Accounting Policies of Swarna Securities Ltd. Company

Mar 31, 2025

1) INCOME RECOGNITION:

a) The Company recognizes rent on accrual basis in accordance with the
substance of the relevant agreement.

b) Dividend income from investments is recognized when the right to
receive payment has been established.

c) Interest on bank deposits is recognized on accrual basis.

2) PROPERTY, PLANT AND EQUIPMENT:

Property, Plant and Equipment are stated in the Balance Sheet at cost less
accumulated depreciation. Cost of acquisition of Property, Plant and
Equipmentis inclusive of insurance, compensation charges, freight, duties,
taxes and cost of installation as applicable.

3) DEPRECIATION:

Depreciation is provided on Written Down Value Method based on the useful
life of the assets as prescribed in Schedule II to the Companies Act, 2013.

4) INVESTMENT PROPERTIES

Investment properties being land and buildings are stated at cost. On an
analysis carried out by the Management, no impairment loss has been
recognized during the year.

5) CURRENT INVESTMENTS

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or
market value as per quotations available as on the Balance Sheet date,
whichever is less. Unquoted equity shares are valued at cost or break-up
value, whichever is lower. Where the balance sheet of the invested company
is not available, such shares are valued at one rupee.

During the year ended March 31,2025, the Company considered indicators of
impairment including market values of the quoted investments. The outcome
of such assessment did not result in recognition of any impairment for
investments held by the Company. The Management believes that no
reasonably possible change in any of the key assumptions used in the
assessment would cause the carrying value of such investment to exceed its
recoverable amount. Hence, no impairment loss on investments is recognised
during the year.

6) The Board of Directors in their meeting held on 15/10/2015 has decided to
come out of the NBFC business. Accordingly, the certificate of registration
issued by the Reserve Bank of India under the provisions of section 45-IA of
the Reserve Bank Act, 1934 has been surrendered for cancellation. The
Reserve Bank has duly passed an order dated 21/03/2016 cancelling the

certificate of registration. Thus, the Company is no longer in to NBFC
business, but is merely collecting the outstanding dues.

7) CONTINGENCIES AND COMMITMENTS

The Company records a liability for any claims where a potential loss is
probable and capable of being estimated and discloses such matters in its
financial statements, if material. For potential losses that are considered
possible, but not probable, the Company provides disclosure in the financial
statements but does not record a liability in its accounts unless the loss
becomes probable.

The Company is having dispute with the Income Tax Department with regard
to the income it has offered on entering into development agreement during
the financial year 2014-15 with respect to the land at Hyderabad. The
Company has disputed the demand raised by the Income Tax Department of
Rs.1.53 Crores for the assessment year 2015-16, before the Commissioner
(Appeals). The Company has applied for the stay of collection of the disputed
tax by payment of 20% of the sum. The Company expects to get a favourable
verdict in the matter and therefore, has not made any provision towards the
disputed tax.

8) There are no outstanding dues as on the Balance Sheet date to any micro,
small or medium enterprises.

9) MANAGERIAL REMUNERATION

No remuneration has been paid to any director, key managerial personnel or
other related parties during the year.

10) INCOME TAXES

Tax expense for the year comprises of current and deferred tax. The tax
currently payable is based on taxable profit for the year. Taxable profit differs
from net profit as reported in the statement of profit and loss because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Company’s liability for current tax is calculated using tax rates and tax laws
that have been enacted or substantively enacted by the end of the reporting
period.

Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying value of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit and
is accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognised for all taxable temporary differences. In
contrast, deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available against which the
temporary differences can be utilised.

The timing difference between taxable income and the income as per the
books of accounts being insignificant, no deferred tax asset or liability has
been recognized for the year.

11) SEGMENT REPORTING

The Company has discontinued its non-banking finance business and has
been in receipt of rental income only, during the year. As such the Company''s
activity falls within a single business and therefore there are no additional
disclosures to be provided under Accounting Standard (AS-17) "Segment
Reporting", other than those already provided in the financial statements.

12) RELATED PARTY TRANSACTIONS

There are no transactions during the year with any of the related parties, to be
disclosed in accordance with the Indian Accounting Standard (Ind AS) 24
"Related Party Disclosures”.

13) EARNING PER SHARE:

In determining earnings - per share, the Company considers the net profit
after tax and includes the post-tax effect of any extra-ordinary/exceptional
item. The number of shares used in computing basic earnings per share is
the weighted average number of shares outstanding during the period. The
number of shares used in computing diluted earnings per share comprises the
weighted average shares considered for deriving basic earnings per share,
and also the weighted average number of equity shares that could have been
issued on the conversion of all dilutive potential equity shares.

