Accounting Policies of Shikhar Leasing & Trading Ltd. Company

Mar 31, 2025

B. SIGNIFICANT AACCOUNTING POLICIES

This Note provides a list of significant accounting policies adopted in the preparation of these financial statements. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the previous year.

B.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) Compliance with Ind AS

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 various Master
Direction - Non-Banking Financial Company (''the NBFC Master Directions'') issued by RBI.

The financial statements are prepared on a going concern basis as the Management is satisfied that the Company shall be able to continue its business for the foreseeable
future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a
wide range of information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

The financial statements of the company comply in all material aspects with Indian Accounting Standards(Ind AS) AS specified under section 133 of the Companies
Act,2013, Companies (Indian Accounting Standards) Rules ,2015 and other relevant provisions of the Act.

b) Presentation of financial statements

The Company presents its Balance Sheet in order of liquidity.

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.

c) Historical cost convention

The financial statements ofthe comapany have been prepared on an accrual and going concern basis.The financial statements have been prepared on historical cost basis,
except for certain assets and liabilities that is measured at fair value as stated in subsequent policies.

d) Cash Flow Statement

Cash flows are reported usingthe indirect method, whereby profit/(loss) before exceptional items and tax is adjusted for the effects oftransactions of non-cash nature and
any deferrals or accruals of past orfuture cash receipts or payments. The cash flows from operating, investing and inancing activities ofthe Company are segregated based
on the available information.

B.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Income:

Revenue from Operations
Interest Income

Revenue is measured at the fair value of the consideration received or receivable.

Under Ind AS 109, interest income is recorded using the effective interest rate method for all financial instruments measured at amortised cost and financial instrument
measured at FVOCI. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a
shorter period, to the net carrying amount of the financial asset.

Interest ioncome other than mentioned above is recognised at the fair value of consideration received or receivables for all financial instruments measured at FVTPL.

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

Other Income
Rental Income

Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms and is included in rental income in the statement of profit and
loss, unless the increase is in line with expected general inflation, in which case lease income is recognised based on contractual terms.

Incomes are recognised net of the Goods and Services Tax/Service Tax, wherever applicable.

(b) Expenditures:

Borrowing Cost

Borrowing costs are the interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs that are directly attributable to the
acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of
time to get ready for its intended use or sale.

All other borrowing costs are charged to the statement of profit and loss for the period for which they are incurred.

Taxes

Expenses are recognised net of the Goods and Services Tax/Service Tax, except where credit for the input tax is not statutorily permitted.

(c) Cash and Cash Equivalents:

Cash and cash equivalents include cash on hand, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.

(d) Financial Instruments:

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

Recognition and measurement

Date of recognition - Debt securities issued are initially recognised when they are originated. All otherfinancial assets and financial liabilities are initially recognised when
the Company becomes a party to the contractual provisions of the instrument.

Initial measurement of financial instruments - The classification of financial instruments at initial recognition depends on their contractual terms and the business model
for managing the instruments. Financial instruments are initially measured at their fair value, except in the case of financial assets and financial liabilities recorded at
FVTPL, transaction costs are added to, or subtracted from this amount.

Measurement categories offinancial assets and liabilities - The Company classifies allof its financial assets based on the business model for managing the assets andthe
asset''s contractual terms, measured at either: i) Amortised cost ii) FVOCI iii) FVTPL

Financial assets

Financial assets include cash, or an equity instrument of another entity, or a contractual right to receive cash or another financial asset from another entity. Few examples
of financial assets are loan receivables, investment in equity and debt instruments, trade receivables and cash and cash equivalents.

Financial assets are measured by the company based on the Business Model Assessment and SPPI Test. The company applies past experience andjudgement and considers
relevant factors for classification and measurement of financial assets.

Accordingly, financial assets are measured as follows:

Financial assets carried at amortised cost ("AC") - A financial asset is 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 ofthe financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Financial assets measured at FVOCI - A financial asset is measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets 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. Since, the loans and advances are held to sale and collect contractual cash flows, they are measured at FVOCI.

Financial assets at fair value through profit or loss ("FVTPL") - A financial asset which is not classified in any of the above categories are measured at FVTPL.

Financial Liabilities

Initial recognition and measurement - All financial liability are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial liability, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

Subsequent measurement - Financial liabilities are carried at amortized cost using the effective interest method based on the contactual terms.

Derecognition

Derecognition of Financial Assets - The Company derecognises a financial asset (or, where applicable, a part of a financial asset) when: (l) The right to receive cash flows
from the asset have expired; or (Il) The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
in full without material delay to a third party under an assignment arrangement and the Company has transferred substantially all the risks and rewards of the asset. Once
the asset is derecognised, the Company does not have any continuing involvement in the same.

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

Impairment of financial assets

ECL are recognised for financial assets held under amortised cost, debt instruments measured at FVOCI, and certain loan commitments.

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

Derecognition of financial liability - The Company derecognises a financial liability when the obligation under the liability is discharged, cancelled or expired.

Offsetting of financial instruments

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

(e) Tax Expense

The tax expense for the period comprises current and deferred tax. Current and deferred tax is recognized in the Statement of Profit and Loss except to the extent it relates
to items recognized directly in equity or other comprehensive income, inwhich case it is recognized in equity or other comprehensive income respectively.

Current Tax:

Current tax charge is based on taxable profit for the year. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted ,
at the reporting date where the Company operates and generates taxble income. Management periodically evaluates positions taken in tax returns with respect to
situations in whcih applicable tax regulation is subject to interpretation . It establishes provisions where appropriate on the bais of amounts expected to be paid tothe
tax authorities.

Current tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilites and Company intends
either to settle on a net basis, or to realize the asset and settle the liability simutaneaously.

Deferred Tax:

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

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period whenthe asset is realised or the liabilty is settled ,
based on tax rates and tax laws that have been enacted or substantively enacted by the end of reporting period. The carrying amount of deferred tax assets is
reviewed at each reporting date.

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

(f) Property , plant and equipment

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such
cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign
exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Depreciation methods, estimated useful lives and residual value:

Freehold Land is not depreciated.The depreciation has been provided on the written down value basis in accordance with the requirement of the schedule-II of the
companies Act,2013.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate.

Gains and losses on disposals are determined by comparing proceeds with carrying amount . These are included in profit and losswithin otherexpenses or other income ,
as applicable.

(g) Non-Current assets held for Sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than continuing use and a sale is
Non-current assets are not depreciated or amortised while they are classified as held for sale.

Non-current assets classified as held for sale are presented separately from the other assets in the balance sheet.

(g) Impairment of non-financial assets

An assessment is done at each Balance Sheet date to ascertain whether there is any indication that an asset may be impaired. Ifany such indication exists, an estimate of
the recoverable amount of asset is determined. If the carrying value of relevant asset is higher than the recoverable amount, the carrying value is written down
accordingly.

---

Mar 31, 2024

B. SIGNIFICANT AACCOUNTING POLICIES

This Note provides a list of significant accounting policies adopted in the preparation ofthese financial statements. The accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year.

B.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) Compliance with Ind AS

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 various Master Direction - Non-Banking
Financial Company (''the NBFC Master Directions'') issued by RBI.

The financial statements are prepared on a going concern basis as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future and
no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of
information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

The financial statements of the company comply in all material aspects with Indian Accounting Standards(Ind AS) AS specified under section 133 of the Companies Act,2013,
Companies (Indian Accounting Standards) Rules ,2015 and other relevant provisions of the Act.

b) Presentation of financial statements

The Company presents its Balance Sheet in order of liquidity.

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.

b) Historical cost convention

The financial statements ofthe comapany have been prepared onan accrual and going concern basis.The financial statements have been prepared on historical cost basis, except for
certain assets and liabilities that is measured at fair value as stated in subsequent policies.

B.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Income:

Revenue from Operations
Interest Income

Revenue is measured at the fair value of the consideration received or receivable.

Under Ind AS 109, interest income is recorded using the effective interest rate method for all financial instruments measured at amortised cost and financial instrument measured at
FVOCI. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net
carrying amount of the financial asset.

Interest ioncome other than mentioned above is recognised at the fair value of consideration received or receivables for all financial instruments measured at FVTPL.

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

Other Income
Rental Income

Rental income arisingfrom operating leases is accounted for on a straight-line basis overthe lease terms and is included in rental income in the statement of profit and loss, unless the
increase is in line with expected general inflation, in which case lease income is recognised based on contractual terms.

Incomes are recognised net of the Goods and Services Tax/Service Tax, wherever applicable.

(b) Expenditures:

Finance Cost

Borrowing costs are the interest and othercosts that the Company incurs in connection with the borrowing offunds. Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale.

