Accounting Policies of Ashika Credit Capital Ltd. Company

Mar 31, 2018

1(a) Significant Accounting Policies

1.1 Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India, under the historical cost convention, on accrual basis. As per Rule 7 of The Companies (Accounts) Rules, 2014, the standards of accounting as specified under the Companies Act, 1956 shall be deemed to be the accounting standards until accounting standards are specified by the Central Government under Section 133 of the Companies Act, 2013. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211 (3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006], the relevant provisions of the Companies Act, 2013 and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non-Banking Financial Company -Non-Systemically Important Non-Deposit taking Company (''NBFC''). The accounting policies applied by the Company are consistent with those applied in the previous year except as otherwise stated elsewhere.

Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in Schedule III of the Companies Act, 2013.

For the Company, there is generally no clearly identifiable normal operating cycle and hence the normal operating cycle for the Company is assumed to have a duration of 12 months.

1.2 Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions which are considered to arrive at the reported amounts of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the reported income and expenses during the reporting year. Although these estimates are based upon the management''s best knowledge of current events and actions, actual results could differ from these estimates. The difference between the actual results and the estimates are recognized in the periods in which the results are known / materialized. Any revision to the accounting estimates is recognized prospectively in the current and future accounting years.

1.3 Fixed Assets, Depreciation / Amortisation and Impairment

i) Fixed Assets

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

ii) Depreciation

Depreciation on tangible assets, is provided over the estimated useful life of assets, in accordance with Schedule II to the Companies Act, 2013. The residual value of assets is considered at 5%.

The Company has adopted the useful life as specified in Schedule II to the Companies Act, 2013.

The assets for which useful life are adopted as specified in Schedule II to the Companies Act, 2013 are as follows:

Depreciation on assets purchased / sold during the reporting year is recognised on pro-rata basis.

iii) Impairment

The carrying amount of assets is reviewed at each Balance Sheet date to determine if there is any indication of impairment, based on internal / external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation, if there was no impairment.

1.4 Borrowing Costs

Borrowing costs consist of interest and other ancillary cost that an entity incurs in connection with the borrowing of funds. Borrowing costs are recognised as expense in the period in which they are incurred.

1.5 Operating Leases

Where the Company is lessee

Leases under which all the risks and benefit of ownership are effectively retained by the lessor are classified as operating leases. Amount due under the operating leases are charged to the Statement of Profit and Loss, on a straight-line method over the lease term in accordance with Accounting Standard 19 on ''Leases''.

1.6 Investments

Investments which are readily realisable and intended to be held for not more than one year from the date on which such investments are made are classified as current investments in accordance with the RBI guidelines and Accounting Standard 13 on ''Accounting for Investments''. Current investments also include current maturities of long-term investments. All other investments are classified as non-current investments. Current investments are carried at lower of cost and market price determined category-wise. All Non-Current investments, are carried at cost. However, provision for diminution in value, other than temporary in nature, is made to recognise a decline, on an individual basis.

Cost is arrived at on first-in, first-out method for the purpose of valuation of investment.

1.7 Provisioning / Write-off of assets

The Company makes provision for Standard and Non-Performing Assets as per Master Direction - Non-Banking Financial Company -Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, as amended from time to time.

Loans & Advances which, as per the management are not likely to be recovered, are considered as bad debts and written off.

1.8 Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company, it can be reliably measured and it is reasonable to expect ultimate collection.

a) Income from loans is recognised on accrual basis, except in the case of non-performing assets where it is recognised, upon realisation, as per the Prudential Norms / Directions of RBI, applicable to NBFCs.

b) Interest income from loan assets is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

c) Income from Dividend of shares of corporate bodies is accounted when the Company''s right to receive the dividend is established.

d) Revenue from trading in securities/intraday transactions is accounted for on trade date basis.

e) Profit or Loss on sale of non-current and current investments are recognised when a binding obligation has been entered into.

f) All other income is accounted for on accrual basis.

1.9 Retirement and Other Employee Benefits

a) Retirement and employee benefits in the form of Provident Fund and Employee State Insurance are defined contribution plans and the Company''s contributions, paid or payable during the reporting period, are charged to the Statement of Profit and Loss.

b) Gratuity liability is a defined benefit plan and is provided for on the basis of actuarial valuation on projected unit credit method at the Balance Sheet date.

c) Long-Term compensated absences are provided for based on actuarial valuation as per projected unit credit method at the Balance Sheet date.

d) Actuarial gains / losses are charged to the Statement of Profit and Loss and are not deferred.

