Accounting Policies of Regal Entertainment & Consultants Ltd. Company

Mar 31, 2025

2 Significant Accounting Policies

A summary of the significant accounting policies applied in the preparation of the financial
statements is as given below. These accounting policies have been applied consistently to
all the periods presented in the financial statements.

A Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase price, directly
attributable cost of bringing the asset to its working condition for the intended use and
initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts
and rebates are deducted in arriving at the purchase price.
Subsequent expenditure relating to property, plant and equipment is capitalized only when
it is probable that future economic benefit associated with these will flow with the
Company and the cost of the item can be measured reliably.

Borrowing costs to the extent related/attributable to the acquisition/construction of
property , plant and equipment that takes substantial period of time to get ready for their
intended use are capitalized up to the date such asset is ready for use.

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is
included in the statement of profit and loss when the asset is derecognised.
The Company identifies and determines cost of each component/ part of the asset
separately, if the component/ part has a cost which is significant to the total cost of the
asset and has useful life that is materially different from that of the remaining asset.
Transition date:

The Company has elected to continue with the carrying value of all of its property, plant
and equipment recognised as of April 1, 2018 (the transition date) measured as per the
previous GAAP and use such carrying value as its deemed cost as of the transition date.

Depreciation on plant, property and equipment

Depreciation on property, plant and equipment is provided on straightline method at
estimated useful life, which is in line with the estimated useful life as specified in Schedule
II of the Companies Act, 2013.

B Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured and there exists reasonable
certainty of its recovery. Revenue is measured at the fair value of the consideration
received or receivable as reduced for estimated customer credits and other similar
allowances.

i Interest income for all financial instruments except for those measured or designated
as at FVTPL are recognised in the profit or loss account using the effective interest
method (EIR). Interest on financial instruments measured as at FVTPL is included within
the fair value movement during the period.

ii. Dividend income is recognised when the Company’s right to receive dividend is
established by the reporting date and no significant uncertainty as to collectability exists.

iii. Fee and commission income and expense include fees other than those that are
an integral part of EIR. The fees included in the Company statement of profit and loss
include among other things fees charged for servicing a loan, non-utilisation fees relating
to loan commitments when it is unlikely that these will result in a specific lending
arrangement and loan advisory fees.

iv. Profit / loss on sale of securities are determined based on the FIFO cost of the
securities sold.

v. Profit / loss on FNO Segment and Commodity transactions is accounted for as
explained below:

vi. Other operational revenue represents income earned from the activities
incidental to the business and is recognised when the right to receive the income is
established as per the terms of the contract.

C Earnings Per Share-

Basic earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders (after deducting attributable taxes) by the weighted
average number of equity shares outstanding during the period.
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 are adjusted for the effects of all dilutive potential equity
shares.

D Provisions

A provision is recognized when the Company has a present obligation as a result of past
event; 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 of the amount of obligation. Provisions
are not discounted to its present value and are determined based on best estimate required
to settle the obligation at the reporting date. These are reviewed at each reporting date and
adjusted to reflect the current best estimates.

E Contingent liabilities and Assets

A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events beyond the control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability
that cannot be recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the financial statements.
Where there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements if the inflow of the
economic benefit is probable than it is disclosed in the financial statements.

F Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank
and in hand and short-term investments with an original maturity of three months or less.

G Income taxes

Tax expense comprises current and deferred tax. Current income-tax is measured at the
amount expected to be paid to the tax authorities in accordance with the Income-tax Act,
1961. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of temporary timing differences between taxable
income and accounting income originating during the current year and reversal of timing
differences for the earlier years. Deferred tax is measured using the tax rates and the tax
laws enacted or substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary timing differences.
Deferred tax assets are recognized for deductible temporary timing differences 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 realized.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It

recognizes unrecognized deferred tax asset 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 realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The
Company writesdown the carrying amount of deferred tax asset to the extent that it is no
longer reasonably certain or virtually certain, as the case may be, that sufficient future
taxable income will be available against which deferred tax asset can be realized. Any such
write-down is reversed to the extent that it becomes reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be available.

Minimum Alternate Tax

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the
extent there is convincing evidence that the Company will pay normal income tax during
the specified period. Such asset is reviewed at each balance sheet date and the carrying
amount of the MAT credit asset is written down to the extent there is no longer a
convincing evidence to the effect that the Company will pay normal income tax during
the specified period.

