Accounting Policies of Agarwal Fortune India Ltd. Company

Mar 31, 2025

Significant Accounting Policies

The significant accounting policies applied by the Company in the preparation of its Financial
Statements are hsted below. Such accounting policies have been applied consistently to all the periods
presented in these Financial Statements.

a. Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies Act, 2013. The financial statements have also been
prepared in accordance with the relevant presentation requirements of the Companies Act, 2013.

b. (l)Basis for Preparation & Presentation

The Financial Statements have been prepared under the historical cost convention on accrual basis
with the exception of certain assets and liabilities carried at fair values. The Assets and Liabilities
have been classified as Current/Non- Current as per the Company''s normal operating cycle and
other criteria set out in the Act. Based on the nature of products and the Lime between the acquisition
of assets for processing and their realisation in Cash and Cash Equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of Current/Non- Current classification of
Assets and Liabilities. The statement of Cash Flows has been prepared under indirect method.

All amounts disclosed in the Financial Statements and accompanying notes have been rounded off to
the nearest lakhs as per the requirement of Schedule III of the Companies Act, 2013, unless otherwise
stated.

(2)Use of Estimates and Critical Accounting Judgements

The preparation of Financial Statements is in conformity with Generally Accepted Accounting
Principles which requires management to make estimates and assumptions. The estimates and the
associated assumptions are based on historical experience, opinions of experts and other factors that
are considered to be relevant.

c. Property, Plant and Equipment-Tangible Assets

Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discounts and rebates
less accumulated depreciation and impairment losses, if any. Such cost includes purchase price,
borrowing cost and any cost directly attributable to bringing the assets to its working condition for its
intended use, net changes on foreign exchange contracts and adjustments arising from exchange rate
variations attributable to the assets. All other repairs and maintenance are charged to the Statement of
Profit and Loss during the reporting period in which they are incurred. An item of Property, Plant
and Equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from continued use of asset.

Depreciation Method and Estimated Useful Life

Depreciation is calculated using the straight-line method on a pro-rata basis from the date on which
each asset is put to use to allocate their cost, net of their residual values, over their estimated useful
hves. The estimated useful hves are those prescribed under Schedule II to the Companies Act, 2013.

d. Intangible Assets and Amortisation

Intangible assets are stated at cost, net of recoverable taxes, trade discounts and rebates less
accumulated amortisation and impairment loss, if any. The cost comprises of purchase price,
borrowing costs and any cost directly attributable to bringing the asset to its working condition for
the intended use.

e. Impairment

Tangible and Intangible Assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. Non
financial assets that suffered an impairment are reviewed for possible reversal of the impairment at
the end of each reporting period.

f. Leases

Company as a lesson

The Company classifies the leases as either a finance lease or an operating lease depending on
whether the risks and rewards incidental to ownership of an underlying asset are transferred and
recognises finance income over the lease term.

Company as a lessee:

In accordance with Ind AS-116, the Company assesses whether a contract contains a lease ,at
inception of a contract. At the date of commencement of the lease, the Company recognises a “Right
Of Use" asset and a corresponding liability for all lease arrangements in which it is the lessee, except
for leases with a term of twelve months or less (short term leases) and low value leases. For these
short term and low value leases, the Company recognises the lease payments as an operating expense
on a straight fine basis over the term of the lease. The right of use assets are amortised using the
straight fine method from the commencement date over the shorter of lease term or useful life of right
to use asset. The lease payments are discounted using the interest rate implic it in the lease or if not
readily determinable using the incremental borrowing rates. Lease Liabilities are re measured with a
corresponding adjustment to the related right of use asset if the Company changes its assessment of
whether it will exercise an extension or termination option.

g. Financial Instruments

Financial Assets and Financial Liabilities are recognised when the Company becomes a party to the
contractual provisions of the relevant instrument or Financial Liabilities. Purchase and sale of
Financial Assets are recognised using trade date accounting.

Financial Assets

Financial Assets include Trade Receivables, Advances, Security Deposits, Cash and Cash Equivalents
etc. which are classified for measurement at amortised cost. Management determines the classification
of an asset at initial recognition depending on the purpose for which the assets were acquired. The
subsequent measurement of Financial Assets depends on such classification.

Impairment: The Company assesses at each reporting date whether a Financial Asset (or a group of
Financial Assets) are tested for impairment based on available evidence or information. Expected
credit losses are assessed and loss allowances recognised if the credit quahty of the Financial Asset
has deteriorated significantly since initial recognition.

