Accounting Policies of Williamson Financial Services Ltd. Company

Mar 31, 2024

2. Material Accounting Policy Information

2.1. BasisforPreparation

A summary of Material Accounting Policies applied in the preparation of the Financial Statements is given
below. These accounting policies have been applied consistently to all the periods presented in the Financial
Statements.

The company has prepared and presented the financial statements on the basis that it will continue to operate
as a going concern.

The Company presents its Financial Statements to comply with Division III of Schedule III to the Act which
provides general instructions forthe preparation of Financial Statements ofa Non-Banking Financial Company
(NBFC to comply with Ind AS) and the requirements ofInd AS.

a. Historical Cost Convention

These financial statements have been prepared in accordance with the generally accepted accounting principles
in India under the historical cost convention, except for the following:

i) certain financial assets and liabilities (including derivative instruments) that is measured at fair value {Refer
Note 2.1(a)}

ii) employee''s defined benefit plan - plan assets measured at fair value {Refer Note 2.8(b)}

b. Fair ValueMeasurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants atthe measurement date, regardless ofwhether that price is directly observable
or estimated using another valuation technique. In measuring fair value of an asset or liability, the Company
takes into account those characteristics of the assets or liability that market participants would take into account
when pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fairvalue measurementsare categorised into Level 1,2or3 based
on the degree to which the inputs to the fair value measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that he entity
can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable forthe asset
or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

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

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

c. Functional and Presentational Currency

These financial statements are presented in Indian Rupee (INR) (Rs.) in Thousand which is also the functional
currency.

d. Current/ Non-Current Classification

Assets and liabilities are classified as current or non-current based on their expected period of realization. An
analysis regarding recovery or settlement within 12 months after the reporting date (current) and more than
12 months after the reporting date (non-current) is presented in Note No. 37.

2.2. Revenue Recognition

Revenue is recognised to the extent that it is probable that economic benefits will flow to the Company and
that revenue can be reliably measured, regardless ofwhen the payments is being made.

The Company follows the prudential norms for income recognition and provides for/writes off Non-Performing
Assets as per the prudential norms prescribed by the Reserve Bank of India or earlier as ascertained by the
management.

a. Dividend Income

Dividend Income is recognized as and when the Company''s rights to receive the payment is established, it is
probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not
represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

b. Interest Income

Interest income is accounted for all Financial instruments measured at Amortised Cost orat FairValueThrough
Other Comprehensive Income, interest income is recorded using the Effective Interest Rate (EIR), which is the
rate that exactly discounts the estimated future cash payments or receipts through the expected life of the
Financial instruments to the gross carrying amount ofthe Financial asset.

2.3. Properties, Plant and Equipment (PPE)

PPE is recognized when 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. All items of PPE are stated at historical cost less
depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the
acquisition ofthe items.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use ofthe asset. Any gain or loss arising on the disposal or retirement
ofan item ofproperty, plantand equipment is recognized in profit or loss.

Depreciation

Depreciation is recognized using reducing balance method so as to write off the cost of the investment property
less their residual values over their useful lives specified in schedule II to the Companies Act, 2013.

Depreciation method is reviewed at each financial year end to reflectthe expected pattern ofconsumption of
the future benefits embodied in the investment property.The estimated useful life and residual values are also
reviewed at each financial year end and the effect ofany change in the estimates ofuseful life / residual value
is accounted on prospective basis.

Furniture and Fittings already stand at their Residual Value so they are not depreciated.

2.4. Intangible Assets

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to
the asset will flow to the enterprise and the cost ofthe asset can be measured reliably.

2.5. Cash and Cash Equivalents

Cash and Cash Equivalents include balances with banks which have restrictions on repatriation. Short term and
liquid investments being subject to more than insignificant riskofchange in value,are not included as part of
cash and cash equivalents.

2.6. Borrowing Costs

Borrowing costs include interest expense and other costs incurred in connection with borrowing of funds.
Borrowing costs are recognised as an expense in the period in which they are incurred.

