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Accounting Policies of Tourism Finance Corporation of India Ltd. Company

Mar 31, 2018

1. Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 2013 and in compliance with the applicable accounting standards referred to in section 133 of the said Act. The accounting policies, except stated otherwise, have been consistently applied by the Company. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

2. Revenue Recognition:

For recognition of revenue, the Company adopts the accrual basis except where there is uncertainty as to collection. Income on âNon-Performing Assetsâ is accounted on realisation. Dividend Income is recognized on right to receipt basis. Consultancy Income is recognized on actual receipt basis.

Revenue from lease rentals are recognised on a time proportion basis from the commencement date, as prescribed in the lease agreement entered with the lessees.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulated depreciation.

b) Depreciation on Assets is provided as per Method and rates prescribed under Schedule II of the Companies Act, 2013 and amortised over the useful life of the Asset. However in case of Household Furnishing provided to officers as per the extant policy, the cost of the same has been amortised over a period of 5 years or residual service of the officer whichever is less.

c) Intangible assets are amortised over the expected duration of benefit or 10 years, whichever is lower.

4. Investments:

a) The Company acquires shares and securities in the normal course of its business and accordingly purchases and sales made during the year are not required to be disclosed under Schedule III part I of the Companies Act 2013. Transaction details of Investments in units, that are not investment in body corporate, are also not shown separately.

b) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/devolvement.

c) The investments are categorized into âLong Term Investmentsâ and âCurrent Investmentsâ as per Accounting Standard-13 on âAccounting for investmentsâ referred to in Section 133 of the companies Act, 2013 for Investments.

d) The investment under âCurrent Investmentsâ are valued on the basis of market value/break up value or cost whichever is lower.

e) The investment under âLong Term Investmentsâ are valued at cost less permanent diminution in value, wherever applicable, for each individual Investment.

5. Loans to Companies :

a) All credit exposure are classified into performing and non-performing assets as per RBI guidelines applicable to Non-Banking Financial Companies (NBFCs).

b) General provision for standard assets and specific provision for sub-standard, doubtful and loss assets is being made in accordance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum up to 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36(1)(viii) of the Income-tax Act, 1961, is also available to cover any loss on loans given.

6. Retirement Benefits :

a) Gratuity:

The company has a defined employee benefit scheme in the form of gratuity. Accordingly the Company has taken a Group Gratuity scheme with the Life Insurance Corporation of India (LIC) where contribution is deposited based on intimation received from LIC. Expense for the year is determined on the basis of actuarial valuation of the companyâs year end obligation in this regard and the value of year end assets of the scheme.

b) Provident Fund:

Contribution to the Provident Fund as per provisions of Employees Provident Fund Act, 1952 is remitted to the P.F. Commissioner and is charged to the Statement of Profit & Loss.

c) Leave Encashment:

The Provision for leave encashment is being made on actuarial valuation basis.

7. Taxation & Deferred Taxation:

The provision for taxation & deferred taxation is made as per the Income Tax Act, 1961 and Accounting Standard 22, as issued by ICAI, respectively.

8. Lease:

Leases where the Lessor effectively retains substantially all risks and benefits of ownership are classified as operating leases. Operating Lease payments are charged to the statement of Profit & Loss.

9. Earning 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.

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

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/practices and it is probable that there will be an outflow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

11. Provision for Dividend:

As per Companies (Accounting Standard) Amendment Rules 2016, provision for dividend has not been made in books as the dividend is required to be recorded after approval by the shareholders in ensuing Annual General Meeting.

12. Cash Flow:

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

13. The ALM Statement has been prepared as per RBI Guidelines

Mar 31, 2017

SIGNIFICANT ACCOUNTING POLICIES AS ON 31 March 2015

1 Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 203 and in compliance with the applicable accounting standards referred to in section 33 of the said Act. The accounting policies except stated otherwise, have been consistently applied by the Company. The preparation of financial statements requires the Management to make estimate; and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

2. Revenue Recognition:

For recognition of revenue the Company adopts the accrual basis except where there is uncertainty as to collection. Income on Non-Performing Assetsâ is accounted on realization. Dividend Income & Consultancy Income is recognized on actual receipt basis.

