Accounting Policies of Ushakiran Finance Ltd. Company

Mar 31, 2024

1.06 Summary of material accounting policies

On 31^st March 2023, the Ministry of Corporate Affairs notified Companies (Indian
Accounting Standards) Amendment Rules, 2023 amending the Companies
(Indian Accounting Standards) Rules, 2015. The amendments come into force
with effect from 1^st April 2023, i.e., Financial Year 2023-24. One of the major
changes is in Ind AS 1 ''Preparation of Financial Statements, which requires
companies to disclose in their financial statements ''material accounting
policies'' as against the erstwhile requirement to disclose ''significant
accounting policies''. The word ''significant'' is substituted by ''material''.
Accounting policy information is expected to be material if users of an entity''s
financial statements would need it to understand other material information in
the financial statements.

The Company applied the guidance available under paragraph 117B of Ind AS
1, Presentation of Financial Statements in evaluating the material nature of the
accounting policies.

The following are the material accounting policies for the Company:

1.07 Property, plant and equipment

The cost of an item of property, plant and equipment are recognised as an
asset if, and only if it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can be measured
reliably.

Freehold land is carried at historical cost less any accumulated impairment
losses. Items of property, plant and equipment (including capital-work-in
progress) are stated at cost of acquisition or construction less accumulated
depreciation and impairment loss, if any.

Cost includes expenditures that are directly attributable to the acquisition of
the asset i.e., freight, non-refundable duties and taxes applicable and other
expenses related to acquisition and installation. The cost of self-constructed
assets includes the cost of materials and other costs directly attributable to
bringing the asset to a working condition for its intended use.

When significant parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific
useful lives.

Any gain or loss on disposal of an item of property, plant and equipment is
recognised in profit or loss.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future
economic benefits associated with the expenditure will flow to the Company
and the cost of the item can be measured reliably.

Depreciation

Depreciation on items of PPE is provided on written down value basis,
computed on the basis of useful lives as mentioned in Schedule II to the
Companies Act, 2013. Depreciation on additions/disposals is provided on a
pro-rata basis i.e., from/up to the date on which asset is ready for use/ disposed-
off.

1.08 Investment property

Investment property is property (land or a building or part of a building or both)
held to earn rentals or for capital appreciation or both, rather than for:

(a) Use in the production or supply of goods or services or for administrative
purposes; or

(b) Sale in the ordinary course of business.

Recognition and measurement:

An investment property shall be recognised as an asset when and only when:

(a) It is probable that the future economic benefits that are associated
with the investment property will flow to the entity; and

(b) The cost of the investment property can be measured reliably.

An investment property shall be measured initially at its cost. Transaction
costs shall be included in the initial measurement. The company adopted cost
model prescribed in Ind AS 16 for accounting its investment property. The fair
value of investment property has been determined by the Management.

Cost Model

After recognition as an asset, an item of investment property shall be carried at
its cost less any accumulated depreciation and any accumulated impairment
losses.

Depreciation

Depreciation on items of Investment Property is provided on written down
value basis, computed on the basis of useful lives mentioned in Schedule II to
the Companies Act, 2013. Depreciation on additions/disposals is provided
on a pro-rata basis i.e., from/up to the date on which asset is ready for use/
disposed-off. The residual values, useful lives and method of depreciation are
reviewed at each financial year end and adjusted prospectively, if appropriate.
Land is non-depreciable asset as per the Schedule II of the Companies Act,
2013.

1.09 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of other entity.

a. Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset. Purchases
or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades)
are recognized on the trade date, i.e., the date that the Company commits to
purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified as
under:

Debt instruments at amortised cost;

Debt instruments and derivatives at fair value through profit or loss
(FVTPL);

Equity instruments measured at fair value through other comprehensive
income (FVTOCI);

Equity Instruments

All equity investments under the scope of Ind AS 109 are measured at fair
value. The Company classified all equity instruments at FVTOCI, and
accordingly all fair value changes on the equity instruments, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from
OCI to statement of profit and loss.

Derecognition

A financial asset (or, where applicable, apart of a financial asset or part of a
group of similar financial assets) is primarily derecognized (i.e., removed from
the Company''s balance sheet) when:

a) The rights to receive cash flows from the asset have expired, or

b) The Company has transferred its rights to receive cash flows from the
asset or has assumed an obligation to pay the received cash flows in
full without material delay to a third party under a ''pass - through''
arrangement; and either (i) the Company has transferred substantially
all the risks and rewards of the asset, or

(ii)the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the
asset.