1.10 Taxes on Income

Tax expense comprises of current tax [(net of Minimum Alternate Tax (MAT) credit entitlement)] and deferred tax.

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

Deferred tax reflects the impact of timing differences between taxable income and accounting income for the current reporting year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities. The deferred tax assets and deferred tax liabilities relate to the taxes on income levied by the same governing taxation laws. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

At each Balance Sheet date, the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realised.

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance note issued by The Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

1.11 Segment Reporting

Based on the risks and returns associated with business operations and in terms of Accounting Standard-17 (Segment Reporting), the Company is predominantly engaged in a single reportable segment of ''Financial Services''.

1.12 Provision, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation as a result of past event 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 are not discounted to their present value and are determined based on 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 not recognised but are disclosed in the notes to financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.13 Earnings Per Share (EPS)

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted EPS, 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 dilutive potential equity shares.

1.14 Prior Period and Extra Ordinary Items

Prior Period and Extra Ordinary items having material impact on the financial affairs of the Company are disclosed separately.

---

Mar 31, 2015

(i) Basis of Accounting

a) The financial statements have been prepared to comply in all material aspects with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014 and the provisions of the Act.

b) The Company follows the directives prescribed by the Reserve Bank of India for Non Banking Financial Companies.

c) The financial statements have been prepared under the historical cost convention on an accrual basis. However, income is not recognized and also provision is made in respect of non-performing assets as per the guidelines for prudential norms prescribed by the Reserve Bank of India. Except otherwise mentioned, the accounting policies applied by the Company are consistent with those used in the previous year.

(ii) Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and the reported amounts of revenues and expense during the reported period. Although these estimates are based on the management''s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future period.

(iii) Revenue Recognition

a) Revenue from trading in securities / intraday transactions is accounted for on trade date basis.

b) Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

c) Dividend income is recognized when the company''s right to receive payment is established by the reporting date.

d) All other Incomes are accounted for on accrual basis.

(iv) Fixed Assets

Tangible Fixed Assets are stated at cost, less accumulated depreciation and impairment loss thereon, if any. Cost comprises of purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

(v) Depreciation on Fixed Assets

Depreciation has been provided on the straight line method based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

(vi) Impairment of Fixed Assets

The carrying amounts of the assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on external or internal factors. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount which is the greater of the assets'' net selling price and value in use. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period, if any, is reversed if there has been a change in the estimate of the recoverable amount.

(vii) Investments

Non-Current / Long term investments, those are intended to be held for a period of more than a year are considered at ''cost'' on individual investment basis, unless there is a decline in the value other than temporary in which case adequate provision is made against the diminution in the value of such investments.

(viii) Derivative Instruments

In accordance with the ICAI announcements, derivative contracts (other than foreign currency forward contracts covered under AS 11) is done based on the ''marked to market'' principle, on a portfolio basis, and the net loss, if any, after considering the offsetting effect of underlying hedged items, is charged to the statement of profit and loss. Net gain, if any after considering the offsetting effect of loss on the underlying hedged item, is ignored as a matter of prudence.

(ix) Earnings per Share

Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted Earnings per Share is calculated by adjustment of all the effects of dilutive potential equity shares from the net profit or loss for the period attributed to equity shareholders and the weighted average numbers of shares outstanding during the period.

(x) Taxation

Tax expenses comprises of current tax (net of Minimum Alternate Tax credit entitlement) and deferred tax.

Current tax is determined as the amount of tax payable in respect of taxable income for the period under the provisions of the Income Tax Act 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversible in one or more subsequent periods. Deferred tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset item will be realized. If the company has carry forward unabsorbed depreciation and tax losses, deferred tax assets are recognized only to the extent there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realized.

(xi) Retirement Benefits

a) Employment benefits in the form of Provident Fund and Employee State Insurance are defined contribution plans and the Company''s contribution, paid or payable during the reported period, are charged to the statement of profit and loss.

b) Gratuity liability is a defined benefit plan and is provided for on the basis of actuarial valuation on projected units credit method at the Balance Sheet date.

c) Long Term compensated leave are provided for based on actuarial valuation as per projected unit credit method at the Balance Sheet date.

d) Actuarial gain / losses are charged to the statement of profit and loss and are not deferred.

(xii) Segment Reporting

Based on the risks and returns associated with business operations and in terms of Accounting Standard -17 (Segment Reporting), the Company is predominantly engaged in a single reportable segment of ''Financial Services''.

