Accounting Policies of Minolta Finance Ltd. Company

Mar 31, 2025

NOTE 1 CORPORATE INFORMATION

Minolta Finance Ltd. (''the Company'', ''MFL'') is a company limited by shares, incorporated on 15^th January 1993 and domiciled in India. The Company has its registered office at Unique Pearl, BL-A, Hatiara, Roy para, Kolkata 700157 India. The company is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI).

NOTE 2 MATERIAL ACCOUNTING POLICIES

(a) Basis of Accounting and preparation of financial statements

The financial statements of Minolta Finance Limited have been prepared on a going concern and on accrual basis, under the historical cost convention and in accordance the Indian Accounting Standards (IND AS) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Rules, 2016 and other relevant provisions of the Act.

Functional and presentation currency- These financial statements are presented in Indian Rupees which is also the Company''s functional currency. All amounts have been rounded-off to the nearest rupee, unless otherwise indicated.

(b) Use of Estimates

The preparation of the financial statements, in conformity with the Ind AS, requires the management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosure of contingent 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.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

Provision and contingent liability

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

Allowance for impairment of financial asset

The Company applies expected credit loss model (ECL) for measurement and recognition ofimpairment loss. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. At each reporting date, the Company assesses whether the loans have been impaired. The Company is exposed to credit risk when the customer defaults on his contractual obligations. For the computation of ECL, the loan receivables are classified into three stages based on the default and the aging outstanding. The Company recognises life time expected credit loss for trade receivables and has adopted simplified method of computation as per Ind AS 109.

Property, plant and equipment and Intangible Assets

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values

as per schedule II of the Companies Act, 2013 or are based on the Company''s historical experience with similar assets and taking into account anticipated technological changes, whichever is more appropriate

(c) Revenue Recognition Revenue from Operations

The Company follows accrual basis of accounting for its income and expenditure except income on assets classified as non-performing assets, which in accordance with the guidelines issued by the Reserve Bank of India for Non-Banking Financial Companies, is recognised on receipt basis. Interest income on loan transactions is accounted for over the period of the contract by applying the interest rate implicit in such contracts.

Other Income

Other income is accounted on accrual basis, except in case of significant uncertainties such as File Cancellation Charges, Collection Charges, Pre-Closure Charges etc.

(d) Financial Instruments

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

1. Financial Assets

Initial recognition, classification and subsequent measurement of Financial Assets

Financial assets are classified into one of the three categories for measurement and income recognition:

- Amortised Cost

- Fair value through other comprehensive income (FVOCI)

- Fair value through profit and loss (FVTPL)

Financial asset is measured at amortised cost, if both the following conditions are met:

a) The financial asset is held within a business model whose objective is to hold the financial assets in order to collect the contractual cash flows; and

b) The contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI).

Financial assets are measured at fair value through OCI if these financial assets are held within a business model with an objective to hold these assets in order to collect contractual cash flows or to sell these 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

Business Model Test & Solely payment of Principal and Interest (SPPI) test

In order to arrive at the appropriate Business Model, the following factors are considered by the Company.

- How the performance of the business model (including the financial assets in that business model) are evaluated and reported to key management personnel within the Company.

- The risks that affect the performance of the business model (and the financial assets in it) and how those risks are managed.

SPPI Test

Contractual Cash Flow Assessment

To determine whether a financial asset is measured at either amortised cost or FVOCI, the Company has considered

whether the cash-flows from the financial asset are solely for the payments of principal and interest (“SPPI”).

The Company has classified its financial assets into the following category:

- Debt instruments at amortised cost

- Equity instruments measured at fair value through other comprehensive income (FVOCI)

De-recognition of Financial Assets

A financial asset is derecognised only when

- The Company has transferred The rights to receive cash flows from The financial asset or

- Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the company has transferred an asset, the company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the company has not retained control of the financial asset. Where the company retains the control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Impairment of financial asset:

I n accordance with Ind AS 109, the Company applies the Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on financial assets and credit risk exposures.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing

impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the group in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss."

Derecognition of financial assets:

A financial asset is primarily derecognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.

2. Financial Liabilities

Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to another entity or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Company.

The Company''s financial liabilities include loans & borrowings, trade and other payables.

Classification, initial recognition and measurement

Financial liabilities are recognised initially at fair value minus transaction costs that are directly attributable to the issue of financial liabilities. Financial liabilities are classified as subsequently measured at amortized cost. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective rate of interest.