1.1 Impairment of tangible and intangible assets other than goodwill

As at the end of each accounting year, the Company reviews the carrying amounts of its
PPE and intangible assets to determine whether there is any indication that those assets
have suffered an impairment loss. If such indication exists, the PPE, investment property
and intangible assets are tested for impairment so as to determine the impairment loss, if
any. Goodwill and the intangible assets with indefinite life are tested for impairment each
year.

Impairment loss is recognised when the carrying amount of an asset exceeds its
recoverable amount. Recoverable amount is determined in the case of an individual asset,
at the higher of the net selling price and the value in use.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a pretax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset for which the estimates of future cash flows have
not been adjusted.

If recoverable amount of an asset (or cash generating unit) is estimated to be less than its
carrying amount, such deficit is recognised immediately in the Statement of Profit and
Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is
reduced to its recoverable amount. For this purpose, the impairment loss recognised in
respect of a cash generating unit is allocated first to reduce the carrying amount of any
goodwill allocated to such cash generating unit and then to reduce the carrying amount of
the other assets of the cash generating unit on a pro-rata basis.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash
generating unit), except for allocated goodwill, is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss is recognised
for the asset (or cash generating unit) in prior years. A reversal of an impairment loss
(other than impairment loss allocated to goodwill) is recognised immediately in the
Statement of Profit and Loss.

1.2 Employee benefits:

i. Short term employee benefits:

Employee benefits falling due wholly within twelve months of rendering the service are
classified as short term employee benefits and are expensed in the period in which the
employee renders the related service. Liabilities recognised in respect of short-term
employee benefits are measured at the undiscounted amount of the benefits expected to
be paid in exchange for the related service.

ii. Post-employment benefits:

a) Defined contribution plans: The Company’s superannuation scheme, state
governed provident fund scheme, employee state insurance scheme and employee pension
scheme are defined contribution plans. The contribution paid/ payable under the schemes
is recognised during the period in which the employee renders the related service.

b) Defined benefit plans: The employees’ gratuity fund schemes and employee
provident fund schemes managed by board of trustees established by the Company, the
post-retirement medical care plan and the Parent Company pension plan represent defined
benefit plans. The present value of the obligation under defined benefit plans is
determined based on actuarial valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows using a
discount rate based on the market yield on government securities of a maturity period
equivalent to the weighted average maturity profile of the defined benefit obligations at
the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability or asset)
and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to
be reclassified to profit or loss.

Defined benefit costs comprising current service cost, past service cost and gains or losses
on settlements are recognised in the Statement of Profit and Loss as employee benefit
expenses. Interest cost implicit in defined benefit employee cost is recognised in the
Statement of Profit and Loss under finance cost. Gains or losses on settlement of any
defined benefit plan are recognised when the settlement occurs. Past service cost is
recognised as expense at the earlier of the plan amendment or curtailment and when the
Company recognizes related restructuring costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross
obligation under the defined benefit plans to recognise the obligation on a net basis.

iii. Long term employee benefits:

The obligation recognised in respect of long term benefits such as long term compensated
absences is measured at present value of estimated future cash flows expected to be made
by the Company and is recognised in a similar manner as in the case of defined benefit
plans vide (ii) (b) above.

iv. Termination benefits:

Termination benefits such as compensation under employee separation schemes are
recognised as expense when the Company’s offer of the termination benefit is accepted
or when the Company recognises the related restructuring costs whichever is earlier.

1.3 Financial instruments:

Financial assets and financial liabilities are recognised in the Company’s balance sheet
when the Company becomes a party to the contractual provisions of the instrument.

Recognised financial assets and financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and financial liabilities at FVTPL) are
added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at FVTPL are recognised immediately in profit or
loss.

A financial asset and a financial liability is offset and presented on net basis in the balance
sheet when there is a current legally enforceable right to set-off the recognised amounts
and it is intended to either settle on net basis or to realise the asset and settle the liability
simultaneously.

1.4 Write off:

Loans and debt securities are written off when the Company has no reasonable
expectations of recovering the financial asset (either in its entirety or a portion of it). This
is the case when the Company determines that the borrower does not have assets or
sources of income that could generate sufficient cash flows to repay the amounts subject
to the write-off. A write-off constitutes a de-recognition event. The Company may apply
enforcement activities to financial assets written off. Recoveries resulting from the
Company’s enforcement activities will result in impairment gains.