(xiii) Provisions, Contingent Liabilities & Contingent Assets

A provision is recognized when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on 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 not recognized but are disclosed in the notes to the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

---

Mar 31, 2014

(i) basis of accounting

a) The financial statements have been prepared to comply in all material aspects with the Accounting Standards notifed by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular No.15/2013 dated 13th September 2013, issued by the Ministry of Corporate Afairs, in respect of Section 133 of the Companies Act, 2013.

b) The Company follows the directives prescribed by the Reserve Bank of India for Non Banking Financial Companies.

c) The financial statements have been prepared under the historical cost convention on an accrual basis. However, income is not recognised and also provision is made in respect of non- performing assets as per the guidelines for prudential norms prescribed by the Reserve Bank of India. Except otherwise mentioned, the accounting policies applied by the Company are consistent with those used in the previous year.

(ii) use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that afect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and the reported amounts of revenues and expense during the reported period. Although these estimates are based on the management''s best knowledge of current events and actions, actual

results could difer from these estimates. Any revision to accounting estimates is recognised prospectively in current and future period.

(iii) Revenue Recognition

a) Revenue from trading in securities / intraday transactions is accounted for on trade date basis.

b) Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

c) Dividend income is recognised when the company''s right to receive payment is established by the reporting date.

d) All other Incomes are accounted for on accrual basis.

(iv) Fixed assets

Tangible Fixed Assets are stated at cost, less accumulated depreciation and impairment loss thereon, if any. Cost comprises of purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

(v) depreciation on Fixed assets

Depreciation on tangible fixed assets is provided on Straight Line Method (S.L.M) at the rates specified in the Schedule XIV of the Companies Act, 1956. Depreciation on addition to the fixed assets is provided on pro-rata basis from the date the asset is available for use. Depreciation on sale / deduction from fixed asset is provided for, to the date of sale / deduction, as the case may be.

(vi) impairment of Fixed assets

The carrying amounts of the assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on external or internal factors. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount which is the greater of the assets'' net selling price and value in use. An impairment loss is charged to the statement of profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period, if any, is reversed if there has been a change in the estimate of the recoverable amount.

(vii) investments

Long term investments, those are intended to be held for a period of more than a year are considered at ''cost'' on individual investment basis, unless there is a decline in the value other than temporary, in which case adequate provision is made against the diminution in the value of such investments.

(viii) derivative instruments

In accordance with the ICAI announcements, derivative contracts (other than foreign currency forward contracts covered under AS 11) is done based on the ''marked to market'' principle, on a portfolio basis, and the net loss, if any, after considering the ofsetting efect of underlying hedged items, is charged to the statement of profit and loss. Net gain, if any, after considering the ofsetting efect of loss on the underlying hedged item, is ignored as a matter of prudence.

(ix) earnings per Share

Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted Earnings per Share is calculated by adjustment of all the efects of dilutive potential equity shares from the net profit or loss for the period attributed to equity shareholders and the weighted average numbers of shares outstanding during the period.

(x) taxation

Tax expenses comprises of current tax (net of Minimum Alternate Tax credit entitlement) and deferred tax.

Current tax is determined as the amount of tax payable in respect of taxable income for the period under the provisions of the Income Tax Act 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing diferences, being the diference between taxable incomes and accounting income that originate in one period and are capable of reversible in one or more subsequent periods. Deferred tax assets are recognised and carried forward only to the extent there is reasonable certainty that sufcient future taxable income will be available against which such deferred tax asset item will be realised. If

the company has carry forward unabsorbed depreciation and tax losses, deferred tax assets are recognised only to the extent there is virtual certainty supported by convincing evidence that sufcient taxable income will be available against which such deferred tax assets can be realised.

(xi) Retirement benefits:

a) Employment benefits in the form of Provident Fund and Employee State Insurance are Defined contribution plans and the Company''s contribution, paid or payable during the reported period, are charged to the statement of profit and loss.

b) Gratuity liability is a Defined benefit plan and is provided for on the basis of actuarial valuation on projected units credit method at the Balance Sheet date.

c) Long Term compensated leave are provided for based on actuarial valuation as per projected unit credit method at the Balance Sheet date.

d) Actuarial gain / losses are charged to the statement of profit and loss and are not deferred.