All other borrowing costs are charged to the statement of profit and loss for the period for which they are incurred.

Taxes

Expenses are recognised net of the Goods and Services Tax/Service Tax, except where credit for the input tax is not statutorily permitted.

(c) Cash and Cash Equivalents:

Cash and cash equivalents include cash on hand, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.

(d) Financial Instruments:

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

Recognition and measurement

Date of recognition - Debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the
Company becomes a party to the contractual provisions of the instrument.

Initial measurement of financial instruments - The classification of financial instruments at initial recognition depends on their contractual terms and the business model for
managing the instruments. Financial instruments are initially measured at their fair value, except in the case of financial assets and financial liabilities recorded at FVTPL, transaction
costs are added to, or subtracted from this amount.

Measurement categories of financial assets and liabilities - The Company classifies all of its financial assets based on the business model for managing the assets and the asset''s
contractual terms, measured at either: i) Amortised cost ii) FVOCI iii) FVTPL

Financial assets

Financial assets include cash, or an equity instrument ofanother entity, or a contractual right to receive cash oranother financial asset from anotherentity. Few examples offinancial
assets are loan receivables, investment in equity and debt instruments, trade receivables and cash and cash equivalents.

Financial assets are measured by the company based on the Business Model Assessment and SPPI Test. The company applies past experience and judgement and considers relevant
factors for classification and measurement of financial assets.

Accordingly, financial assets are measured as follows:

Financial assets carried at amortised cost ("AC") - A financial asset is 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.

Financial assets measured at FVOCI - A financial asset is measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows
Financial assets at fair value through profit or loss ("FVTPL") - A financial asset which is not classified in any of the above categories are measured at FVTPL.

Financial Liabilities

Initial recognition and measurement - All financial liability are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial
liability, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

Subsequent measurement - Financial liabilities are carried at amortized cost using the effective interest method based on the contactual terms.

Derecognition

Derecognition of Financial Assets - The Company derecognises a financial asset (or, where applicable, a part of a financial asset) when: (l) The right to receive cash flows from the
asset have expired; or (Il) The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party underan assignment arrangement and the Company has transferred substantially all the risks and rewards of the asset. Once the asset is derecognised,
the Company does not have any continuing involvement in the same.

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

Impairment of financial assets

ECL are recognised for financial assets held under amortised cost, debt instruments measured at FVOCI, and certain loan commitments.

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

Derecognition of financial liability - The Company derecognises a financial liability when the obligation under the liability is discharged, cancelled or expired.

Offsetting of financial instruments

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

(e) Tax Expense

The tax expense for the period comprises current and deferred tax. Current and deferred tax is recognized in the Statement of Profit and Loss except to the extent it relates to items
recognized directly in equity or other comprehensive income, inwhich case it is recognized in equity or other comprehensive income respectively.

Current Tax:

Current tax charge is based on taxable profit for the year. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted , at the
reporting date where the Company operates and generates taxble income. Management periodically evaluates positions taken in tax returns with respect to situations in whcih
applicable tax regulation is subject to interpretation . It establishes provisions where appropriate on the bais of amounts expected to be paid to the tax authorities.

Current tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilites and Company intends either to settle
on a net basis, or to realize the asset and settle the liability simutaneaously.

Deferred Tax:

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

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period whenthe asset is realised or the liabilty is settled , based on tax
rates and tax laws that have been enacted or substantively enacted by the end of reporting period. The carrying amount of deferred tax assets is reviewed at each reporting date.

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

(f) Property , plant and equipment

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, ifany. Such cost includes
purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the assets.

Depreciation methods, estimated useful lives and residual value:

Freehold Land is not depreciated.The depreciation has been provided on the written down value basis in accordance with the requirement of the schedule-II of the companies
Act,2013.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Gains and losses on disposals are determined by comparing proceeds with carrying amount . These are included in profit and loss within other expenses or other income , as
applicable.

(g) Impairment of non-financial assets

An assessment is done at each Balance Sheet date to ascertain whether there is any indication that an asset may be impaired. If any such indication exists, an estimate of the
recoverable amount of asset is determined. If the carrying value of relevant asset is higher than the recoverable amount, the carrying value is written down accordingly.

(h) Provisions and contingent liabilities

The Company creates a provision when there is presentobligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made ofthe
amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probablywill not, require an outflow of resources. The Company
also discloses present obligations for which a reliable estimate cannot be made. When there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.