Income Recognition: Interest income is recognised in the Statement of Profit and Loss using the
effective interest method.

Financial Liabilities:

Borrowings, Trade Payables and other Financial Liabilities are initially recognised at the value of the
respective contractual obligations. They are subsequently measured at amortised cost using the
effective interest method. For trade and other payables maturing within one year from the Balance
Sheet date, the carrying amounts approximate fair value due to short maturity of these instruments.

De-Recognition:

Financial Liabilities are derecognised when the liability is extinguished, that is, when the contractual
obligation is discharged, cancelled and on expiry.

h. Inventories

Inventories are valued at lower of cost and net realisable value except waste which is valued at
estimated realisable value as certified by the management.

i. Revenue

Revenue is recognised when the performance obligation is satisfied by transferring promised goods
or services (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains
control of that asset. Revenue is measured at the fair value of the consideration received or receivable
net of discounts, taking, into account contractually defined terms and excluding taxes and duties
collected on behalf of the Government.

j. Foreign Currency Transactions

Items included in the Financial Statements are measured using the currency of the primary economic
environment in which the entity operates (the functional currency).The Standalone Ind AS Financial
Statements are presented in Indian Rupee (INR) which is Company''s functional and presentation
currency.

k. Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash Flows, Cash and Cash Equivalents includes
cash in hand, cheques/drafts in hand, demand deposits with banks, short term balances, highly
hquid investments that are readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value. Book overdrafts are shown within Other Financial Liabilities in
the Balance Sheet and form part of Cash and Cash Equivalents in the Cash Flow Statement.

l. Income Tax

Income tax expense represents the sum of the current tax and deferred tax.

Current tax charge is based on taxable profit for the year. Taxable profit differs from profit as
reported in the Statement of Profit and Loss because some items of income or expense are taxable or
deductible in different years or may never be taxable or deductible. The Company''s liability for
current tax is calculated using Indian tax rates and laws that have been enacted by the reporting date.
Current tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same
taxation authority. The Company periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and estabhshes
provisions where appropriate.

Deferred tax is the tax arising from temporary differences between the carrying amounts of assets and
liabilities in the Balance Sheet and the corresponding tax bases used in the computation of taxable
profit. Deferred tax liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that taxable profits will be available
against which deductible temporary differences can be utilised. Deferred tax is calculated at the tax
rates that are expected to apply in the period when the liability is settled or the asset realised, based
on tax rates that have been enacted or substantively enacted by the reporting date.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in Other Comprehensive Income or directly in equity. In this case the tax is also
recognised in Other Comprehensive Income or directly in equity respectively.

m. Retirement Benefits:

Currently there is no employee in the company who has been working for more than 5 years in
continuous service, hence there is no provision required for gratuity.

n. Earnings Per Share

Basic earnings per Share is calculated by dividing the profit for the period attributable to the owners
of Company by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the conversion of potential equity
shares that have changed the number of equity shares outstanding without a corresponding change in
resources. For the purposes of calculating diluted earnings per share the profit for the period
attributable to the owners of the Company and the weighted average number of shares outstanding
during the period is adjusted for the effects of all dilutive potential equity shares.

o. Exceptional Items

When items of income or expense are of such nature, size and incidence that their disclosure is
necessary to explain the performance of the Company for the year, the Company makes a disclosure
of the nature and amount of such items separately under the head “Exceptional Items."

p. Segment Reporting

This clause is not applicable to the company.

---

Mar 31, 2024

Significant Accounting Policies

The significant accounting policies applied by the Company in the preparation of its Financial
Statements are listed below. Such accounting policies have been applied consistently to all the periods
presented in these Financial Statements.

a. Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies Act, 2013. The financial statements have also been
prepared in accordance with the relevant presentation requirements of the Companies Act, 2013.

b. (1)Basis for Preparation & Presentation

The Financial Statements have been prepared under the historical cost convention on accrual basis with
the exception of certain assets and liabilities carried at fair values. The Assets and Liabilities have been
classified as Current/Non- Current as per the Company''s normal operating cycle and other criteria set
out in the Act. Based on the nature of products and the time between the acquisition of assets for
processing and their realisation in Cash and Cash Equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of Current/Non- Current classification of Assets and
Liabilities. The statement of Cash Flows has been prepared under indirect method.

All amounts disclosed in the Financial Statements and accompanying notes have been rounded off to
the nearest lakhs as per the requirement of Schedule III of the Companies Act, 2013, unless otherwise
stated.

