Accounting Policies of Tokyo Finance Ltd. Company

Mar 31, 2024

2 SIGNIFICANT / MATERIAL ACCOUNTING POLICIES:

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently
applied to all the years presented, unless otherwise stated.

The financial statements were approved for is sue by Board of Directors on 16 May, 2024

2.1) Basis of Preparation:

i. Compliance with IND AS :

These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the
Companies Act, 2013 (the Act) read with rule 4 of the Companies (Indian Accounting standards) Rules, 2015 and other relevant

ii. Historical cost convention :

The financial statements have been prepared under the historical cost convention using the accrual method of accounting basis, except
for certain financial instruments and defined benifit plan asset/liabilities that are measured at fair values at the end of each reporting
period as explained in the significant accounting polices below.

All assets and liabilities have been classified as current ornoncurrent as per the Company’s normal operating cycle and other criteria set
out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for
processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the
purpose of current/non-current classification of assets and liabilities.

2.2) Segment Reporting :

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker
(“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been
identified as the Managing Director and Finance Director of the Company. The Company has identified activity of providing finance as its

2.3) Foreign currency transactions :

i. Functional and presentation currencies :

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

ii. Transactions and balances :

Foreign currency transactions are translated into the functional currency at the exchange rates on the date of transaction. Foreign
exchange gains and losses resulting from settlement of such transactions and from translation of monetary assets and liabilities at the
year-end exchange rates are generally recognized in the profit and loss. They are deferred in equity if they relate to qualifying cash flow
hedges.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit and Loss, within
finance costs. All other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis.

Non-monetary foreign currency items are carried at cost and accordingly the investments in shares of foreign subsidiaries are expressed
in Indian currency at the rate of exchange prevailing at the time when the original investments are made or fair values determined.

2.4) Revenue recognition :

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured and there exists reasonable certainty of its recovery. Revenue is measured at the fair value of the consideration received or
receivable as reduced for estimated customer credits and other similar allowances.

i. Interest Income :

Interest income is recognised in the Statement of Profit and Loss and for all financial instruments except for those classified as held for
trading or those measured or designated as at fair value through profit or loss (FVTPL) is measured using the effective interest method
(EIR) and when it is it is probable that the company will collect the consideration.

ii. Dividend :

Dividend income is recognised when the Company’s right to receive dividend is established by the reporting date and no significant
uncertainty as to collectability exists.

iii. Net gain or fair value change :

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

iv. Income from financial instruments at FVTPL:

Income from financial instruments at FVTPL includes all gains and losses from changes in the fair value of financial assets and financial
liabilities at FVTPL except those that are held for trading.

v. Other operational revenue:

Other operational revenue represents income earned from the activities incidental to the business and is recognised when the right to
receive the income is established as per the terms of the contract.

2.5) Income Tax

The income tax expense or credit for the period is the taxpayable on the current period’s taxable income based on the applicable income tax
rate for each jurisdiction adjusted by the changes in deferred taxassets and liabilities attributable to temporary differences and to unused tax
losses

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income taxis provided in full, using the Balance Sheet method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred taxis recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively.

Minimum Alternative Tax (MAT) credit, which is equal to the excess of MAT (calculated in accordance with provisions of Section 115JB of
the Income tax Act, 1961) overnormal income-taxis recognized as an item in deferred taxasset by crediting the Statement of Profit and Loss
only when and to the extent there is convincing evidence that the Company will be able to avail the said credit against normal taxpayable
during the period of fifteen succeeding assessment years.

2.6) Property, Plant and Equipment :

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation and
impairment loss, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company and the cost of the itemcan be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to
the Statement of Profit and Loss during the reporting period in which they are incurred.

Capital work-in-progress comprises cost of fixed assets that are not yet ready for their intended use at the year end.

Depreciation methods, estimated useful lives and residual value :

Depreciation is calculated on a pro-rata basis on the straight line method so as to write-down the cost of property, plant and equipment to its
residual value systematically over its estimated useful life based on useful life of the assets as prescribed under Part C of Schedule II to the
Companies Act, 2013.

Estimated useful lives, residual values and depreciation methods are reviewed annually, taking into account commercial and technological
obsolescence as well as normal wear and tear and adjusted prospectively, if appropriate

2.7) Intangible Assets :

Intangible Assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment loss, if any.

Amortization :

Intangible assets are amortised over their respective individual estimated useful lives on a straight-line basis, commencing from the date the
asset is available to the Company for its use.

The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in
the estimate being accounted for on a prospective basis.

