Accounting Policies of SG Finserve Ltd. Company

Mar 31, 2023

Significant accounting policies

a) Measurement of fair values

The Company''s accounting policies and disclosures require
the measurement of fair values for financial instruments.

The Company has an established control framework with
respect to the measurement of fair values. The management
has the overall responsibility for overseeing all significant fair
value measurements, including Level 3 fair values, and reports
directly to the Chief Financial Officer

The management regularly reviews significant unobservable
inputs and valuation adjustments. If third party Information,
such as broker quotes or pricing services, is used to measure
fair values, then the management assesses the evidence
obtained from the third parties to support the conclusion
that these valuations meet the requirements of Ind AS,
including the level in the fair value hierarchy in which such
valuation should be classified.

When measuring the fair values of a financial asset or a
financial lability, the Company uses observable market data
as far as possible. Fair values are categorised into different
levels in a fair value hierarchy based on the inputs used in
the valuation techniques as follows :

Level 1 : quoted prices (unadjusted) in active markets for
identical assets or liabilities.

Level 2 : inputs other than quoted prices included in
Level 1 that are observable for the asset or liability,
either directly

(i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 : inputs for the asset or liability that are not based on
observable market data (unobservable inputs)

When measuring the fair value of a financial asset or a
financial liability, the Company uses observable market
data as far as possible. If the inputs used to measure the
fair value of an asset or a liability fall into different levels of
the fair value hierarchy, then the fair value measurement is
categorised in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the
entire measurement.

The Company recognises transfers between levels of the fair
value hierarchy at the end of the reporting period during
which the change has occurred.

b) Financial Instruments

A financial instrument is defined as any contract that gives
rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. Trade receivables
and payables, loan receivables, investments in securities
and subsidiaries, debt securities and other borrowings,
preferential and equity capital etc. are some examples of
financial instruments

All financial instruments are at amortised cost, unless
otherwise specified.

All the finance Instruments are recognised on the date when
the Company becomes party to the contractual provisions
of the financial instruments. For tradable securities
the Company recognises the financial instruments on
settlement date.

b) (i) Financial Assets

Initial measurement

All financial assets are recognised initially at fare value
including transaction costs that are attributable to the
acquisition of financial assets except in the case of financial
assets recorded at FVTPL where the transaction costs are
charged to profit or loss. Generally, the transaction price is
treated as fair value unless proved to the contrary.

On initial recognition, a financial asset is classified
as measured at

- amortised cost;

- Fair value through other comprehensive income (''FVOCI'');

- Fair value through profit and loss (''FVTPL'');

Financial assets are not reclassified subsequent to their
initial recognition, except if and in the period the Company
changes its business model for managing financial assets.
The Company classifies its financial assets in the following
measurement categories:

Financial assets measured at amotised cost

A financial asset that meets the following two conditions
is measured at amortised cost (net of any write down for
impairment), unless the asset is designated at FVTPL;

i) the financial asset is held within a business model
whose objective is to hold assets to collect contractual
cash flows; and

ii) the Contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount
outstanding.

Financial assets measured at Fair value through other
comprehensive Income (''FVOCI'')

A financial asset is measured at FVOCI if it meets both of the
following conditions and is not designated as at FVTPL;

i) the financial asset is held within a business model
whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and

ii) the contractual terms of the asset give rise on
specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount
outstanding.

Financial assets measured at Fair value through Profit
and Loss (''FVTPL'')

A financial asset which is not classified in above category is
subsequently measure at PVTPL. Where assets are measured
at fair value, gains and losses are recognised entirely in the
Standalone Statement of Profit and Loss.

Subsequent measurement

The assets classified in the aforementioned categories are
subsequently measured as follows:

Financial assets at amotised cost

These assets are subsequently measured at amortised cost
using the effective interest method. The amortised cost
is reduced by inpairment losses. Interest income, foreign
exchange gain and losses and impairment are recognised
in standalone statement of profit and loss. Any gain or loss
on derecognition is recognised in standalone statement of
profit and loss.