1.5 Impairment:

The Company recognises loss allowances for ECLs on the following financial instruments
that are not measured at FVTPL:

o Loans and advances to customers;
o Debt investment securities;
o Trade and other receivable;
o Lease receivables;

o Irrevocable loan commitments issued; and
o Financial guarantee contracts issued.

Credit-impaired financial assets

A financial asset is ‘credit-impaired’ when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have occurred. Credit-
impaired financial assets are referred to as Stage 3 assets. Evidence of credit impairment
includes observable data about the following events:
o significant financial difficulty of the borrower or issuer;
o a breach of contract such as a default or past due event;

o the lender of the borrower, for economic or contractual reasons relating to the
borrower’s financial difficulty, having granted to the borrower a concession that the lender
would not otherwise consider;

o the disappearance of an active market for a security because of financial difficulties; or
o the purchase of a financial asset at a deep discount that reflects the incurred credit
losses.

It may not be possible to identify a single discrete event instead; the combined effect of
several events may have caused financial assets to become credit-impaired. The Company
assesses whether debt instruments that are financial assets measured at amortised cost or
FVTOCI are credit-impaired at each reporting date. To assess if corporate debt
instruments are credit impaired, the Company considers factors such as bond yields, credit
ratings and the ability of the borrower to raise funding.

A loan is considered credit-impaired when a concession is granted to the borrower due to
a deterioration in the borrower’s financial condition, unless there is evidence that as a
result of granting the concession the risk of not receiving the contractual cash flows has
reduced significantly and there are no other indicators of impairment. For financial assets
where concessions are contemplated but not granted the asset is deemed credit impaired
when there is observable evidence of credit-impairment including meeting the definition
of default. The definition of default (see below) includes unlikeliness to pay indicators and
a back-stop if amounts are overdue for 90 days or more.

1.6 Cash and bank balances:

Cash and bank balances also include fixed deposits, margin money deposits, earmarked
balances with banks and other bank balances which have restrictions on repatriation. Short
term and liquid investments being subject to more than insignificant risk of change in
value, are not included as part of cash and cash equivalents.

1.7 Securities premium account:

i. Securities premium includes:

• The difference between the face value of the equity shares and the consideration
received in respect of shares issued pursuant to Stock Option Scheme.

• The fair value of the stock options which are treated as expense, if any, in respect
of shares allotted pursuant to Stock Options Scheme.

ii. The issue expenses of securities which qualify as equity instruments are written off
against securities premium account.

1.8 Borrowing costs:

Borrowing costs include interest expense calculated using the effective interest method,
finance charges in respect of assets acquired on finance lease and exchange differences
arising from foreign currency borrowings, to the extent they are regarded as an adjustment
to interest costs.

Borrowing costs net of any investment income from the temporary investment of related
borrowings, that are attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of cost of such asset till such time the asset is ready
for its intended use or sale. A qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended use or sale. All other borrowing
costs are recognised in profit or loss in the period in which they are incurred.

1.9 Accounting and reporting of information for Operating Segments:
Operating segments are those components of the business whose operating results are
regularly reviewed by the chief operating decision making body in the Company to make
decisions for performance assessment and resource allocation. The reporting of segment
information is the same as provided to the management for the purpose of the
performance assessment and resource allocation to the segments. Segment accounting
policies are in line with the accounting policies of the Company.

1.10 Foreign currencies:

i. The functional currency and presentation currency of the Company is Indian Rupee.
Functional currency of the Company and foreign operations has been determined based
on the primary economic environment in which the Company and its foreign operations
operate considering the currency in which funds are generated, spent and retained.

ii. In currencies other than the Company’s functional currency are recorded on initial
recognition using the exchange rate at the transaction date. At each Balance Sheet date,
foreign currency monetary items are reported at the prevailing closing spot rate. Non¬
monetary items that are measured in terms of historical cost in foreign currency are not
retranslated.

Exchange differences that arise on settlement of monetary items or on reporting of
monetary items at each Balance Sheet date at the closing spot rate are recognised in the
Statement of Profit and Loss in the period in which they arise.

iii. Financial statements of foreign operations whose functional currency is different than
Indian Rupees are translated into Indian Rupees as follows —

A. assets and liabilities for each Balance Sheet presented are translated at the closing
rate at the date of that Balance Sheet;

B. income and expenses for each income statement are translated at average
exchange rates; and

C. all resulting exchange differences are recognised in other comprehensive income
and accumulated in equity as foreign currency translation reserve for subsequent
reclassification to profit or loss on disposal of such foreign operations.