Expenditure on research is recognized as an expense when it is incurred. Development costs of products are also charged to the Statement of
Profit and Loss unless all the criteria for capitalization as set out on Paragraph 21 and 22 of Ind AS 38 have been met by the Company.

2.8) Lease :

As a Leasee

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of IndAS 116. Identification of a lease requires
significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the
applicable discount rate.

The Company accounts for each lease component within the contract as a lease separately from non-lease components ofthe contract and
allocates the consideration in the contract to each lease component on the basis ofthe relative stand-alone price of the lease component and
the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement
date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying
asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation and adjusted
for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement
date over the shorter of lease termor useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the
same basis as those of property, plant and equipment.

The Company measures the lease liability at the present value ofthe lease payments that are not paid at the commencement date of the lease.

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on alease
by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a
whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase
option where the Company is reasonably certain to exercise that option and payments ofpenalties for terminating the lease, if the lease term
reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying
amount to reflect any reassessment or lease modifications or to reflect revised in-substance feed lease payments.

The Company recognises the amount of the re-measurement of lease liability as an adjustment to the right-of-use asset. Where the carrying
amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company
recognises any remaining amount of the re-measurement in statement of profit and loss.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend
the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company
is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a
lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for
the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease
term if there is a change in the non-cancellable period of a lease.

The Company has elected not to apply the requirements ofInd AS 116 to short-termleases of all assets that have a lease term of 12 months or
less and leases for which the underlying asset is oflow value. The lease payments associated with these leases are recognised as an expense
on a straight-line basis over the lease term.

During the year there are no assest of taken by company on lease.

As a Leasor

Lease income fromoperating leases where the Company is a lessoris recognised in income on a straight-line basis over the lease term unless
the

receipts are structured to increase in line with expected general inflation to conpensate for expected inflationary cost increases. The
respective leased assets are included in the balance sheet based on their nature.

During the year there are no assest of company given on lease.

2.9) Financial Instruments

Financial assets and financial liabilities are recognised in the Company’s balance sheet when the Company becomes a party to the contractual
provisions of the instrument.

Recognised financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss.

A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally enforceable
right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the liability
simultaneously.

(i) Financial Assets :

i Classification :

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

- those measured at amortised cost.

Classification of debt assets will be driven by the Company’s business model for managing the financial assets and the contractual cash
flow characteristics of the financial assets.

A

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.

ii Measurement :

At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not 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 ofthe asset.

- AmortisedCost: Assets that are held for collection of contractual cashflows where those cashflows 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.

- Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cashflows and for
selling the financial assets, where the assets cash flow 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.

- Fair value through profit or loss (FVTPL): 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 has accounted for its investment in Equity Instruments at cost. Dividends from such investments are recognised in profit
or loss as other income when the company’s right to receive the dividend is established.

iii 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 ofthe 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.

(ii) Financial Liabilities :

Financial liabilities, including derivatives, which are designated for measurement at FVTPL are subsequently measured at fair value.
Financial guarantee contracts are subsequently measured at the amount of impairment loss allowance or the amount recognised at
inception net of cumulative amortisation, whichever is higher.

All other financial liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method.

A financial liability is derecognised when the related obligation expires or is discharged or cancelled.

2.10) Write Off :

Loans and debt securities are written off when the Company has no reasonable expectations of recovering the financial asset (either in its
entirety or a portion of it). This is the case when the Company determines that the borrower does not have assets or sources of income that
could generate sufficient cash flows to repay the amounts subject to the write-off. A write-off constitutes a derecognition event. The
Company may apply enforcement activities to financial assets written off. Recoveries resulting from the Company’s enforcement activities will
result in impairment gains Financial assets and financial liabilities are recognised in the Company’s balance sheet when the Company
becomes a party to the contractual provisions of the instrument.

2.11) Impairment :

The Company recognises loss allowances for ECLs on the financial instruments that are not measured at FVTPL viz Loans
Credit-impaired financial assets

A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the
financial asset have occurred. Credit-impaired financial assets are referred to as Stage 3 assets. Evidence of credit impairment includes
observable data about the following events:

- significant financial difficulty of the borrower or issuer;

- a breach of contract such as a default or past due event;

- the lender of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the
borrower a concession that the lender would not otherwise consider;

- the disappearance of an active market for a security because of financial difficulties; or

- the purchase of a financial asset at a deep discount that reflects the incurred credit losses

It may not be possible to identify a single discrete event—instead, the combined effect of several events may have caused financial assets to
become credit-impaired. The Company assesses whether debt instruments that are financial assets measured at amortised cost or FVTOCI are
credit-impaired at each reporting date. To assess if corporate debt instruments are credit impaired, the Company considers factors such as
bond yields, credit ratings and the ability of the borrower to raise funding.

