Accounting Policies of Stanrose Mafatlal Investments & Finance Ltd. Company

Mar 31, 2025

1. Company overview

Stanrose Mafatlal Investment and Finance Limited (the ‘Company'') is a public limited company domiciled in India and is incorporated under the provisions of the Companies Act with its registered office located at 6th Floor, Popular House, Ashram Road, Ahmedabad - 380 009. The Company is also Non -Systemically Important Non-deposit Taking NonBanking Finance Company (NBFC) registered with Reserve Bank of India (RBI). As per RBI/DoR/2023-24/106 DoR.FIN.REC.No.45/03.10.119/2023-24 dated November 10, 2023, the Company is catagorised in Base - Layer NBFC.

The financial statements are approved for issue by the Company''s Board of Directors on May 21,2025

2. BASIS OF PREPARATION

2.1 STATEMENT OF COMPLIANCE

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 and the provisions of the RBI as applicable to Systemetically Important Non-deposit Taking NBFC.

2.2 BASIS OF MEASUREMENT

The Financial Statements have been prepared on the historical cost basis except for the following items which are measured at fair values:

a. Certain financial assets and liabilities

b. Defined benefit plans assets

2.3 FUNCTIONAL AND PRESENTATION CURRENCY

Indian rupee is the functional and presentation currency.

2.4 USE OF ESTIMATES :

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects

are disclosed in the notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements are:

- Useful lives of property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Consideration of significant related party transactions

- Measurement of defined employee benefit obligations

3. MATERIAL ACCOUNTING POLICIES

3.1 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.

Interest income

Interest income is recognised using effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through expected life of the financial asset to the gross carrying amount of the financial asset. When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.

Dividend

Dividend income is recognised when the right to receive the dividend is established.

Gain or loss on derecognition of financial assets

Gain or Loss on derecognition of financial asset is determined as the difference between the sale price (net of selling costs) and carrying value of financial asset.

All other incomes are recognised and accounted for on accrual basis.

3.2 PROPERTY, PLANT AND EQUIPMENTS :

Property, plant and equipments are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for its intended

use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the company and the cost of the item can be measured reliably.

All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

For transition to Ind AS, the carrying value of property plant and equipment under previous GAAP as on April 01, 2018 is regarded as its cost. The carrying value was original cost less accumulated depreciation and cumulative impairment.

Gains or losses arising from derecognition of property, plant and equipments are measured as the difference between the net disposal proceeds and the carrying amount of the asset at the time of disposal and are recognized in the statement of profit and loss when the asset is derecognized.

Depreciation on property, plant and equipment is calculated on written down value method basis using the ratio arrived as per the useful life prescribed under Schedule II to the Companies Act, 2013.

In respect of property, plant and equipment purchased during the year, depreciation is provided on a pro-rata basis from the date on which such asset is ready to use.

The residual value, useful live and method of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

3.3 FINANCIAL INSTRUMENTS

3.3.1 Initial recognition

The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument.

All financial assets and liabilities are recognized at fair value on initial recognition.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss are added to or deducted from the fair value of financial assets or financial liabilities on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Regular way purchase and sale of financial assets are accounted for at trade date.

3.3.2 Subsequent measurement

(a) Non-derivative financial instruments

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized 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.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income 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.

The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. For such equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently measured at fair valued through profit or loss. Fair value changes are recognised as other income in the Statement of Profit or Loss.

(iv) Financial liabilities

Financial liabilities are subsequently

carried at amortized cost using the effective interest method.

(b) Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Incremental costs directly attributable to the issuance of equity instruments are recognised as a deduction from equity instrument net of any tax effects.

3.3.3 Derecognition

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability is derecognized when obligation specified in the contract is discharged or cancelled or expires.

3.3.4 Off-setting

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when the company currently has a legally enforceable right to offset the recognised amount and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

3.4 Fair Value Measurement

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

The fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

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

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefit by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - inputs are other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived prices)

Level 3 - inputs are not based on observable market data (unobservable inputs).Fair values are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

3.5 Income tax

Income tax expense comprises current tax and deferred tax.

3.5.1 Current Tax

Current tax is recognised in profit or loss, except when it relates to items that are recognised in other comprehensive income or directly in equity, in which case, the current tax is also recognised in other comprehensive income or directly in equity, respectively.

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 by the balance sheet date.

Current tax assets and current tax liabilities are offset, where company has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

3.5.2 Deferred Tax

Deferred tax is recognised in profit or loss, except when it relates to items that are recognised in other comprehensive income or directly in equity, in which case, the deferred tax is also recognised in other comprehensive income or directly in equity, respectively.