2.7. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset ofone entityand a financial liability or
equity instrument ofanother entity.

a. Classification of Financial Instruments

At initial measurement, the Company classifies its financial assets into the following measurement categories:

• Financial assets to be measured at fairvalue through other comprehensive income;

• Financial assets to be measured at fairvalue through profit or loss account.

The classification depends on the contractual terms ofthe financial assets'' cash flows and the Company''s
business model for managing financial assets which are explained below:

Business Model Assessment

The Company determines its business model at the level that best reflects how it manages groups offinancial
assets to achieve its business objective. The Company''s business model is not assessed on an instrument by
instrument basis, butat a higher level ofaggregated portfolios and is based on observable factors.

The business model assessment is based on reasonably expected scenarios without taking ''worst case'' or ''stress
case'' scenarios into account. Ifcash flows after initial recognition are realized in a waythat is differentfrom the
Company''s original expectations, the Company does not change the classification ofthe remaining financial
assets held in that business model, but incorporates such information when assessing newly originated or
newly purchased financial assets going forward.

The Solely Payments of Principal and Interest (SPPI) test

As a second step of its classification process the Companyassesses the contractual terms offinancial assets to
identify whether they meet the SPPI test. ''Principal'' for the purpose ofthis test is defined as the fair value ofthe
financial asset at initial recognition and may change overthe life ofthe financial asset.

In making this assessment, the Company considers whether the contractual cash flows are consistent with a
basic lending arrangement i.e. interest includes only consideration for the time value of money, credit risk, other
basic lending risks and a profit margin that is consistent with a basic lending arrangement. Where the contractual
terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related
financial asset is classified and measured at fairvalue through profit or loss.

b. Financial Assets

i. Initial recognition and measurement

All financial assets are recognized initially at fair value. In the case offinancial assets not recorded at fairvalue
through profit or loss, transaction costs that are attributable to the acquisition ofthe financial asset are also
considered.

ii. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in two categories:

(a) Investment in Mutual Funds are measured at fair value through profit or loss (FVTPL)

(b) Equity instruments and investment in Preference Shares are measured at fair value through other
comprehensive income (FVTOCI)

(a) Mutual Funds at fair value through profit or loss (FVTPL)

Mutual Funds shall be measured at fairvalue through profit and loss (FVTPL) unless it is measured at fair value
through other comprehensive income, which generally occurs when the SPPI criterion is not met by the debt
instrument.

(b) Equity instruments and Preference Shares measured at fair value through other comprehensive
income(FVTOCI)

For all equity instruments other than the ones classified as at FVTPL, the Company may make an irrevocable
election to present in other comprehensive income subsequent changes in the fairvalue. The Company makes
such election on an instrument-by-instrument basis.The classification is made on initial recognition and is
irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI.

iii. De-recognition

A financial asset is derecognised only when
o The right to receive cash flows from the asset has expired, or

o The Company has transferred the rights to receive cash flows from the financial asset, or

o Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.

Where the Company has transferred substantially all risks and rewards of ownership of the financial asset or
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
ofthe financial asset.

iv. Reclassification of Financial Assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification of financial assets like equity instruments and financial liabilities is made. For
financial assets which are debt instruments, a reclassification is made only if there is a change in the business
model for managing those assets. Changes to the business model are expected to be infrequent.The Company''s
senior management determines change in the business model as a result of external or internal changes which
are significant to the Company''s operations. Such changes are evident to external parties. 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 reclassification prospectivelyfrom the
reclassification 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.

2.8. Employee Benefits

a. Short-term Employee Benefits:

Short-term employee benefits are recognized as an expense on accrual basis.

b. Defined Benefit Plans:

The obligation in respect of defined benefit plans, which covers Gratuity, are provided for on the basis of an
actuarial valuation at the end of each financial year.

Re-measurement recognized in other comprehensive income is reflected immediately in retained earnings, and
will not be reclassified to profit or loss. Defined benefit costs are categorized as follows:

o service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);

o netinterestexpenseorincome;and
o re-measurement.

The Company presents the first two components of defined benefit costs in Statement of Profit and Loss in the
line item ''Employee Benefits Expense''.