When the Company has transferred its rights to receive cash flows from an
asset or has entered into a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the

asset, nor transferred control of the asset, the Company continues to recognize
the transferred asset to the Extent of the Company''s continuing involvement. In
that case, the Company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained.

Impairment of Financial Assets

The company assesses at each reporting period/balance sheet date whether
a financial asset or a group of financial assets is impaired.

In accordance with Ind AS 109, the company uses “Expected Credit Loss”
(ECL) model, for evaluating impairment of Financial Assets other than those
measured at Fair Value Through Profit and Loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount
equal to:

• The 12 months expected credit losses (expected credit losses that result
from those default events on the financial instrument that are possible
within 12 months after the reporting date);

• Full lifetime expected credit losses (expected credit losses that result
from all possible default events over the life of the financial instrument);

The company follows simplified approach for recognition of impairment loss
allowance on loans given, trade receivables and under the simplified approach,
the company does not track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECL at each reporting date right
from its initial recognition. The company uses a provision matrix to determine
impairment loss allowance on loans given and trade receivables. The provision
matrix is based on its historically observed default rates over the expected life
of loans given and trade receivables and is adjusted for forward looking
estimates. At every reporting date, the historical observed default rates are
updated.

For other assets, the company uses 12-month ECL to provide for impairment
loss where there is no significant increase in credit risk. If there is significant
increase in credit risk full lifetime ECL is used.

The Company recognises loss allowances for Expected Credit Losses (ECLs)
on the financial instruments like Loans and Advances to customers, Trade
and other receivables.

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.

Definition of default

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.
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.

b. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at
fair value i.e., loans and borrowings, payables, or as derivatives designated
as hedging instruments in an effective hedge, as appropriate. All financial
liabilities are recognized initially at fair value and in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans
and borrowings including bank overdrafts, financial guarantee contracts.
Subsequent measurement

The measurement of financial liabilities depends on their classification.
Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities
held for trading and financial liabilities designated upon initial recognition as
fair value through profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term.
This category also includes derivative financial instruments entered into by the
Company that are not designated as hedging instruments in hedge
relationships as defined by Ind AS 109. Separated embedded derivatives are
also classified as held for trading, unless they are designated as effective
hedging instruments. Gains or losses on liabilities held for trading are
recognised in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through
profit or loss are designated as such at the initial date of recognition, and only
if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/losses attributable to changes in own credit risk are recognized
in OCI. These gains/ loss are not subsequently transferred to the statement of
profit and loss.

However, the Company may transfer the cumulative gain or loss within equity.
All other changes in fair value of such liability are recognised in the statement
of profit and loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is
discharged or cancelled or expired. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange
or modification is treated as the de-recognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts
is recognised in the statement of profit and loss.

Reclassification of financial assets and liabilities

The Company determines classification of financial assets and liabilities on
initial recognition. After initial recognition, no re-classification is made for
financial assets which are equity instruments and financial liabilities. For
financial assets which are debt instruments, a re-classification is made only if
there is a change in the business model for managing those assets. A change
in the business model occurs when the Company either begins or ceases to
perform an activity that is significant to its operations. If the Company reclassifies
financial assets, it applies the re-classification prospectively from the re¬
classification date, which is the first day of the immediately next reporting
period following the change in business model. The Company does not restate
any previously recognised gains, losses (including impairment gains or losses)
or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is
reported in the balance sheet, if there is a currently enforceable legal right to
offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.

1.10 Cash and cash equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts
with banks, and other short-term deposits. For this purpose, “short-term” means
investments having maturity of three months or less from the date of investment,
and which are subject to an insignificant risk of change in value. Bank overdrafts
that are repayable on demand and form an integral part of our cash management
are included as a component of cash and cash equivalents for the purpose of

the statement of cash flows. The Company is not having any overdraft facility/
limits from any bank/financial institution.

1.11 Impairment of non-financial assets

The carrying amounts of the Company''s non-financial assets, other than
deferred tax assets are reviewed at each reporting date to determine whether
there is any indication of impairment.

If any such indication exists, then the asset''s recoverable amount is estimated.
For good will and intangible assets that have in definite lives or that are not yet
available for use, an impairment test is performed each year at March 31.
There coverable amount of an asset or cash-generating unit (as defined below)
is the greater of its value in use and its fair value less costs to sell. In assessing
value in use, the estimated future cash flows are is counted to their present
value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset or the cash¬
generating unit.

For the purpose of impairment testing, assets are grouped together into the
smallest group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflow of other assets or groups of assets
(the “cash-generating unit”).

Intangible assets and property, plant and equipment are evaluated for
recoverability whenever events or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the purpose of impairment
testing, the recoverable amount (i.e., the higher of the fair value less cost to
sell and the value-in-use) is determined on an individual asset basis unless
the asset does not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is determined for
the Cash Generated Units (CGU) to which the asset belongs. If such assets
are considered to be impaired, the impairment to be recognized in the statement
of profit and loss is measured by the amount by which the carrying value of the
assets exceeds the estimated recoverable amount of the asset. An impairment
loss is reversed in the statement of profit and loss if there has been a change
in the estimates used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable amount, provided
that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated amortization or depreciation) had no
impairment loss been recognized for the asset in prior years. An impairment
loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognized in prior periods are assessed at each reporting date for any
indications that the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only to the extent that
the asset''s carrying amount does not exceed the carrying amount that would

have been determined, net of depreciation or amortization, if no impairment
loss had been recognized.

An impairment loss is recognized in the statement of profit and loss if the
estimated recoverable amount of an asset or its cash-generating unit is lower
than its carrying amount. Impairment losses recognized in respect of cash¬
generating unit are allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to reduce the carrying amount of the other assets
in the unit on a pro-rata basis.

1.12 Employee benefits
Short term employee benefits

Short-term employee benefits are expensed as the related service is provided.
A liability is recognized for the amount expected to be paid if the Company has
a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
The Company is not having any defined contribution plans and defined benefit
plans at present.

---

Mar 31, 2015

A. Corporate Information:

Ushakiran Finance Limited is a Non-Banking Finance Company listed on the Bombay Stock Exchange (BSE). It is engaged in the business of financing, investments and trading in equity shares etc.,

B. Basis of Accounting:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act,2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention, except those with significant uncertainties. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation.

C. Use of Estimates:

The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets and liabilities, and disclosure of contingent liabilities at that date of the financial statements and the results of operations during the reporting period. Although such estimates and assumptions are made on reasonable and prudent basis taking into account all available information, the actual results could differ from these estimates and assumptions and such differences are recognized in the period in which the results are known/ materialized/crystallised.

D. Prudential Norms:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition.

b) Provisioning for standard, substandard, doubtful and loss Assets.

c) Accounting for Investments.

E. Revenue Recognition:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established. Sale is recognized when the significant risks and rewards of ownership have been transferred to the customers.

F. Expenses:

All the expenses are accounted on accrual basis.

G. Fixed Assets:

Fixed Assets are stated at cost of acquisition.

The acquisition cost includes the purchase price (excluding refundable taxes, if any) and expenses directly attributable to bring the asset to the location and condition for its intended use.

H. Depreciation:

Depreciation has been provided on written down value method as per Schedule XIV of the Companies Act, 1956. Effective 1st April, 2014, the company depreciates its Fixed Assets over the useful life on written down value method, in the manner prescribed in Schedule II of the Companies Act, 2013, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

I. Investments:

Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments, other than held in Stock-in-Trade, have been classified as long term investments. Long Term Investments are carried at cost of acquisition.

Unquoted Investments have are valued at cost and the diminution in the value of quoted investments has been provided, if such decline is other than temporary in the opinion of management. Current Investments are stated at lower of cost or fair/market value, determined on an individual investment basis.

J. Inventories:

Shares and Securities held as Stock-in-Trade are valued scrip wise at cost or market value whichever is lower.

K. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts, if any. Contingent Assets are neither recognized nor disclosed in the financial statements.

L. Retirement and other employee benefits:

All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Statement of Profit and Loss. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.

M. Accounting for taxes on income:

(a) Current Tax is determined as the amount of tax payable in respect of its taxable income as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax assets and liabilities, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

N. Earnings per Share:

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except when the results would be anti-dilutive.

O. Cash Flow Statement:

Cash-flow statement is prepared in accordance with the "Indirect Method" as explained in the Accounting Standard(AS) 3 - Cash Flow Statements. Cash and cash equivalent in the cash flow statement comprises cash in hand, bank balances in current accounts, cheques and drafts on hand and term deposits with an original maturity of less than three months.

---

Mar 31, 2014

B. Basis of Accounting:

The financial statements have been prepared on going concern basis in accordance with generally accepted accounting principles in India (Indian GAAP) and comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 read with general circular 8/2014 dated 2nd April, 2014, issued by Ministry of Corporate Affairs. The financial statements have been prepared on accrual basis under the historical cost convention, except those with significant uncertainties.