Revenue from lease rentals are recognized on a time proportion basis from the commencement date, as prescribed in the lease agreement entered with the lessees.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulated depreciation.

b) Depreciation on Assets is provided as per method and rates prescribed under Schedule II of the Companies Act, 2013 and amortized over the useful life of the Asset. However in case of Household Furnishing provided to officers as per the extant policy, the cost of the same has been amortized over a period of 5 years or residual service of the officer whichever is less.

c) Intangible assets are amortized over the expected duration of benefit or 10 years, whichever is lower. Accordingly computer software is amortized over a period of 5 years

. Investments:

a) The Company acquires shares and securities in the normal course of its business accordingly purchases and sales made during the year are not required to be disclosed under Schedule III Part I of the Companies Act 203. Transaction details of Investments in units, that are not investment in body corporate, are also not shown separately.

b) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/devolvement.

c) The investments are categorized into Long Term Investmentsâ and Current Investmentsâ as per Accounting Standard-13 on Accounting for investmentsâ referred to in Section 33 of the Companies Act, 203 for Investments.

d) The investment under "Current Investmentsâ âare valued on the basis of market value/break up value or cost whichever is lower.

e) The investment under ''Long Term Investments âare valued at cost less permanent diminution in value, wherever applicable, for each individual Investment.

. Loans to Companies :

a) All credit exposure are classified into performing and non-performing assets as per RBI guidelines applicable to Non-Banking Financial Companies (NBFCs).

b) General provision for standard assets and specific provision for sub-standard, doubtful and loss assets is being made in accordance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum up to 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36()(viii) of the Income-tax Act, 96, is also available to cover any loss on loans given.

6. Retirement Benefits :

a) Gratuity:

The company has a defined employee benefit scheme in the form of gratuity. Accordingly the Company has taken a Group Gratuity scheme with the Life Insurance Corporation of India (LIC) wher contribution is deposited based on intimation received from LIC. Expense for the year is determined on th basis of actuarial valuation of the companyâs year end obligation in this regard and the value of year end assets of the scheme.

b) Provident Fund:

Contribution; o the Provident Fund as per provisions of Employees Provident Fund Act, 952 is remitted to the P.F. Commissioner and is charged to the Statement of Profit & Loss.

c) Leave Encashment:

The Provision for leave encashment is being made on actuarial valuation basis.

7. Taxation & Deferred Taxation:

The provision for taxation fade erred taxation is made as per the Income Tax Act, 961 and Accounting Standard 22, as issued by ICAI, respectively.

8. Lease:

Leases where the Less or effectively retains substantially all risks and benefits of ownership are classified as operating leases. Operating Lease payments are charged to the statement of Profit & Loss.

9. Earning Per Share:

Basic earnings per share are calculably 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.

e For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity

e shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving bust ant ail degree of estimation in measurement are recognized when there is a present obligation as a result of past events/practices and it is probable that there will be an outflow of resources. Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

11. Cash Flow:

12. The ALM Statement has been prepared as per RBI''s Guidelines.

Mar 31, 2016

1. Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 20Â® and in compliance with the applicable accounting standards referred to in section 33 of the said Act. The accounting policies, except stated otherwise, have been consistently applied by the Company. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation o the financial statements are prudent and reasonable.

2. Revenue Recognition:

For recognitionâ revenue, the Company adopts the accrual basis except where there is uncertainty as to collection. Income on Non-Per forming Assetsâ is accounted on realisation. Dividend Income is recognized on actual receipt basis.

Revenue from lease rentals are recognised on a time proportion basis from the commencement date, as prescribed in the lease agreement entered with the lessees.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulate depreciation.

b) Depreciation on Assets is provided as per Method and rates prescribed under Schedule II of the Companies Act, 2013 and amortised over the useful life of the Asset. However i case of Household Furnishing provided to officers as per the extant policy, the cost of the same has been amortised over a period of 5 years or residual service of the officer whichever is less.

c) Intangible assets are amortised over the expected duration of benefit or 10 years, whichever is lower. Accordingly computer software is amortised over a period of 5 years

4. Investments:

a) The Company acquires shares and securities in the normal course of its business and accordingly purchases and sales made during the year are not required to be disclosed under Schedule III part I of the Companies Act 20Â®. Transaction details of Investments in units, that are not investment body corporate, are also not shown separately.

b) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/devolvement.

c) The investments are categorize into Long Term Investmentsâ and Current Investments âas per Accounting Standard-3 on Accounting for investments âreferred to in Section 33 of the companies Act, 203 for Investments.

d) The investment under "Current Investments âvalued on the basis of market value/break up value or cost whichever is lower.

e) The invest men under "Long Term Investments âare valued at cost less permanent diminution in value, wherever applicable, for each individual Investment.