(i) Employee Benefit Schemes

(i) Short-term benefits:

Employee benefits payable within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus
and exgratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee sevices is recognised as an expesne as the related service is
rendered by employee.

(ii) Post -Employment Benefits:

Gratuity:

The Company has no defined benefit plan (the'' Gratuity Plan''). Hence the Company does not accrue for its Gratuity and it is booked on payment basis.

Defined Contribution Plans - Provident Fund , Employee State Insurance Plan :

The Group doesnot have any defined contributions plans such as contributions to provident fund and employee state insurance schemes.

(j) Investment Property

Investment property is property (land or a building or part of a building or both) held to earn rentals or for capital appreciation or both , rather than for: (a) use in the production or
supply of goods or services or for administrative purposes or (b) sale in the ordinary course of business.

(k) Trade Receivables:

Trade Receivables are stated at bookvalue after making provisions for doubtful debts. Management considers thatthe book value approximates fair value. Judgements are required in
assessingthe recoverability of overdue trade receivables and determiningwhethera provision againstthose receivables is required. The provision for bad and doubtful debts is based
on specifc risk assessment and reference to past default exprience.

(i) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (the functional
currency) . The financial statements are presented in Indian rupee (?) , which is Company''s functional and presentation currency.

C. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINITIES

The preparation of the Company''s financial statements requires management to make judgement, estimates and assumptions that affect the reported amount of revenue, expenses,
assets and liabilities and the accompanying disclosures. 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.

Estimates and judgements are continually evaluated. The areas involving critical estimates and judgemenst are:

(i) Property, plant and equipment and useful life of property, plant and equipment

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management
reviews the estimated useful lives and residual values ofthe assets annually in order to determine the amount of depreciation / amortisation to be recorded duringany reporting
period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The
depreciation / amortisation for future periods is revised if there are significant changes
from previous estimates.

(ii) Recognition of deferred tax assets and current tax.

The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement 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 aformal legal process. The final resolution of some of these items may
give rise to material profits/losses and/or cash flows. Significant judgments are involved in determining theprovision for income taxes, including amount expected to be
paid/recovered for uncertain tax positions.

(iii) Impairment of Non-Financial Assets - Property, Plant and equipment and Intangible Assets

The Company assesses at each reporting date as to whether there is any indication that any Property, Plant and Equipment and Intangible Assets or group of Assets, called Cash
Generating Units (CGU) may be impaired. If any such indication exists, the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any.
When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs. An
impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable amount. The recoverable amount is higher ofan
asset''s fairvalue less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-taxdiscount rate that
reflects current market assessments of the time value of money and risk specific to the assets. The impairment loss recognised in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount.

---

Mar 31, 2013

Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles. All income and expenditure items having a material bearing on the financial statements are generally recognised on accrual basis, material known liabilities are provided for on the basis of available information/ estimation, however certain claims and income which are not ascertainable/ acknowledged by customers are not taken into accounts, further, the company follows prudential norms for income recognition and provisioning for non-performing assets as prescribed by the reserve bank of India for non-banking financial companies.

Vse of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

Reyenue recognition

i. General:

The company follows the accrual method of accounting for its income and expenditure except delayed payment charges, fee based income and interest on trade advance, which on account of uncertainty of ultimate collection are accounted on receipt basis, also in accordance with the guidelines issued by the reserve bank of India for non-banking financial companies, income on business assets classified as non-performing assets, is recognised on receipt basis, financial companies, income on business assets classified as non-performing assets, is recognised on receipt basis.

ii. Income from loan;

Income from loan transactions is accounted for by applying the interest rate implicit in such term sheet

Tangible Fixed Assets

Fixed Assets are valued at cost of acquisition or construction inclusive of duties ( net of cenvat/Vat), taxes, incidental expenses, erecting expenses & interest cost etc. up to the date asset is put / ready to use. They are stated at historical costs or other amounts substituted for historical costs. Cenvat/Vat credit availed on purchase of fixed assets are reduced from the purchase cost of Fixed Assets.(whenever and wherever required)

Method of Depreciation

Depreciation on fixed assets is provided on the written down value of the assets at the rates prescribed under Schedule XIV to the

Companies Act, 1956.

Assets below Rs.5000/- are depreciated @100% in the year of purchase.