(xii) Segment Reporting

Based on the risks and returns associated with business operations and in terms of Accounting Standard -17 (Segment Reporting), the Company is predominantly engaged in a single reportable segment of ''Financial Services''.

(xiii) provisions, contingent liabilities & contingent assets

A provision is recognised when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to refect the current best estimates. Contingent liabilities are not recognised but are disclosed in the notes to the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

b) terms / rights attached to equity Shares

The Company has only one class of equity shares having par value of Rs.10/- per share. All these shares have the same right with respect to payment of dividend, repayment of capital and voting. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by them.

nature of certain provisions and their movement

Provision for non-performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company creates a general provision at 0.25% of the standard assets outstanding on the balance sheet date, as per the RBI Prudential Norms.

The following table sets forth the movement of aforesaid Provisions

note : Credit facility from bank by way of overdraft are secured against pledge of Company''s fixed deposits having face value of Rs. 100,000,000/- (P.Y. Rs. 100,000,000/-) [refer note no. 13]

* Based on the information/ documents available with the Company, no creditor is covered under Micro, Small and Medium Enterprise Development Act, 2006. As a result, no interest provisions/ payments have been made by the Company to such creditors and no disclosures thereof are made in these financial statements.

notes : (i) Building includes premises with gross value of Rs. 15,62,394/- (P.Y. Rs. 15,62,394/-), in respect of which conveyance is pending.

(ii) None of the Company''s fixed assets are considered impaired as on the balance sheet date.

note : (a) Secured Loans are secured by pledge of equity shares of the borrowers.

(b) Unsecured Loans includes Non - Performing Assets of Rs. 80,613,640/- (Previous year - Nil).

(c) Margin Deposits with related party in previous year represents due from Ashika Stock Broking Ltd.

note : (a) Fixed Deposits with bank is pledged with bank against credit facilities.

(b) The balances that meet the defnition of Cash and Cash Equivalents as per AS -3 (Cash Flow Statement) is Rs. 1,884,391/- (P.Y. Rs. 3,344,826/-).

Note: Earnings per share are done in accordance with the Accounting Standard (AS) - 20 issued by ICAI

Note: Previous Year''s figures are net of Service Tax availed as Input Credit

---

Mar 31, 2013

(i) Basis of Accounting:

The financial statements have been prepared to comply in all material aspects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and the directives prescribed by the Reserve Bank of India for Non Banking Financial Companies. The financial statements have been prepared under the historical cost convention on an accrual basis. However, income is not recognized and also provision is made in respect of non-performing assets as per the guidelines for prudential norms prescribed by the Reserve Bank of India. Except otherwise mentioned, the accounting policies applied by the Company are consistent with those used in the previous year.

(ii) Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could results in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

(iii) Revenue Recognition:

a) Revenue from trading in securities / intraday transactions is accounted for on trade date basis.

b) Fees based income is accounted based on the stage of completion of assignment, when there is reasonable certainty of its ultimate realization/collection.

c) Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

d) Dividend income is recognized when the company’s right to receive payment is established by the reporting date.

e) All other Incomes are accounted for on accrual basis.

(iv) Fixed Assets:

Tangible Fixed Assets are stated at cost, less accumulated depreciation and impairment loss thereon, if any. Cost comprises of purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

(v) Depreciation on Fixed Assets:

Depreciation on tangible fixed assets is provided on Straight Line Method (S.L.M) at the rates specified in the Schedule XIV of the Companies Act, 1956. Depreciation on addition to the fixed assets is provided on pro-rata basis from the date the asset is available for use. Depreciation on sale / deduction from fixed asset is provided for, to the date of sale / deduction, as the case may be.

(vi) Impairment of Fixed Assets:

The carrying amounts of the assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on external or internal factors. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount which is the greater of the assets’ net selling price and value in use. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period, if any, is reversed if there has been a change in the estimate of the recoverable amount.

(vii) Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. All other

investments are classified as non- current investments, which are considered at ‘cost’ on individual investment basis, unless there is a decline in the value other than temporary, in which case adequate provision is made against the diminution in the value of such investments.

(viii) Derivative Instruments:

In accordance with the ICAI announcements, derivative contracts (other than foreign currency forward contracts covered under AS 11) is done based on the ‘marked to market’ principle, on a portfolio basis, and the net loss, if any, after considering the offsetting effect of underlying hedged items, is charged to the statement of profit and loss. Net gain, if any, after considering the offsetting effect of loss on the underlying hedged item, is ignored as a matter of prudence.

(ix) Earnings per Share:

Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted Earnings per Share is calculated by adjustment of all the effects of dilutive potential equity shares from the net profit or loss for the period attributed to equity shareholders and the weighted average numbers of shares outstanding during the period.

(x) Taxation:

Tax expenses comprises of current tax (net of Minimum Alternate Tax credit entitlement) and deferred tax.

Current tax is determined as the amount of tax payable in respect of taxable income for the period under the provisions of the Income Tax Act 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversible in one or more subsequent periods. Deferred tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset item will be realized. If the Company has carry forward unabsorbed depreciation and tax losses, deferred tax assets are recognized only to the extent there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realized.

(xi) Retirement Benefits:

a) Employment benefits in the form of Provident Fund and Employee State Insurance are defined contribution plans and the Company’s contribution, paid or payable during the reported period, are charged to Profit and Loss.

b) Gratuity liability is a defined benefit plan and is provided for on the basis of actuarial valuation on projected units credit method at the Balance Sheet date.

c) Long Term compensated leave are provided for based on actuarial valuation as per projected unit credit method at the Balance Sheet date.

d) Actuarial gain / losses are charges to the statement of profit and loss and are not deferred.

(xii) Segment Reporting:

Based on the risks and returns associated with business operations and in terms of Accounting Standard -17 (Segment Reporting), the Company is predominantly engaged in a single reportable segment of ‘Financial Services’.

(xiii) Provisions, Contingent Liabilities & Contingent Assets:

A provision is recognized when the Company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on 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 not recognized but are disclosed in the notes to the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

(xiv) Prior Period & Extra Ordinary Items:

Prior Period & Extra Ordinary items having material impact on the financial affairs of the Company are disclosed separately.

(b) Defined Benefit Plans

The Company has provided for gratuity, privilege /sick leave befits liability based on actuarial valuation done as per the projected unit method. The scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Statement of Profit and Loss and amounts recognized in the balance sheet for the respective plan

---

Mar 31, 2012

I) Basis of Accounting

The Financial statements are prepared under the historical cost convention on accrual basis of accounting. These are presented in accordance with the Generally Accepted Accounting Principles as acceptable in India, provisions of the Companies Act, 1956, Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006 and the guidelines issued by the Reserve Bank of India, wherever applicable.

ii) Use of Estimates

The preparation of the financial statements are in conformity with the accounting standards generally accepted in India and requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Actual results could differ from these estimates.

iii) Revenue Recognition

a) Revenue from sale of goods is recognised when the substantial risk and reward of ownership are transferred to the buyer.

b) Transactions in respect of dealing in securities are recognised on trade dates.

c) Fees-based income is accounted based on the stage of completion of assignment, when there is reasonable certainty of its ultimate realisation/collection.

d) Interest income from financing activities and others is recognised on and accrual basis except in the case of non-performing assets where it is recognised, upon realisation, as per Prudential Norms of Reserve Bank of India.

e) Dividend income is recognised when the Company's right to receive dividend is established.

f) All other incomes are accounted for on accrual basis.

iv) Fixed Assets

Tangible Fixed Assets are stated at cost, less accumulated depreciation thereon. Cost comprises of purchase price, duties, taxes and incidental expenses related to the acquisition and installation of the assets.

v) Depreciation on Fixed Assets

Depreciation on tangible fixed assets is provided on Straight Line Method (S.L.M) at the rates specified in the Schedule XIV of the Companies Act, 1956. Depreciation on addition to the fixed assets is provided on pro-rata basis from the date the asset is available for use. Depreciation on sale/deduction from fixed asset is provided for, to the date of sale/deduction, as the case may be.

vi) Impairment of Fixed Assets

The carrying amounts of the assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on external or internal factors. An asset is treated as impaired when carrying cost of asset exceeds its recoverable amount. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period, if any, is reversed if there has been a change in the estimate of the recoverable amount.

vii) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. All other

investments are classified as long-term investments, which are considered at 'cost' on individual investment basis, unless there is a decline in the value other than temporary, in which case adequate provision is made against the diminution in the value of such investments.

viii) Inventories

Inventories of commodities are stated at lower of cost or net realisable value. Cost comprises of cost of purchase and other costs incurred in bringing the inventories to their respective present location and condition.

Cost is determined on FIFO basis.

ix) Shares, Commodities Derivatives

Initial margin and margin paid over and above initial margin, for entering into a contract for derivatives which are released on final settlement/squaring up of the underlying contract, are disclosed under Loans and Advances.