Subsequent measurement

After initial recognition, financial liabilities are subsequently measured at amortised cost using the EIR method. In each financial year, the unwinding of discount pertaining to financial liabilities is recorded as finance cost in the statement of profit and loss.

De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. 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 profit or loss as other income or finance cost.

(e) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost less accumulated depreciation and impairement loss, if any thereon. The cost of Property, Plant & Equipment comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Gain or losses arising from de-recognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss when the asset is derecognized as per IND AS 16.

(f) Depreciation / Amortization

Tangible assets are depreciated on straight line basis as per useful life prescribed in Schedule II of the Companies Act, 2013.

Intangible assets are amortized on a straight line basis over a period having regard to their useful economic life and estimated residual value in accordance with Indian Accounting Standard (Ind AS) 38 “Intangible Assets.

(g) Investments :

Non-Current Investments are carried at cost. Provision for diminition in the value of Non-Current Investments is made only if such a decline is other than temporary in the opinion of the management.

Current Investments are carried at cost . The comparison of cost and fair value is done separately in respect of each category of investments.

On disposal of investments the difference between its carrying amounts and net disposal proceeds is charged or credited to the Statement of Profit and Loss. Profit or loss on sale of investments is determined on a Weighted Average Cost basis.

(h) Borrowing costs

As per IND AS 23 Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds and includes exchange differences to the extent regarded as an adjustment to the borrowing costs. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

(i) Employees Retirement Benefits :

As none of the employees has completed the minimum length of services prescribed under the Payment of Gratuity Act, no provision for accrued gratuity is considered necessary.

(j) Provisions, contingent Liabilities & Contingent Assets

As per IND AS 37 Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements. A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation.

(k) Taxation

Income-tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the year).

Deferred Taxation

The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realised.

Minimum Alternate Tax

Minimum Alternate Tax (''MAT'') credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the guidance note issued by Institute of Chartered Accountants of India (''ICAI''), the said asset is created by way of a credit to the statement of profit and loss. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convicing evidence to the effect that Company will pay normal income-tax during the specified period.

(l) Earning per share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of the Company and weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).

(m) Leases

The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arranagement and requires an assessment of whether the fulfillment of the arranagment is dependent on the use of a specific asset or assets or whether the arrangement conveys a right to use the asset.

For arrangements entered into prior to 1 April 2018, the Company has determined whether the arrangement contain lease on the basis of facts and circumstances existing on the date of transition.

Company as lessee:

All leases are accounted for by recongnising a right of use asset and a lease liability except for:

- Leases of Low value assets and

- Leases with a duration of 12 months or less.

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Mar 31, 2024

19.3 Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

19.3.1 Income

(i) Interest income

The Company recognizes interest income using Effective Interest Rate (EIR) on all financial assets subsequently
measured at amortized cost. EIR is calculated by considering all costs and incomes attributable to acquisition of a
financial asset or assumption of a financial liability and it represents a rate that exactly discounts estimated future
cash payments/receipts through the expected life of the financial asset/financial liability to the gross carrying
amount of a financial asset or to the amortized cost of a financial liability. The Company recognizes interest
income by applying the EIR to the gross carrying amount of financial assets. Delayed payment interest (penal
interest) levied on customers for delay in repayments/non-payment of contractual cash flows is recognized on
realization.

(ii) Dividend income

Dividend income on equity shares is recognized when the Company’s right to receive the payment is established,
which is generally when shareholders approve the dividend.

19.3.2 Expenditures

(i) Finance costs Borrowing costs on financial liabilities are recognized using the EIR

(ii) Fees and commission expenses Fees and commission expenses which are not directly linked to the sourcing
of financial assets, such as commission/incentive incurred on value added services and products distribution,
recovery charges and fees payable for management of portfolio etc., are recognized in the Statement of Profit and
Loss on an accrual basis.

(iii) Taxes Expenses are recognized net of the Goods and Services Tax/Service Tax, except where credit for the
input tax is not statutorily permitted.

19.3.3 Cash and cash equivalents Cash and cash equivalents include cash on hand, other short term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value.

19.3.4 Financial instruments A financial instrument is defined as any contract that gives rise to a financial asset
of one entity and a financial liability or equity instrument of another entity. Trade receivables and payables, loan
receivables, investments in securities and subsidiaries, debt securities and other borrowings, preferential and
equity capital etc. are some examples of financial instruments.