Deferred tax liabilities are recognised for all taxable temporary differences, except to the extent that the deferred tax liability

arises from initial recognition of goodwill; or initial recognition of an asset or liability in a transaction which is not a business combination and at the time of transaction, affects neither accounting profit nor taxable profit or loss.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax losses and carry forward of unused tax credits to the extent that it is probable that taxable profit will be available against which those temporary differences, losses and tax credit can be utilized, except when deferred tax asset on deductible temporary differences arise from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit or loss.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the tax rules and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and deferred tax liabilities are offset, where company has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

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.

3.6 Impairment

3.6.1 Financial assets

The Company recognizes impairment on financial assets, which are not carried at fair value, using expected credit loss (ECL) model as prescribed in Ind AS. The expected credit losses (ECLs) is recognized based on forward-looking information for all financial assets at amortized cost, no impairment loss is applicable on equity investments.

At the reporting date, an allowance is required for the 12 month ECLs. If the credit risk has significantly increased since initial recognition (Stage 1), an allowance (or provision) should be recognized for the lifetime ECLs for financial instruments for which the credit

risk has increased significantly since initial recognition (Stage 2) or which are credit impaired (Stage 3).

The measurement of ECL is calculated using three main components: (i) probability of default (PD) (ii) loss given default (LGD) and (iii) the exposure at default (EAD). The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default event together with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be realised and the time value of money.

The Company applies a three-stage approach to measure ECL on financial assets accounted for at amortized cost. Assets migrate through the following three stages based on the change in credit quality since initial recognition. Stage 1 : 12-months ECL For exposures where there has not been a significant increase in credit risk since initial recognition and that are not credit impaired upon origination, the portion of the lifetime ECL associated with the probability of default events occurring within the next 12 months is recognized. Exposures with days past due (DPD) less than or equal to 29 days are classified as stage 1. The Company has identified zero bucket and bucket with DPD less than or equal to 29 days as two separate buckets.

Stage 2 : Lifetime ECL - not credit impaired

For credit exposures where there has been a significant increase in credit risk since initial recognition but that are not credit impaired, a lifetime ECL is recognized. Exposures with DPD equal to 30 days but less than or equal to 89 days are classified as stage 2. At each reporting date, the Company assesses whether there has been a significant increase in credit risk for financial asset since initial recognition by comparing the

risk of default occurring over the expected life between the reporting date and the date of initial recognition. The Company has identified cases with DPD equal to or more than 30 days and less than or equal to 59 days and cases with DPD equal to or more than 60 days and less than or equal to 89 days as two separate buckets.

Stage 3 : Lifetime ECL - credit impaired Financial asset is assessed as credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of that asset have occurred. For financial asset that have become credit impaired, a lifetime ECL is recognized on principal outstanding as at period end. Exposures with DPD equal to or more than 90 days are classified as stage 3.

A loan that has been renegotiated due to a deterioration in the borrower''s condition is usually considered to be credit-impaired unless there is evidence that the risk of not receiving contractual cash flows has reduced significantly and there are no other indicators of impairment.

ECL is recognized on EAD as at period end. If the terms of a financial asset are renegotiated or modified due to financial difficulties of the borrower, then such asset is moved to stage 3, lifetime ECL under stage 3 on the outstanding amount is applied.

The Company assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. Exposures are considered to have resulted in a significant increase in credit risk and are moved to Stage 2.

Quantitative test: Accounts that are 30 calendar days or more past due move to Stage 2 automatically. Accounts that are 90 calendar days or more past due move to Stage 3 automatically.

Reversal in Stages: Exposures will move back to Stage 2 or Stage 1 respectively, once they no longer meet the quantitative criteria set out above. For exposures classified using the qualitative test, when they no longer meet the criteria for a significant increase in credit risk and when any cure criteria used for credit risk management are met. The definition of default for the purpose of determining ECLs has been aligned

to the Reserve Bank of India definition of default, which considers indicators that the debtor is unlikely to pay and is no later than when the exposure is more than 90 days past due.

The measurement of all expected credit losses for financial assets held at the reporting date are based on historical experience, current conditions and reasonable and supportable forecasts. The measurement of ECL involves increased complexity and judgement, including estimation of PDs, LGD, a range of unbiased future economic scenarios, estimation of expected lives and estimation of EAD and assessing significant increases in credit risk. Presentation of ECL allowance for financial asset:

Financial assets measured at amortized cost are shown separately under the head provisions and not as a deduction from the gross carrying amount of the assets.