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Mar 31, 2024

2 Significant Accounting Policies

A summary of the significant accounting policies applied in the preparation of the financial statements is as given below. These
accounting policies have been applied consistently to all the periods presented in the financial statements.

A Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price, directly attributable cost of bringing the asset to its working condition for the intended use and initial
estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase
price.

Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefit
associated with these will flow with the Company and the cost of the item can be measured reliably.

Borrowing costs to the extent related/attributable to the acquisition/construction of property , plant and equipment that takes
substantial period of time to get ready for their intended use are capitalized up to the date such asset is ready for use.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss
when the asset is derecognised.

The Company identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which
is significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset.

Transition date:

The Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as of April 1, 2018
(the transition date) measured as per the previous GAAP and use such carrying value as its deemed cost as of the transition date.

Depreciation on plant, property and equipment

Depreciation on property, plant and equipment is provided on straightline method at estimated useful life, which is in line with the
estimated useful life as specified in Schedule II of the Companies Act, 2013.

B Revenue recognition

Interest income for all financial instruments except for those measured or designated as at FVTPL are recognised in the profit or loss
account using the effective interest method (EIR). Interest on financial instruments measured as at FVTPL is included within the fair
value movement during the period.

C Earnings Per Share

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

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 are adjusted for the effects of all dilutive potential equity
shares.

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Mar 31, 2014

1. Basis for Accounting:

Accounts are prepared under the historical cost convention. The Company has materially complied with accounting standards as recommended by the Institute of Chartered Accountants Of India

2. Depreciation:

Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner prescribed in schedule XIV of the Companies Act, 1956 as amended upto date.

3. Inventories:

Inventories of shares and securities are carried at cost.

4. Revenue Recognition as per AS 9:

(a) Revenue from Sale is recognized at the time when transaction is entered into.

(b) Revenue from Interest is recognized on time proportion basis except interest on certain loans amounting to Rs.3123814/- on which the Company charges no Interest.

(c) Revenue from Dividend is recognized when right to receive the same is established.

(d) Revenue from Capital Market Transactions is recorded at the point of squaring up of transactions.

5. Accounting for Fixed Assets as per AS 10:

Fixed Assets are stated at cost less depreciation. Costs comprised of cost of acquisition and all attributable costs of bringing the assets to condition for their intended use.

6. Accounting for Retirement Benefits Of Employees as per AS 15:

Not applicable to the company since there are No Employees eligible for Retirement Benefits

7. Segment Reporting under Accounting Standard (AS) 17:

Not applicable to the Company as Company operates only one segment of Business i.e. Finance

8. Related party disclosure as per Accounting Standard (AS) 18:

The list of related parties as identified by the management are as under

The Company has identified all related parties. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties.

9. Lease Accounting as per Accounting Standard 19:

Not applicable to the Company since no lease transaction took place during the year

10. Consolidated Financial Statement as per Accounting Standard (AS) 21:

Not applicable as the Company does not have any subsidiary.

11. Accounting for Taxes on Income as per Accounting Standard (AS) 22:

Income tax expenses is accrued in accordance with AS-22" Accounting for taxes on Income" which includes Deferred Taxes. Deferred Income taxes reflects the impact of current year timing differences & timing difference of earlier years.Deferred tax assets are recognized only to the extent that there is reasonable virtual certainity that sufficient future taxable income will be available.

12. Accounting Of Intangible Assets as per Accounting Standard (AS) 26:

Not applicable as the Company does not have intangible Assets.

13. Deferred Revenue Expenditure:

Expenses for increase in Authorised Share Capital have been written off 1/10 of the aggreagate during the year.

14. Financial Reporting of Interest in Joint Venture as per Accounting Standard (AS –27)

Not applicable as the Company does not have any Joint Venture

15. Impairment of Assets as per Accounting Standard (AS- 28):

Since carrying amount of assets does not exceeds recoverable amount, there is no need for provision of impairment of the assets as per Accounting Standard 28.

16. Provisions, Contingent Liabilities and Contingent Assets (AS- 29):

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities, if material, are disclosed by way of notes.