Derivatives are marked-to-market on a daily basis. Debit or Credit Balance, representing the net amount paid or received on the basis of movement in the price of derivatives till the balance sheet date, are disclosed under Receivables or Current Liabilities, respectively.

Profit / Loss on open position of derivatives as on the balance sheet date is accounted for as follows:

Credit balance in the Mark-to-Market margin, being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account.

Debit balance in the Mark-to-Market, being the anticipated loss is adjusted in the Profit and Loss Account.

x) Prior Period and Extra Ordinary Items

Prior period and extra ordinary items having material impact on the financial affairs of the Company are disclosed separately.

xi) Earnings per Share

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

Diluted earnings per share is calculated by adjustment of all the effects of dilutive potential equity shares from the net profit or loss for the period attributed to equity shareholders and the weighted average numbers of shares outstanding during the period.

xii) Taxation

Tax expenses comprise of current and deferred tax. Current tax is determined as the amount of tax payable in respect of taxable income for the period under the provisions of the Income Tax Act 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversible in one or more subsequent periods. Deferred tax assets are recognised and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset item will be realised. If the Company has carry forward unabsorbed depreciation and tax losses, deferred tax assets are recognised only to the extent there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realised.

xiii) Retirement Benefits:

a) Employment benefits in the form of Provident Fund are defined contribution plans and the Company's contribution, paid or payable during the year, are charged to Profit and Loss Account.

b) Gratuity liability is a defined benefit plan and is provided for on the basis of actuarial valuation on projected units credit method at the Balance Sheet date.

c) Long Term compensated leave are provided for based on actuarial valuation as per projected unit credit method at the Balance Sheet date.

d) Actuarial gain/losses are charges to the profit and loss account and are not deferred.

xiv) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and reliable estimate can be made for the amount of the obligation. Contingent liabilities are not recognised but disclosed by way of notes to the accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

---

Mar 31, 2011

1. Basis of Accounting :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting. These are presented in accordance with the Generally Accepted Accounting Principles as acceptable in India, provisions of the Companies Act, 1956, Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006 and the guidelines issued by the Reserve Bank of India, wherever applicable.

2. Use of Estimates :

The Preparation of the financial statements in conformity with the accounting standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Actual results could differ from these estimates.

3. Revenue Recognition :

a) Revenue from sale of goods is recognized when the substantial risk and reward of ownership are transferred to the buyer.

b) Transactions in respect of dealing in securities are recognized on trade dates.

c) Fees based income is accounted based on the stage of completion of assignment, when there is reasonable certainty of its ultimate realization/collection.

d) Interest Income from financing activities and others is recognized on and accrual basis except in the case of non-performing assets where it is recognized, upon realization, as per Prudential Norms of Reserve Bank of India.

e) Dividend Income is recognized when the Company's right to receive dividend is established.

f) All other Incomes are accounted for on accrual basis.

4. Fixed Assets :

Fixed Assets are stated at cost, less accumulated depreciation thereon. Cost comprises of purchase price, duties, taxes and incidental expenses related to the acquisition of the assets.

5. Depreciation on Fixed Assets :

Depreciation on tangible fixed assets is provided on Straight Line Method (S.L.M) at the rates specified in the Schedule XIV of the Companies Act, 1956. Depreciation on addition to the fixed assets is provided on pro-rata basis from the date the asset is available for use. Depreciation on sale / deduction from fixed asset is provided for, to the date of sale / deduction, as the case may be.

6. Impairment of Fixed Assets :

An asset is treated as impaired when carrying cost of asset exceeds it's recoverable amount. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period, if any, is reversed if there has been a change in the estimate of the recoverable amount.

7. Shares, Commodities Futures / Equity Index :

Initial margin and margin paid over and above initial margin, for entering into a contract for stock futures / equity index which are released on final settlement / squaring up of the underlying contract, are disclosed under Loans & Advances.

Stock futures / equity index are marked-to-market on a daily basis. Debit or Credit Balance, representing the net amount paid or received on the basis of movement in the price of stock futures / equity index till the balance sheet date, are disclosed under Receivables or Current Liabilities, respectively.

Profit / Loss on open position in stock futures / equity index as on the balance sheet date is accounted for as follows:

Credit balance in the Mark-to-Market margin, being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account. Debit balance in the Mark-to-Market, being the anticipated loss is adjusted in the Profit and Loss Account.

