Accounting Policies of SW Investments Ltd. Company

Mar 31, 2024

1. Significant accounting policies

The significant accounting policies applied by the Company in the preparation of its
financial statements are listed below. Such accounting policies have been applied
consistently to all the periods presented in these financial statements, unless otherwise
indicated.

(a) Basis of Preparation

The standalone financial statements comply in all material aspects with Indian Accounting
Standards (hereinafter referred to as “Ind AS") as notified under the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016 prescribed under Section 133 of the Companies Act, 2013 read with
rule 7 of the Companies (Accounts) Rules, 2014.

The standalone financial statements have been prepared in accordance with the Indian
Accounting Standards (Ind AS) on the historical cost basis except for certain financial
instruments that are measured at fair values at the end of each reporting period as
explained in the accounting policies below and the relevant provisions of the Act.

(b) Revenue Recognition

(i) Revenue: Company follows accrual system of accounting and takes into account
expense and incomes as accrued. Income from consultancy charges, brokerage &
commission is recognized when it is reliably measured that it will flow to the company.

(ii) Interest: Interest income from a financial asset is recognised when it is probable that
the economic benefits will flow to the company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset''s net carrying amount on initial recognition.

(iii) Dividend: Dividend income from investments is recognized when the shareholder''s
right to receive payment has been established (provided that it is probable that the
economic benefits will flow to the company and the amount of income can be
measured reliably).

(c) Income tax

Current Income tax: Current income tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted, at the
reporting date in the countries where the company operates and generates taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income or in equity). Current tax items are
recognised in correlation to the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred tax

1) Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilised. Such deferred tax
assets and liabilities are not recognized if the temporary difference arises from the initial
recognition (other than in a business combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit. In addition, deferred tax
liabilities are not recognised if the temporary difference arises from the initial recognition of
goodwill.

2) Deferred tax liabilities are recognised for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the
Company is able to control the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with such investments and
interests are only recognized to the extent that it is probable that there will be sufficient
taxable profits against which to utilize the benefits of the temporary differences and they
are expected to reverse in the foreseeable future.

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

4) Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.

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

Minimum Alternate Tax:

Minimum Alternate Tax (''MAT'') credit is recognised as an asset only when and to the extent
there is convincing evidence that the company will pay normal income-tax during the
specified period. In the year in which the MAT credit becomes eligible to be recognised as
an asset, the said asset is created by way of a credit to the statement of profit and loss. The
company reviews the same at each balance sheet date and writes down the carrying
amount of MAT credit entitlement to the extent there is no longer convincing evidence to
the effect that company will pay normal income-tax during the specified period.

(d) Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more frequently if events or
changes in circumstances indicate that they might be impaired. Other assets are tested for
impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised in the statement of profit
or loss for the amount by which the asset''s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest
level for which there are separately identifiable cash inflows which are largely dependent of
the cash inflows from other assets or groups of assets (cash-generating units). Non-financial
assets other than goodwill that suffered an impairment are reviewed for possible reversal of
the impairment at the end of each reporting period.

After impairment, depreciation is provided on the revised carrying amount of the asset over
its remaining useful life.

(e) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and
demand deposits with an original maturity of three months or less and highly liquid
investments that are readily convertible into known amounts of cash and which are subject
to an insignificant risk of changes in value net of outstanding bank overdrafts as they are
considered an integral part of the Company''s cash management.

(f) Non-current assets (or disposal groups) held for sale and discontinued operations

Non-current assets are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is
considered highly probable. They are measured at the lower of their carrying amount and
fair value less costs to sell, except for assets such as deferred tax assets, assets arising from
employee benefits, financial assets and contractual rights under insurance contracts, which
are specifically exempt from this requirement.

Non-current assets are not depreciated or amortised while they are classified as held for
sale. Interest and other expenses attributable to the liabilities of a disposal asset classified
as held for sale continue to be recognised.