14) There was no expenditure on employees who are in receipt of remuneration
covered in terms of the provisions of Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 to
furnish the particulars mentioned in Rule 5(1) thereof.

LOANS

15) (a) The Company has not advanced or loaned or invested (either from borrowed

funds or share premium or any other sources or kind of funds) to or in any
other person(s) or entity(ies), including foreign entities (''Intermediaries''), with
the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the
Company (''Ultimate Beneficiaries'') or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries; and

(b) The Company has not received any funds from any person(s) or entity(ies),
including foreign entities (''Funding Parties''), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or
provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

16) There are no outstanding loans/advances in nature of loan to or from
promoters, key management personnel or other officers of the Company.

17) CORPORATE SOCIAL RESPONSIBILITY

Given the net worth, turnover and the net profit of the Company, the
provisions of section 135 with respect to corporate social responsibility are not
applicable for the year.

18) DIVIDEND

The Board has not recommended the payment of any dividend during the
year.

FINANCIAL RATIOS

19) The applicable financial ratios to be disclosed for the years ended March 31,
2025 and March 31,2024 are as follows:

Note:

(1) Though the current assets have increased, the increase in current liabilities in form of provision for
taxation was proportionately more.

(2) Increase in income from investment was due to receipt of arrears of dividend.

BORROWINGS FROM BANKS

20) The Company has not availed any working capital limits from banks or
financial institutions at any point of time during the year.

RELATIONSHIP WITH STRUCK-OFF COMPANIES

21) The Company did not have any transactions with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act,
1956 considering the information available

COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

22) The Company do not have any parent company and accordingly, compliance
with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017 is not
applicable for the year under consideration.

SCHEME OF ARRANGEMENTS

23) There are no schemes of arrangements approved by the Competent Authority
in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

24) There was no consumption of imported raw materials, components or spare
parts during the year.

25) There were no earnings or expenditure in foreign currency during the year.

26) Previous Year''s Figures are regrouped wherever necessary

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS

1) INCOME RECOGNITION:

a) The Company recognizes rent on accrual basis in accordance with the substance of the relevant agreement.

b) Dividend income from investments is recognized when the right to receive payment has been established.

c) Interest on bank deposits is recognized on accrual basis.

2) PROPERTY, PLANT AND EQUIPMENT:

Property, Plant and Equipment are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of Property, Plant and Equipment is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

3) DEPRECIATION:

Depreciation is provided on Written Down Value Method based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

4) INVESTMENT PROPERTIES

Investment properties being land and buildings are stated at cost. On an analysis carried out by the Management, no impairment loss has been recognized during the year.

5) CURRENT INVESTMENTS

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

During the year ended March 31,2024, the Company considered indicators of impairment including market values of the quoted investments. The outcome of such assessment did not result in recognition of any impairment for investments held by the Company. The Management believes that no reasonably possible change in any of the key assumptions used in the assessment would cause the carrying value of such investment to exceed its recoverable amount. Hence, no impairment loss on investments is recognised during the year.

6) The Board of Directors in their meeting held on 15/10/2015 has decided to come out of the NBFC business. Accordingly, the certificate of registration issued by the Reserve Bank of India under the provisions of section 45-IA of the Reserve Bank Act, 1934 has been surrendered for cancellation. The Reserve Bank has duly passed an order dated 21/03/2016 cancelling the certificate of registration. Thus, the Company is no longer in to NBFC business, but is merely collecting the outstanding dues.

7) CONTINGENCIES AND COMMITMENTS

The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

The Company is having dispute with the Income Tax Department with regard to the income it has offered on entering into development agreement during the financial year 2014-15 with respect to the land at Hyderabad. The Company has disputed the demand raised by the Income Tax Department of Rs.1.53 Crores for the assessment year 2015-16, before the Commissioner (Appeals). The Company has applied for the stay of collection of the disputed tax by payment of 20% of the sum. The Company expects to get a favourable verdict in the matter and therefore, has not made any provision towards the disputed tax.

8) There are no outstanding dues as on the Balance Sheet date to any micro, small or medium enterprises.

9) MANAGERIAL REMUNERATION

No remuneration has been paid to any director, key managerial personnel or other related parties during the year.

10) INCOME TAXES

Tax expense for the year comprises of current and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying value of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences. In contrast, deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

The timing difference between taxable income and the income as per the books of accounts being insignificant, no deferred tax asset or liability has been recognized for the year.

11) SEGMENT REPORTING

The Company has discontinued its non-banking finance business and has been in receipt of rental income only, during the year. As such the Company''s activity falls within a single business and therefore there are no additional disclosures

to be provided under Accounting Standard (AS-17) "Segment Reporting”, other than those already provided in the financial statements.