Write off

Impaired loans and receivables are written off, against the related allowance for loan impairment on completion of the Company''s internal processes and when the Company concludes that there is no longer any realistic prospect of recovery of part or all of the loan. For loans that are individually assessed for impairment, the timing of write off is determined on a case by case basis. A write-off constitutes a de-recognition event. The Company has a right to apply enforcement activities to recover such written off financial assets. Subsequent recoveries of amounts previously written off are credited to the income statement.

3.6.2 Non-financial assets Tangible Assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists the company estimates the asset''s recoverable amount.

An asset''s recoverable amount is the higher of an assets net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The impairment loss is recognised in the statement of profit and loss.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

3.7 Employee Benefits

Short term employee benefits for salary that are expected to be settled wholly within 12 months after the end of the reporting period in which employees render the related service are recognized as an expense in the statement of profit and loss.

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service.

The company operates two defined benefit plan for its employees, viz., gratuity plan and leave encashment plan. The costs of providing benefits under the plans are determined on the basis of actuarial valuation at each year-end. Actuarial valuation is carried out using the projected unit credit method made at the end of each reporting date. Re-measurement of the net defined benefit liability (asset) comprise of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset) and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability / (asset)).Re-measurement are recognised in other comprehensive income and will not be reclassified to profit or loss in a subsequent period.

3.8 Provisions

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

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

Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

3.9 Contingent Liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

3.10 Contingent Asset

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only be occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the company. The company does not recognize a contingent asset but discloses its existence in the financial statements.

3.11 Cash and cash equivalent

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and 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.

3.12 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

3.13 Lease Company as lessee

The Company''s lease asset classes primarily consist of leases for Office building. 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 (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 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.

The ROU 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.

ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

3.14 Segment Reporting

An operating segment is component of the company that engages in the business activity from which the company earns revenues and incurs expenses, for which discrete financial information is available and whose operating results are regularly reviewed by the chief

operating decision maker, in deciding about resources to be allocated to the segment and assess its performance. The company''s chief operating decision maker is the Managing Director.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un-allocable. Revenue and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses.

The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

3.15 Cash Flow Statement

Cash flows are reported using indirect method whereby profit for the period is adjusted for the effects of the transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts and payments and items of income or expenses associated with investing and financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

3.16 Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

4. RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 1st, 2025.

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Mar 31, 2024

3. SIGNIFICANT ACCOUNTING
POLICIES

3.1 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.

Interest income

Interest income is recognised using
effective interest method. The effective
interest rate is the rate that exactly
discounts estimated future cash receipts
through expected life of the financial asset
to the gross carrying amount of the financial
asset. When calculating the effective
interest rate, the company estimates the
expected cash flows by considering all the
contractual terms of the financial instrument
but does not consider the expected credit
losses.

Dividend

Dividend income is recognised when the
right to receive the dividend is established.

Gain or loss on derecognition of financial
assets

Gain or Loss on derecognition of financial
asset is determined as the difference
between the sale price (net of selling costs)
and carrying value of financial asset.

All other incomes are recognised and
accounted for on accrual basis.

3.2 PROPERTY, PLANT AND EQUIPMENTS :

Property, plant and equipments are stated at
cost, net of accumulated depreciation and
accumulated impairment losses, if any.

The cost comprises the purchase price,
borrowing cost if capitalization criteria are met
and directly attributable cost of bringing the

asset to its working condition for its intended
use. Any trade discounts and rebates are
deducted in arriving at the purchase price.
Subsequent expenditures relating to property,
plant and equipment is capitalized only when it
is probable that future economic benefits
associated with these will flow to the company
and the cost of the item can be measured
reliably.

All other expenses on existing fixed assets,
including day-to-day repair and maintenance
expenditure and cost of replacing parts, are
charged to the statement of profit and loss for
the period during which such expenses are
incurred.

For transition to Ind AS, the carrying value of
property plant and equipment under previous
GAAP as on April 01, 2018 is regarded as its
cost. The carrying value was original cost less
accumulated depreciation and cumulative
impairment.

Gains or losses arising from derecognition of
property, plant and equipments are measured
as the difference between the net disposal
proceeds and the carrying amount of the asset
at the time of disposal and are recognized in
the statement of profit and loss when the asset
is derecognized.

Depreciation on property, plant and equipment
is calculated on written down value method
basis using the ratio arrived as per the useful
life prescribed under Schedule II to the
Companies Act, 2013.