17. There are no S.S.I. creditors above 30 days exceeding Rs. 1,00,000 /-.

18. Expenditure on employee getting remuneration not less than Rs. 60,00,000 / - p.a. or Rs. 5,00,000 / - p.m. is Nil

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Mar 31, 2013

1. Basis for Accounting:

Accounts are prepared under the historical cost convention. The Company has materially complied with accounting standards as recommended by the Institute of Chartered Accountants Of India

2. Depreciation:

Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner prescribed in schedule XIV of the Companies Act, 1956 as amended upto date.

3. Inventories:

Inventories of shares and securities are carried at cost.

4. Revenue Recognition as per AS 9:

(a) Revenue from Sale is recognized at the time when transaction is entered into.

(b) Revenue from Interest is recognized on time proportion basis except interest on certain loans amounting to Rs.35,89,866/- on which the Company charges no Interest.

(c) Revenue from Dividend is recognized when right to receive the same is established.

(d) Revenue from Capital Market Transactions is recorded at the point of squaring up of transactions.

5. Accounting for Fixed Assets as per AS 10:

Fixed Assets are stated at cost less depreciation. Costs comprised of cost of acquisition and all attributable costs of bringing the assets to condition for their intended use.

6. Accounting for Retirement Benefits Of Employers as per AS 15:

Not applicable to the company since there are No Employees eligible for Retirement Benefits

7. Segment Reporting under Accounting Standard (AS) 17:

Not applicable to the Company as Company operates only one segment of Business i.e. Finance

8. Related party disclosure as per Accounting Standard (AS) 18:

The list of related parties as identified by the management are as under

The Company has identified all related parties. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties.

9. Lease Accounting as per Accounting Standard 19:

Not applicable to the Company since no lease transaction took place during the year

10. Consolidated Financial Statement as per Accounting Standard (AS) 21:

Not applicable as the Company does not have any subsidiary.

11. Accounting for Taxes on Income as per Accounting Standard (AS) 22:

Income tax expenses is accrued in accordance with AS-22" Accounting for taxes on Income" which includes Deferred Taxes. Deferred Income taxes reflects the impact of current year timing differences & timing difference of earlier years.Deferred tax assets are recognized only to the extent that there is reasonable virtual certainity that sufficient future taxable income will be available.

12. Accounting Of Intangible Assets as per Accounting Standard (AS) 26:

The Company has amortized Goodwill of Rs. 20,000/- as per Accounting Standard 26

13. Deferred Revenue Expenditure:

Expenses for increase in Authorised Share Capital have been written off 1/10 of the aggreagate during the year.

14. Financial Reporting of Interest in Joint Venture as per Accounting Standard (AS –27)

Not applicable as the Company does not have any Joint Venture

15. Impairment of Assets as per Accounting Standard (AS- 28):

Since carrying amount of assets does not exceeds recoverable amount, there is no need for provision of impairment of the assets as per Accounting Standard 28.

16. Provisions, Contingent Liabilities and Contingent Assets (AS- 29):

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities, if material, are disclosed by way of notes.

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Mar 31, 2012

1. Basis for Accounting:

Accounts are prepared under the historical cost convention. The Company has materially complied with account standards as recommended by the Institute of Chartered Accountants Of India

2. Depreciation:

Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner rescribed in schedule XIV of the Companies Act, 1956 as amended upto date.

3. Inventories:

Inventories of shares and securities are carried at cost.

4. Revenue Recognition as per AS 9:

(a) Revenue from Sale is recognized at the time when transaction is entered into.

(b) Revenue from Interest is recognized on time proportion basis except interest on certain loans amounting to Rs.41,19,997 on which the Company charges no Interest.

(c) Revenue from Dividend is recognized when right to receive the same is established.

(d) Revenue from Capital Market Transactions is recorded at the point of squaring up of transactions.

5. Accounting for Fixed Assets as per AS 10:

Fixed Assets are stated at cost less depreciation. Costs comprised of cost of acquisition and all attributable costs of bringing the assets to condition for their intended use.

6. Accounting for Retirement Benefits Of Employers as per AS 15:

Not applicable to the company since there are No Employees eligible for Retirement Benefits

7. Segment Reporting under Accounting Standard (AS) 17:

Not applicable to the Company as Company operates only one segment of Business i.e. Finance

8. Related party disclosure as per Accounting Standard (AS) 18:

The list of related parties as identified by the management are as under

The Company has identified all related parties. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties.