12) RELATED PARTY TRANSACTIONS

There are no transactions during the year with any of the related parties, to be disclosed in accordance with the Indian Accounting Standard (Ind AS) 24 "Related Party Disclosures”.

13) EARNING PER SHARE:

In determining earnings - per share, the Company considers the net profit after tax and includes the post-tax effect of any extra-ordinary/exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

14) There was no expenditure on employees who are in receipt of remuneration covered in terms of the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 to furnish the particulars mentioned in Rule 5(1) thereof.

LOANS

15) (a) The Company has not advanced or loaned or invested (either from borrowed

funds or share premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(b) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (''Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

16) There are no outstanding loans/advances in nature of loan to or from promoters,

key management personnel or other officers of the Company.

17) CORPORATE SOCIAL RESPONSIBILITY

Given the net worth, turnover and the net profit of the Company, the provisions of section 135 with respect to corporate social responsibility are not applicable for the year.

18) DIVIDEND

The Board has not recommended the payment of any dividend during the year. FINANCIAL RATIOS

19) The applicable financial ratios to be disclosed for the years ended March 31, 2024 and March 31,2023 are as follows:

Particulars	Numerator	Denominator	March 31, 2024	March 31, 2023	Variation in %	Reaso ns for variati on
Current Ratio	Current Assets	Current liabilities	119.33	13.55	780.45%	Note-1
Debt-Equity Ratio	Total debt	Shareholder''s equity	0	0
Debt Service Coverage Ratio	Earning available for debt service	Debt service	0	0
Return on Equity Ratio	Net profit after taxes	Average shareholder''s equity	13.24%	15.19%	-12.83%
Inventory Turnover Ratio	Revenue	Average Inventories	0	0
Trade receivables Turnover Ratio	Revenue	Average trade receivables	0	0
Trade payables Turnover Ratio	Revenue	Average trade payables	0	0
Net Capital Turnover Ratio	Revenue	Working capital	0	0
Net Profit Ratio	Net profit	Revenue	56.16%	58.80%	-4.48%
Return on Capital Employed	Earning before interest & taxes	Capital employed	15.19%	17.18%	-11.57%
Return on Investment (Assets)	Income generated from investments	Average invested funds	5.80%	32.88%	-82.37%	Note-2

Note:

1. Fixed deposits with bank were made during the year. Hence, higher balance in balance in bank account and more the current ratio compared to previous year.

2. Investment in shares made during the year yet generate any income. Hence lower return on investment.

BORROWINGS FROM BANKS

20) The Company has not availed any working capital limits from banks or financial

institutions at any point of time during the year.

RELATIONSHIP WITH STRUCK-OFF COMPANIES

21) The Company did not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 considering the information available

COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

22) The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the year under consideration.

SCHEME OF ARRANGEMENTS

23) There are no schemes of arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

24) There was no consumption of imported raw materials, components or spare parts during the year.

25) There were no earnings or expenditure in foreign currency during the year.

26) Previous Year''s Figures are regrouped wherever necessary

27) Paises are rounded off to the nearest rupee

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Mar 31, 2015

1) INCOME RECOGNITION:

a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis.

b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

2) FIXED ASSETS:

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

3) DEPRECIATION:

Depreciation is provided on Written Down Value Method on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

4) INVESTMENTS: Investments are stated at cost.

5) STOCK OF SHARES IN TRADE:

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

6) There is a fall in the ratio of the financial income to the total income during the financial year ended 31st March, 2015; and also the financial assets to total assets ratio as on that date. Beyond the principal business criteria for holding the certificate of registration as specified in the Circular DNBS (PD) C.C.No. 81/03.05.002/2006-07 dated 19/10/2006 issued by the Reserve Bank of India. However, the Board informs that it is seeking to prove the ratios in the coming year. Further, it is informed that the Board is planing to diversify its activities towards other upcoming sectors.

7) CONTINGENT LIABILITIES:

There are no contingent liabilities.

8) Fees, Licenses & Taxes debited to the Profit & Loss Account includes Rs.5.00 lakhs of penalty imposed by the Reserve Bank of India under section 58B(5)(aa) of the RBI Act, 1934.

9) The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31.03.2015.

10) MANAGERIAL REMUNERATION:

No Remuneration is paid to the Managing Director.

11) PROVISION FOR NON-PERFORMING ASSETS:

In pursuance to the Non-Banking Financial Companies (Non-Deposit Accepting or Holding) Prudential Norms (Reserve Bank) Directions, 2007 provision for NPAs amounting to Rs.2.33 Lakhs was made during the year 2014-15.

12) TRANSFER TO RESERVE FUND

The Company transferred an amount of Rs.2.44 lakhs to the Statutory Reserve Fund as per Section 45-IC of the Reserve Bank of India Act, 1934.