5. Loans to Companies :

a) Pursuant to the prudent Odrms of the Reserve Bank of India for the purposes of the revenue recognition and provisioning, loans given have been treated as performing and non-performing based on the record of recovery of interest/ instalments.

b) General provision for standard & substandard assets and

specific provision for doubtful assets and loss assets is being made in accordance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum up to 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36(1)(viii) of the Income-tax Act, 96} is also available to cover any loss on loans given. 6 Retirement Benefits :

a) Gratuity:

The company has a defined employee benefit scheme in the form of gratuity. Accordingly the Company has taken a f Group Gratuity scheme with the Life Insurance Corporation of India (LIC) for which the insurance premium is accounted for as an expense in the Statement of Profit & Loss. The insurance premium is determined on the basis of actuarial valuation of the available fund with LIC under the policy and the year end obligation under the scheme.

b) Provident Fund:

Contribution o the Provident Fund as per provisions of Employees Provident Fund Act 952 is remitted to the P.F. Commissioner and is charged to the Statement of Profit & Loss.

c) Leave Encashment:

Leave Encashment benefits (short term compensated absences) are provided on the basis of calculations made by the Company based on average encashable salary of the Employees. n7. Taxation & Deferred Taxation:

The provision for taxation & deferred taxation is made as per the Income Tax Act 9611 and Accounting Standard 22, as issued by ICAI, respectively.

8. Lease:

Leases where the Less or effectively retains substantially all risks and benefits of ownership are classified as operating leases. Operating Lease payments are charged to the statement of Profit & Loss.

9. Earning Per Share:

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

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

10. Provisions, Contingent Liabilities and Contingent Assets: Provisions involving substantial agree of estimation in measurement are recognized when there is a present obligation as a result of past events/practices and it is probable that there will be an outflow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

11. Cash Flow:

Cash flows are reported using indirect method whereby a profit before tax is adjusted for the effects of transaction of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operating, investing and financing activities of the Company are segregated

12. The ALM Statement has been prepared as per RBI Guidelines

Mar 31, 2014

1. Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 1956 and in compliance with the applicable accounting standards referred to in sub- section (3C) of the section 211 of the said Act. The accounting policies, except stated otherwise, have been consistently applied by the Company. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

2. Revenue Recognition:

For recognition of revenue, the Company adopts the accrual basis except where there is uncertainty as to collection. Income on "Non-Performing Assets" is accounted on realisation. Dividend Income is recognized on actual receipt basis.

Revenue from lease rentals are recognised on a time proportion basis from the commencement date, as prescribed in the lease agreement entered with the lessees.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulated depreciation.

b) Depreciation on assets is provided on the Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

c) Intangible assets are amortised over the expected duration of benefit or 10 years, whichever is lower. Accordingly computer software is amortised over a period of 5 years

4. Investments:

a) The Company acquires shares and securities in the normal course if its business and accordingly purchases and sales made during the year are not required to be disclosed under Schedule VI Part I (l). Transaction details of Investments in units, that are not investment in body corporate, are also not shown separately except opening & closing stock.

b) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/development.

c) The investments are categorized into "Long Term Investments" and "Current Investments" as per Accounting Standard-13 on "Accounting for investments" referred to in Section 211(3C) of the companies Act, 1956 for Investments.

d) The investment under "Current Investments" are valued on the basis of market value/break up value or cost whichever is lower.

e) The investment under "Long Term Investments" are valued at cost less permanent diminution in value, wherever applicable, for each individual Investment.

5. Loans to Companies :

a) Pursuant to the prudential norms of the Reserve Bank of India for the purposes of the revenue recognition and provisioning, loans given have been treated as performing and non-perform- ing based on the record of recovery of interest/ installments. Payments received upto the Balance Sheet date have been considered for treating the account as performing.

b) General provision for standard & substandard assets and specific provision for doubtful assets and loss assets is being made in accordance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum upto 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36(1)(viii) of the Income-tax Act, 1961, is also available to cover any loss on loans given.