In respect of property, plant and equipment
purchased during the year, depreciation is
provided on a pro-rata basis from the date on
which such asset is ready to use.

The residual value, useful live and method of
depreciation of property, plant and equipment
are reviewed at each financial year end and
adjusted prospectively, if appropriate.

3.3 FINANCIAL INSTRUMENTS

3.3.1 Initial recognition

The company recognizes financial assets
and financial liabilities when it becomes
a party to the contractual provisions of
the instrument.

All financial assets and liabilities are
recognized at fair value on initial
recognition.

Transaction costs that are directly
attributable to the acquisition or issue of
financial assets and financial liabilities
that are not at fair value through profit or
loss are added to or deducted from the
fair value of financial assets or financial
liabilities on initial recognition.

Transaction costs directly attributable to
the acquisition of financial assets or
financial liabilities at fair value through
profit or loss are recognised immediately
in profit or loss.

Regular way purchase and sale of
financial assets are accounted for at
trade date.

3.3.2 Subsequent measurement

(a) Non-derivative financial instruments

(i) Financial assets carried at amortized
cost

A financial asset is subsequently
measured at amortized 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.

(ii) Financial assets at fair value through
other comprehensive income

A financial asset is subsequently
measured at fair value through other
comprehensive income 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.

The Company has made an irrevocable
election for its investments which are
classified as equity instruments to
present the subsequent changes in fair
value in other comprehensive income
based on its business model. For such
equity instruments, the subsequent
changes in fair value are recognized in
other comprehensive income.

(iii) Financial assets at fair value through
profit or loss

A financial asset which is not classified
in any of the above categories are
subsequently measured at fair valued
through profit or loss. Fair value
changes are recognised as other
income in the Statement of Profit or
Loss.

(iv) Financial liabilities

Financial liabilities are subsequently

carried at amortized cost using the
effective interest method.

(b) Equity instruments

An equity instrument is a contract that
evidences residual interest in the assets
of the company after deducting all of
its liabilities. Incremental costs directly
attributable to the issuance of equity
instruments are recognised as a
deduction from equity instrument net
of any tax effects.

3.3.3 Derecognition

The company derecognizes a financial
asset when the contractual rights to the
cash flows from the financial asset
expire or it transfers the financial asset
and the transfer qualifies for
derecognition under Ind AS 109. A
financial liability is derecognized when
obligation specified in the contract is
discharged or cancelled or expires.

3.3.4 Off-setting

Financial assets and financial liabilities
are offset and the net amount is
presented in the balance sheet when
the company currently has a legally
enforceable right to offset the
recognised amount and intends either
to settle on a net basis or to realize the
asset and settle the liability
simultaneously.

3.4 Fair Value Measurement

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

The fair value measurement assumes that the
transaction to sell the asset or transfer the
liability takes place either:

- In the principal market for the asset or
liability, or

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

A fair value measurement of a non-financial
asset takes into account a market participant''s
ability to generate economic benefit by using
the asset in its highest and best use or by
selling it to another market participant that would
use the asset in its highest and best use.

The company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximizing the use of relevant
observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial
statements are categorized within the fair value
hierarchy. The fair value hierarchy is based on
inputs to valuation techniques that are used to
measure fair value that are either observable
or unobservable and consists of the following
three levels:

Level 1 - inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities.

Level 2 - inputs are other than quoted prices
included within level 1 that are observable for
the asset or liability either directly (i.e. as prices)
or indirectly (i.e. derived prices).

Level 3 - inputs are not based on observable
market data (unobservable inputs).Fair values
are determined in whole or in part using a
valuation model based on assumption that are
neither supported by prices from observable
current market transactions in the same
instrument nor are they based on available
market data.

3.5 Income tax

Income tax expense comprises current tax and
deferred tax.

3.5.1 Current Tax

Current tax is recognised in profit or loss,
except when it relates to items that are
recognised in other comprehensive
income or directly in equity, in which
case, the current tax is also recognised
in other comprehensive income or
directly in equity, respectively.

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 by the balance
sheet date.

Current tax assets and current tax
liabilities are offset, where company has
a legally enforceable right to set off the
recognised amounts and where it intends
either to settle on a net basis, or to
realize the asset and settle the liability
simultaneously.

3.5.2 Deferred Tax

Deferred tax is recognised in profit or
loss, except when it relates to items that
are recognised in other comprehensive
income or directly in equity, in which
case, the deferred tax is also recognised
in other comprehensive income or
directly in equity, respectively.