A loan is considered credit-impaired when a concession is granted to the borrower due to a deterioration in the borrower’s financial
condition, unless there is evidence that as a result of granting the concession the risk of not receiving the contractual cash flows has reduced
significantly and there are no other indicators of impairment. For financial assets where concessions are contemplated but not granted the
asset is deemed credit impaired when there is observable evidence of credit-impairment including meeting the definition of default. The
definition of default (see below) includes unlikeliness to pay indicators and a back-stop if amounts are overdue for 90 days or more.

Significant increase in credit risk

The Company monitors all financial assets that are subject to the impairment requirements to assess whether there has been a significant
increase in credit risk since initial recognition. If there has been a significant increase in credit risk the Company will measure the loss
allowance based on lifetime rather than 12-month ECL.

In assessing whether the credit risk on a financialinstrument has increased significantly since initialrecognition, the Company compares the
risk of a default occurring on the financial instrument at the reporting date based on the remaining maturity ofthe instrument with the risk of a
default occurring that was anticipated for the remaining maturity at the current reporting date when the financial instrument was first
recognised. In making this assessment, the Company considers both quantitative and qualitative information that is reasonable and
supportable, including historical experience and forward-looking information that is available without undue cost or effort, based on the
Company’s historical experience and expert credit assessment.

Given that a significant increase in credit risk since initial recognition is a relative measure, a given change, in absolute terms, in the
Probability of Default will be more significant for a financial instrument with a lower initial PD than compared to a financial instrument with a
higher PD.

As a back-stop when loan asset becomes 90 days past due, the Company considers that a significant increase in credit riskhas occurred and
the asset is in stage 2 of the impairment model, i.e. the loss allowance is measured as the lifetime ECL in respect of such loan, which is
reviewed annually.

Definition of default

Critical to the determination of ECL is the definition of default. The definition of default is used in measuring the amount of ECL and in the
determination of whether the loss allowance is based on 12-month or lifetime ECL, as default is a component ofthe probability of default (PD)
which affects both the measurement of ECLs and the identification of a significant increase in credit risk.

The Company considers the following as constituting an event of default:

- the borrower is past due more than 90 days on any material credit obligation to the Company; or

- the borrower is unlikely to pay its credit obligations to the Company in full.

The definition of default is appropriately tailored to reflect different characteristics of different types of assets.

When assessing if the borrower is unlikely to pay its credit obligation, the Company takes into account both qualitative and quantitative
indicators. The information assessed depends on the type of the asset, for example in corporate lending a qualitative indicator used is the
admittance of bankruptcy petition by National Company Law Tribunal, which is not relevant for retail lending. Quantitative indicators, such
as overdue status and non-payment on another obligation of the same counterparty are key inputs in this analysis. The Company uses a
variety of sources of information to assess default which are either developed internally or obtained fromexternal sources. The definition of
default is applied consistently to all financial instruments unless information becomes available that demonstrates that another default
definition is more appropriate for a particular financial instrument.

ECLs are required to be measured through a loss allowance as follows:

- 12-month ECL, i.e. lifetime ECLthat result from those default events on the financial instrument that are possible within 12 months after
the reporting date, (referred to as Stage 1); or

- full lifetime ECL, i.e. lifetime ECLthat result fromall possible default events over the life of the financial instrument, (referred to as Stage 2
and Stage 3).

A loss allowance for full lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has increased
significantly since initial recognition (and consequently to credit impaired financial assets). For all other financial instruments, ECLs are
measured at an amount equal to the 12-month ECL.

The Company measures ECL on an individual basis, or on a collective basis for portfolios of loans that share similar economic risk
characteristics.

2.12) Presentation of allowance for ECL in the Balance Sheet :

Loss allowances for ECL are presented in the statement of financial position as follows:

- for financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets;

- for debt instruments measured at FVTOCI: no loss allowance is recognised in Balance Sheet as the carrying amount is at fair value.

2.13) 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. Trade
and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

2.14) Borrowings :

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of
the borrowings.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The
difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration
paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

2.15) Borrowing Cost :

General and specific borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalised
during the period of time that is required to complete and prepare the asset for its intended use or sale.

Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing
costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

2.16) Employee Benefits:

i. Short term obligations:

Liabilities for wages and s alaries, including nonmonetary benefits that are expected to be s ettled wholly within 12 months after the end of
the period in which the employees render the related service are recognised in respect of employees’ services upto the end of the
reporting and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

ii. Provident fund:

The Company makes contribution to the Governments Provident Fund Scheme, a defined contribution scheme, administered by
Government Provident Fund Authorities. The Company has no obligation to the scheme beyond its monthly contributions.

iii. Gratuity:

Liabilities with regard to the gratuity benefits payable in future are determined by actuarial valuation at each Balance Sheet date using
the Projected Unit Credit method and contributed to Employees Gratuity Fund. Actuarial gains and losses arising from changes in
actuarial assumptions are recognized in other comprehensive income and shall not be reclassified to the Statement of Profit and Loss in a
subsequent period.

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Mar 31, 2015

Basis of Accounting:

The financial statements are prepared under the historical cost convention on an accrual basis of accounting financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 along with the applicable guidelines issued by Reserve Bank of India ("RBI").

Revenue Recognition

Interest Income is recognised in the profit and loss account as it accrues except in the case of non performing assets ("NPAs") where it is recognised, upon realisation, as per the Non Banking Financial Companies (NBFC) prudential norms of RBI.

Advances & Provisioning

Non performing assets ("NPAs") provisions are made based on management's assessment of the degree of impairment, subject to the minimum provisioning level in accordance with Non Banking Financial Companies (NBFC) prudential norms of RBI.

Fixed assets :

Tangible fixed assets are stated at cost of acquisition including any cost attributable for bringing the asset to its working condition, less accumulated depreciation.

Impairment of assets

In accordance with AS 28 on 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the companies assets, the carrying amounts of the companies assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss if any, is recognized in the Profit & loss account.

Investments

Long Term and unquoted investments are valued at historical cost. Provision for diminution in the value of investments will be made only when there is any indication of diminution of permanent nature .

Depreciation :

Depreciation on Tangible Fixed Assets is provided on "Straight Line Method". Till March 31, 2014 depreciation is charged as per rates prescribed in Schedule XIV to the Companies Act, 1956. From April 01, 2014 it is based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 and in the manner prescribed by Schedule II of the Companies Act 2013.

Intangible assets are amortised over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

Taxation:

Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred Tax resulting from 'timing difference' between book and taxable profit for the year is accounted for using the current tax rates. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future. However, in case of deferred tax assets representing unabsorbed depreciation or carry forward losses are recognised, if and only if there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised.

Employee Benefits :

Short-Term Employee Benefits :

All employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee benefits. Benefits such as salaries, short-term compensated absences etc. and expected cost of bonus are recognised in the period in which the employee renders the related service.

Defined - Benefits Plans

Gratuity: The Liability is ascertained and provided for as per Actuarial Valuation in conformity with the principles set out in the Accounting Standard 15 (revised)

Earnings per share

Basic and diluted earnings per share are computed in accordance with Accounting Standard (AS)-20 - Earnings per share. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

Contingent liabilities not provided for :

Provisions are recognized when the company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when a company has possible obligation or a present obligation and it is uncertain as to whether a cash outflow will be required to settle the obligation.

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Mar 31, 2014

Basis of Accounting:

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India along with the applicable guidelines issued by Reserve Bank of India ("RBI").

Revenue Recognition

Interest Income is recognised in the profit and loss account as it accrues except in the case of non performing assets ("NPAs") where it is recognised, upon realisation, as per the Non Banking Financial Companies (NBFC) prudential norms of RBI.

Advances & Provisioning

Non performing assets ("NPAs") provisions are made based on management''s assessment of the degree of impairment, subject to the minimum provisioning level in accordance with Non Banking Financial Companies (NBFC) prudential norms of RBI.

Fixed assets :

"Tangible fixed assets are stated at cost of acquisition including any cost attributable for bringing the asset to its working"condition, less accumulated depreciation."

Impairment of assets

In accordance with AS 28 on ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the companies assets, the carrying amounts of the companies assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss if any, is recognized in the Profit & loss account.

Investments

''Long-Term Investments'' are carried at acquisition cost. No provision has been made for diminution in the value of investment in the equity shares of Tokyo Plast International Ltd. as the diminution in the value of shares is considered as temporary.

Depreciation :

Depreciation on fixed assets is provided for on the "Straight Line Method" as per the rates and in the manner prescribed by Schedule XIV of the Companies Act 1956.

Taxation:

Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred Tax resulting from ''timing difference'' between book and taxable profit for the year is ac- counted for using the current tax rates. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future. However, in case of deferred tax assets representing unabsorbed depreciation or carry forward losses are recognised, if and only if there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised.