The present value of the defined benefit plan liability is calculated using a discount rate, which is determined
by reference to market yields atthe end ofthe reporting period on government bonds.

The retirement benefit obligation, recognized in the Balance Sheet, represents the actual deficit or surplus in
the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value
of any economic benefits available in the form of refunds from the plans or reductions in the future contributionto
the plans.

c. Other long-term employee benefits

The liabilities for leave are not expected to be settled wholly within 12 months after the end ofthe period in
which the employee renderthe related service.Theyare therefore measured as the presentvalue ofexpected
future payments to be made in respect of services provided by employees up to the end ofthe reporting period
using the projected unit credit method. The benefits are discounted using the market yields at the end ofthe
reporting period that have terms approximating to the terms ofthe related obligations. Re-measurements as
a result of experience adjustments and changes in actuarial assumptions are recognized in statement of profit
and loss.

2.9. Taxes on Income

Income tax expense comprises of current tax and deferred tax. It is recognised in the Statement of Profit and
Loss, except to the extent that it relates to items recognised directly in Equity or Other Comprehensive Income.

In such cases, the tax is also recognised directly in Equity or in Other Comprehensive Income.

a. Current Tax

Current tax is the amount of tax payable on the taxable income for the year, determined in accordance with
the provisions ofthe IncomeTaxAct, 1961.

Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

b. Deferred Tax

Deferred tax has been dealt with using the liability method on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date in
compliance with the Indian Accounting Standard (Ind AS) -12on Income Tax.

2.10. Use ofCritical Estimates, Judgements and Assumptions

The preparation of financial statements in conformity with Ind AS requires the management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period
in which the estimates are revised and in any future period affected. Information about critical judgments in
applying accounting policies that have the most significant effect on the amounts recognized in the financial
statements is included in the accounting policies and/or the notes to the financial statements.

In the process of applying the Company''s accounting policies, management has made the following judgments,
which have most significant effect on the amounts recognised in the financial statement:

a. Estimation of Defined benefit obligations

The cost of the defined benefit plans and the present value of the obligations are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future.These include the determination ofthe discount rate, future salary increases and mortality rates.

Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for
plans, the actuary considers the interest rates of government bonds. The mortality rate is based on publicly
available mortality tables. Those mortality tables tend to change only at interval in response to demographic
changes. Future salary increase is based on expected future inflation rates.

b. Estimated fair value of unlisted securities

The fairvalues offinancial instruments that are not traded in an active marketand cannot be measured based
on quoted prices in active markets is determined on Net Worth basis.

2.11. Earnings Per Share (EPS)

The Company presents basic and diluted earnings per share data for its equity shares. Basic earnings per share
is calculated by dividing the profit or loss attributable to equity shareholders ofthe Company by the weighted
average number of equity shares outstanding during the year.

Diluted earnings per share is determined by adjusting the profit or loss attributable to equity shareholders and
the weighted average number ofequity shares outstanding,adjusted for own shares held,forthe effects ofall
dilutive potential equity shares.

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Mar 31, 2015

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under the historical cost convention method on the accrual basis of accounting and in accordance with Generally Accepted Accounting Principles in India (GAAP) and comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act, 2013 read with applicable Companies (Accounts) Rules, 2014 and to the extent applicable, with the provisions of Non - Banking Financial (Non - Deposit accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 [NBFC Directions].

b) USE OF ESTIMATES

The preparation of the financial statements in conformity with the Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of reporting period. Although these estimates are based on management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets or liabilities in future periods.