Deferred tax liabilities are recognised for
all taxable temporary differences, except
to the extent that the deferred tax liability
arises from initial recognition of goodwill;
or initial recognition of an asset or liability
in a transaction which is not a business
combination and at the time of
transaction, affects neither accounting
profit nor taxable profit or loss.

Deferred tax assets are recognised for
all deductible temporary differences,
carry forward of unused tax losses and
carry forward of unused tax credits to
the extent that it is probable that taxable
profit will be available against which
those temporary differences, losses and
tax credit can be utilized, except when
deferred tax asset on deductible
temporary differences arise from the
initial recognition of an asset or liability
in a transaction that is not a business
combination and at the time of the
transaction, affects neither accounting
profit nor taxable profit or loss.

Deferred tax assets and liabilities are
measured at the tax rates that are
expected to apply to the period when
the asset is realized or the liability is
settled, based on the tax rules and tax
laws that have been enacted or
substantively enacted by the end of the
reporting period.

Deferred tax assets and deferred tax
liabilities are offset, where company has
a legally enforceable right to set off the
recognized amounts and where it intends
either to settle on a net basis, or to
realize the asset and settle the liability
simultaneously.

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.

3.6 Impairment

3.6.1 Financial assets

The Company recognizes impairment on
financial assets, which are not carried at
fair value, using expected credit loss
(ECL) model as prescribed in Ind AS.
The expected credit losses (ECLs) is
recognized based on forward-looking
information for all financial assets at
amortized cost, no impairment loss is
applicable on equity investments.

At the reporting date, an allowance is
required for the 12 month ECLs. If the
credit risk has significantly increased
since initial recognition (Stage 1), an

allowance (or provision) should be
recognized for the lifetime ECLs for
financial instruments for which the credit
risk has increased significantly since
initial recognition (Stage 2) or which are
credit impaired (Stage 3).

The measurement of ECL is calculated
using three main components: (i)
probability of default (PD) (ii) loss given
default (LGD) and (iii) the exposure at
default (EAD). The 12 month ECL is
calculated by multiplying the 12 month
PD, LGD and the EAD. The 12 month
and lifetime PDs represent the PD
occurring over the next 12 months and
the remaining maturity of the instrument
respectively. The EAD represents the
expected balance at default, taking into
account the repayment of principal and
interest from the balance sheet date to
the default event together with any
expected drawdowns of committed
facilities. The LGD represents expected
losses on the EAD given the event of
default, taking into account, among other
attributes, the mitigating effect of
collateral value at the time it is expected
to be realised and the time value of
money.

The Company applies a three-stage
approach to measure ECL on financial
assets accounted for at amortized cost.
Assets migrate through the following
three stages based on the change in
credit quality since initial recognition.
Stage 1 : 12-months ECL
For exposures where there has not been
a significant increase in credit risk since
initial recognition and that are not credit
impaired upon origination, the portion of
the lifetime ECL associated with the
probability of default events occurring
within the next 12 months is recognized.
Exposures with days past due (DPD) less
than or equal to 29 days are classified
as stage 1. The Company has identified
zero bucket and bucket with DPD less
than or equal to 29 days as two separate
buckets.

Stage 2 : Lifetime ECL - not credit
impaired

For credit exposures where there has
been a significant increase in credit risk
since initial recognition but that are not
credit impaired, a lifetime ECL is
recognized. Exposures with DPD equal
to 30 days but less than or equal to 89
days are classified as stage 2. At each
reporting date, the Company assesses

whether there has been a significant
increase in credit risk for financial asset
since initial recognition by comparing the
risk of default occurring over the
expected life between the reporting date
and the date of initial recognition. The
Company has identified cases with DPD
equal to or more than 30 days and less
than or equal to 59 days and cases with
DPD equal to or more than 60 days and
less than or equal to 89 days as two
separate buckets.

Stage 3 : Lifetime ECL - credit impaired
Financial asset is assessed as credit
impaired when one or more events that
have a detrimental impact on the
estimated future cash flows of that asset
have occurred. For financial asset that
have become credit impaired, a lifetime
ECL is recognized on principal
outstanding as at period end. Exposures
with DPD equal to or more than 90 days
are classified as stage 3.

A loan that has been renegotiated due
to a deterioration in the borrower''s
condition is usually considered to be
credit-impaired unless there is evidence
that the risk of not receiving contractual
cash flows has reduced significantly and
there are no other indicators of
impairment.