6. Retirement Benefits :

a) Gratuity:

The company has a defined employee benefit scheme in the form of gratuity. Accordingly the Company has taken a Group Gratuity scheme with the Life Insurance Corporation of India (LIC) for which the insurance premium is accounted for as an expense in the Profit & Loss account. The insurance premium is determined on the basis of actuarial valuation of the available fund with LIC under the policy and the year end obligation under the scheme.

b) Provident Fund:

Contribution to the Provident Fund as per provisions of Employees Provident Fund Act 1952 is remitted to the P.F. Commissioner and is charged to the Profit & Loss Account.

c) Leave Encashment:

Leave Encashment benefits (short term compensated absences) are provided on the basis of calculations made by the Company based on average encashable salary of the Employees.

7. Taxation & Deferred Taxation:

The provision for taxation & deferred taxation is made as per the income tax act 1961 and Accounting Standard 22, as issued by ICAI, respectively. The Deferred Tax Liability has been recognized for current year on the basis of amount transferred to Special Reserve u/s 36(1)(viii) of Income Tax Act as on 31.03.2014 in terms of the RBI Circular No DBOD No. BP.BE 77/21.04.018/2013-14 dated 20th December 2013.

8. Lease:

Leases where the Lessor effectively retains substantially all risks and benefits of ownership are classified as operating leases. Operating Lease payments are charged to the statement of Profit & Loss.

9. Earning 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.

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

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 an outflow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

11. Cash Flow:

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

Mar 31, 2013

1. Basis of Accounting:

The fnancial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 1956 and in compliance with the applicable accounting standards referred to in sub- section (3C) of the section 211 of the said Act. The accounting policies, except stated otherwise, have been consistently applied by the Company. The preparation of fnancial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the fnancial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the fnancial statements are prudent and reasonable.

2. Revenue Recognition:

For recognition of revenue, the Company adopts the accrual basis except where there is uncertainty as to collection. Income on ''''Non-Performing Assets'''' is accounted on realisation. Dividend Income is recognized on actual receipt basis.

Revenue from lease rentals are recognised on a time proportion basis from the commencement date, as prescribed in the lease agreement entered with the lessees.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulated depreciation.

b) Depreciation on assets is provided on the Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

c) Intangible assets are amortised over the expected duration of beneft or 10 years, whichever is lower. Accordingly computer software is amortised over a period of 5 years

4. Investments:

a) One of the principal business of the Company is the acquisition of shares and securities; accordingly purchases and sales made during the year are not required to be disclosed under Schedule VI Part I (l). Transaction details of Investments in units, that are not investment in body corporate, are also not shown separately except opening & closing stock.

b) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/development.

c) The investments are categorized into ''''Long Term Investments'''' and ''''Current Investments'''' as per Accounting Standard- 13 on ''''Accounting for investments'''' referred to in Section 211(3C) of the companies Act, 1956 for Investments.

d) The investment under ''''Current Investments'''' are valued on the basis of market value/break up value or cost whichever is lower.

e) The investment under ''''Long Term Investments'''' are valued at cost less permanent diminution in value, wherever applicable, for each individual Investment.

5. Loans to Companies :

a) Pursuant to the prudential norms of the Reserve Bank of India for the purposes of the revenue recognition and provisioning, loans given have been treated as performing and non-performing based on the record of recovery of interest/ installments. Payments received upto the Balance Sheet date have been considered for treating the account as performing.

b) General provision for standard & substandard assets and specifc provision for doubtful assets and loss assets is being made in accordance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum upto 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36(1) (viii) of the Income-tax Act, 1961, is also available to cover any loss on loans given.

6. Retirement Benefts :

a) Gratuity:

The company has a defned employee beneft scheme in the form of gratuity. Accordingly the Company has taken a Group Gratuity scheme with the Life Insurance Corporation of India (LIC) for which the insurance premium is accounted for as an expense in the Proft & Loss account. The insurance premium is determined on the basis of actuarial valuation of the available fund with LIC under the policy and the year end obligation under the scheme.

b) Provident Fund:

Contribution to the Provident Fund as per provisions of Employees Provident Fund Act 1952 is remitted to the P.F. Commissioner and is charged to the Proft & Loss Account.

c) Leave Encashment:

Leave Encashment benefts (short term compensated absences) are provided on the basis of calculations made by the Company based on average encashable salary of the Employees.

7. Taxation & Deferred Taxation:

The provision for taxation & deferred taxation is made as per the income tax act 1961 and Accounting Standard 22, as issued by ICAI, respectively.

8. Lease:

Leases where the Lessor effectively retains substantially all risks and benefts of ownership are classifed as operating leases. Operating Lease payments are charged to the statement of Proft & Loss.