All the financial instruments are recognized on the date when the Company becomes party to the contractual
provisions of the financial instruments. For tradable securities, the Company recognizes the financial instruments
on settlement date.

Financial assets:- Financial assets include cash, or an equity instrument of another entity, or a contractual right
to receive cash or another financial asset from another entity. Few examples of financial assets are loan
receivables, investment in equity and debt instruments, trade receivables and cash and cash equivalents.

Initial measurement

All financial assets are recognized initially at fair value including transaction costs that are attributable to the
acquisition of financial assets except in the case of financial assets recorded at FVTPL where the transaction costs
are charged to profit or loss.

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified into these categories:

(a) Debt instruments at amortized cost

(b) Equity instruments at FVTPL

(c) Equity instruments designated at FVOCI

(a) Debt instruments at amortized cost The Company measures its financial assets at amortized cost if both the
following conditions are met:

The asset is held within a business model of collecting contractual cash flows;

Contractual terms of the asset give rise on specified dates to cash flows that are Sole Payments of Principal and
Interest (SPPI) on the principal amount outstanding.

To make the SPPI assessment, the Company applies judgment and considers relevant factors such as the nature of
portfolio and the period for which the interest rate is set.

The Company determines its business model at the level that best reflects how it manages groups of financial
assets to achieve its business objective. The Company’s business model is not assessed on an instrument by
instrument basis, but at a higher level of aggregated portfolios. If cash flows after initial recognition are realized
in a way that is different from the Company’s original expectations, the Company does not change the
classification of the remaining financial assets held in that business model, but incorporates such information
when assessing newly originated financial assets going forward.

The business model of the Company for assets subsequently measured at amortized cost category is to hold and
collect contractual cash flows. However, considering the economic viability of carrying the delinquent portfolios
in the books of the Company, it may sell these portfolios to banks and/or asset reconstruction companies After
initial measurement, such financial assets are subsequently measured at amortized cost on effective interest rate
(EIR).

(b) Equity instruments at FVTPL The Company classifies financial assets which are held for trading under
FVTPL category. Held for trading assets are recorded and measured in the Balance Sheet at fair value. Interest
and dividend incomes are recorded in interest income and dividend income, respectively according to the terms of
the contract, or when the right to receive the same has been established. Gain and losses on changes in fair value
of debt instruments are recognized on net basis through profit or loss.

The Company’s inventory of equity shares have been classified under this category.

(c) Equity investments designated under FVOCI All equity investments in scope of Ind AS 109 ‘Financial
Instruments’ are measured at fair value. The Company has strategic investments in equity for which it has elected
to present subsequent changes in the fair value in other comprehensive income. The classification is made on
initial recognition and is irrevocable.

All fair value changes of the equity instruments, excluding dividends, are recognized in OCI and not available
for reclassification to profit or loss, even on sale of investments. Equity instruments at FVOCI are not subject to
an impairment assessment.

Derecognition of Financial Assets

The Company derecognizes a financial asset (or, where applicable, a part of a financial asset) when:

• The right to receive cash flows from the asset have expired; or

• The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under an assignment arrangement
and the Company has transferred substantially all the risks and rewards of the asset. Once the asset is
derecognized, the Company does not have any continuing involvement in the same.

The Company transfers its financial assets through the partial assignment route and accordingly derecognizes the
transferred portion as it neither has any continuing involvement in the same nor does it retain any control. If the
Company retains the right to service the financial asset for a fee, it recognises either a servicing asset or a
servicing liability for that servicing contract. A service liability in respect of a service is recognized at fair value
if the fee to be received is not expected to compensate the Company adequately for performing the service. If the
fees to be received is expected to be more than adequate compensation for the servicing, a service asset is
recognized for the servicing right at an amount determined on the basis of an allocation of the carrying amount of
the larger financial asset.

• On derecognition of a financial asset in its entirety, the difference between: the carrying amount
(measured at the date of derecognition) and

• the consideration received (including any new asset obtained less any new liability assumed) is
recognized in profit or loss.

Financial liabilities:-

Financial liabilities include liabilities that represent a contractual obligation to deliver cash or another financial
assets to another entity, or a contract that may or will be settled in the entities own equity instruments. Few
examples of financial liabilities are trade payables, debt securities and other borrowings and subordinated debts.
Initial measurement All financial liabilities are recognized initially at fair value and, in the case of borrowings
and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade
payables, other payables, debt securities and other borrowings.

