Accounting Policies of JMJ Fintech Ltd. Company

Mar 31, 2025

1.1 Company Information

JMJ FINTECH LIMITED (previously known as Meenakshi Enterprises Limited) is a Non-Deposit taking Non- Banking Financial Company (NBFC) as defined under section 45-IA of the Reserve Bank of India (RBI'') Act, 1934. The Company is registered as an NBFC with RBI. The Company is in the business of providing loans to both Corporate Clients and HNIs against security and guarantee.lt also finances SME sector for growth and it acts as consultant for raising funds through IPO or PE / Venture Funds. It also acts as management consultant relating to areas such as Merger, Amalgamation, Acquisition and Valuation etc. The Company is also into the business of Investment in Shares & Securities and is having its separate research division to identify good listed companies. The Company also invests in both Cash & Derivatives Market through BSE NSE. The Company''s shares are listed in Bombay Stock Exchange.

1.2 Basis of Preparation of financial statements

A. Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act. Any directions issued by the RBI or other regulators are implemented as and when they become applicable.

For the periods up to and including the financial year ended March 31, 2025 the Company prepared its financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 (as amended) notified under the Act, guidelines issued by the RBI and other generally accepted accounting principles in India.

The regulatory disclosures required by RBI Scale Based Regulations, 2023 are complied with and the financial statements are prepared under Ind AS pursuant to the RBI notification on Implementation of Indian Accounting Standards, dated March 13, 2020.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard requires a change in the accounting policy hitherto in us.

B. Presentation of financial statements

The Balance Sheet, the Statement of Changes in Equity and the Statement of Profit and Loss are presented inthe format presented under Division m of Schedule m of the Act, as amended from time to time, for Non - Banking Financial Companies CNBFCs'') that are required to comply with Ind AS. The Statement of Cash Flows has been presented as per requirements of Ind AS 7 Statement of Cash Flows.

C. Basis of Preparation

The financial statements have been prepared on the historical cost convention under accrual basis of accounting except for certain financial instruments and plan assets of defined plans, which are measured at fair values at the end of each reporting period as explained in the accounting policies below. All amounts disclosed in the financial statements and notes have been rounded off to nearest thousand rupees in compliance with Schedule IH of the Act, unless otherwise stated.

1.3 Use of Estimates

The preparation of financial statements in conformity with the Ind AS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) and disclosures as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates. Any revisions to accounting estimates are recognized prospectively in the current and future periods.

1.4 Inflation

Assets and liabilities are recorded at historical cost to the company. These costs are not adjusted to reflect the changing value in the purchasing power of the company.

1.5 Property, Plant and Equipment

All items of Property, Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation/ amortization and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred up to the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Goodsand Services Tax to the extent credit of the duty or tax is availed of.

Subsequent costs are included in the asset''s carrying amount or recognized as separate asset, as appropriate, only when it is probable that future economic benefit associated with the item flows to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repair and maintenance are charged to Profit and Loss during the reporting period in which they are incurred.

1.6 Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognized on a straight-line basis over their estimated usefid lives. The estimated usefiil life and amortisation method are reviewed at the end of each reporting year, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite usefid lives that are acquired separately are carried at cost less accumulated impairment losses.

1.7 Depreciation and Impairment of assets

The usefid life estimates prescribed in Part C of Schedule II to the Companies Act, 2013 are adhered to and depreciation is calculated on such assets on the basis of usefid life estimates. Depreciation is charged over the estimated life of the fixed assets on written down value method at the rates and in the manner prescribed in Schedule II of the Companies Act, 2013. Items costing less than Rs.5,000/- are fully depreciated in the year of purchase. For assets purchased/ sold during the year, depreciation is provided on pro rata basis by the company.

Asset category	Useful life
Inverters	5 Years
Mobile	3 Years
CCTV	3 Years
Electrical Fittings	10 Years
Computers & Laptops	3 Years
Air Conditioner	5 Years
Printer	5 Years
Hoardings	5 Years
Name Board	5 Years
Furniture & Fixtures	10 Years
UPS and Batteries	5 Years
Interior Works	10 Years
Web Camera	3 Years
Safe & Lockers	10 Years
Office Equipments	5 Years
Computer Software	5 Years

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset or the Cash Generating Unit (''CGU''). If such recoverable amount of the asset of the CGU to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and isrecognized in the statement of the profit and loss. If at thebalance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the revised recoverable amount, subject tomaximum of the depreciated historical cost.

