Accounting Policies of Sera Investments & Finance India Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are re-valued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act.1956.

2. Recognition of Income & Expenditure

(a) Revenue / Income and Cost / Expenditure are generally accounted on accrual as they are earned or incurred.

3. Use of Estimates

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

4. Taxation

Provision for taxation has been made after considering disallowable, exemptions and deductions as per the law as laid down and interpreted by various authorities.

5. Provisions Contingent Liabilities and Contingent Assets

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 outflow resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed.

6. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. 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 is reversed if there has been a change in the estimate of recoverable amount.

---

Mar 31, 2012

1. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are re-valued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act.1956.

2. Recognition of Income & Expenditure

(a) Revenue / Income and Cost / Expenditure are generally accounted on accrual as they are earned or incurred.

(b) Sale of goods is recognized on transfer of significant risk and rewards of ownership which is generally on the despatch of goods.

3. Use of Estimates

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

4. Fixed Assets

All the fixed assets have been stated at historical cost less accumulated depreciation.

5. Depreciation

The Company provided Depreciation on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

6. Inventories

Inventories are valued at lower of cost or net realizable value.

7. Investments

Investments have been stated at cost and provision is made to recognize any diminutions in value, other than that of temporary nature.

8. Taxation

Provision for taxation has been made after considering disallowable, exemptions and deductions as per the law as laid down and interpreted by various authorities.

Deferred Tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

9. Employee Benefit

a] There is no defined contribution plan.

b] Defined Benefits — The Company's liability towards gratuity and leave encashment are determined on basis of actuarial valuation.

10. Provisions Contingent Liabilities and Contingent Assets

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 outflow resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. 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 is reversed if there has been a change in the estimate of recoverable amount.

---

Mar 31, 2011

1. Basis of Accounting.

The accounts have been prepared on historical cost basis of accounting. The Company adopts accrual system of accounting unless stated otherwise.

2. Expenses.

It is the Company's Policy to provide for all expenses on accrual basis.

3. Fixed Assets.

All the fixed assets have been valued at historical cost less accumulated depreciation.

4. Depreciation.

The Company provided Depreciation on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

5. Inventories

Inventories are valued at lower of cost or net realizable value.

6. Investments.

Investments have been stated at cost and provision is made to recognize any dimunision in value, other than that of temporary nature.

7. Taxation.

Provision for taxation has been made after considering disallowables, exemptions and deductions as per the law as laid down and interpreted by various authorities.

Deferred Tax is recognised subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Employee Benefit.

a] There is no defined contribution plan.

b] Defined Benefits - The company's liability towards gratuity and leave encashment are determined on basis of acturial valuation.

9. Provisions Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed.

---

Mar 31, 2010

1. Basis of Accounting.

The accounts have been prepared on historical cost basis of accounting. The Company adopts accrual system of accounting unless stated otherwise.

2. Expenses.

It is the Companys Policy to provide for all expenses on accrual basis.

3. Fixed Assets.

All the fixed assets have been valued at historical cost less accumulated depreciation.

4. Depreciation.

The Company provided Depreciation on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

5. Inventories

Inventories are valued at lower of cost or net realizable value.

6. Investments.

Investments have been stated at cost and provision is made to recognize any dimunision in value, other than that of temporary nature.

7. Taxation.

Provision for taxation has been made after considering disallowables, exemptions and deductions as per the law as laid down and interpreted by various authorities.

Deferred Tax is recognised subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Employee Benefit.

a] There is no defined contribution plan.

b] Defined Benefits - The companys liability towards gratuity and leave encashment are determined on basis of acturial valuation.

9. Provisions Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed.