Accounting Policies of Madhur Capital & Finance Ltd. Company

Mar 31, 2012

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention and to comply in all material respect with the notified accounting standards by the Companies Accounting standard Rules - 2006 and the relevant provision of Companies Act, 1956.

(b) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use.

(c) Depreciation:

Depreciation has been provided at the rates and in the manner prescribed in Schedule XIV of the Companies act, 1956 on SLM Method. Depreciation on addition or on sale/ disposal of assets is calculated pro- rata from the date of such addition or sale/ disposal as the case may be.

(d) Valuation of Inventories:

Inventories of Securities which are intend to trade, are valued at lower of cost and net realizable value.

(e) Investment:

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(f) Revenue Recognition:

All the items of Income and expenses are recognized on accrual basis, except dividend and interest on overdue installments/defaults and Municipal Tax is accounted on cash basis.

The company has followed prudential norms for income recognition for provisioning of non - performing assets as prescribed by RBI for Non- Banking Financial Companies to the extent applicable to it.

(g) Retirement/ Post retirement Benefits:

No Provision for has been made for liabilities for retirement benefits including gratuity and leave encashment in respect of employees as required by the Accounting Standards -15 on Retirement Benefits.

(h)Taxation:

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 consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(i) Provisions, Contingent Assets and Contingent Liabilities:

A provision involving substantial degree of estimation are recognized when there is a present obligation as a result of recognized when there is a present obligation as a result of past event and it is probable that there will be on outflow or resources.

---

Mar 31, 2011

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention In! to comply in all material respect with the notified accounting standards by the Companies Accounting standard Rules - 2006 and relevant provision of Companies Act, 1956.

(b) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The; Cost _of fixed asset comprise of its purchase price and any directly attributable 1st of bringing the assets in an operational condition for its intended use.

(c) Depreciation:

Depreciation has been provided a. the rates and in the in Schedule XIV of the Companies act, 1956 on SLM Method. Depreciation on addition or on saw disposal of assets is calculated pro- rata from the date of such addition or sale/ disposal as the case may be.

(d) Valuation of Inventories:

Inventories of Securities which are intend to trade, are valued at lower of cost and net realizable value.

(e) Investment:

Lone term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline ,s other than temporary in nature in the opinion of the Management.

(f) Revenue Recognition:

All the items of Income and expenses are recognized on accrual basis except dividend and interest on overdue installments/defaults and Municipal Tax are accounted on cash basis.

The company has followed prudential norms for income recognition for provisioning of non - performing assets as prescribed by RBI for Non- Banking Financial Companies to the extent applicable to it.

(g)Retirement/ Post retirement Benefits:

No Provision for has been made for liabilities for retirement benefits including gratuity and leave encashment in respect of employees as required by the Accounting Standards -15 on Retirement Benefits.

(h)Taxation:

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 consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(i) Provisions, Contingent Assets and Contingent Liabilities:

A provision involving substantial degree of estimation are recognized when there is a present obligation as a result of recognized when there 1S a present obligation as a result of past event and it is probable that there will be on outflow or resources.

---

Mar 31, 2010

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention and to comply in all material respect with the notified accounting standards by the Companies Accounting standard Rules - 2006 and the relevant provision of Companies Act, 1956.

(b)Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use.

(c) Depreciation:

Depreciation has been provided at the rates and in the manner prescribed in Schedule XIV of the Companies act, 1956 on SLM Method. Depreciation on addition or on sale/ disposal of assets is calculated pro-rata from the date of such addition or sale/ disposal as the case may be.

(d) Valuation of Inventories:

Inventories of Securities which are intend to trade, are valued at lower of cost and net realizable value.

(e) Investment:

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(f) Revenue Recognition:

All the items of Income and expenses are recognized on accrual basis, except dividend and interest on overdue installments/defaults and Municipal Tax are accounted on cash basis.

The company has followed prudential norms for income recognition for provisioning of non - performing assets as prescribed by RBI for Non-Banking Financial Companies to the extent applicable to it.

(g) Retirement/ Post retirement Benefits:

No Provision for has been made for liabilities for retirement benefits including gratuity and leave encashment in respect of employees as required by the Accounting Standards -15 on Retirement Benefits.

(h)Taxation:

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 consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(i) Provisions, Contingent Assets and Contingent Liabilities:

A provision involving substantial degree of estimation are recognized when there is a present obligation as a result of recognized when there is a present obligation as a result of past event and it is probable that there will be on outflow or resources.