Financial assets at FVTPL

These assets are subsequently measured at fair value. Net
gains and losses, including any interest or dividend Income,
are recognised in Standalone statement of Profit and Loss.

b) (ii) Financial Liabilities

Financial liabilities are classified and measured at amortised
cost or FVTFL. A financial libility is classified as at FVTPL if it
is classified as held-for-trading or it is designated as on initial
recognition.

Financial liabilities and equity instruments issued by the
Company are classified according to the substance of the
contractual arrangements entered into and the definitions
of financial liability and an equity instrument.

All financial liabilities are recognised initially at fair value
and, in the case of payables, net of directly attributable and
incremental transaction cost. Amortised cost is calculated by
taking into account any discount or premium on acqusition
and fees or costs that are an integral part of the EIR.

Amortised cost is calculated by taking into account any
discount or premium on acqusition and fees or costs that are
an integral part of the EIR. The EIR amortisation is included as
finance costs profit and loss.

The Company''s financial liabilities include trade payables
and other financial liabilities.

b) (iii) Derecognition
Financial assets

The Company derecognizes a financial asset (or, where
applicable, a part of a financial asset or part of a group of
similar financial assets) when the contractual rights to
receive cash flows from the financial asset expires or it
transfers the rights to receive the contractual cash flows in
a transaction in which the company neither transfers nor
retains substantially all of the risks and rewards of ownership
and does not retain control of the asset.

If the Company enters into transactions whereby it transfers
assets recognized or its balance sheet, but retains either all
or substantially all of the risks and rewards of the transferred
assets, the transferred assets are not derecognised.

On derecognition of a financial assets in its entirety, the
difference between:

- the carrying amount (measured at the date of
derecognition) and

- the consideration received (including any new asset
obtained less any new liability assumed) is recognised in
profit or loss.

Financial asset subsequently measured at amortized cost
are generally held for collection of contractual cashflow.
The Company on looking at economic viability of certain
portfolios measured at amortised cost may enter into
immaterial and infrequent transaction for sale of loans
which doesn''t affect the business model of the Company.

Financial liabilities

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

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 derecognition
of the original lablity and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the statement of Profit and Loss.

b) (iv) Offsetting of financial instruments

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.

c) Property, plant and equipment
Tangible assets

Tangible assets are stated at cost, net of accumulated
depreciation and impairment losses, if any. Cost includes
purchase price and directly attributable cost of bringing the
asset to its working condition for the intended use.

Intangible assets

Intangible assets are stated at cost less accumulated
amortisation. These are recognised as assets if it is probable
that future economic benefits attributable to such assets
will flow to the Company and the cost of the assets can be
measured reliably.

Depreciation and amortisation
Tangible assets

Depreciation is provided on a pro rata basis for all such
assets on a straight line method over the useful life of assets.
Depreciation on addition of assets and assets disposed off
during the year is being provided for on a pro rata basis with
reference to the month in which such asset is added or sold
as the case may be.

The useful life of the assets prescribed in Schedule II to the
Act are as tabulated below:

Asset description	Useful life
Office equipments	5 years
Furniture and fixtures	10 years
Computers	3 years
Vehicles	8 years

Intangible assets

Intangible assets are being amortised over the useful life,
as estimated by the management, which is the period over
which economic benefits from the said assets are expected
to flow. Computer software and license are amortised on a
straight line method over a period of five years, which is the
management''s estimate of its useful life.

d) Impairment of assets

The Company assesses at each balance sheet date whether
there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable amount
of the asset or the recoverable amount of the cash generating
unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and
is recognised in the Statement of Profit and Loss. If at the
balance sheet date there is an indication that if a previously
assessed impairment loss no longer exists, the recoverable
amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciated
historical cost.

e) Investments

Investments that are readily realisable and intended to
be held for not more than a year are classified as current
investments. All other investments are classified as long¬
term investments. Current investments are valued at the
lower of cost and fair value. Long-term investments are
stated at cost. Provision is made for diminution in the value
of long-term investments to recognise a decline, if any, other
than temporary in nature. Profit/loss on sale of investments
are computed with reference to their cost determined on
first in first out basis.

f) 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.