(g) Investments and other financial assets

(i) Classification: Financial assets, other than equity instruments, are subsequently
measured at amortised cost, fair value through other comprehensive income (FVOCI)
or fair value through profit or loss (FVTPL) on the basis of both:

(a) the entity''s business model for managing the financial assets and

(b) the contractual cash flow characteristics of the financial asset.

For assets measured at fair value, gains and losses will either be recorded in profit or
loss or other comprehensive income. For investments in debt instruments, this will
depend on the business model in which the investment is held. For investments in
equity instruments, this will depend on whether the company has made an irrevocable
election at the time of initial recognition to account for the equity investment at fair
value through other comprehensive income.

The company reclassifies debt investments when and only when its business model for
managing those assets changes.

(ii) Measurement

At initial recognition, the company measures a financial asset at its fair value plus, in the
case of a financial asset not carried at fair value through profit or loss, transaction costs that
are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit or loss are expensed in profit or loss.

Debt instruments

Subsequent measurement of debt instruments depends on the company''s business model for
managing the asset and the cash flow characteristics of the asset. There are three
measurement categories into which the company classifies its debt instruments:

• Amortised cost: Assets that are held for collection of contractual cash flows where those
cash flows represent solely payments of principal and interest are measured at amortised
cost. A gain or loss on a debt investment that is subsequently measured at amortised cost
and is not part of a hedging relationship is recognised in profit or loss when the asset is
derecognised or impaired. Interest income from these financial assets is included in finance
income using the effective interest rate method.

• Fair value through other comprehensive income (FVOCI): Assets that are held for collection
of contractual cash flows and for selling the financial assets, where the assets'' cash flows
represent solely payments of principal and interest, are measured at fair value through other
comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI,
except for the recognition of impairment gains or losses, interest revenue and foreign
exchange gains and losses which are recognised in profit and loss. When the financial asset
is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from
equity to profit or loss and recognised in other gains/ (losses). Interest income from these
financial assets is included in other income using the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or
FVOCI are measured at fair value through profit or loss.

A gain or loss on a debt investment that is subsequently measured at fair value through profit
or loss and is not part of a hedging relationship is recognised in profit or loss and presented net
in the statement of profit and loss within other gains/(losses) in the period in which it arises.
Interest income from these financial assets is included in other income.

Equity instruments

The company subsequently measures all equity investments at fair value. Where the company''s
management has elected to present fair value gains and losses on equity investments in other
comprehensive income, there is no subsequent reclassification of fair value gains and losses to
profit or loss. Dividends from such investments are recognised in profit or loss as other income
when the company''s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in
the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported separately from other changes in fair value.

(iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated
with its assets carried at amortised cost and FVOCI debt instruments. The impairment
methodology applied depends on whether there has been a significant increase in credit
risk. Note 20 details how the company determines whether there has been a significant
increase in credit risk.

For trade receivables only, the company applies the simplified approach permitted by Ind
AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from
initial recognition of the receivables.

(iv) Derecognition of financial assets

A financial asset is derecognised only when

• The company has transferred the rights to receive cash flows from the financial asset
or

• The company retains the contractual rights to receive the cash flows of the financial
asset, but assumes a contractual obligation to pay the cash flows to one or more
recipients.

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

Where the entity has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is derecognised if the
company has not retained control of the financial asset. Where the company retains control
of the financial asset, the asset is continued to be recognised to the extent of continuing
involvement in the financial asset.

(h) Financial Liabilities

All Financial liabilities are measured at amortized cost using effective interest method or fair
value through profit and loss. However, financial liabilities that arise when a transfer of a
financial asset does not qualify for derecognition or when the continuing involvement
approach applies, financial guarantee contracts issued by the Company, and commitments
issued by the Company to provide a loan at below-market interest rate are measured in
accordance with the specific accounting policies set out below.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either contingent
consideration recognised by the Company as an acquirer in a business combination to which
Ind AS 103 applies or is held for trading or it is designated as at FVTPL.