1.8 Employee Benefits

Employee benefits include salaries, wages, contribution to employee state insurance, leave encashment towards un-availed leave and incentives.

Short-term employee benefits such as wages and salaries, including non-monetary benefits that are expected to be setded within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Contribution to Provident Fund is not applicable to the Company. Leave Encashment is accounted on actual liability basis. The liability in respect of Gratuity is not provided on actuarial valuation basis.

1.9 Revenue Recognition

(i) Revenue on sale of securities is recognized and accounted for on sale of such shares.

(ii) Interest Income on Loans is recognized and accounted for on accrual basis in accordance with the prudential norms guidelines issued by the Reserve Bank of India.

(iii) Interest income on bank deposits is recognised on accrual basis.

1.10 Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature, tax and any deferrals or accruals of past or future cash receipts or payments. The cash flows are prepared for the operating, investing and financing activities of the Company.

1.11 Cash and Cash equivalents

Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise cash in hand and cash at bank including fixed deposit with original maturity period of three months and short-term highly liquid investments with an original maturity of three months or less.

Bank overdrafts are shown within current liabilities in the balance sheet.

1.12 Borrowing Cost

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.

Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to development of the qualifying asset upto the date of capitalisation of such assets are added to the cost of the assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

1.13 Taxation

Tax expenses are the aggregate of the current tax and deferred tax charged or credited in the Statement of profit and loss for the year. The Company opted for New Tax Regime under sectionl 15BAA of Income Tax Act, 1961 with effect from FY 2022-23. The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certaintyof realization of such assets. Deferred tax assets are reviewed at each balance sheet date. Deferred TaxAsset and Liability are netted off and disclosed in the balance sheet under the Head "Deferred Tax Asset/ Liability".

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted.

1.14 Provisions and Contingencies

The Company recognizes provisions when there is present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. In cases where the available information indicates that the loss on the contingency isreasonablypossible but the amountof loss cannot be reasonably estimated, a disclosure is made in thefinancial statements.

Provisions are reviewed at each balance sheet date and adjusted to reflect the currentmanagement estimates. If it is no longer probable that the outflow of resources is not requiredto setdethe obligation, the provision is reversed.

A disclosure of contingent liability is made when there is a possible obligation or a presentobligationthat may but probably will not require an outflow of resources. Contingent assets are not recognized in the financial statements.

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

1.15 Earnings per share

Basic earnings per share are 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. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

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

1.16 Financial Instruments

i) Financial Assets Classification

The Company classifies its financial assets in the following measurement categories: those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and those measured at amortised cost. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either he recorded in the Statement of Profit and Loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Subsequent measurement

a) Financial assets carried at amortised cost:

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income :

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

c) Financial assets at fair value through profit and loss :

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit and loss.

ii) Financial liabilities

Debt and equity instruments issued by Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Financial liabilities are subsequently carried at amortized 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 the short maturity of these instruments.

iii) Derecognition of financial instruments

The company derecognizes a financial asset when the contractual right to receive the cash flows from the financial asset expire or it transfers the financial asset.

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expired.

iv) Impairment of financial assets

The company assesses on a forward-looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

---

Mar 31, 2024

2.Significant Accounting Policies

2.1 Basis of Preparation of financial statements

A. Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act. Any directions issued by the RBI or other regulators are implemented as and when they becomeapplicable

For the periods up to and including the financial year ended March 31, 2024 the Company prepared its financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 (as amended) notified under the Act, guidelines issued by the RBI and other generally acceptedaccounting principles in India (collectively referred to as ''Indian GAAP'' or ''Previous GAAP'').

The regulatory disclosures as required by Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)Directions, 2016 issued by the RBI and additional disclosures required as per RBI Scale Based Regulations effective from financial year ending 31March 2023. are prepared as per the Ind AS financial statements, pursuant to the RBI notification on Implementation of Indian Accounting Standards, dated March 13, 2020.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard requires a change in theaccounting policy hitherto in us.

B. Presentation of financial statements

The Balance Sheet, the Statement of Changes in Equity and the Statement of Profit and Loss are presented inthe format presented under Division III of Schedule III of the Act, as amended from time to time, for Non - Banking Financial Companies (''NBFCs'') that are required to comply with Ind AS. The Statement of Cash Flows has been presented as per requirements of Ind AS 7 Statement of Cash Flows.

C. Basis of Preparation

The financial statements have been prepared on the historical cost convention under accrual basis of accounting except for certain financial instruments and plan assets of defined plans, which are measured at fairvalues at the end of each reporting period as explained in the accounting policies below. All amounts disclosed in the financial statements and notes have been rounded off to nearest rupees in compliance with Schedule III of the Act, unless otherwise stated.

2.2 Use of Estimates

The preparation of financial statements in conformity with the Ind AS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingentliabilities) and disclosures as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates. Any revisions to accounting estimates are recognized prospectively in the current and future periods.

2.3 Inflation

Assets and liabilities are recorded at historical cost to the company. These costs are not adjusted to reflectthe changing value in the purchasing power of the company.

2.4 Property, Plant and Equipment

All items of Property, Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation/ amortization and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred up to the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Goods and Services Tax to theextent credit of the duty or tax is availed of.

Subsequent costs are included in the asset''s carrying amount or recognized as separate asset, as appropriate, only when it is probable that future economic benefit associated with the item flows to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repair and maintenance are charged to Profit and Loss during the reporting period in which they are incurred.

The useful life estimates prescribed in Part C of Schedule II to the Companies Act, 2013 are adhered to and depreciation is calculated on such assets on the basis of useful life estimates.

Depreciation is charged over the estimated life of the fixed assets on written down value method at the rates and in the manner prescribed in Schedule II of the Companies Act, 2013. Items costing less than Rs.5,000/- are fully depreciated in the year of purchase. For assets purchased/ sold during the year, depreciation is provided on pro rata basis by the company.

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset or theCash Generating Unit ('' CGU''). If such recoverable amount of the asset of the CGU to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of the profit and loss. If at thebalance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the revised recoverable amount, subject to maximum of the depreciated historical cost.

2.6 Employee Benefits

Contribution to Provident Fund and Employees State Insurance Scheme are not applicable to the Company. Leave Encashment is accounted on actual liability basis. The liability in respect of Gratuity is not provided on actuarial valuation basis.

2.7 Revenue Recognition

(i) Revenue on sale of securities is recognized and accounted for on sale of such shares.

(ii) Interest Income is recognized and accounted for on accrual of such Interest Income in accordance with theprudential norms guidelines issued by the Reserve Bank of India.

2.8 Cash Flow Statement

Cash flow statement prepared under the indirect method forms part of the financial statement.

2.9 Contingencies and events occurring after the Balance Sheet date:

There are no contingencies and events occurring after the Balance sheet date.

2.10 Net Profit or Loss for the period, prior period items and changes in accounting policies.

Net profit for the period: All items of income and expenses in the period are included in the determination of net profit for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

Prior period items — Nil.

Changes in accounting policies: There are no significant changes in accounting policies of the companyfrom that of the previous period.

2.11 Segment Reporting

Ind AS 108 Operating Segments is not applicable to the company as there are no identifiable segments.

2.12 Borrowing Cost

Borrowing cost in respect of acquisition or construction of qualifying assets are capitalized as part of suchassets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. Interest so capitalized during the period is Nil.

2.13 Government Grants

The Company has not received any grants from government during the year.

2.14 Cash and Cash equivalents

For the purpose of presentation in the cash flows, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.

Bank overdrafts are shown withincurrent liabilities in the balance sheet.

2.15 Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. The Company applied the ExpectedCash Loss (ECL) model in accordance with Ind AS 109 for recognizing impairment loss on financialassets. The ECL allowance is based on the credit losses expected to arise from all possible default events over the expected life of the financial asset (''Lifetime ECL'') unless there has been no significant increase in the credit risk since origination, in which case, the allowance is based on the 12-month ECL. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date. ECL is calculated on a collective basis, consideringthe retail nature of the underlying portfolio of the financial assets

The impairment methodology applied depends on whether there has been a significant increase in credit risk. When determining whether the risk of default on a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both qualitative and quantitative information and analysis based on a provision matrix which takes into account the Company''s historical credit loss experience, current economic conditions, forward looking information and scenario analysis.