Management believes that the estimates used in the presentation of financial statements are prudent and reasonable. Actual result could differ from these estimates.

c) RECONGNITION OF INCOME AND EXPENDITURE

Items of income and expenditure are recognised on accrual and prudent basis with due compliance of the Guidelines of the Reserve Bank of India on Prudential Norms for income recognition and provisioning for non-performing assets.

d) FIXED ASSETS AND DEPRECITION

i) All the Fixed Assets have been stated at cost of acquisition with the resultant write-up due to revaluation, as there may be.

ii) Depreciation on all fixed assets have been provided on pro-rata basis on reducing balance method over the estimated useful lives of the assets as specified in requirement of Schedule II to the companies Act, 2013.

iii) The Company has charged depreciation in line with the requirements of Schedule II of the Companies Act, 2013 from 1st April, 2014 and as a result, the estimated useful life of certain tangible assets have been revised. Pursuant to the transitional provision set out in the said schedule, the carrying amount (after retaining the residual values) aggregating Rs.6,545 relating to tangible assets with no residual useful life as at 1st April, 2014 has been debited to Retained Earnings (Refer Note 3). Accordingly, the depreciation expense for the year ended 31st March, 2015 is higher and profit before tax as disclosed in the Statement of Profit and Loss is lower by Rs.53,775, and tangible fixed assets of the Company as at 31st March, 2015 is lower by Rs. 55,948.

e) INVESTMENTS

Investments have been classified into long-term investments and current investments in accordance with the Accounting Standard 13 issued by the Institute of Chartered Accountants of India. Long

Term Investments are stated at cost. Current investments are valued at lower of cost and market/ fair value determined by category of investments. Provisions in respect of diminution other than temporary, in the value of long term quoted investments are recognized on a prudent basis. Gains/ losses on disposal of investments are recognized as income/expenditure. Dividends are accounted for when the right to receive the payment is established.

f) RETIREMENT BENEFITS

The Company contributes to Provident Fund and Superannuation Fund which are administered by duly constituted and approved independent Trust/Government and such defined contributions are charged against revenues every year.

Accrued liability in respect of retirement gratuities are actuarially ascertained at the year end. The Company has created a Gratuity Fund under Group Gratuity Scheme under which yearly premium is being paid to take care of current as well as past liability. The annual premium for the year is charged to the financial statements.

Accrued liability in respect of leave encashment benefits on retirement is actuarially ascertained at the year end and provided for in the financial statements.

g) IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of the Fixed Assets exceeds the recoverable amount i.e. the higher of the assets net selling price and value in use.

h) ACCOUNTING FOR TAXES ON INCOME

Tax expense comprises current and deferred Tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Ta x Act.

Deferred tax is recognized on timing differences, 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. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess realisability thereof.

i) EARNINGS PER SHARE

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

j) PROVISIONS, CONTINGENT LIABILITIES CONTINGENT ASSETS

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

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2014

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under the historical cost convention method on the accrual basis of accounting and in accordance with Generally Accepted Accounting Principles in India (GAAP) and comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES

The preparation of the financial statements in conformity with the Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of reporting period. Although these estimates are based on management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets or liabilities in future periods.

Management believes that the estimates used in the presentation of financial statements are prudent and reasonable. Actual result could differ from these estimates.

c) RECONGNITION OF INCOME AND EXPENDITURE

Items of income and expenditure are recognised on accrual and prudent basis with due compliance of the Guidelines of the Reserve Bank of India on Prudential Norms for income recognition and provisioning for non-performing assets.

d) FIXED ASSETS AND DEPRECITION

i) All the Fixed Assets have been stated at cost of acquisition with the resultant write-up due to revaluation, as there may be.

ii) Depreciation on all fixed assets have been provided on written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

e) INVESTMENTS

Investments have been classified into long-term investments and current investments in accordance with the Accounting Standard 13 issued by the Institute of Chartered Accountants of India. Long Term Investments are stated at cost. Current investments are valued at lower of cost and market/ fair value determined by category of investments. Provisions in respect of diminution other than temporary, in the value of long term quoted investments are recognized on a prudent basis. Gains/ losses on disposal of investments are recognized as income/expenditure. Dividends are accounted for when the right to receive the payment is established.

f) RETIREMENT BENEFITS

The Company contributes to Provident Fund and Superannuation Fund which are administered by duly constituted and approved independent Trust/Government and such defined contributions are charged against revenues every year.

Accrued liability in respect of retirement gratuities are actuarially ascertained at the year end. The Company has created a Gratuity Fund under Group Gratuity Scheme under which yearly premium is being paid to take care of current as well as past liability. The annual premium for the year is charged to the financial statements.