(2)Use of Estimates and Critical Accounting Judgements

The preparation of Financial Statements is in conformity with Generally Accepted Accounting
Principles which requires management to make estimates and assumptions. The estimates and the
associated assumptions

are based on historical experience, opinions of experts and other factors that are considered to be
relevant.

c. Property, Plant and Equipment-Tangible Assets

Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discounts and rebates
less accumulated depreciation and impairment losses, if any. Such cost includes purchase price,
borrowing cost and any cost directly attributable to bringing the assets to its working condition for its
intended use, net changes on foreign exchange contracts and adjustments arising from exchange rate
variations attributable to the assets. All other repairs and maintenance are charged to the Statement of
Profit and Loss during the reporting period in which they are incurred. An item of Property, Plant and
Equipment is derecognised upon disposal or when no future economic benefits are expected to arise

from continued use of asset.

Depreciation Method and Estimated Useful Life

Depreciation is calculated using the straight-line method on a pro-rata basis from the date on which
each asset is put to use to allocate their cost, net of their residual values, over their estimated useful
lives. The estimated useful lives are those prescribed under Schedule II to the Companies Act, 2013.

d. Intangible Assets and Amortisation

Intangible assets are stated at cost, net of recoverable taxes, trade discounts and rebates less
accumulated amortisation and impairment loss, if any. The cost comprises of purchase price, borrowing
costs and any cost directly attributable to bringing the asset to its working condition for the intended
use.

e. Impairment

Tangible and Intangible Assets are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the
amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset''s fair value less costs of disposal and value in use. Non financial assets that
suffered an impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.

f. Leases

Company as a lessor:

The Company classifies the leases as either a finance lease or an operating lease depending on whether
the risks and rewards incidental to ownership of an underlying asset are transferred and recognises
finance income over the lease term.

Company as a lessee:

In accordance with Ind AS-116, the Company assesses whether a contract contains a lease ,at inception
of a contract. At the date of commencement of the lease, the Company recognises a "Right Of Use" asset
and a corresponding liability for all lease arrangements in which it is the lessee, except for leases with
a term of twelve months or less (short term leases) and low value leases. For these short term and low
value leases, the Company recognises the lease payments as an operating expense on a straight line
basis over the term of the lease. The right of use assets are amortised using the straight line method
from the commencement date over the shorter of lease term or useful life of right to use asset. The lease
payments are discounted using the interest rate implicit in the lease or if not readily determinable using
the incremental borrowing rates. Lease Liabilities are re measured with a corresponding adjustment to
the related right of use asset if the Company changes its assessment of whether it will exercise an
extension or termination option.

g. Financial Instruments

Financial Assets and Financial Liabilities are recognised when the Company becomes a party to the
contractual provisions of the relevant instrument or Financial Liabilities. Purchase and sale of Financial
Assets are recognised using trade date accounting.

Financial Assets

Financial Assets include Trade Receivables, Advances, Security Deposits, Cash and Cash Equivalents
etc. which are classified for measurement at amortised cost. Management determines the classification
of an asset at initial recognition depending on the purpose for which the assets were acquired. The
subsequent measurement of Financial Assets depends on such classification.

Impairment: The Company assesses at each reporting date whether a Financial Asset (or a group of
Financial Assets) are tested for impairment based on available evidence or information. Expected credit
losses are assessed and loss allowances recognised if the credit quality of the Financial Asset has
deteriorated significantly since initial recognition.

Income Recognition: Interest income is recognised in the Statement of Profit and Loss using the
effective interest method.

Financial Liabilities:

Borrowings, Trade Payables and other Financial Liabilities are initially recognised at the value of the
respective contractual obligations. They are subsequently measured at amortised cost using the
effective interest method. For trade and other payables maturing within one year from the Balance
Sheet date, the carrying amounts approximate fair value due to short maturity of these instruments.

De-Recognition:

Financial Liabilities are derecognised when the liability is extinguished, that is, when the contractual
obligation is discharged, cancelled and on expiry.

h. Inventories

Inventories are valued at lower of cost and net realisable value except waste which is valued at
estimated realisable value as certified by the management.

i. Revenue

Revenue is recognised when the performance obligation is satisfied by transferring promised goods or
services (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control
of that asset. Revenue is measured at the fair value of the consideration received or receivable net of
discounts, taking into account contractually defined terms and excluding taxes and duties collected on
behalf of the Government.

j. Foreign Currency Transactions

Items included in the Financial Statements are measured using the currency of the primary economic
environment in which the entity operates (the functional currency).The Standalone Ind AS Financial
Statements are presented in Indian Rupee (INR) which is Company''s functional and presentation
currency.

