Accounting Policies of Hybrid Financial Services Ltd. Company

Mar 31, 2025

Note No. 1

SIGNIFICANT ACCOUNTING POLICIES

I) CORPORATE INFORMATION

The Company’s main business activities are Management Consulting, providing Debt
Recovery Advise, Consultancy in Financial, Secretarial, Commercial, Legal, Direct
and Indirect Taxation, Other Levies, Statistical,Accountancy and Other Fields. The
Company is having Registered Office / Head Quarter in Mumbai. The Company presently
has no branches.

II) SIGNIFICANT ACCOUNTING POLICIES:

a. BASIS OF PREPARATION:

The financial statements have been prepared in accordance with Indian
Accounting Standards (hereafter referred to as the ‘Ind AS’) as notified by
Ministry of Corporate Affairs pursuant to Section 133 of Companies Act, 2013
(the “Act’) read with Companies (Indian Accounting Standards (Ind AS)) Rules,
2015 and other relevant provisions of the Act.

The financial statements have been prepared on a historical cost convention
and accrual basis, except for certain financial assets and liabilities measured
at fair value.

b. USE OF ESTIMATES

The preparation of the financial statements, in conformity with the recognition
and measurement principles of Ind AS, requires the management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as at the date of financial statements and the results of operation
during the reported period. Although these estimates are based upon
management’s best knowledge of current events and actions, actual results
could differ from these estimates which are recognized in the period in which
they are determined.

c. OPERATING CYCLE FOR CURRENT AND NON-CURRENT
CLASSIFICATION

The Company presents assets and liabilities in the balance sheet based on
current /non-current classification.

All the assets and liabilities have been classified as current or non-current,
wherever applicable, as per the operating cycle of the Company as per the
guidance set out in Schedule III to the Act.

The operating cycle is the time between the acquisition of assets for processing
and their realisation in cash or cash equivalents. Based on the nature of activities
of the Company and the normal time between acquisition of assets and their
realization in cash or cash equivalents, the company has determined its
operating cycle as 12 months for the purpose of classification of its assets and
liabilities as current and non-current.

d. PROPERTY, PLANT AND EQUIPMENT (INCLUDING CAPITAL
WORK-IN-PROGRESS)

Property, Plant and Equipment are stated at cost of acquisition including
attributable interest and finance costs, if any, till the date of acquisition / installation
of the assets less accumulated depreciation and accumulated impairment losses,
if any.

Subsequent expenditure relating to Property, Plant and Equipment is capitalised
only when it is probable that future economic benefits associated with the item
will flow to the Company and the cost of the item can be measured reliably.All
other repairs and maintenance costs are charged to the Statement of Profit and
Loss as incurred. The cost and related accumulated depreciation are eliminated
from the financial statements, either on disposal or when retired from active use
and the resultant gain or loss are recognised in the Statement of Profit and
Loss.

Capital work-in-progress, representing expenditure incurred in respect of assets
under development and not ready for their intended use, are carried at cost.
Cost includes related acquisition expenses, construction cost, related
borrowing cost and other direct expenditure.

e. INVESTMENT PROPERTY

Land or Building held to earn rentals or for capital appreciation or both rather
than for use in the production or supply of goods and services or for administrative
purposes; or sale in the ordinary course of business is recognised as Investment
Property. Investment Property are measured initially at cost, including transaction
costs. Subsequent to initial recognition, investment properties are stated at
cost less accumulated depreciation and accumulated impairment loss, if any.

Though, the Company measures investment property using cost based
measurement, the fair value of investment property is disclosed in Notes.

Investment properties are de-recognised either when they have been disposed
off or when they are permanently withdrawn from use and no future economic
benefit is expected from their disposal. The difference between the net disposal
proceeds and the carrying amount of the asset is recognised in the Statement
of Profit and Loss in the period of de-recognition.

f. DEPRECIATION/AMORTISATION ON FIXED ASSETS

Depreciation on Fixed Assets is provided on straight-line method in accordance
with life of assets specified in Part C of Schedule II to the Companies Act, 2013
as per details given below:

AMORTISATION

Expenses incurred on Computer Software are amortised on straight line basis
over a period of three years.