C. Use of Estimates:

Estimates and assumptions used in the preparation of the financial statements are based on management''s, evolution of the relevant facts and circumstances as of the date of the Financial statements which may differ from the actual results at a subsequent date. Difference between the actual results and estimates are recognized in the period in which the results are known/materialised.

D. Prudential Norms:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition.

b) Provisioning for standard, substandard, doubtful and loss Assets.

c) Accounting for Investments.

E. Revenue Recognition:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established.

F. Expenses:

All the expenses are accounted on accrual basis.

G. Fixed Assets:

Fixed Assets are stated at cost of acquisition.

H. Depreciation:

Depreciation has been provided on written down value method as per Schedule XIV of the Companies Act, 1956.

i. investments:

Investments (Long Term) are stated at cost of acquisition.

The diminution in the value of quoted investments has been provided, if such decline is other than temporary in the opinion of management. Current Investments are stated at lower of cost or market value, determined on an individual investment basis.

J. inventories:

Shares and Securities held as Stock-in-Trade are valued scrip wise at cost or market value whichever is lower.

K. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

L. Retirement and other employee benefits:

All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Statement of Profit and Loss. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.

M. accounting for taxes on income:

(a) Current Tax is determined as the amount of tax payable in respect of its taxable income as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

N. Earnings per share:

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except when the results would be anti-dilutive.

---

Mar 31, 2012

A. Corporate Information: Ushakiran Finance Limited is a Non- Banking Finance Company listed on the Bombay Stock Exchange. It is engaged in the business of Financing, investments etc.,

B. Basis of Accounting:

The financial statements are prepared on the basis of historical cost convention and the accounts are prepared in accordance with the generally accepted accounting policies and accounting standards notified undet1 section 211 (3C) Companies (Accounting Standards) Rules, 2006 and provisions of the Companies Act, 1956 as adopted consistently by the Company, unless otherwise stated.

C. Use of Estimates:

Estimates and assumptions used in the preparation of the financial statements are based on management's, evolution of the relevant facts and circumstances as of the date of the Financial statements which may differ from the actual results at a subsequent date.

D. Prudential Norms:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition. '

b) Provisioning for standard, substandard, doubtful and loss Assets:

c) Accounting for Investments.

E. Revenue Recognition:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established.

F. Expenses:

All the expenses are accounted on accrual basis.

G. Fixed Assets:

Fixed Assets are stated at cost of acquisition.

H. Depreciation:

Depreciation has been provided on written down vaiue method as per Schedule XIV of the Companies Act, 1956.

I. Investments:

Investments (Long Term) are stated at cost of acquisition.

The diminution in the value of quoted investments has been provided, if such decline is other than temporary in the opinion of management.

J. inventories:

Shares and Securities held as Stock-in-Trade are vatued scrip wise at cost or market value whichever is lower.

K. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation iri measuremenfare recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabili- ties are not recognized but are disclosed in the notes to accounts. Con* tingent Assets are neither recognized nor disclosed in the financial state- ments.

L. Retirement and other employee benefits:

All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Profit and Loss Account. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.

M. Accounting for taxes on income: .

(a) Current Tax is determined as the amount of tax payable in respect of its taxable income as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

N. Earnings per Share:

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. DHutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except when the results would be anti-dilutive.

---

Mar 31, 2010

A. ACCOUNTING POLICIES:

The financial statements are prepared on the basis of historical cost convention and the accounts are prepared in accordance with the generally accepted accounting policies and provisions of the Companies Act, 1956 as adopted consistently by the Company, unless otherwise stated.

B. USE OF ESTIMATES :

Estimates and assumptions used in the preparation of the financial statements are based on managements, evolution of the relevant facts and circumstances as of the date of the Financial statements which may differ from the actual results at a subsequent date.

C. PRUDENTIAL NORMS:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition.

b) Provisioning for standard, substandard, doubtful and loss Assets.

c) Accounting for investments.

O. REVENUE RECOGNITION:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established.

E. EXPENSES:

All the expenses are accounted on accrual basis.

F. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition.

G. DEPRECIATION

Depreciation has been provided on written down value method as per Schedule XIV of the Companies Act, 1956.

H. INVESTMENTS:

Investments (Long Term) are stated at cost of acquisition.

The diminution in the value of quoted investments have been provided, if such decline is other than temporary in the opinion of management.

1. INVENTORIES:

Shares and Securities held as Stock-in-Trade are valued scrip wise at cost or market value whichever is lower.

J. CONTINGENT LIABILITIES:

Unpaid liability for partly paid shares amounts to Rs.7.00 Lakhs (Rs.7.00 Lakhs)

K. All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages, short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Profit and, Loss Account. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.