8. Inventories :

Inventories of Commodities are stated at lower of cost or net realizable value. Cost comprises of cost of purchase and other costs incurred in bringing the inventories to their respective present location and condition.

Inventories of Shares and Securities are valued script wise at lower of cost or net realizable value.

Cost is determined on FIFO basis.

9. Investments :

Long Term Investments are stated at cost. Provision for diminution in value, other than temporary, is considered wherever necessary on individual basis.

10. Prior Period & Extra Ordinary Items :

Prior Period & Extra Ordinary items having material impact on the financial affairs of the company are disclosed separately.

11. Earnings per Share :

Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted Earnings per Share is calculated by adjustment of all the effects of dilutive potential equity shares from the net profit or loss for the period attributed to equity shareholders and the weighted average numbers of shares outstanding during the period.

12. Taxation :

Tax expenses comprises of current and deferred tax. Current tax is determined as the amount of tax payable in respect of taxable income for the period under the provisions of the Income Tax Act 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversible in one or more subsequent periods. Deferred tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset item will be realized. If the company has carry forward unabsorbed depreciation and tax losses, deferred tax assets are recognized only to the extent there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realized.

13. Retirement Benefits :

a) Defined Contribution Plans :

Company's contribution towards Provident Fund, which is a defined contribution scheme, are charged to the Profit and Loss Account of the year when the contributions are due. There are no other obligations other than the contribution payable to the respective fund.

b) Defined Benefit Plans :

Gratuity liabilities are provided for based on actuarial valuation made at the end of each financial year using the projected unit credit method. Actuarial gains and losses are recognized immediately in the statement of Profit & Loss Account as income or expenses. Compensated leave is encashed during the year.

14. Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when the company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and reliable estimate can be made for the amount of the obligation. Contingent liabilities are not recognized but disclosed by way of notes to the accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

---

Mar 31, 2009

1. Basis of Accounting

The Financial statements are prepared under the historical cost convention on accrual basis of accounting. These are presented in accordance with the Generally Accepted Accounting Principles as acceptable in India, provisions of the Companies Act, 1956, Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006 and the guidelines issued by the Reserve Bank of India, wherever applicable.

2. Use of Estimates

The Preparation of the financial statements in conformity with the accounting standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Actual results could differ from these estimates.

3. Revenue Recognition

a) Transactions in respect of dealing in securities are recognized on trade dates.

b) Interest Income from financing activities and others is recognized on and accrual basis except in the case of non-performing assets where it is recognized, upon realization, as per Prudential Norms of Reserve Bank of India.

c) Dividend Income is recognized on receipt basis.

4. Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation thereon. Cost comprises of purchase price, duties, taxes and incidental expenses related to the acquisition of the assets.

5. Depreciation on Fixed Assets

Depreciation on tangible fixed assets is provided on Straight Line Method at the rates specified in the Schedule XIV of the Companies Act, 1956. Depreciation on addition to the fixed assets is provided on pro-rata basis from the date the asset is available for use. Depreciation on sale / deduction from fixed asset is provided for, to the date of sale / deduction, as the case may be.

6. Impairment of Fixed Assets

An asset is treated as impaired when carrying cost of asset exceeds it's recoverable amount. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period, if any, is reversed if there has been a change in the estimate of the recoverable amount.

7. Shares, Commodities Futures / Equity Index

Initial margin and margin paid over and above initial margin, for entering into a contract for stock futures / equity index which are released on final settlement / squaring up of the underlying contract, are disclosed under Loans & Advances.

Stock futures / equity index are marked-to-market on a daily basis. Debit or Credit Balance, representing the net amount paid or received on the basis of movement in the price of stock futures / equity index till the balance sheet date, are disclosed under Receivables or Current Liabilities, respectively.

Profit / Loss on open position in stock futures / equity index as on the balance sheet date is accounted for as follows:

Credit balance in the Mark-to-Market margin, being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account.

Debit balance in the Mark-to-Market, being the anticipated loss is adjusted in the Profit and Loss Account.

8. Investments

Long Term Investments are stated at cost. Provision for diminution in value, if any, is made considering the nature and extent of permanent diminution.

9. Stock-in-Trade

Closing Stock of shares is valued script wise at lower of cost or market value.

10. Earning Per Share

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

Diluted Earning per share, is calculated by adjustment of all the effects of dilutive potential equity shares from the net profit or loss for the period attributed to equity shareholders and the weighted average numbers of shares outstanding during the period.