Employee Benefits :

Short-Term Employee Benefits :

"All employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee"benefits. Benefits such as salaries, short-term compensated absences etc. and expected cost of bonus are recognised in the period in which the employee renders the related service."

Defined - Benefits Plans

Gratuity: The Liability is ascertained and provided for as per Actuarial Valuation in conformity with the principles set out in the Accounting Standard 15 (revised)

Earnings per share

Basic and diluted earnings per share are computed in accordance with Accounting Standard (AS)-20 - Earnings per share. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive

Contingent liabilities not provided for :

Claims against the Company not Acknowledged as Debts as on 31st March 2014 amounting to Rs. Nil.

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Mar 31, 2013

Basis of Accounting:

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards notified under Section 211(3C) of the Companies Act,1956 and the relevant provisions thereof along with the applicable guidelines issued by Reserve Bank of India ("RBI").

Revenue Recognition

Interest Income is recognised in the profit and loss account as it accrues except in the case of non performing assets ("NPAs") where it is recognised, upon realisation, as per the Non Banking Financial Companies (NBFC) prudential norms of RBI.

Advances & Provisioning

Non performing assets ("NPAs") provisions are made based on management''s assessment of the degree of impairment, subject to the minimum provisioning level in accordance with Non Banking Financial Companies (NBFC) prudential norms of RBI.

Fixed assets :

Tangible fixed assets are stated at cost of acquisition including any cost attributable for bringing the asset to its working condition, less accumulated depreciation.

Impairment of assets

In accordance with AS 28 on ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the companies assets, the carrying amounts of the companies assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss if any, is recognized in the Profit & loss account.

Investments

''Long-Term Investments'' are carried at acquisition cost. No provision has been made for diminution in the value of investment in the equity shares of Tokyo Plast International Ltd. as the diminution in the value of shares is considered as temporary.

Depreciation :

Depreciation on fixed assets is provided for on the "Straight Line Method" as per the rates and in the manner prescribed by Schedule XIV of the Companies Act 1956.

Taxation:

Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred Tax resulting from ''timing difference'' between book and taxable profit for the year is accounted for using the current tax rates. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future. However, in case of deferred tax assets representing unabsorbed depreciation or carry forward losses are recognised, if and only if there is a virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised.

Employee Benefits :

Short-Term Employee Benefits :

All employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee benefits. Benefits such as salaries, short-term compensated absences etc. and expected cost of bonus are recognised in the period in which the employee renders the related service.

Defined – Benefits Plans

Gratuity: The Liability is ascertained and provided for as per Actuarial Valuation in conformity with the principles set out in the

Accounting Standard 15 (revised)

Earnings per share

Basic and diluted earnings per share are computed in accordance with Accounting Standard (AS) - 20 – Earnings per share. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive

Contingent liabilities not provided for :

Claims against the Company not Acknowledged as Debts as on 31st March 2013 amounting to Rs. Nil.

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Mar 31, 2010

A. Basis of accounting :

Income and Expenditure are accounted for on accrual basis.

b. Revenue Recognition:

Interest Income is recognised in the profit and loss account as it accrues except in the case of non performing assets ("NPAs") where it is recognised, upon realisation, as per the Non Banking Financial Companies (NBFC) prudential norms of RBI.

c. Advances & Provisioning:

Non performing assets ("NPAs") provisions are made basded on managements assessment of the degree of impairment, subjet to the minimum provisioning level in accordance with Non Banking Financial Companies (NBFC) prudential noms of RBI.

d. Fixed Assets :

All fixed assets are stated at historical cost of acquisition less accumulated depreciation.

e. Investments :

No provision has been made for diminution in the value of investment in the equity shares of Tokyo Plast International Ltd. as the diminution in the value of shares is considered as temporary. These investments are held as long term investments and hence valued at cost.

f. Depreciation :

Depreciation of fixed assets is provided for on the "Straight Line Method" as per the rates and in the manner prescribed by Schedule XIV of the Companies Act, 1956.

g. Deferred Taxation :

Provision for taxation comprises of Current Tax, Deferred Tax and Fringe Benefit Tax. Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profit as per the financial statements Deferred tax assets and liabilities are measured as per the tax rates that have been enacted or substantively enacted by the Balance Sheet date and are reviewed for appropriateness of their respective carrying values at each Balance Sheet Date. The major component is Depreciation.

h. Basis of Preparation :

The Financial Statements have been prepared to comply in all material respects with Mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the Historical Cost convention on an Accrual basis except in case of assets for which provision for Impairment is made and Revaluation is carried out.