13) The Company has recognized Deferred Tax Liability of an amount of Rs.2,410/- towards difference in the depreciation allowable under the Companies Act and the Income Tax Act.

14) SEGMENT REPORTING:

The Company, as of now, is engaged only in finance business. As such the Company's activity falls within a single business and therefore there are no additional disclosures to be provided under Accounting Standard (AS-17) "Segment Reporting", other than those already provided in the financial statements.

15) RELATED PARY TRANSACTIONS:

There are no transactions during the year with any of the related parties, to be disclosed in accordance with the Accounting Standard AS-18: "Related Party Disclosures" issued by The Institute of Chartered Accountants of India.

16) EARNING PER SHARE:

In determining earnings - per share, the Company considers the net profit after tax and includes the post tax effect of any extra-ordinary/exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

17) There was no expenditure on employees who are in receipt of remuneration covered in terms of the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 to furnish the particulars mentioned in Rule 5(1) there of.

18) There was no consumption of imported raw materials, components or spare parts during the year.

19) There was no expenditure in foreign currency during the year.

20) There were no earnings in foreign currency.

21) Previous Year's Figures are regrouped wherever necessary

22) Paises are rounded off to the nearest rupee.

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Mar 31, 2013

1) INCOME RECOGNITION:

a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis.

b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

2) FIXED ASSETS:

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

3) DEPRECIATION:

Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

4) INVESTMENTS: Investments are stated at cost.

5) STOCK OF SHARES IN TRADE:

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are value, at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

6) CONTINGENT LIABILITIES:

There are no contingent liabilities.

7) The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31.03.2013.

8) MANAGERIAL REMUNERATION: No Remuneration is paid to the Managing Director.

9) PROVISION FOR NON-PERFORMING ASSETS:

In pursuance to the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 provision for NPAs amounting to Rs. 2.02 Lakhs was made during the year 2012-13.

10) TRANSFER TO RESERVE FUND:

An avnount of Rs. 1.20 Lakhs is transferred to Reserve Fund in accordance with the provisions of Section 45(I)C of the RBI Act, 1934, for the current year.

11) The difference between the net profit as shown in the Profit & Loss Account and the net income as per the Income Tax Act, 1961 not being substantial, no deferred tax asset has been recognized for the year.

12) SEGMENT REPORTING:

The Company, as of now, is engaged only in finance business. As such the Company''s activity falls within a single business and therefore there are no additional disclosures to be provided under Accounting Standard (AS-17) "Segment Reporting", other than those already provided in the financial statements.

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Mar 31, 2012

1) INCOME RECOGNITION :

a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis.

b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

2) FIXED ASSETS: All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

3) DEPRECIATION : Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

4) INVESTMENTS : Investments are stated at cost.

5) STOCK OF SHARES IN TRADE :

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

6) CONTINGENT LIABILITIES : There are no contingent liabilities.

7) The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31:03.2012.

8) MANAGERIAL REMUNERATION : No Remuneration is paid to the Managing Director.

9) PROVISION FOR NON-PERFORMING ASSETS : In pursuance to the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 provision for NPAs amounting to Rs. 3.17 Lakhs was made during the year 2011-12.

10) TRANSFER TO RESERVE FUND: An amount of Rs.0.49 Lakhs is transferred to Reserve Fund in accordance with the provisions of Section 45(I)C of the RBI Act, 1934, for the current year.

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Mar 31, 2011

01. INCOME RECOGNITION .

(a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis. Income for the year from Hire Purchase represents the income reversed during earlier years, now recognized on receipt basis.

(b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

(c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

02. FIXED ASSETS

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

03. DEPRECIATION

Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

04. INVESTMENTS :

Investments are stated at cost.

05. STOCK OF SHARES IN TRADE :

Stock of shares in trade, where quoted are valued scrip wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

06. CONTINGENT LIABILITIES :

There are no contingent liabilities.

07. The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31.03.2011.

08. MANAGERIAL REMUNERATION

No Remuneration is paid to the Managing Director.

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Mar 31, 2010

01. INCOME RECOGNITION :

(a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on Loans on accrual basis. Income for the year from Hire Purchase represents the income reversed during earlier years, now recognised on receipt basis.

(b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the Income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

(c) Additional finance Charges and Dividends are accounted for as and when received. Dividend on chit Subscription is accounted for on due basis.

02. FIXED ASSETS

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes, cost of installation as applicable.

03. DEPRECIATION

Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

04. INVESTMENTS :

Investments are stated at cost.

05. STOCK OF SHARES IN TRADE :

Stock of shares in trade, where quoted are valued scrip wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.