ECL is recognized on EAD as at period
end. If the terms of a financial asset are
renegotiated or modified due to financial
difficulties of the borrower, then such
asset is moved to stage 3, lifetime ECL
under stage 3 on the outstanding amount
is applied.

The Company assesses when a
significant increase in credit risk has
occurred based on quantitative and
qualitative assessments. Exposures are
considered to have resulted in a
significant increase in credit risk and are
moved to Stage 2.

Quantitative test: Accounts that are 30
calendar days or more past due move to
Stage 2 automatically. Accounts that are
90 calendar days or more past due move
to Stage 3 automatically.

Reversal in Stages: Exposures will
move back to Stage 2 or Stage 1
respectively, once they no longer meet
the quantitative criteria set out above.
For exposures classified using the
qualitative test, when they no longer meet
the criteria for a significant increase in
credit risk and when any cure criteria
used for credit risk management are met.

The definition of default for the purpose
of determining ECLs has been aligned
to the Reserve Bank of India definition
of default, which considers indicators that
the debtor is unlikely to pay and is no
later than when the exposure is more
than 90 days past due.

The measurement of all expected credit
losses for financial assets held at the
reporting date are based on historical
experience, current conditions and
reasonable and supportable forecasts.
The measurement of ECL involves
increased complexity and judgement,
including estimation of PDs, LGD, a
range of unbiased future economic
scenarios, estimation of expected lives
and estimation of EAD and assessing
significant increases in credit risk.
Presentation of ECL allowance for
financial asset:

Financial assets measured at amortized
cost are shown separately under the
head provisions and not as a deduction
from the gross carrying amount of the
assets.

Write off

Impaired loans and receivables are
written off, against the related allowance
for loan impairment on completion of the
Company''s internal processes and when
the Company concludes that there is no
longer any realistic prospect of recovery
of part or all of the loan. For loans that
are individually assessed for impairment,
the timing of write off is determined on a
case by case basis. A write-off constitutes
a de-recognition event. The Company
has a right to apply enforcement activities
to recover such written off financial
assets. Subsequent recoveries of
amounts previously written off are
credited to the income statement.

3.6.2 Non-financial assets
Tangible Assets

The company assesses at each reporting
date whether there is an indication that
an asset may be impaired. If any
indication exists the company estimates
the asset''s recoverable amount.

An asset''s recoverable amount is the
higher of an assets net selling price and
its value in use. The recoverable amount
is determined for an individual asset,
unless the asset does not generate cash
inflows that are largely independent of
those from other assets or groups of
assets.

Where the carrying amount of an asset
exceeds its recoverable amount, the
asset is considered impaired and is
written down to its recoverable amount.
The impairment loss is recognised in the
statement of profit and loss.

In assessing value in use, the estimated
future cash flows are discounted to their
present value using a pre-tax discount
rate that reflects current market
assessments of the time value of money
and the risks specific to the asset.

In determining net selling price, recent
market transactions are taken into
account, if available. If no such
transactions can be identified, an
appropriate valuation model is used.

3.7 Employee Benefits

Short term employee benefits for salary that
are expected to be settled wholly within 12
months after the end of the reporting period in
which employees render the related service are
recognized as an expense in the statement of
profit and loss.

Retirement benefit in the form of provident fund
is a defined contribution scheme. The company
has no obligation, other than the contribution
payable to the provident fund. The company
recognizes contribution payable to the provident
fund scheme as an expenditure, when an
employee renders the related service.

The company operates two defined benefit plan
for its employees, viz., gratuity plan and leave
encashment plan. The costs of providing
benefits under the plans are determined on the
basis of actuarial valuation at each year-end.
Actuarial valuation is carried out using the
projected unit credit method made at the end
of each reporting date. Re-measurement of the
net defined benefit liability (asset) comprise of
actuarial gains and losses, the effect of the
asset ceiling, excluding amounts included in
net interest on the net defined benefit liability
(asset) and the return on plan assets (excluding
amounts included in net interest on the net
defined benefit liability / (asset)).Re-
measurement are recognised in other
comprehensive income and will not be
reclassified to profit or loss in a subsequent
period.

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Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 BASIS OF 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 Accounting Standards notified under Section 133 of the Companies Act, 2013 and the provisions of the RBI as applicable to Non Banking Financial Company (NBFC) without accepting deposits. The Financial Statement have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year.

1.2 USE OF ESTIMATES :

The presentation of financial statements is in conformity with Indian GAAP requires management to make estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent Liabilities) and the reported income and expense during the year. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 REVENUE RECOGNITION :

a. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

b. Dividend income is accounted for when the right to receive dividend is established.

c. Interest income is accounted on accrual basis except in the case of Non-Performing Assets (NPA), where interest income is recognised, upon realisation, as per the RBI guidelines.

d. All other incomes are recognized and accounted on accrual basis.