ASSETS ACQUIRED IN SATISFACTION OF CLAIMS

Assets acquired in satisfaction of claim has been accounted at fair value of the
assets acquired and is marked down by a subsequent reduction in the Net
Realisable Value, if any.

g. IMPAIRMENT OF NON FINANCIAL ASSETS

Non- financial assets other than inventories and non-current assets held for
sale are reviewed at each balance sheet date to determine whether there is any
indication. If any such indication exists or when annual impairment testing for
an asset required, the company estimates the asset’s recoverable amount. The
recoverable amount is higher of assets or cash generating units (CGU) fair
value less cost of disposal and its value in use. Recoverable amount is determined
for an individual asset, unless the asset does not generate cash flow that is
largely independent of those from other assets or group of assets.

When the carrying amount of an assets or CGU exceeds its recoverable amount,
the assets are considered impaired and is written down to its recoverable amount.

h. STOCK IN TRADE / SECURITIES FOR SALE

Stock in trade is valued at weighted average cost or net realisable value
whichever is lower.

i. CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of cash flow statement comprise
cash in hand, balances in current accounts with scheduled banks and bank
deposits.

j. REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate
realization / collection. Revenue is net of Goods and Service Tax where recovered.

(i) Income from Operations

Brokerage income is recognized on transactions on which “Settlements’
are completed during the year. In case of Income from Marketing of
Financial Products the same are accounted on cash basis.

(ii) Profits on Sale of Investments

Profit on Sale of Investments is accounted reckoning the average cost
of the investments.

(iii) Other Income

Other Income is accounted on accrual basis except Dividend Income,
Interest on Government Bonds and Interest on Income Tax Refunds which
are accounted on cash basis.

k. BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of time to get ready for
intended use. All other borrowing costs are charged to revenue.

l. RETIREMENT BENEFITS

The Company has dissolved the Provident Fund Trust and is in the process of
closure of the same as there are no employees left other than the two Whole
Time Directors and Chief Financial Officer. The Company’s Superannuation
Fund is administered through Life Insurance Corporation of India and is
recognised by the Income Tax Department. Company’s contribution to
Superannuation Fund for the year is charged against revenue. The Company
has provided for Gratuity in Current Year for the Two Wholetime Directors.

m. LEAVE ENCASHMENT

Provision is made for Leave Encashment on the basis of actual leave to the
credit of the employee.

n. TAXES ON INCOME

Current Tax is determined as per Law. Deferred Tax Asset and Liability are
measured using the tax rates that have been enacted or substantively enacted
at the Balance Sheet date.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

I) CORPORATE INFORMATION

The Company’s main business activities are Management Consulting, providing Debt Recovery Advise, Consultancy in Financial, Secretarial, Commercial, Legal, Direct and Indirect Taxation, Other Levies, Statistical, Accountancy and Other Fields. The Company is having Registered Office / Head Quarter in Mumbai. The Company presently has no branches.

II) SIGNIFICANT ACCOUNTING POLICIES:

a. BASIS OF PREPARATION:

The financial statements have been prepared in accordance with Indian Accounting Standards (hereafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of Companies Act, 2013 (the “Act”) read with Companies (Indian Accounting Standards (Ind AS)) Rules, 2015 and other relevant provisions of the Act.

The financial statements have been prepared on a historical cost convention and accrual basis, except for certain financial assets and liabilities measured at fair value.

b. USE OF ESTIMATES

The preparation of the financial statements, in conformity with the recognition and measurement principles of Ind AS, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as at the date of financial statements and the results of operation during the reported period. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates which are recognized in the period in which they are determined.

c. OPERATING CYCLE FOR CURRENT AND NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities in the balance sheet based on current /non-current classification.

All the assets and liabilities have been classified as current or non-current, wherever applicable, as per the operating cycle of the Company as per the guidance set out in Schedule III to the Act.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Based on the nature of activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

d. PROPERTY, PLANT AND EQUIPMENT (INCLUDING CAPITAL WORK-IN-PROGRESS)

Property, Plant and Equipment are stated at cost of acquisition including attributable interest and finance costs, if any, till the date of acquisition / installation of the assets less accumulated depreciation and accumulated impairment losses, if any.

Subsequent expenditure relating to Property, Plant and Equipment is capitalised only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the Statement of Profit and Loss as incurred. The cost and related accumulated depreciation are eliminated from the financial statements, either on disposal or when retired from active use and the resultant gain or loss are recognised in the Statement of Profit and Loss.

Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their intended use, are carried at cost. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure.

e. INVESTMENT PROPERTY

Land or Building held to earn rentals or for capital appreciation or both rather than for use in the production or supply of goods and services or for administrative purposes; or sale in the ordinary course of business is recognised as Investment Property. Investment Property are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Though, the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in Notes. Investment properties are de-recognised either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the Statement of Profit and Loss in the period of derecognition.

f. DEPRECIATION/AMORTISATION ON FIXED ASSETS

Depreciation on Fixed Assets is provided on straight-line method in

accordance with life of assets specified in Part C of Schedule II to the Companies Act, 2013 as per details given below:

Sl.No.	Nature of Assets	Estimated useful lifein years
1	Building	60
2	Computers - Seivers	6
3	Computers - End user devices	3
4	Furniture and Fixtures	10
5	Motor Vehicles	8
6	Office Equipments	5

AMORTISATION

Expenses incurred on Computer Software are amortised on straight line basis over a period of three years.

ASSETS ACQUIRED IN SATISFACTION OF CLAIMS

Assets acquired in satisfaction of claim has been accounted at fair value of the assets acquired and is marked down by a subsequent reduction in the Net Realisable Value, if any.

g. IMPAIRMENT OF NON FINANCIAL ASSETS

Non- financial assets other than inventories and non-current assets held for sale are reviewed at each balance sheet date to determine whether there is any indication. If any such indication exists or when annual impairment testing for an asset required, the company estimates the asset’s recoverable amount. The recoverable amount is higher of assets or cash generating units (CGU) fair value less cost of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash flow that is largely independent of those from other assets or group of assets.

When the carrying amount of an assets or CGU exceeds its recoverable amount, the assets are considered impaired and is written down to its recoverable amount.

h. STOCK IN TRADE / SECURITIES FOR SALE

Stock in trade is valued at weighted average cost or net realisable value whichever is lower.

i. CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand, balances in current accounts with scheduled banks and bank deposits.

j. REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate realization / collection. Revenue is net of Goods and Service Tax where recovered.

(i) Income from Operations

Brokerage income is recognized on transactions on which “Settlements” are completed during the year. In case of Income from Marketing of Financial Products the same are accounted on cash basis.

(ii) Profits on Sale of Investments

Profit on Sale of Investments is accounted reckoning the average cost of the investments.

(iii) Other Income

Other Income is accounted on accrual basis except Dividend Income, Interest on Government Bonds and Interest on Income Tax Refunds which are accounted on cash basis.

k. BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

l. RETIREMENT BENEFITS

The Company has dissolved the Provident Fund Trust and is in the process of closure of the same as there are no employees left other than the two Whole Time Directors and Chief Financial Officer. The Company’s Superannuation Fund is administered through Life Insurance Corporation of India and is recognised by the Income Tax Department. Company’s contribution to Superannuation Fund for the year is charged against revenue. The Company has provided for Gratuity in Current Year for the Two Wholetime Directors.

m. LEAVE ENCASHMENT

Provision is made for Leave Encashment on the basis of actual leave to the credit of the employee.

n. TAXES ON INCOME

Current Tax is determined as per Law. Deferred Tax Asset and Liability are measured using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

o. 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. Contingent Liabilities are not recognized but are provided on the basis of management evaluation of the same and reviewed on the basis of events happening, besides disclosures in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

p. LEASED ASSETS

Rentals in respect of assets taken on operating lease by the company are expensed with reference to the lease and other considerations.

q. FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial Assets Initial Measurement:

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent Measurement:

Subsequent measurement is determined with reference to the classification of the respective financial assets and the contractual cash flow characteristic of the financial assets, the company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit and loss. Financial Assets carried at amortised cost

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

Financial Assets at fair value through other Comprehensive Income (FVOCI)

A financial asset is measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial Assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL

Debt instruments included within the FVTOCI category are measured at fair value with all changes recognized in profit and loss. However currently the company does not have any financial instrument in this category.

Equity Investment

All equity investments in scope of Ind AS 109 are measured at fair value except unquoted equity investments including investment in subsidiary which are stated at cost. Equity instruments which are held for trading are classified as at FVTPL. For other equity instruments, the company decides to classify the same either as at FVTOCI or FVTPL. The company makes such election on an instrument by instruments basis. The Classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, all fair value changes on the instrument, excluding dividends are recognized in other comprehensive income.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit or loss.

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

Financial Liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings and payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

• Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at fair value.

• Financial Guarantee Contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

• De-recognition of Financial Liabilities

Financial Liabilities are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of Profit and Loss as other gains/(losses).

• Offsetting Financial Instruments

Financial Assets and Financial Liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis; to realise the assets and settle the liabilities simultaneously.

r. FAIR VALUE MEASUREMENT

The Company measures financial assets and financial liability at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 - Valuation Techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 - Valuation Techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Management analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Company’s accounting policies. For this analysis, the Management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation and other relevant documents.