A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of repurchasing it in the near term; or

• on initial recognition it is part of a portfolio of identified financial instruments that the
Company manages together and has a recent actual pattern of short-term profit-taking; or

• it is a derivative that is not designated and effective as a hedging instrument

A financial liability other than a financial liability held for trading or contingent consideration
recognised by the Company as an acquirer in a business combination to which Ind AS 103
applies, may be designated as at FVTPL upon initial recognition if:

• such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise;

• the financial liability forms part of a Company of financial assets or financial liabilities or
both, which is managed and its performance is evaluated on a fair value basis, in accordance
with the Company''s documented risk management or investment strategy, and information
about the Company is provided internally on that basis; or

• it forms part of a contract containing one or more embedded derivatives, and Ind AS 109
permits the entire combined contract to be designated as at FVTPL in accordance with Ind
AS 109

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on
remeasurement recognised in Statement of Profit and Loss. The net gain or loss recognized in
Statement of Profit and Loss incorporates any interest paid on the financial liability and is
included in the ''Other income'' line item.

However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the
amount of change in the fair value of the financial liability that is attributable to changes in the
credit risk of that liability is recognised in other comprehensive income, unless the recognition
of the effects of changes in the liability''s credit risk in other comprehensive income would
create or enlarge an accounting mismatch in profit or loss, in which case these effects of
changes in credit risk are recognised in Statement of Profit and Loss. The remaining amount of
change in the fair value of liability is always recognised in Statement of Profit and Loss.
Changes in fair value attributable to a financial liability''s credit risk that are recognised in other
comprehensive income are reflected immediately in retained earnings and are not
subsequently reclassified to Statement of Profit and Loss.

Gains or losses on financial guarantee contracts and loan commitments issued by the Company
that are designated by the Company as at fair value through profit or loss are recognised in
Statement of Profit and Loss.

Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are
measured at amortised cost at the end of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently measured at amortised cost are
determined based on the effective interest method. Interest expense that is not capitalised as
part of costs of an asset is included in the ''Finance costs'' line item. The effective interest
method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s
obligations are discharged, cancelled or have expired. An exchange with a lender of debt
instruments with substantially different terms is accounted for as an extinguishment of the
original financial liability and the recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability (whether or not attributable to the
financial difficulty of the debtor) is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and payable is
recognised in Statement of Profit and Loss.

(i) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to
the end of financial year which are unpaid. The amounts are unsecured and are usually paid
within 45 -90 days of recognition. Trade and other payables are presented as current
liabilities unless payment is not due within 12 months after the reporting period. They are
recognised initially at their fair value and subsequently measured at amortised cost using
the effective interest method.

(j) Expected Credit Losses

The Company measures the expected credit loss of trade receivables and loan from
individual customers based on historical trend, industry practices and the business
environment in which the entity operates. Loss rates are based on actual credit loss
experience and past trends. Based on the historical data, loss on collection of receivable is
not material hence no additional provision considered.

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Mar 31, 2015

1.1 Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention, on accrual basis, in compliance with all material aspects of the notified Accounting standards by Companies (Accounting Standards) Amendment Rules, 2013 and the relevant provisions of the Companies Act. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.2 Use of Estimates

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

1.3 Revenue recognition

Company follows accrual system of accounting and takes into account expense and incomes as accrued. Income from consultancy charges, brokerage & commission and interest on loan is recognized when it is reliably measured that it will flow to the company. Dividend is accounted when right to receive is established.

1.4 Investment

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and market value whichever is less.

All other investments are classified as non current Investments. Non Current Investments are carried at cost, less provision for diminution in value other than temporary.

1.5 Fixed Assets

Fixed Assets are shown at cost of acquisition, after reducing accumulated depreciation.

1.6 Depreciation

Depreciation is provided as per useful life of the assets as per Companies Act, 2013. Depreciation is not provided if WDV is less than 5% of the cost of the asset.

1.7 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

1.8 Borrowing Cost

Interest and other cost in connection with the borrowing of the funds to the extent related attributed to the business to the date and also other borrowing costs are charged to Statement of Profit & Loss.