9. Earning Per Share:

Basic earnings per share are calculated by dividing the net proft or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net proft or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

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 an outfow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the fnancial statement.

11. Cash Flow:

Cash fows are reported using indirect method whereby a proft before tax is adjusted for the effects of transaction of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash fow from operating, investing and fnancing activities of the Company are segregated

12. The ALM Statement has been prepared as per RBI Guidelines.

Mar 31, 2012

1. Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 1956 and in compliance with the applicable accounting standards referred to in sub- section (3C) of the section 211 of the said Act. The accounting policies, except stated otherwise, have been consistently applied by the Company.

2. Revenue Recognition:

For recognition of revenue, the Company adopts the accrual basis except where there is uncertainty as to collection. Income on "Non-Performing Assets" is accounted on realisation. Dividend Income is recognized on actual receipt basis.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulated depreciation.

b) Depreciation on assets is provided on the Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

c) Intangible assets are amortised over the expected duration of benefit or 10 years, whichever is lower. Accordingly computer software is amortised over a period of 5 years

4. Investments:

a) One of the principal business of the Company is the acquisition of shares and securities; accordingly purchases and sales made during the year are not required to be disclosed under Schedule VI Part I (l). Transaction details of Investments in units, that are not investment in body corporate, are also not shown separately except opening & closing stock.

b) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/development.

c) The investments are categorized into "Long Term Investments" and "Current Investments" as per Accounting Standard-13 on "Accounting for investments" referred to in Section 211(3C) of the companies Act, 1956 for Investments. d) The investment under "Current Investments" are valued on the basis of market value/break up value or cost whichever is lower.

e) The investment under "Long Term Investments" are valued at cost less permanent diminution in value, wherever applicable, for each individual investment.

5. Loans to Companies :

a) Pursuant to the prudential norms of the Reserve Bank of India for the purposes of the revenue recognition and provisioning, loans given have been treated as performing and non-performing based on the record of recovery of interest/ installments. Payments received upto the Balance Sheet date have been considered for treating the account as performing.

b) General provision for standard & substandard assets and specific provision for doubtful assets and loss assets is being made in accordance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum upto 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36(1)(viii) of the Income-tax Act, 1961, is also available to cover any loss on loans given.

6. Retirement Benefits :

a) Gratuity:

The company has a defined employee benefit scheme in the form of gratuity. Accordingly the Company has taken a Group Gratuity scheme with the Life Insurance Corporation of India (LIC) for which the insurance premium is accounted for as an expense in the Profit & Loss account. The insurance premium is determined on the basis of actuarial valuation of the available fund with LIC under the policy and the year end obligation under the scheme.

b) Provident Fund:

Contribution to the Provident Fund as per provisions of Employees Provident Fund Act 1952 is remitted to the P.F. Commissioner and is charged to the Profit & Loss Account.

c) Leave Encashment:

Leave Encashment benefits (short term compensated absences) are provided on the basis of calculations made by the Company based on average encashable salary of the Employees.

7. Taxation & Deferred Taxation:

The provision for taxation & deferred taxation is made as per the income tax act 1961 and Accounting Standard 22, as issued by ICAI, respectively.

8. The ALM Statement has been prepared as per RBI Guidelines

Mar 31, 2011

1. Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 1956 and in compliance with the applicable accounting standards referred to in sub-section (3C) of the section 211 of the said Act. The accounting policies, except stated otherwise, have been consistently applied by the Company.

2. Revenue Recognition:

For recognition of revenue, the Company adopts the accrual basis except where there is uncertainty as to collection. Income on "Non-Performing Assets" is accounted on realisation. Dividend Income is recognized on actual receipt basis.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulated depreciation.

b) Depreciation on assets is provided on the Writ ten Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

c) Intangible assets are amortised over the expected duration of benefit or 10 years, whichever is lower. Accordingly computer software is amortised over a period of 5 years

4. Investments:

a) One of the principal business of the Company is the acquisition of shares and securities; accordingly purchases and sales made during the year are not required to be disclosed under Schedule VI Part I (l). Transaction details of Investments in units, that are not investment in body corporate, are also not shown separately except opening & closing stock.

b) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/ development.

c) The investments are categorized into "Long Term Investments" and "Current Investments" as per Accounting Standard-13 on "Accounting for investments" referred to in Section 211(3C) of the companies Act, 1956 for Investments.

d) The investment under "Current Investments" are valued on the basis of market value/break up value or cost whichever is lower.

e) The investment under "Long Term Investments" are valued at cost less permanent diminution in value, wherever applicable, for each individual investment.