---

Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting in accordance with the provisions of the Companies Act, 1956 & comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable.

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Fixed assets are stated at cost

1.4 DEPRECIATION

The Company has not charged Depreciation on its fixed assets.

1.5 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.. Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.6 TAXES ON INCOME

Tax expenses comprises of Current tax and deferred tax. Current Tax Provision, if any, has been made on the basis of reliefs and deduction available under the Income- Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date.

1.7. CONSISTENCY :

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.8. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28 ) in " Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable .

1.9. SEGMENTAL REPORTING:

Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS -17. Hence segmental report is not furnished.

1.10. INVESTMENTS

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investments and are carried at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

1.11 CONTINGENT LIABILITIES

Contingent liability that may arise due to delayed / non-compliance of certain fiscal statutes amount unascertainable.

---

Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting in accordance with the provisions of the Companies Act, 1956 & comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable.

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation.

1.4 DEPRECIATION

Depreciation on fixed assets have been provided on straight-line method and on prorata basis at the rates and in the manner prescribed under Schedule XTV of the Companies Act, 1956.

1.5 INVENTORIES

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under.

- Hire purchase Stock: At Cost Plus total finance charges and reduced by the installments, which have matured during the relevant period and un-matured finance charges.

The company has filed legal suits against some defaulters, which are classified as non-performing assets as per Reserve Bank of India's guidelines, and provisions for the same are being made in the accounts. However, during the year few of suits filed cases are written -off considering the bleak possibility of their recovery. Any recovery made in the future shall be properly accounted for as receipt.

- Stock in trade: The Securities acquired with the intention of short term holding and trading positions are considered as stock in trade. Securities held as stock in trade are valued at cost or net realizable value, whichever is lower.

1.6 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.. Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.7 TAXES ON INCOME

Tax expenses comprises of Current tax and deferred tax. Current Tax Provision, if any, has been made on the basis of reliefs and deduction available under the Income- Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date.

1.8 RETIREMENT BENEFITS

The company has not provided for gratuity .privilege leave and other retirement benefits as the company follows the practice of accounting for the retirement benefits as and when paid.

1.9. Consistency:

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.10. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28 ) in " Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable .

1.11. SEGMENTAL REPORTING:

Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS -17 , the company has only one reportable segment consisting of its finance operation. Hence segmental report is not furnished.

1.12. INVESTMENTS

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investments and are carried at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

---

Mar 31, 2011

1.1 BASIS OF ACCOUNTING

THE financial statements have been prepared on the historical cost basis and are in conformity with the statutory provisions and practices prevailing in the industry are in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 1956.

1.2 INCOME AND EXPENSES

a) The Company recognizes income and expenditure in accordance with the guidelines issued by the Institute Of Chartered Accountants of India..

b) Hire charges arising out of hire purchase contracts are apportioned equally over the term of contract and taken into account on the date hire charges falls due.

c) In respect of other heads of income, the company follows the practice of accounting of such income on accrual basis. Delayed payment charges are accounted on Cash basis

d) These Financial Statements are prepared on going concern basis.

1.3 FIXED ASSETS:

In respect of fixed assets, the assets are valued as per Accounting Standard 10 prescribed by the institute of Chartered Accounts of India

1.4 DEPRECIATION:

The depreciation in respect of these assets is provided of on a Straight line method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.5.HIRE PURCHASE STOCK

a) Hire purchase stock is stated at cost plus total finance charges and reduced by the installments, which have matured during the relevant period and un-matured finance charges.

b) The Company has filed legal suits against some defaulters, which are classified as non-performing assets as per the Reserve Bank of India?s guidelines, and provisions for the same are being made in the accounts. However, during the year few of such suits filed cases are written-off considering the bleak possibility of their recovery. Any recovery made in the future shall be properly accounted for as receipt.

1.6 STOCK IN TRADE AND INVESTMENTS:

a) The Securities acquired with the intention of short – term holding and trading positions are considered as stock in – trade and shown as current assets. Other securities acquired with the intention pf long –term holdings are considered as Investments.

b) In respect of investments as well as stock-in-trade, brokerage and stamp duty payable are considered to arrive at the cost..

c) The securities held as stock –in trade under current assets are valued at cost or market, whichever is lower.

d) Investment are valued at cost of acquisition .Provision for diminution in value of investment ,if any , is made if such diminution is other then temporary.