1.9 Employees Benefits

The Provident Fund rules as per Employees Provident Fund and Miscellaneous Provisions Act, 1952 does not apply to the company. No provision for Gratuity is made in view of non completion of required number of years by any employee..

1.10 Taxation

Income-tax expenses comprises of Current Tax and Deferred Tax charge or credit. Provision for Current Tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.11 Provision & Contingent Liabilities

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimates can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet Date. These are reviewed at each Balance Sheet Date and adjusted to reflect the current best estimates.

All known liabilities are provided for and liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent and disclosed by way of Notes forming part of Accounts.

1.12 Cash Flow Statement

Cash flow statement has been prepared under the 'Indirect Method'. Cash and cash equivalents, in the cash flow statement comprise of unencumbered cash and bank balances.

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Mar 31, 2014

1.1 Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention, on accrual basis, in compliance with all material aspects of the notified Accounting standards by Companies (Accounting Standards) Amendment Rules, 2008 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.2 Use of Estimates

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

1.3 Revenue recognition

Company follows accrual system of accounting and takes into account expense and incomes as accrued. Income from consultancy charges, brokerage & commission and interest on loan is recognized when it is reliably measured that it will flow to the company. Dividend and Miscellaneous Income is accounted on cash basis.

1.4 Investment

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and market value whichever is less.

All other investments are classified as non current Investments. Non Current Investments are carried at cost, less provision for diminution in value other than temporary.

1.5 Fixed Assets

Fixed Assets are shown at cost of acquisition, after reducing accumulated depreciation. Capital work in progress includes expenditure incurred till the assets are put into intended use.

1.6 Depreciation

Depreciation is provided as per written down value method at rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis from the date assets have been put in use.

1.7 Impairment of Assets]

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

1.8 Borrowing Cost

Interest and other cost in connection with the borrowing of the funds to the extent related attributed to the business to the date and also other borrowing costs are charged to Statement of Profit & Loss.

1.9 Employees Benefits

The Provident Fund rules as per Employees Provident Fund and Miscellaneous Provisions Act, 1952 does not apply to the company. No provision for Gratuity is made in view of non completion of required number of years by any employee. Leave Encashment and Bonus is accounted on cash basis.

1.10 Taxation

Income-tax expenses comprises of Current Tax and Deferred Tax charge or credit. Provision for Current Tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.11 Provision & Contingent Liabilities

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimates can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet Date. These are reviewed at each Balance Sheet Date and adjusted to reflect the current best estimates.

All known liabilities are provided for and liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent and disclosed by way of Notes forming part of Accounts.

1.12 Cash Flow Statement

The Cash Flow Statement has been prepared in accordance with the indirect method prescribe in Accounting Standard- 3 issued by The Institute of Chartered Accountants of India.

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Mar 31, 2013

1.1 Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention, on accrual basis, in compliance with all material aspects of the notified Accounting standards by Companies (Accounting Standards) Amendment Rules, 2008 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.2 Use of Estimates

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

1.3 Revenue recognition

Company follows accrual system of accounting and takes into account expense and incomes as accrued. Income from consultancy charges, brokerage & commission and interest on loan is recognized when it is reliably measured that it will flow to the company. Dividend and Miscellaneous Income is accounted on cash basis.

1.4 Investment

Investments are stated at cost, and include all other expenses incurred on its acquisition and interest accrued thereon, if any.

1.5 Fixed Assets

Fixed Assets are shown at cost of acquisition, after reducing accumulated depreciation. Capital work in progress includes expenditure incurred till the assets are put into intended use.

1.6 Depreciation

Depreciation is provided as per written down value method at rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis from the date assets have been put in use.

1.7 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

1.8 Borrowing Cost

Interest and other cost in connection with the borrowing of the funds to the extent related attributed to the business to the date and also other borrowing costs are charged to Statement of Profit & Loss.

1.9 Employees Benefits

The Provident Fund rules as per Employees Provident Fund and Miscellaneous Provisions Act, 1952 does not apply to the company. No provision for Gratuity is made in view of non completion of required number of years by any employee. Leave Encashment and Bonus is accounted on cash basis.