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no reasonable expectation of recovering the asset in its entirety or a portion thereof. This is generally the case when the Company determines that the debtor does not have assets or sources income that could generate sufficient flows to repay the amounts subject to the write-off. However, financialassets that are written-off could still be subject to enforcement activities under the Company''s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognized in profit or loss.

2.16 Taxation

Tax expenses are the aggregate of the current tax and deferred tax charged or credited in the Statement of profit and loss for the year.The Company opted for New Tax Regime (u/s: 115BAA) with effect from FY:2022-23.The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting incomeand taxable Income for the period. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certaintyof realization of such assets. Deferred tax assets are reviewed at each balance sheet date. Deferred TaxAsset and Liability are netted off and disclosed in the balance sheet under the Head "Deferred Tax Asset/ Liability".

---

Mar 31, 2016

a. BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. Further in view of the revised schedule III of the Companies Act, the company has also reclassified the previous year figures in accordance with the requirements applicable for the current year

b. GENERAL:

The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses.

c. USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognized in the period in which the results are known/materialized.

d. FIXED ASSETS:

Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation.

e. DEPRECIATION:

Depreciation is provided to the extent of depreciable amount on written Down Value (WDV) at the rates and method prescribed in the Schedule II of the Companies Act, 2013 and on pro rata basis for the additions / deletions during the year.

f. INVENTORIES:

Inventories are valued at Cost or NRV whichever is lower.

g. REVENUE RECOGNITION:

Revenue is recognized and expenditure is accounted on their accrual.

h. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash flow will not be required to settle the obligation. Contingent Assets are neither recognized nor disclosed in the financial statements.

i. INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than one year are classified as current investments. All other investments are classified as long-term investments.

Current Investments are stated at lower of cost or market rate on individual investment basis. Long Term Investments are considered "at cost", unless there is other than temporary decline in value thereof, in which case, adequate provision is made against such diminution in the value of investments.

j. EMPLOYEE BENEFITS:

(i) Gratuity:

The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.

(ii) Provident Fund:

The provisions of the Employees Provident Fund are not applicable to the company since the numbers of employees employed during the year were less than the minimum prescribed for the benefits.

(iii) Leave Salary:

In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment.

k. TAXATION:

Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.

l. IMPAIRMENT OF ASSETS:

As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:

a. Provision for Impairment Loss, if any, required or

b. The reversal, if any, required of impairment loss recognized in previous periods.

Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

m. BORROWING COST:

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

n. DEFERRED REVENUE EXPENDITURE:

Miscellaneous Expenditure are written off uniformly over a period of 5 years.

o. INCOME TAX:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods.

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

---

Mar 31, 2014

1. OVERVIEW:

MEENAKSHI ENTERPRISES LIMITED ("the Company") incorporated in Chennai is a non-deposit taking Non-Banking Financial Company ('NBFC) as defined under section 45-IA of the Reserve bank of India (RBI) Act, 1934 and is engaged in the business of financing and trading in securities.

a. GENERAL:

The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses. The Company is registered with the RBI as a non-deposit taking NBFC and hence all the prudential norms applicable with respect to an NBFC relating to recognition of income and classification of assets etc. have been followed during the year.

b. USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognized in the period in which the results are known / materialized.

c. ADVANCES:

Advances are classified as standard, sub-standard, doubtful and loss assets as per the Company Policy approved by the Board which is more conservative than the relevant RBI guidelines. Interest on non-performing advances is transferred to an interest suspense account and not recognized in the statement of profit and loss until received. Loan assets recognized on disbursement of loan and in case of new asset financing on the transfer of ownership.

d. FIXED ASSETS:

TANGIBLE FIXED ASSETS:

Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation less accumulated depreciation and impairment, if any.

e. DEPRECIATION:

Depreciation is provided over the estimated useful life of the fixed asset on written Down Value (WDV) at the rates and manner prescribed in Schedule XIV of the Companies Act, 1956 ("the Act") at written down value Method Rates on pro rata basis for the additions during the year. The rates of depreciation for certain key fixed assets used in arriving at the charge for the year are as under:

f. INVESTMENTS:

Investments expected to mature after twelve months are taken as non-current/ long term investment and stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary. Current investments are stated at lower of cost and quoted/ fair value.

g. INVENTORIES:

The securities held for the purpose of trading are valued at cost or market value whichever is lower.

h. REVENUE RECOGNITION:

Interest income is recognized in the statement of profit and loss on an accrual basis. In case of Non-Performing Assets (NPA) interest is recognized upon realization as per the RBI Guidelines. Interest accrued and not realized before the classification of the asset as an NPA is reversed and credited to the interest suspense account.

Interest on consultancy services and contract services is recognized when there is a right to receive the same as per the terms of engagement. Dividend income is recognized when right to receive is established.

i. EMPLOYEE BENEFITS:

a. GRATUITY:

The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.

b. PROVIDENT FUND:

The provisions of the Employees Provident Fund are not applicable to the company since the numbers of employees employed during the year were less than the minimum prescribed for the benefits.

c. LEAVE SALARY:

In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment and at each balance sheet date the leave encashment eligibility is determined and provided for.

j. DEFERRED TAX:

Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.

k. IMPAIRMENT OF ASSETS:

As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:

a. Provision for Impairment Loss, if any, required or

b. The reversal, if any, required of impairment loss recognized in previous periods.

Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

l. BORROWING COST:

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

m. DEFERRED REVENUE EXPENDITURE:

Share Issue Expenses are written off uniformly over a period of 5 years from the year of incurring the expenditure.

n. INCOME TAX:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods.

o. EARNINGS PER SHARE:

The Company reports basic and diluted earnings per equity share in accordance with AS - 20 on earnings per share issued by the ICAI. Basic earnings per equity share have been computed by dividing net profit /loss attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share have been computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti dilutive.

p. PROVSIONING ON RECEIVABLE FROM FINANCING ACTIVITY:

The Company assess all receivables for their recoverability and accordingly recognizes provision for non-performing and doubtful assets as per approved Company Policies and guidelines. The Company ensures provisions made are not lower than as stipulated by RBI guidelines. The Company provides 0.25% on standard assets as stipulated by RBI under the head "Contingent Provision against Standard Assets.

(1) The shares allotted on 14th February, 2014 on preferential basis are subject to lock-in period of 12 months from the date of trading at Madras Stock Exchange i.e, 6th May, 2014. The Company is listed at only Madras Stock Exchange.

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of the liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity of shares held by the shareholders. The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by shareholders at the annual general meeting.

Note:

Loans and advances due by directors or officers of the company or any of them either severally or jointly with others or by firms or private companies respectively in which any director is a partner or a director or member Short term loans and advances are receivables under financing activities and represents principal and accrued interest income outstanding at the close of the year net of amounts written off.

---

Mar 31, 2013

A. GENERAL

The company follows the accrual method of accounting. The financial statement have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses. The company is registered with the RBI as a non-deposit taking NBFC and hence all the prudential norms applicable with respect to an NBFC relating to recognition of income and classification of assets etc. have been followed during the year.

b. USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual amounts and the estimates are recognized in the period in which the results are known/ materialized.

c. FIXED ASSETS:

Depreciation is provided to the extent of depreciate amount on written Down Value (WDV) at the rates and manner prescribed in schedule XIV of the companies Act, 1956 ("the Act") at written down

e. INVESTMENTS:

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary. Current investments are stated at atlower of cost and quoted/ fair value.

e. INVENTORIES:

The operations of the company is such that no inventories are generated.

f. REVENUE RECOGNITION

Revenue is recognized and expenditure is accounted for on their accrual. Dividend income i recognized when right to receive is established.

g. EMPLOYEE BENIFITS:

a. Gratuity:

The liability for the gratuity has not been provided as per the provisions of payment of gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.

b. Provident Fund:

The provisions of the employees provident fund are not applicable to the company since the number of employees employed during the year were less than the minimum prescribed for the benefits.

c. Leave Salary:

In respect of leave salary, the same is accounted as and when the liabilities arises in accordance with the provision of law governing the establishment and at each balance sheet date the leave encashment eligibility is determined and provided for.

h. DEFERRED TAX:

Taxes on income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.

i. IMPAIRMENT OF ASSETS:

As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:

a. Provision for Impairment Loss, if any, required or

b. the reversal, if any, required of impairment loss recognized in previous period.

j. BORROWING COST:

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off the revenue.