Income from financing activity :

Interest, finance charges, service charges etc. are recognised
as income on accrual basis with reference to the terms of
contractual commitments such as interest subsidy and
finance agreements entered into with borrowers, as the case
may be, except in the case of delinquent assets provided for
where income is recognised only when realised.

Fee and other charges:

The Company recognises revenue from contracts with
customers (other than financial assets the which Ind
AS 109 ''Financial instruments'' is applicable) based on a
comprehensive assesment model as set out in Ind AS 115
''Revenue from contracts with customers''. The Company
identifies contract(s) with a customer and its preformance
obligations under the contract, determines the transaction
price and its allocation to the performance obligations in
the contract and recognises revenue only on satisfactory
completion of performance obligations.

Loan related charges such as cheque bounce charges,
forclosure charges, etc. are recognised only on receipt basis.

Income from investment :

Dividend is accrued when the right to receive is established
i.e. when declared by the investee entity. Interest on securities
is accounted for on accrual basis except where the ultimate
collection cannot be established with reasonable certainty.

Gain/loss on sale of non-performing assets :

Gain/loss on sale of non-performing assets is recognised in
line with the extant RBI guidelines.

Other income :

All other income is recognized on an accrual basis, when
there is no uncertainty in the ultimate realization/collection.

g) Receivables under financing activity

Receivables under financing activity represent principal
outstanding at the close of the year but net of amount written
off. The Company assesses all receivables for their recoverability
and accordingly makes provisions for non-performing assets
and delinquent assets not yet non-performing assets as
considered necessary including by elating provision to an
early stage based on past experience, emerging trends and
estimates. However, the Company ensures that the said
provisions are not lower than the provisions stipulated in the
applicable RBI regulations/guidelines. A general provision, as

required by RBI regulations/guidelines, is also made by the
Company on the standard assets outstanding.

h) Loan to borrowers

Receivables under financing activity are classified into
performing and non-performing assets in terms of minimum
classification and provisioning required under Non-Banking
Financial Company - Non-Systemically Important Non-Deposit
taking Company (Reserve Bank) Directions, 2016 (as amended
time to time) (''the Master Directions'') issued by the RBI and
updated from time to time.

Specific loan loss provisions in respect of non-performing
advances are made based on management''s assessment of
degree of impairment of the advances after considering the
the Master Directions on provisioning prescribed by the RBI.

i) Employee benefits

Wages, earnings and paid leave are accrued in the year in
which the associated services are rendered by the employees
of the Company.

Provident fund

The Company makes contribution to statutory provident
fund in accordance with the Employees Provident Fund
and Miscellaneous Provisions Act, 1952 which is a defined
contribution plan. The contribution paid or payable is
recognised as an expense in the period in which the services
are rendered by the employee. The Company has no legal
or constructive obligations to pay further contributions after
payment of the fixed contribution.

Gratuity

Gratuity is a post-employment defined benefit plan. The liability
recognised in respect of gratuity is the present value of the
defined benefit obligation at the balance sheet date, together
with adjustments for unrecognised actuarial gains or losses and
past service costs. The defined benefit obligation is calculated
annually by actuaries using the projected unit credit method.
Actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions are recorded as expense
or income in the statement of profit and loss in the year in
which such gains or losses arise.

Compensated absences

The liability in respect of compensated absences is determined
on the basis of actuarial valuation performed by an independent
actuary using the projected unit credit method. Actuarial gains
or losses are recognised in the statement of profit and loss in
the year they arise.

Other short-term benefits

Expenses relating to other short-term benefits is recognised
on the basis of amount paid or payable for the period during
which services are rendered by the employee.

j) Leases

Leases, where the lessor effectively retains substantially all
the risks and benefits of ownership of the leased item, are
classified as operating leases. Operating lease payments are
recognized as an expense in the statement of profit and loss.

k) Income Tax

Income tax expense comprises current and deferred tax. It
is recognised in Statement of Profit and Loss except to the
extent that it relates to a business combination or to an item
recognised directly in equity or in other comprehensive
Income (''OCI'').

k) (i) Current Tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect
of previous years. The amount of current tax reflects the best
estimate of the tax amount expected to be paid or received
after considering the uncertainty, if any, related to income
taxes. Its measured using tax rates enacted or substantively
enacted at the reporting date.