1.10 Taxation

Income-tax expenses comprises of Current Tax and Deferred Tax charge or credit. Provision for Current Tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.11 Provision & Contingent Liabilities

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimates can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet Date. These are reviewed at each Balance Sheet Date and adjusted to reflect the current best estimates.

All known liabilities are provided for and liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent and disclosed by way of Notes forming part of Accounts.

1.12 Cash Flow Statement

The Cash Flow Statement has been prepared in accordance with the indirect method prescribe in Accounting Standard- 3 issued by The Institute of Chartered Accountants of India.

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Mar 31, 2010

1) Basis of preparation

The fnancial statements are prepared underthe historical cost convention, on accrual basis, in compliance with all material aspects of the notifed Accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 and or notifed underthe Companies (Accounting Standards) Amendment Rules, 2008. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2) Use of estimates

The preparation of fnancial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the fnancial statements and the reported amounts of revenues and expenses during the period reported. Actual results could differ from those estimates. Any revision to accounting estimates is recognised in accordance with the requirements of the respective accounting standard.

3) Revenue Recognition

a) Income from operation includes consultancy charges, brokerage & commission and interest on loan and same is recognised when it is probable that the economic benefts will fow to the Company and the revenue can be reliably measured. Income from trading in securities recognized based on signifcant risks & rewards of ownership have been transferred to buyer.

b) Dividend is recognised when the shareholders’ right to receive payment is established by the balance sheet date.

4) Fixed Assets

Fixed assets are stated at cost (or revalued amounts, as the case may be), less accumulated depreciation and impairment losses.

5) Depreciation

Depreciation is provided using the written down method at the rates prescribed under schedule XIV of the Companies Act, 1956.

6) Impairment of assets

The carrying amounts of assets are reviewed at each balance sheet date if there are impairment indicators. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash fows are discounted to their present value at the WACC.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognised impairment loss is increased or decreased based on reassessment of recoverable amount, which is carried out if the change is signifcant. However the carrying value after reversal is not

increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

7) Investments

Investments that are readily realisable and intended to be held for not more than a year are classifed as current investments. Current investments are carried at lower of cost and market value whichever is less.

All other investments are classifed as long-term investments. Long-term investments are Carried at cost, less provision for diminution in value other than temporary.

8) Employee benefts

Defned Contribution Plan

Contribution to defned contribution plans are recognized as expense in the Proft and

Loss Account as they are incurred.

Defned Beneft Plan

Companys liabilities towards gratuity liability are provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each balance sheet date. Actuarial gains/losses are immediately taken to P&L Account and are not deferred.

9) Borrowing Cost

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognized as expenses in the period in which they are incurred.

10) Taxation

Tax expense comprises of current and deferred. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes refects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that suffcient future taxable income will be available against which such deferred tax assets can be realised. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profts.

At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that suffcient future taxable income will be available against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that suffcient future taxable income will be available against which deferred tax asset can be realised. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that suffcient future taxable income will be available

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specifed period. In the year in which the Minimum Alternative tax (MAT) credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the proft and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specifed period.

11) Foreign Currency Transactions

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. The gain or loss arising out of settlement / translation of the assets and liabilities at the closing rates due to exchange fuctuations is recognized as income/expenditure in the proft and loss account.

12) Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with AS-20 “Earnings per Share”. Basic earnings per share are computed by dividing the net proft or loss for the period by the weighted average number of Equity Shares outstanding during the period. Diluted earnings per share is computed by dividing the net proft or loss for the period by the weighted average number of Equity Shares outstanding during the period as adjusted for the effects of all dilutive potential equity shares.

13) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event it is probable that an outfow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to refect the current best estimates.

14) Contingent Liabilities

Contingent Liabilities, if any, are disclosed in the Notes on Accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end till the approval of the accounts by the Board of Directors and which have material effect on the position stated in the Balance Sheet.