961 and any adjustment to the tax payable or receivable in respect of
previous years. The Company''s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

b) Deferred tax:

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences
between the carrying values of assets and liabilities and their respective tax bases. Deferred tax liabilities
and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the
tax consequence that would follow from the manner in which the Company expects, at the end of the
reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available
against which the deductible temporary difference could be utilized. Such deferred tax assets and liabilities
are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred
tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
However, in despite of absence of certainty of future Taxable Profits we have made Provision for deferred
Tax as per Ind AS 12.

---

Mar 31, 2015

A) 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 section133 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.

b) 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.

c) 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.

d) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company's general policy to accrued income/ expenses as per the terms of the agreement entered into with the lessee, lessors and hirers from time to time. In respect of hire purchase business, the company recognizes income on a reducing balance basis.

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

e) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

f) Investments are valued at cost after providing permanent diminution in value thereof.

g) The Company follows the prudential norms for income recognition and provides for/ write's off of Non- performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

h) The benefits of leave encashment of leave to employees, being at the option of the employees is accounted for as and when claimed.

i) 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.

j) Provision for Taxation :

Current Tax : Provision for current tax has been made in accordance with the ordinary provisions of the Income Tax Act.

Minimum Alternative Tax : In the event the income tax liabilities 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.

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.

k) Derivative Transactions :-

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

Options Contracts: Gains / Losses on options contract are recognized on squaring off/settlement day. B) Other Notes to Accounts

---

Mar 31, 2014

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956. Depreciation on additions to assets during the year is provided on a proportionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company''s general policy to accrued income/ expenses as per the terms of the agreement entered into with the lessee.lessors and hirers from time to time. In respect of hire purchase business. The company recognizes income on a reducing balance basis.

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investments are valued at cost after providing permanent diminution in value thereof.

f) The Company follows the prudential norms for income recognition and provides for / write''s off of Non- performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

(i) Provision for current tax has been made in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates as on the balance sheet date.

---

Mar 31, 2012

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :-

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act.1956. Depreciation on additions to assets during the year is provided on a proportionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company's general policy to accure income/expenses as per the terms of the agreement entered into with the lessee. lessors and hirers from time to time. In respect of hire purchase business. The company recognises income on a reducing balance basis

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investment are valued at cost after providing permanent diminution in value thereof.

f) The Company follows the prudential norms for income recognition and provides for/write's off of Non- performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

(i) Provision for current tax has been made in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates as on the balance sheet date.

---

Mar 31, 2011

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :-

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956. Depreciation on additions to assets during the year is provided on a proporionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company's general policy to accure income/expenses as per the terms of the agreements entered into with the lessee, lessors and hirers from time to time. In respect of hire purchase business. The Company recognises income on a reducing balance basis.

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investment are valued at cost after providing permanent diminuation in value thereof.

f) The Company follows the prudential norms for income recognition and provides for/writes off of Non-performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

(i) Provision for current tax has been in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods. Such deferred tax is quanitified using the tax rates as on the balance sheet date.

---

Mar 31, 2010

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :-

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956. Depreciation on additions to assets during the year is provided on a proporionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements It is the companys general policy to accure income/expenses as per the terms of the agreements entered into with the lessee, lessors and hirers from time to time In respect of hire purchase business. The Company recognises income on a reducing balance basis

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investment are valued at cost after providing permanent diminuation in value thereof.

1) The Company follows the prudential norms for income recognition and provides for/writes off of Non-performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

ii) Provision for current tax has been in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods.

Such deferred tax is quantified using the tax rates as on the balance sheet date.