1.4 INVESTMENTS :

Long term investments are stated at cost. Provision is made for dimunition in value, other than temporary nature, of such investments.

1.5 INVENTORY :

Current investments in shares and securities, acquired in the ordinary course of business are stated as Inventory. As per RBI guidelines, inventory for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

1.6 PROPERTY, PLANT AND EQUIPMENTS :

Property, plant and equipment are stated at cost less depreciation. Cost includes all expenditure of capital in nature incurred to bring the assets at its present location and conditions. Depreciation on Property, plant and equipment is provided as per written down method and as per the life provided in Schedule II of the Companies Act, 2013.

Depreciation on additions / sales of the assets during current year has been provided on prorata basis from the date of addition / sales of assets

1.7 IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENTS :

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

Reversal of Impairment losses recognized in prior years are recorded when there is an indication that the impairment losses recognized for the assets no longer exists or have decreased.

1.8 EMPLOYEE BENEFITS :

Short term employee benefits and post employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services are rendered.

Liability in respect of post employment benefit plan is determined based on an independent actuarial valuation carried out using projected unit credit method considering discounting rate relevant to government securities at the balance sheet date. Post employment benefits under defined benefit plans are recognized as an expense in the statement of profit and loss for the year in which the employee has rendered services. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

1.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

Provisions involving substantial degree of estimation in measurement are recognized when there is a 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.

1.10 CLASSIFICATION OF LOAN PORTFOLIO AS PERFORMING AND NON-PERFORMING AND PROVISIONING THEREON :

The Company classifies its loan portfolio and provides provision thereon in accordance with the Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015.

1.11 Cash Flow Statement :

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transaction of a noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated.

1.12 GENERAL RESERVE II :

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long-term investments and such amount is credited to General Reserve II.

1.13 TAXATION :

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

1.14 OPERATING LEASE :

Lease where significant portion of risk and reward of ownership are retained by the Lessor are classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.

1.15 FOREIGN EXCHANGE TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of the transaction.

1.16 EARNING PER SHARE :

Basic earning per share is computed by dividing the profit / loss after tax by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the profit / (loss) after tax as adjusted for the effects dividend, interest and other charges relating to the dilutive potential equity shares..

1.17 GENERAL :

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

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Mar 31, 2017

1. SIGNIFICANT ACCOUNTING POLICIES

a. BASIS OF 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 Accounting Standards notified under Section 133 of the Companies Act, 2013. The Financial Statement have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year..

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions considered in the reported amount of assets and liabilities ( including Contingent Liabilities ) and the reported income and expense during the year. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the period in which the results are known/materialize.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

iii. Interest income is accounted on accrual basis except in the case of Non-Performing Assets(NPA''s),where interest income is recognized, upon realization, as per the RBI guidelines.

d. INVESTMENTS:

Non-current Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset 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.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset''s net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method as per the useful life prescribed in Schedule II of the Companies Act, 2013.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such leave were earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements.

k. Classification of loan portfolio and provisioning policy

The Company classifies its loan portfolio in accordance with the Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 into Performing and Non-performing Assets (NPA). Further, NPAs are classified into sub-standard, doubtful and loss assets.

I. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit/(loss) before tax is adjusted for the effects of transaction of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated.

m. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long-term investments and such amount is credited to General Reserve II.

n. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

o. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retained by the Lessor are classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.

p. FOREIGN EXCHANGE TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of the transaction.

q. EARNING PER SHARE:

Basic earning per share is computed by dividing the profit / loss after tax by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the profit / (loss) after tax as adjusted for the effects dividend, interest and other charges relating to the dilutive potential equity shares.

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Mar 31, 2016

1. SIGNIFICANT ACCOUNTING POLICIES a. BASIS OF 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 Accounting Standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. The Financial Statement have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions considered in the reported amount of assets and liabilities ( including Contingent Liabilities ) and the reported income and expense during the year. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the period in which the results are known/materialize.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

iii. Interest income is accounted on accrual basis.

d. INVESTMENTS:

Non-current Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset''s net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method as per the useful life prescribed in Schedule II of the Companies Act, 2013.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such leave were earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long-term investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m . OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retained by the Less or are classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.

n. FOREIGN EXCHANGE TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of the transaction.

o. EARNING PER SHARE :

Basic earnings per share is computed by dividing the profit / loss after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for the effects dividend, interest and other charges relating to the dilutive potential equity shares.