A qualifying assets is an assets that necessarily requires a substantial period of time to get ready for its intended use or sale.

k. DEFERRED REVENUE EXPENDITURE:

Share Issue Expenses are written off uniformly over a period of 5 years.

j. INCOME TAX

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more periods.

Note: (1) The shares allotted during the year on preferential basis are subject to lock-in period of 12 months from the date of allotment (31.03.2012) also subjected to approval from the stock exchanges in which the shares are listed.

Note: Loans and advances due by directors of the company or any of them either severally or jointly with others or by firms are private companies respectively in which any director is a partner or a director or member

---

Mar 31, 2012

A. GENERAL

The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses. The Company is registered with the RBI as a non-deposit taking NBFC and hence all the prudential norms applicable with respect to an NBFC relating to recognition of income and classification of assets etc. have been followed during the year.

b. USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognized in the period in which the results are known/materialized.

c. FIXED ASSETS:

Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation.

d. DEPRECIATION:

Depreciation is provided to the extent of depreciable amount on written Down Value (WDV) at the rates and manner prescribed in Schedule XIV of the Companies Act, 1956 ("the Act") at written down value Method Rates on pro rata basis for the additions during the year.

e. INVESTMENTS:

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary. Current investments are stated at at lower of cost and quoted/ fair value.

e. INVENTORIES:

The operations of the company is such that no Inventories are generated.

f. REVENUE RECOGNITION

Revenue is recognized and expenditure is accounted for on their accrual. Dividend income is recognized when right to receive is established.

g. EMPLOYEE BENEFITS:

a. Gratuity:

The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.

b. Provident Fund:

The provisions of the Employees Provident Fund are not applicable to the company since the number of employees employed during the year were less than the minimum prescribed for the benefits.

c. Leave Salary:

In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment and at each balance sheet date the leave encashment eligibility is determined and provided for

h. DEFERRED TAX:

Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.

I. IMPAIRMENT OF ASSETS:

As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:

a. Provision for Impairment Loss, if any, required or

b. The reversal, if any, required of impairment loss recognized in previous periods.

Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

j. BORROWING COST:

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

k. DEFERRED REVENUE EXPENDITURE: Share Issue Expenses are written off uniformly over a period of 5 years.

I. INCOME TAX:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods.

---

Mar 31, 2011

1. Accounting Convention:

The company follows the accrual method of accounting- The financial statements have been prepared in accordance with the historical cost convention and in accordance with Generally Accepted Accounting Principles in India, applicable Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956. All amounts in the financial statement are presented in Rupees except as otherwise stated.

2. Going Concern and liquidity:

The financial statements of the company have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of the liabilities in the normal course of business for the foreseeable future. The company has accumulated loss to the extent of Rs. 56.21 lakhs as at 31-3-2011 (Previous year: 56.00 Lakhs) which was financed through die shareholders funds & unsecured loan from shareholders and directors, as a result the company's net worth continues to be negative. The management is confident of successfully completing initiatives and commence profitable operations in the nearest foreseeable future.

3. a) Income Recognition: i) Finance charges in respect of Hire Purchase transactions are recognized on the basis of Even Spread Method. Even though no Income has been received during this year and the operations have resulted in substantial loss to the company, the accounts have been prepared on a going concern basis as the directors are confident that some alternative stream of revenue would be found and there would be recovery in due course of time from the Non Performing Assets of the Company.

ii) Dividend income is accounted on receipt basis.

b) All Investments and fixed assets are reflected at cost.

c) Stock of Share is valued at cost or market value whichever is lower.

d) Depreciation is provided on W.D.V. method is respect of owned as well as Leased Assets at the rates given in Schedule XTV of the Companies Act, 1956. Depreciation on assets added/disposed of during the year is being provided on pro-rata basis with reference to the month of addition/ disposal.