Accrued liability in respect of leave encashment benefits on retirement is actuarially ascertained at the year end and provided for in the financial statements.

g) IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of the Fixed Assets exceeds the recoverable amount i.e. the higher of the assets net selling price and value in use.

h) ACCOUNTING FOR TAXES ON INCOME

Tax expense comprises current and deferred Tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred tax is recognized on timing differences, 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. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess realisability thereof.

i) EARNINGS PER SHARE

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

j) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2012

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under the historical cost convention method on the accrual basis of accounting and in accordance with generally accepted Accounting principles in India and comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

b) PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement policies followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements. The Company has also reclassified its previous years figures in accordance with the requirements applicable in the current year.

c) USE OF ESTIMATES

The preparation of the financial statements in conformity with the Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of reporting period. Although these estimates are based on management's best knowledge of current events and actions, uncertainty about these assumption and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets or liabilities in future periods.

Management believes that the estimates used in the presentation of financial statements are prudent and reasonable. Actual result could differ from these estimates.

d) RECONGNITION OF INCOME AND EXPENDITURE

Items of income and expenditure are recognised on accrual and prudent basis with due compliance of the Guidelines of the Reserve Bank of India on Prudential Norms for income recognition and provisioning for non-performing assets.

e) FIXED ASSETS AND DEPRECITION

i) All the Fixed Assets have been stated at cost of acquisition with the resultant write-up due to revaluation, as there may be.

ii) Depreciation on all fixed assets have been provided on written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

f) INVESTMENTS

Investments have been classified into long-term investments and current investments in accordance with the Accounting Standard 13 issued by the Institute of Chartered Accountants of India. Long Term Investments are stated at cost. Current investments are valued at lower of cost and market/ fair value determined by category of investments. Provisions in respect of diminution other than temporary, in the value of long term quoted investments are recognized on a prudent basis. Gains/losses on disposal of investments are recognized as income/expenditure. Dividends are accounted for when the right to receive the payment is established.

g) RETIREMENT BENEFITS

The Company contributes to Provident Fund and Superannuation Fund which are administered by duly constituted and approved independent Trust/Government and such defined contributions are charged against revenues every year.

Accrued liability in respect of retirement gratuities are actuarially ascertained at the year end. The Company has created a Gratuity Fund under Group Gratuity Scheme under which yearly premium is being paid to take care of current as well as past liability. The annual premium for the year is charged to the financial statement.

Accrued liability in respect of leave encashment benefits on retirement is actuarially ascertained at the year end and provided for in the financial statements.

h) IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of the Fixed Assets exceeds the recoverable amount i.e. the higher of the assets net selling price and value in use.

i) ACCOUNTING FOR TAXES ON INCOME

Tax expense comprises current and deferred Tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred tax is recognized on timing differences, 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. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess realisability thereof.

j) EARNINGS PER SHARE

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

k) PROVISIONS, CONTIGENT LIABILITIES CONTIGENT ASSETS

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

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. The company does not recognise a contingent liability but discloses its existence in the financial statements by way of Notes.

Contingent assets are neither recognised nor disclosed in financial statements.

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Mar 31, 2011

1.1 RECOGNITION OF INCOME AND EXPENDITURE

Items of income and expenditure are recognised on accrual and prudent basis with due compliance of the Guidelines of the Reserve Bank of India on Prudential Norms for income recognition and provisioning for non-performing assets.

1.2 ACCOUNTING FOR INCOME FROM LEASE / FINANCE ACTIVITIES

Lease Rentals and other receivables are accounted for on accrual basis and as per relevant lease agreements. Lease Equalisation Adjustment for the year represents Annual Lease Charges i.e., annually apportioned cost of net investments in the leased assets over the lease term on Internal Rate of Return method less depreciation on the related leased assets.

1.3 FIXED ASSETS

All the Fixed Assets have been stated at cost of acquisition with the resultant write-up due to revaluation, as there may be.

1.4 DEPRECIATION

Depreciation on all fixed assets (including those given on lease / rental) is provided on written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

1.5 INVESTMENTS

Investments have been classified into long-term investments and current investments in accordance with the Accounting Standard 13 issued by the Institute of Chartered Accountants of India. Long Term Investments are stated at cost or below cost wherever applicable. Current investments are valued at lower of cost and market / fair value determined by category of investments. Reclassification of investments from current to long term is made at lower of cost and fair value at the date of transfer. Provisions in respect of diminution other than temporary, in the value of long term quoted investments are recognized on a prudent basis. Gains / losses on disposal of investments are recognized as income / expenditure. Dividends are accounted for when the right to receive the payment is established.

1.6 RETIREMENT BENEFITS

The Company contributes to Provident Fund and Superannuation Fund which are administered by duly constituted and approved independent Trust/Government and such defined contributions are charged against revenues every year.

Accrued liability in respect of retirement gratuities are actuarially ascertained at the year end. The Company has created a Gratuity Fund under Group Gratuity Scheme under which yearly premium is being paid to take care of current as well as past liability. The annual premium is charged to the accounts.

Accrued liability in respect of leave encashment benefits on retirement is actuarially ascertained at the year end and provided for in the accounts.

1.7 IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of the Fixed Assets exceeds the recoverable amount i.e. the higher of the assets net selling price and value in use.

1.8 ACCOUNTING FOR TAXES ON INCOME

Deferred tax is recognized on timing differences, 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. Deferred tax assets are recognised only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess realisability thereof.

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Mar 31, 2010

1.1 RECOGNITION OF INCOME AND EXPENDITURE

Items of income and expenditure are recognised on accrual and prudent basis with due compliance of the Guidelines of the Reserve Bank of India on Prudential Norms for income recognition and provisioning for non-performing assets.

1.2 ACCOUNTING FOR INCOME FROM LEASE / FINANCE ACTIVITIES

1.2.1 Lease rentals and other receivables are accounted for on accrual basis and as per relevant lease agreements. Lease Equalisation Adjustment for the year represents Annual Lease Charges i.e., annually apportioned cost of net investments in the leased assets over the lease term on Internal Rate of Return method less depreciation on the related leased assets.

1.3 FIXED ASSETS

All the Fixed Assets, including assets given on lease / rental have been stated at cost of acquisition with the resultant write-up due to revaluation, as there may be.

1.4 DEPRECIATION

Depreciation on all fixed assets (including those given on lease / rental) is provided on written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

1.5 INVESTMENTS

Investments have been classified into long-term investments and current investments in accordance with the Accounting Standard 13 issued by the Institute of Chartered Accountants of India. Long Term Investments are stated at cost or below cost wherever applicable. Current investments are valued at lower of cost and market / fair value determined by category of investments. Reclassification of investments from current to long term is made at lower of cost and fair value at the date of transfer. Provisions in respect of diminution other than temporary, in the value of long term quoted investments are recognized on a prudent basis. Gains / losses on disposal of investments are recognized as income / expenditure. Dividends are accounted for when the right to receive the payment is established.

1.6 RETIREMENT BENEFITS

The Company contributes to Provident Fund and Superannuation Fund which are administered by duly constituted and approved independent Trust/Government and such defined contributions are charged against revenues every year.

Accrued liability in respect of retirement gratuities are actuarially ascertained at the year end. The Company has created a Gratuity Fund under Group Gratuity Scheme under which yearly premium is being paid to take care of current as well as past liability. The annual premium is charged to the accounts.

Accrued liability in respect of leave encashment benefits on retirement is actuarially ascertained at the year end and provided for in the accounts.

1.7 IMPAIRMENT

Impairment loss is recognized wherever the carrying amount of the Fixed Assets exceeds the recoverable amount i.e. the higher of the assets net selling price and value in use.

1.8 ACCOUNTING FOR TAXES ON INCOME

Deferred tax is recognized on timing differences, 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. Deferred tax assets are recognised only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess realisability thereof.

Fringe benefit tax is determined as an amount of tax payable as computed in accordance with the relevant provisions of the Income Tax Act, 1961.