Impairment of Assets:

An assets is treated as impaired when carrying cost of assets exceeds its recoverable value. An Impairment loss is charged to the Profit & Loss A/c. in the year in which an assets are identified as impaired.

Investments:

Long Term Investments are shown at cost However, when there is a decline, other than temporary, in the value of a long term investment the carrying amount is reduced to recognise the decline.

Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at ttnODtepe Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. ContingencMjMies are disclosed in the Notes.

---

Mar 31, 2012

Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles. All income and expenditure items having a material bearing on the financial statements are generally recognised on accrual basis, material known liabilities are provided for on the basis of available information/ estimation, however certain claims and income which are not ascertainable/ acknowledged by customers are not taken into accounts, further, the company follows prudential norms for income recognition and provisioning for non-performing assets as prescribed by the reserve bank of India for non-banking financial companies.

Presentation and disclosure of financial statements

During the year ended 31, March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and .presentation of its financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

Revenue recognition

i. General:

The company follows the accrual method of accounting for its income and expenditure except delayed payment charges, fee based income and interest on trade advance, which on account of uncertainty of ultimate collection are accounted on receipt basis, also in accordance with the guidelines issued by the reserve bank of India for non-banking financial companies, income on business assets classified as non-performing assets, is recognised on receipt basis, financial companies, income on business assets classified as non- performing assets, is recognised on receipt basis.

ii. Income from loan:

Income from loan transactions is accounted for by applying the interest rate implicit in such term sheet Tangible Fixed Assets

Fixed Assets are valued at cost of acquisition or construction Inclusive of duties (net of cenvat/Vat), taxes, incidental expenses, erecting expenses & interest cost etc. up to the date asset is put / ready to use. They are stated at historical costs or other amounts substituted for historical costs. Cenvat/Vat credit availed on purchase of fixed assets are reduced from the purchase cost of Fixed Assets. (whenever and wherever required)

Method of Depreciation

Depreciation on fixed assets is provided on the written down value of the assets at the rates prescribed under Schedule XIV to the Companies Act, 1956.

Assets below Rs.5000/- are depreciated @100% in the year of purchase.

Valuation of Investments:

Long Term Investments are shown at cost unless there is a permanent decline in value thereof, in which case, adequate provision is made in the accounts.

Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

---

Mar 31, 2010

A) GENERAL:-

I. The accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

II. Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

III. All income and expenditure items having a material bearing on the financial statements are generally recognised on accrual basis, material known liabilities are provided for on the basis of available information/ estimation, however certain claims and income which are not ascertainable/ acknowledged by customers are not taken into accounts.

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 financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialised.

c) FIXED ASSETS & DEPRECIATION:-

Fixed Assets are stated at historical cost less accumulated depreciation, if any. The depreciation has been provided on the written down value basis at the rates and in the manner prescribed in the schedule XIV of the Companies Act, 1956.

d) IMPAIRMENT OF ASSETS :-

An Assets is treated as impaired when carrying cost of assets exceeds its recoverable value. An Impairment loss is charged to the Profit & Loss A/c in the year in which an asset is identified as impaired.

e) INVESTMENTS:-

Long term Investments are shown at cost unless there is permanent decline in value there of, in which case there is a adequate provision is made in the accounts.

f) DEBTORS:-

Debtors are stated at book value after making provision for doubtful debts.

g) PROVISION. CONTINGENT LIABILITIES AND CONTINGENT ASSETS:-

Provisiohs involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Contingent liabilities are not recognised but disclosed at their estimated value in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

h) REVENUE RECOGNITION.:

Income from Operation is accounted on accrual basis. Revenue is recoganised only when it is reasonably certain that the ultimate collection will made.

i) LEASE ACCOUNTING:

Leases where substantially all the risks and benefits of ownership are retained by the lessor, are classified as operating leases. Operating lease Income/ Expenses is recognized in the Profit and Loss Account on a straight line basis over lease term.

j) EARNING PER SHARES :

Basic earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, if any.

k) EMPLOYEE BENEFITS:-

I. Retirements benefits in the form of Provident Fund is charged to Profit & Loss Account in the year when such contribution is payable.

II. Leave encashment accruing to the employees is charged to Profit & Loss Account.

l) TAXES ON INCOME;-

In accordance with the Accounting Standards (AS-22) - Accounting for Taxes on Incomg issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax assets arising from timing differences are recognized to the extent it is more likely that future taxable profits will be available against which the asset can be utilized.