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Mar 31, 2015

A. BASIS OF 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 Accounting Standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014. The Financial Statement have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions considered in the reported amount of assets and liabilities ( including Contingent Liabilities ) and the reported income and expense during the year. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the period in which the results are known/materialize.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no signifi- cant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

iii. Interest income is accounted on accrual basis.

d. INVESTMENTS:

Non-current Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock- in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) which- ever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset''s net selling price and value in use.

h. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written Down Value (WDV) method as per the useful life prescribed in Schedule II of the Companies Act, 2013.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date. Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such leave were earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long- term investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retained by the Lessor are classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.

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Mar 31, 2013

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements in the Company have been prepared in accordance with the Generally Awe pled Accounting Principle in Indie (Indian GAAP) to comply with Accounting Standards notified under the Companies (Accounting Standards) Rules. 3006 (as amended} and the relevant provisions of the Companies Act. 1956.The Financial Statement have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the Financial Stablemen''s are consistent with those followed in the- previous year.

b. USE OF ESTIMATES;

The presentation at financial statements in conformity with Indian GAAP requires management to makh estimates and es-sumptiona considered in the reported amount of assets and liabilities ( including Contingent Liabilities ) and the reported income and expense during the year. The Management believes that the estimates used in preparation of the Financial Statement are and reasonable. Future results could differ due to these estimates and the differences between the adult results and the estimates are recognized in the period in which the resets are known/matenali2e.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no Significant uncertainly as to the measurability or collectability exists,

ii. Dividend income is accounted for when the right to receive payment is established.

iii. Interest income Is accounted on accrual basis,

d. INVESTMENTS:

Non-current Investments are Stated at Cost less any provision for diminution in value other than temporary.

e) STOCK IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued al cost or Fair Value / Net Asset Value (NAV} whichever Is lower.

I. FIXED ASSETS:

Fixed Assess are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS-:

Fixed Assets are reviewed for impairment losses wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an access net soling price and value in use.

h. DEPRECIATION:

Depredation on fixed assets is provided on Written Down Value (WDV) method at the roles and in the manner provided for under Schedule XIV of the Companies Act, 1956.

L RETIREMENT BENEFITS:

Gratuity ;

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created hy the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rale relevant to Government Securities at the Balance Sheet Dale. Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave if the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such have were earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement art recognized when there is a preset obligation as a result Of past events end it is$ probable that there will an outflow of resources.

Liberties which are of contingent nature are not provided but disposed al their astir mated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements,

k. GENERAL RESERVE I;

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for tree diminution in the value of long-term investments and such amount is credited to General Reserve II.

I. TAXATION:

Provision fit Currant Income tax is made on the basis of estimated taxable income for the period. Deterred Tax is recognized. subject to consideration of prudence, on liming differences between taxable income and accounting income for tine period that originates in one period and is capably of reversal m one or more subsequent periods.

m OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retainer by the Less or is classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.

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Mar 31, 2012

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies not specifically referred to otherwise have been followed consistently.

b. USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions 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. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

d. INVESTMENTS:

Non-current Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an assets' net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method at the rates and in the manner provided for under Schedule XIV of the Companies Act, 1956.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such leave was earned as Personnel Costs. j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of non- current investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing difference between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership is retained by the Lessor is classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.

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Mar 31, 2011

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies not specifically referred to otherwise have been followed consistently.

b. USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions 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. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

d. INVESTMENTS:

Long Term Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc, acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an assets' net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method at the rates and in the manner provided for under Schedule XIV of the Companies Act, 1956.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Profit and Loss Account for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Profit and Loss Account for the period in which such leave was earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Accounts.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long- term investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retained by the Lessor are classified as Operating Lease and rentals thereon are charged to Profit and Loss account.

---

Mar 31, 2010

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies not specifically referred to otherwise have been followed consistently.

b. USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions 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. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

d. INVESTMENTS:

Long Term Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc, acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an assets net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method at the rates and in the manner provided for under Schedule XIV of the Companies Act, 1956.

i. RETIREMENT BENEFITS:

Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined benefit contribution schemes, are charged to the Profit and Loss Account for the period, in which the contributions to the respective funds accrue.

Leave Encashment:

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Profit and Loss Account for the period in which such leave was earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Accounts.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long- term investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership is retained by the Lessor is classified as Operating Lease and rentals thereon are charged to Profit and Loss Account.