11. Taxation

Tax expenses comprises of current, deferred and fringe benefit tax. Current tax is determined as the amount of tax payable in respect of taxable income for the period under the provisions of the Income Tax Act 1961. Fringe Benefit Tax is determined in accordance with the provisions of the Income Tax Act 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversible in one or more subsequent periods. Deferred tax assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset item will be realized. If the company has carry forward unabsorbed depreciation and tax losses, deferred tax assets are recognized only to the extent there is virtual certainty supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realized.

12. Retirement Benefits:

a) Defined Contribution Plans

Company's contribution towards Provident Fund, which is a defined contribution scheme, are charged to the Profit and Loss Account of the year when the contributions are due. There are no other obligations other than the contribution payable to the respective fund.

b) Defined Benefit Plans

Gratuity liabilities are provided for based on actuarial valuation made at the end of each financial year using the projected unit credit method. Actuarial gains and losses are recognized immediately in the statement of Profit & Loss Account as income or expenses. Compensated leave is encashed during the year.

13. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and reliable estimate can be made for the amount of the obligation. Contingent liabilities are not recognized but disclose by way of notes to the accounts. Contingent assets are neither recognized nor disclosed in the financial statements

---

Mar 31, 2008

1. Basis of Accounting

The Financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles as acceptable in India and are on the basis of a going concern.

2. Use of Estimates

The Preparation of the financial statements in conformity with the accounting standards generally accepted in India requires, the management to make estimates that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates.

3. Revenue Recognition

Transaction in respect of dealing in securities are recognized on trade dates.

Interest Income from financing activities and others is recognized on and accrual basis.

Dividend Income is recognized on receipt basis.

Prudential norms prescribed by Reserve Bank of India for revenue recognition, asset classification and provisioning are followed.

4. Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation thereon. Cost comprises of purchase price, duties, taxes and incidental expenses.

5. Depreciation on Fixed Assets

Depreciation on tangible fixed assets is provided on Straight Line Method at the rates specified in the Schedule XIV of the Companies Act, 1956. Depreciation on addition to the fixed assets is provided on pro-rata basis from the date the asset is put to use. Depreciation on sale / deduction from fixed asset is provided for, to the date of sale / deduction, as the case may be.

6. Impairment of Fixed Assets

An asset is treated as impaired when carrying cost of asset exceeds it's recoverable amount. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period, if any is reversed if there has been a change in the estimate of the recoverable amount.

7. Shares, Commodities Futures / Equity Index

Initial margin and margin paid over and above initial margin, for entering into a contract for stock futures / equity index which are released on final settlement / squaring up of the underlying contract, are disclosed under Loans & Advances.

Stock futures / equity index are marked-to-market on a daily basis. Debit or Credit Balance, representing the net amount paid or received on the basis of movement in the price of stock futures / equity index till the balance sheet date, are disclosed under Receivables or Current Liabilities, respectively.

Profit / Loss on open position in stock futures / equity index as on the balance sheet date is accounted for as follows:

Credit balance in the Mark-to-Market margin, being the anticipated profit is ignored and no credit for the same is taken in the Profit and Loss Account.

Debit balance in the Mark-to-Market, being the anticipated loss is adjusted in the Profit and Loss Account.

8. Investments

Long Term Investments are stated at cost. Provision is made for diminution in value, considering the nature and extent as permanent diminution.

9. Stock-in-Trade

Closing Stock of shares are valued script wise at lower of cost or fair value.

10. Earning Per Share

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

11. Taxation

Tax expenses comprises of current, deferred and fringe benefit tax. Current tax is determined as the amount of tax payable in respect of taxable income for the period under the provisions of the Income Tax Act 1961.

Fringe Benefit Tax is determined in accordance with the provisions of the Income Tax Act 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversible in one or more subsequent periods. Deferred Assets are recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be able against which such asset item will be realized.

12. Employee Benefits

Contribution to Provident Fund is made as per provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to Profit and Loss Account and disclosed separately.

Provision for Gratuity has not been made, as the Company is not statutorily liable to pay the same.

Leave encashment is accounted for at the time of payment and no such carry over of unencashed leave is carried over.

No other employees benefits are payable by the Company.

13. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and reliable estimate can be made for the amount of the obligation. Contingent liabilities are not recognized but disclose by way of notes to the accounts. Contingent assets are neither recognized nor disclosed in the financial statements