1.7 TAXES ON INCOME: - Provisions for taxation for the year comprises of current tax and deferred tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax liabilities / assets, on timing difference, being the difference between taxable income and accounting income that originate in one or more period and are being capable of reversal in one or more subsequent periods.

1.8 PROVISION FOR DOUBTFUL LOANS AND ADVANCES:

The policy of provisioning for non-performing Loans and Advances has been decided by the management considering prudential norms prescribed by the Reserve Bank of India.

1.9 SEGMENTAL REPORTING: - Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS 17, the company has only one reportable segment consisting of its finance operations. Hence segmental report is not furnished.

1.10 RETIREMENT BENEFITS: - Retirement benefits in form of Provident Fund, E.S.I.C. Etc whether in pursuance of law or otherwise is accounted on accrual basis and charged to profit & loss account of the year.

1.11 Consistency: - These Financial statements have been prepared in the basis of consistent with previous years and accounting policies not specifically referred here to are consistent with generally accepted accounting principal.

1.12 Impairment of Assets: - In accordance with the account statement (AS -28) in “Improvement of Asset” issued by ICAI. During the year the Company reassessed its fixed assets and is of the view that no impairment/reversal is considered to be necessary in view of its value realizable

---

Mar 31, 2010

1.1 BASIS OF ACCOUNTING

THE financial statements have been prepared on the historical cost basis and are in conformity with the statutory provisions and practices prevailing in the industry are in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 1956.

1.2 INCOME AND EXPENSES

a) The Company recognizes income and expenditure in accordance with the guidelines issued by the Institute Of Chartered Accountants of India.

b) Hire charges arising out of hire purchase contracts are apportioned equally over the term of contract and taken into account on the date hire charges falls due.

c) In respect of other heads of income, the company follows the practice of accounting of such income on accrual basis. Delayed payment charges are accounted on Cash basis.

d) These Financial Statements are prepared on going concern basis.

1.3 FIXED ASSETS:

In respect of fixed assets, the assets are valued as per Accounting Standard 10 prescribed by the institute of Chartered Accounts of India

1.4 DEPRECIATION:

The depreciation in respect of these assets is provided of on a Straight line method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.5.HIRE PURCHASE STOCK

a) Hire purchase stock is stated at cost plus total finance charges and reduced by the installments, which have matured during the relevant period and un-matured finance charges.

b) The Company has filed legal suits against some defaulters, which are classified as non-performing assets as per the Reserve Bank of Indias guidelines, and provisions for the same are being made in the accounts. However, during the year few of such suits filed cases are written-off considering the bleak possibility of their recovery. Any recovery made in the future shall be properly accounted for as receipt.

1.6 STOCK IN TRADE AND INVESTMENTS:

a) The Securities acquired with the intention of short - term holding and trading positions are considered as stock in - trade and shown as current assets. Other securities acquired with the intention pf long -term holdings are considered as Investments.

b) In respect of investments as well as stock-in-trade, brokerage and stamp duty payable are considered to arrive at the cost..

c) The securities held as stock -in trade under current assets are valued at cost or market, whichever is lower.

1.7 TAXES ON INCOME: - Provisions for taxation for the year comprises of current tax and deferred tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax liabilities / assets, on timing difference, being the difference between taxable income and accounting income that originate in one or more period and are being capable of reversal in one or more subsequent periods.

1.8 PROVISION FOR DOUBTFUL LOANS AND ADVANCES:

The policy of provisioning for non-performing Loans and Advances has been decided by the management considering prudential norms prescribed by the Reserve Bank of India.

1.9 SEGMENTAL REPORTING: - Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS 17, the company has only one reportable segment consisting of its finance operations. Hence segmental report is not furnished.

1.10 RETIREMENT BENEFITS: - Retirement benefits in form of Provident Fund, E.S.I.C. Etc whether in pursuance of law or otherwise is accounted on accrual basis and charged to profit & loss account of the year.

1.11 Consistency: - These Financial statements have been prepared in the basis of consistent with previous years and accounting policies not specifically referred here to are consistent with generally accepted accounting principal.

1.12 Impairment of Assets: - In accordance with the account statement (AS -28) in "Improvement of Asset" issued by ICAI. During the year the Company reassessed its fixed assets and is of the view that no impairment/reversal is considered to be necessary in view of its value realizable