9. Lease Accounting as per Accounting Standard 19:

Not applicable to the Company since no lease transaction took place during the year

10. Consolidated Financial Statement as per Accounting Standard (AS) 21 Not applicable as the Company does not have any subsidiary.

11. Accounting for Taxes on Income as per Accounting Standard (AS) 22:

Income tax expenses is accrued in accordance with AS-22" Accounting for taxes on Income" which includes Deferred Taxes. Deferred Income taxes reflects the impact of current year timing differences & timing difference of earlier years.Deferred tax assets are recognized only to the extent that there is reasonable virtual certainity that sufficient future taxable income will be available.

12. Accounting Of Intangible Assets as per Accounting Standard (AS) 26:

The Company has amortized Goodwill of Rs. 20,000/- as per Accounting Standard 26

13. Deferred Revenue Expenditure:

Expenses for increase in Authorised Share Capital have been written off 1/10 of the aggreagate during the year

14. Financial Reporting of Interest in Joint Venture as per Accounting Standard (AS -27)

Not applicable as the Company does not have any Joint Venture

15. Impairment of Assets as per Accounting Standard (AS- 28):

Since carrying amount of assets does not exceeds recoverable amount, there is no need for provision of impairment of the assets as per Accounting Standard 28.

16. Provisions, Contingent Liabilities and Contingent Assets (AS- 29):

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.Contingent Liabilities, if material, are disclosed by way of notes.

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Mar 31, 2010

1. Basis for Accounting:

Accounts are prepared under the historical cost convention. The Company has materially comply with accounting standards as recommended by the Institute of Chartered Accountants Of India.

2. Depreciation :

Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner prescribed in schedule XIV of the Companies Act, 1956 as amended upto date.

3. Investment :

There has been no Investment made during the Financial Year.

4. Inventories :

Inventories of shares and securities are carried at cost.

5. Revenue Recognition as per AS 9 :

(a) Revenue from Sale is recognized at the time when transaction is entered into.

(b) Revenue from Interest is recognized on time proportion basis except interest on certain loans amounting to Rs.33, 82,334/- on which the Company charges no Interest.

(c) Revenue from Dividend is recognized when declaring Company declares dividend.

(d) Revenue from Capital Market Transactions is recorded at the point of squaring up of transactions takes place.

6. Accounting for Fixed Assets as per AS 10 :

Fixed Assets are stated at cost less depreciation. Costs comprised of cost of acquisition and all attributable costs of bringing the assets to condition for their intended use. In case of Self-constructed Fixed Assets cost includes all costs, which are directly related to specific asset and all costs that are attributable to construction activity are allocated to specific assets.

7. Accounting for Retirement Benefits in Financial Statement Of Employers as per AS 15 :

Not applicable to the company since there are No Employees eligible for Retirement Benefits

8. Segment Reporting under Accounting Standard (AS) 17 :

Not applicable as the Company has one segment of business that i.e. Financial.

10. Lease Accounting as per Accounting Standard 19:

Not applicable to the Company since no lease transaction took place during the year.

12. Consolidated Financial Statement as per Accounting Standard (AS) 21:

Not applicable as the Company does not have any subsidiary.

13. Accounting for Taxes on Income as per Accounting Standard (AS) 22 :

Income Tax expenses is accrued in accordance with AS – 22 “ Accounting for taxes on Income” Which includes Deferred Taxes. Deferred Income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and timing differences of earlier years. Deferred tax assets are recognized only to the extent that there is reasonable virtual certainty that sufficient future taxable income will be available.

14. Accounting Of Intangible Assets as per Accounting Standard (AS) 26 :

The Company has amortized Goodwill of Rs.20,000/- as per Accounting Standard (AS) 26.

15. Deferred Revenue Expenditure :

Expenses for increase in Authorised Share Capital have been written off 1/10 of the aggregate during the year

16. Financial Reporting of Interest in Joint Venture as per Accounting Standard (AS –27)

Not applicable as the Company does not have any Joint Venture

17. Impairment of Assets as per Accounting Standard (AS- 28):

Since carrying amount of assets does not exceeds recoverable amount, there is no need for provision of impairment of loss of the assets as per Accounting Standard 28.

18. Provisions, Contingent Liabilities and Contingent Assets (AS- 29):

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities, if material, are disclosed by way of notes.