Current tax assets and liabilities are offset only if,
the Company:

- has a legally enforceable right to set off the recognised
amounts; and

- intends to realise the asset or settle the liability on a net
basis or simultaneously.

k) (ii) Deferred Tax

Deferred tax is recognised in respect of temporary
differences between the carrying amount of assets and
liabilities for financial reporting purposes and the amounts
used for taxation purposes.

Deferred tax is not recognised for:

- temporary differences on the initial recognition of assets or
liabilities in a transaction that is not a business combination
and that affects.

-Temporary differences related to investments in
subsidiaries and associates to the extent that the Company
is able to control the timing of the reversal of the temporary
differences and it is probable that they will not reverse in
theforeseeable future.

Deferred taxes are recognised for unused tax losses, unused
tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will
be available against which they can be used. Deferred tax
assets are reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the related
tax benefit will be realised. Such reductions are reversed
when the probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at each
reporting date and recognised to the extent that it has
become probable that future taxable profits will be available
against which they can be used.

Deferred taxe assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted
as an the reporting date. Taxes relating to items recognised
directly in equity or OCI is recognised in equity or OCI.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if:

- the Company has a legally enforceable right to set off
current tax assets against current tax liabilities; and

- the deferred tax assets and the deferred tax liabilities relate
to income taxes levied by the same taxation authority on the
same taxable entity.

l) Provision and contingencies

The Company makes a provision when there is a present
obligation as a result of a past event, where the outflow of
economic resources is probable and a reliable estimate of
the amount of the obligation can be made.

A disclosure is made for a contingent liability when there is a:

- possible obligation, the existence of which will be
confirmed by the occurrence/non-occurrence of one or
more uncertain events, not fully within the control of
the Company;

- present obligation, where it is not probable that an outflow
of resources embodying economic benefits will be required
to settle the obligation; and

- present obligation, where a reliable estimate
cannot be made.

When there is a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or
disclosure is made.

m) Cash and cash equivalent

Cash and cash equivalents comprise cash at bank and in
hand and short-term bank deposits with an original maturity
of three months or less.

n) 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.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all potential dilutive equity shares.

o) Recent accounting prouncements

Standards issued but not yet effective:

In March 2023, the Ministry of Corporate Affairs
issued the Companies (Indian Accounting Standards)
Amendment Rules, 2023 which amended certain Ind AS as
explained below:

1) Ind AS 1 - Presentation of Financial Statements - the

amendment prescribes disclosure of material accounting
policies instead of significant accounting policies. The impact
of the amendment on the Financial Statements is expected
to be insignificant basis the preliminary evaluation.

2) Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors - the amendment added definition of
accounting estimate and clarifies what is accounting estimate
and treatment of change in the accounting estimate and
accounting policy. There is no impact of the amendment on
the Financial Statements basis the preliminary evaluation.

3) Ind AS 12 - Income taxes - the definition of deferred tax
asset and deferred tax liability is amended to apply initial
recognition exception on assets and liabilities that does
not give rise to equal taxable and deductible temporary
differences. There is no impact of the amendment
on the Financial Statements basis the preliminary
evaluation.

The above amendments are effective from annual periods
beginning on or after 1^st April, 2023.

---

Mar 31, 2015

1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the- Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. The company follows the directions prescribed by the Reserve bank of India for Non Banking Financial Companies.

2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

3. Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with ah original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

4. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

5. Depreciation and amortization

Depreciation has been provided on the Straight Line method as per the rates prescribed in Schedule II to the Companies Act, 2013 and are on pro-rata basis with respect to the date of addition/installation/it's put to use.

6. Revenue recognition

Income is accounted on accrual basis except for dividend income which is accounted on receipt basis.

7. Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and Other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

8. Investments

Long-term investments are carried individually at cost. Current investments are carried individually, at the lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage, fees and duties. Any permanent diminution in the value in recognized in accounts.

9. Employee benefits

(a) The company has only few employees and the provision for gratuity, has been made on estimated basis as per the payment of Gratuity Act 1971 but not on actuarial basis.

10. Segment reporting

The company is involved in the business of Share Broking activity only as such there is only one reportable segment. Further the company is operating in India only. Therefore, the reporting requirements as prescribed under AS-17 are not applicable.

11. Taxes on income

Current tax is determined with respect to the income calculated in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

12. Deferred Tax (

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are1 capable of reversal in one or more subsequent periods. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

13. Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use

14. Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

---

Mar 31, 2014

Corporate information

The company is carrying on the business of trading in equity shares and mutual funds The principal place of business of the company is the same as registered office of the company.

A. Significant Accounting Policies

1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act. 1956 The financial statements have been prepared under the historical cost convention The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year

2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise

3. Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible Into known amounts of cash and which are subject to insignificant risk of changes in value

4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments The cash flows from operating, investing and financing activities of the Company are segregated based on the available information

5 Depreciation and amortisation

Depreciation has been provided on the Straight Line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 and are on pro-rata basis with respect to the date of addition.'installation/its put to use

6 Revenue recognition

income is accounted on accrual basis except for dividend income which is accounted on receipt basis.

7 Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance

8 Investments

Long-term investments are carried individually at cost. Current investments are carried individually at the lower of cost and fair value Cost of investments includes acquisition charges such as brokerage, fees and duties Any permanent diminution in the value in recognized in accounts.

9 Employee benefits

la) The company has only few employees and the provision for gratuity has been made on estimated basis as per the payment of Gratuity Act 1971 but not on actuarial basis

10. Segment reporting

The company is involved in the business of Share Broking activity only as such there is only one reportable segment Further the company is operating in India only Therefore, the reporting requirements as prescribed under AS-17 are not applicable

11. Taxes on income

Current tax is determined with respect to the income calculated in accordance with the provisions of the Income Tax Act, 1961 Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits In the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal Income tax Accordingly. MAT is recognised as an asset In the Balance Sheet when it Is probable that future economic benefit associated with it will flow to the Company.

12 Deferred Tax

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal In one or more subsequent periods Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off Deferred tax assets are reviewed at each Balance Sheet date for their readability.

13. Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount The recoverable amount is the greater of the net selling price and their value in use.

14. Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates Contingent liabilities are disclosed in the Notes

---

Mar 31, 2013

Corporate information

The company is carrying on the business of trading in equity shares and mutual funds. The principal place of business of the company is the same as registered office of the company.

A. Significant Accounting Policies

1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. The company follows the directions prescribed by the Reserve bank of India for Non Banking Financial Companies.

2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

3. Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

4. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

5. Depreciation and amortisation

Depreciation has been provided on the Straight Line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 and is on pro-rata basis with respect to the date of addition/installation/it's put to use

6. Revenue recognition

(a) Income is accounted on accrual basis except for dividend income which is accounted on receipt basis.

7. Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impair- ment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

8. Investments

Long-term investments are carried individually at cost. Current investments are carried individually, at the lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage, fees and duties. Any permanent diminution in the value in recognized in accounts.

9. Employee benefits

(a) Leave Encashment benefit are charged to Profit and Loss A/c on each year on the basis of actual payment made to employee. There are no rules for carried forward of leaves.

(b) The company has only few employees and the provision for gratuity has been made on estimated basis as per the payment of Gratuity Act 1971 but not on actuarial basis.

10. Segment reporting

The company is involved in the business of Share Broking activity only as such there is only one reportable segment Further the company is operating in India only. Therefore, the reporting requirements as prescribed under AS-17 are not applicable.

11. Taxes on income

Current tax is determined with respect to the income calculated in accordance with the provisions of the Income Tax Act, 1961 .Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

12. Deferred Tax

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

13. Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use.

14. Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contin-gent liabilities are disclosed in the Notes.