5. Loans to Companies :

a) Pursuant to the prudential norms of the Reserve Bank of India for the purposes of the revenue recognition and provision ing, loans given have been treated as performing and non-performing based on the record of recovery of interest/ installments. Payments received upto the Balance Sheet date have been considered for treating the account as performing.

b) General provision for standard & substandard assets and specifc provision for doubtful assets and loss assets is being made in accor dance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum upto 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36(1)(viii) of the Income-tax Act, 1961, is also avail able to cover any loss on loans given.

6. Retirement Benets :

a) Gratuity:

The company has a defined employee benefit scheme in the form of gratuity. Accordingly the Company has taken a Group Gratuity scheme with the Life Insurance Corporation of India (LIC) for which the insurance premium is accounted for as an expense in the Profit & Loss account. The insurance premium is determined on the basis of actuarial valuation of the available fund with LIC under the policy and the year end obligation under the scheme.

b) Provident Fund:

Contribution to the Provident Fund as per provisions of Employees Provident Fund Act 1952 is remitted to the P.F. Commissioner and is charged to the Proft & Loss Account.

c) Leave Encashment:

Leave Encashment benefits (short term compensated absences) are provided on the basis of calculations made by the Company based on average encashable salary of the Employees.

7. Taxation & Deferred Taxation:

The provision for taxation & deferred taxation is made as per the income tax act 1961 and Accounting Standard 22 ,as issued by ICAI, respectively.

Mar 31, 2010

1. Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the requirements of the Companies Act, 1956 and in compliance with the applicable accounting standards referred to in sub- section (3C) of the section 211 of the said Act. The accounting policies, except stated otherwise, have been consistently applied by the Company.

2. Revenue Recognition:

For recognition of revenue, the Company adopts the accrual basis except where there is uncertainty as to collection. Income on "Non-Performing Assets" is accounted for on realisation. Dividend Income is recognized on actual receipt basis.

3. Fixed Assets and Depreciation:

a) Fixed Assets are shown at historical cost less accumulated depreciation.

b) Depreciation on assets is provided on the Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

4. Investments:

a) The cost of acquisition of investments is arrived at after adjusting front-end fee/underwriting commission received on subscription/development.

b) The investments are categorized into "Long Term Investments" and "Current Investments" as per Accounting Standard- 13 on "Accounting for investments" referred to in Section 211(3C) of the Companies Act, 1956 for Investments.

c) The investment under "Current Investments" are valued on the basis of market value/break up value or cost whichever is lower.

d) The investment under "Long Term Investments" are valued at cost less permanent diminution in value, wherever applicable, for each individual investment.

5. Loans to Companies :

a) Pursuant to the prudential norms of the Reserve Bank of India for the purposes of the revenue recognition and provisioning, loans given have been treated as performing and non-performing based on the record of recovery of interest/ installments. Payments received upto the Balance Sheet date have been considered for treating the account as performing.

b) General provision for standard & substandard assets and specific provision for doubtful assets and loss assets is being made in accordance with applicable RBI guidelines. However, the Board of Directors, as a matter of prudence has decided to make additional provision against outstanding assets portfolio maximum upto 4% of the total assets outstanding in addition to the provisions as per RBI guidelines. The balance in the Special Reserve created in terms of Section 36(1)(viii) of the Income-tax Act, 1961, is also available to cover any loss on loans given.

6. Retirement Benefits :

a) Gratuity:

The company has a defined employee benefit scheme in the form of gratuity. Accordingly the Company has taken a Group Gratuity scheme with the Life Insurance Corporation of India (LIC) for which the insurance premium is accounted for as an expense in the Profit & Loss account. The insurance premium is determined on the basis of actuarial valuation of the available fund with LIC under the policy and the year end obligation under the scheme.

b) Provident Fund:

Contribution to the Provident Fund as per provisions of Employees Provident Fund Act 1952 is remitted to the P.F. Commissioner and is charged to the Profit & Loss Account.

c) Leave Encashment:

Leave Encashment benefits (short term compensated absences) are provided on the basis of calculations made by the Company based on average encashable salary of the Employees.

7. Taxation & Deferred Taxation:

The provision for taxation & deferred taxation is made as per the Income Tax Act, 1961 and Accounting Standard 22, as issued by ICAI, respectively.

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