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Mar 31, 2015

A. Basis of Preparation:

The financial statements of the Company have been prepared and presented in accordance with the generally accepted accounting principles in India (India GAAP) under the historical cost convention on accrual basis. The Company has prepared the financial statements to comply with all material respects with accounting standards specified under section 133 of the Companies Act, 2013 read with Rule 7 the Companies (Accounting Standards) Rules 2014.

b. Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period in which the results are known / materialised.

c. Fixed Assets

All the Fixed Assets have been stated at cost of acquisition.

d. Intangible Assets

Intangible assets are stated at cost of acquisition less accumulated amortization.

e. Assets Acquired in Satisfaction of Claims:

Assets acquired in satisfaction of claim has been accounted at fair value of the assets acquired and is marked down by a subsequent reduction in the Net Realisable Value, if any.

f. Depreciation:

Depreciation on Fixed Assets is provided on straight-line method in accordance with life of assets specified in Part C of Schedule II to the Companies Act, 2013 as per details given below:

Sl.No. Nature of Assets Estimated useful life in years

1 Building 60

2 Computers - Servers 6

3 Computers - End user devices 3

4 Furniture and Fixtures 10

5 Motor Vehicles 8

6 Office Equipments 5

AMORTISATION

Expenses incurred on Computer Software are amortised on straight line basis over a period of three years.

g. Impairment of Assets

`An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

h. Investments

Long-term investments are stated at cost of acquisition. Provision is made for diminution in value, other than temporary, in the carrying amount of such investments.

Current investments are shown at lower of cost and fair market value (repurchase price in case of Mutual Fund Units).

i. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand, balances in current accounts with scheduled banks and bank deposits.

j. Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/ collection.

(i) Profit on Sale of Investments

Profit on Sale of Investments is accounted reckoning the average cost of the investments.

(ii) Other Income:

Other Income is accounted on accrual basis.

k. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events, it is probable that there will be an outflow of resources and a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognised and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

l. Retirement Benefits

The Company has dissolved the Provident Fund Trust and is in the process of closure of the same as there are no employees left other than the two Wholetime Directors. The Company's Superannuation Fund and Gratuity Fund are administered through Life Insurance Corporation of India and are recognised by the Income Tax Department. Company's contribution to Superannuation Fund for the year is charged against revenue. The Company has not contributed to Gratuity Fund for the Wholetime Directors, as the Company is of the opinion that the same is not applicable.

m Leave Encashment

Leave Encashment is accounted on the basis of actual leave balance as at the year end. n. Taxes on Income

Current Tax is determined as per Law. Deferred Tax Asset and Liability are measured using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

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Mar 31, 2013

A. Accounting Conventions:

The Accounts have been prepared under the historical cost convention on an Accrual basis and in accordance with requirements of the Companies Act, 1956 and comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the said Act and are consistent with generally accepted accounting principles and conform to the statutory provisions and practices prevailing in the Industry.

b. Estimates''.

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of t assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period in which the results are known / materialised. (.. Fixed Assets:

All the Fixed Assets have been stated at cost.

d. Intangible Assets:

Intangible assets are stated at cost of acquisition less accumulated amortization.

e. Assets Acquired In Satisfaction of Claims:

Assets acquired in satisfaction of claim has been accounted at fair value of the assets acquired and is marked down by a subsequent reduction in the Net Realisable Value, if any.

f. Depreciation:

Depreciation on Fixed Assets is provided on straight-line method in accordance with Section 205(2)(b) of the Companies Act, 1956 as per rates specified in Schedule XIV to the Companies Act, 1956.

Capital expenditure on leased premises is depreciated on straight-line method as per the rates specified in Schedule XIV or over the lease period whichever is higher.

AMORTISATION

Expenses incurred on Computer Software are amortised on straight line basis over a period of three years.

g. Impairment of Assets:

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

h. Investments

Long-term investments are stated at cost of acquisition. Provision is made in diminution in value, other than temporary, in the carrying amount of such investments.

Current investments are shown at lower of cost and fair market value (repurchase price in case''of Mutual Fund Units).

i. Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/ collection. (i) Profit on Sale of Investments

Profit on Sale of Investments is accounted reckoning the average cost of the investments. (il) Other Income:

Other Income is accounted on accrual basis.

J. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events, it is probable that there will be an outflow of resources and a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognised and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

K. Retirement Benefits

The Company has dissolved the Provident Fund Trust and is in the process of closure of the same as there are no employees left other than the two Wholetime Directors. The Company''s Superannuation Fund and Gratuity Fund are administered through Life Insurance Corporation of India and are recognised by the Income Tax Department. Company''s contribution to Superannuation Fund for the year is charged against revenue. The Company has not contributed to Gratuity Fund this year for the Wholetime Oirectors, as the Company is of the opinion that the same Is not applicable during the year.

I. Leave Encashment

Leave Encashment is accounted on the basis of actual leave balance as at the year end.

m. Taxes on Income

Current Tax is determined as per Law. Deferred Tax Asset and Liability are measured''using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

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Mar 31, 2011

AMORTISATION

Expenses incurred on Computer Software are amortised on straight line basis over a period of three years.

g. IMPAIRMENT OF ASSETS:

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

h. INVESTMENTS:

Long-term investments are stated at cost of acquisition. Provision is made in diminution in value, other than temporary, in the carrying amount of such investments. Current investments are shown at lower of cost and fair market value (repurchase price in case of Mutual Fund Units).

i. STOCK-IN-TRADE:

Stock-in-trade of shares is valued at average cost or market value whichever is lower.

j. REVENUE RECOGNITION:

Revenue is recognised when there is reasonable certainty of its ultimate realisation/ collection: (I) Profit on Sale of Investments Profit on Sale of Investments is accounted reckoning the average cost of the investments.

iii) Other Income

Other Income is accounted on accrual basis.

k. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of part events, it is probable that there will be an outflow of resources and a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognised and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

l. RETIREMENT BENEFITS:

The Provident Fund is administered through Trust, Superannuation Fund and Gratuity Fund are administered through Life Insurance Corporation of India and are recognised by the Income Tax Department. Companys contribution for the year is charged against revenue.

m. LEAVE ENCASHMENT:

Leave Encashment is accounted on the basis of actual leave balance as at the year end.

n. TAXES ON INCOME:

Current Tax is determined as per Law. Deferred Tax Asset and Liability are measured using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

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Mar 31, 2010

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared on the historical cost basis in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

b. ESTIMATES:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period in which the results are known / materialised.

c. FIXED ASSETS:

All the Fixed Assets including assets given on lease have been stated at cost. Assets on lease are further adjusted for balance in lease terminal adjustment account.

d. INTANGIBLE ASSETS:

Intangible assets are stated at cost of acquisition less accumulated amortization.

e. ASSETS ACQUIRED IN SATISFACTION OF CLAIMS:

Assets acquired in satisfaction of claim has been accounted at fair value of the assets acquired and is marked down by a subsequent reduction in the Net Realisable Value, if any.

f. DEPRECIATION:

Depreciation on Fixed Assets is provided on straight-line method in accordance with Section 205(2)(b) of the Companies Act, 1956 as per rates specified in Schedule XIV to the Companies Act, 1956.

Capital expenditure on leased premises is depreciated on straight-line method as per the rates specified in Schedule XIV or over the lease period whichever is higher.

g. IMPAIRMENT OF ASSETS:

An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

h. INVESTMENTS:

Long-term investments are stated at cost of acquisition. Provision is made in diminution in value, other than temporary, in the carrying amount of such investments. Current investments are shown at lower of cost and fair market value (repurchase price in case of Mutual Fund Units).

i. STOCK-IN-TRADE:

Stock-in-trade of shares is valued at average cost or market value whichever is lower.

j. REVENUE RECOGNITION:

Revenue is recognised when there is reasonable certainty of its ultimate realisation/ collection. Prudential norms prescribed by Reserve Bank of India for revenue recognition and provisioning are followed:

(i) Profit on Sale of Investments

Profit on Sale of Investments is accounted reckoning the average cost of the investments.

(ii) Other Income

Other Income is accounted on accrual basis. k. Premium payable on the redemption of Non Convertible Debentures will be accounted as and when paid.

l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of part events, it is probable that there will be an outflow of resources and a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognised and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

m. RETIREMENT BENEFITS:

The Company has various retirement benefits such as Provident Fund recognised by Income Tax Authorities and Gratuity Funds and Superannuation Fund covered by the scheme with Life Insurance Corporation of India. The Provident, Superannuation & Gratuity Funds are administered through trustees and companys contribution for the year is charged against revenue.

n. LEAVE ENCASHMENT:

Leave Encashment is accounted on the basis of actual leave balance as at the year end.

0. TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax asset and liability are measured using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

p. BORROWING COST:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.