Subsequent measurement

After initial recognition, all financial liabilities are subsequently measured at amortized cost using the EIR .Any
gains or losses arising on derecognition of liabilities are recognized in the Statement of Profit and Loss.

Derecognition

The Company derecognizes a financial liability when the obligation under the liability is discharged, cancelled or
expired.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet only if
there is an enforceable legal right to offset the recognized amounts with an intention to settle on a net basis or to
realize the assets and settle the liabilities simultaneously

19.3.5 Taxes

(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards
(ICDS) prescribed therein. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date. Current tax relating to items recognized outside profit or loss is
recognized in correlation to the underlying transaction either in OCI or directly in other equity. Management
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is provided using the Balance Sheet approach on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized
for deductible temporary differences to the extent that it is probable that taxable profits will be available against
which the deductible temporary differences can be utilized. The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred tax asset to be utilized.

Unrecognized deferred tax assets, if any, are reassessed at each reporting date and are recognized to the extent
that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized either in OCI or in other equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

An assessment is done at each Balance Sheet date to ascertain whether there is any indication that an asset may
be impaired. If any such indication exists, an estimate of the recoverable amount of asset is determined. If the
carrying value of relevant asset is higher than the recoverable amount, the carrying value is written down
accordingly.

(a) Amount of impairment loss recognized in Profit and Loss A/c on loans (Financial assets) - 2023-24: NIL,
2022-23 : NIL

(b) Amount of reversal of impairment loss recognized in Profit and Loss A/c- 2023-24: NIL, 2022-23: NIL

(c) Amount of impairment loss recognized in Other Comprehensive Income - 2023-24: NIL, 2022-23: NIL

(d) Amount of reversal of impairment loss recognized in Other Comprehensive Income- 2023-24: NIL,
2022-23: NIL

(e) The management recognizes 0.25% of the loan amount may not be recovered and accordingly
impairment loss @0.25% of the loan assets on the reporting date is recognized.

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Mar 31, 2014

1.1 Basis of Accounting

The financial Statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India. The Company has prepared the financial statements to comply in all material respect with the Accounting Standards notified under the Companies ( Accounting Standard ) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

The Company follows Mercantile System of Accounting and recognises its Income & Expenditure on accrual basis.

1.2 Fixed Assets

Fixed Assets are stated at cost of acquisition.

1.3 Depreciation

Depreciation on Fixed Assets are provided on written down value basis at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

1.4 Earning Per Share

Basic EPS is calculated by dividing the Net Profit for the year attributable to Equity Shareholders by the weighted number of Equity Shares outstanding during the year.

1.5 Impairment Loss

An impairment loss ,if any, is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount i.e.the higher of the assets''s net selling price and value in use.

1.6 Provision for Current Tax

Provision for Current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rates relevant to the respective ''previous year''.

1.7 Investment

Investments, being long term, have been valued at cost less permanent diminution in value, if any. Diminution in value of investment has been considered as temporary in nature.

1.8 Inventories

Inventories are valued at lower of cost or market price.

1.9 Deffered Tax

Deferred Tax Liabilities is recognised on the basis of timing differences being the difference between taxable income that originate in one period and is capable of reversal in one or more subsequent years. The deferred tax charge is recognized using the enacted tax rate. Deferred Tax Assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.10 Use of Estimate

The preparation of Financial statements in conformity with 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 amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which results are known/ materialised.

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Mar 31, 2013

1.1 Basis of Accounting

The financial Statements of the Company have been prepared in accordance with Generally Accepted Account- ing Principles in India. The Company has prepared the financial statements to comply in all material respect with the Accounting Standards notified under the Companies ( Accounting Standard ) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

The Company follows Mercantile System of Accounting and recognises its Income & Expenditure on accrual basis.

1.2 Fixed Assets

Fixed Assets are stated at cost of acquisition.

1.3 Depreciation

Depreciation on Fixed Assets are provided on written down value basis at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

1.4 Earnings Per Share

Basic EPS is calculated by dividing the Net Profit for the year attributable to Equity Shareholders by the weighted number of Equity Shares outstanding during the year.

1.5 Provision for Current Tax

Provision for Current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rates relevant to the respective ''previous year''.

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Mar 31, 2009

A) Basis of Accounting :

The financial statements have been prepared under the historical cost convention and in accordance with the normally accepted accounting Standards. The Company follows the accrual system of accounting subject to and in consistent with the prudential norms as per NBFCs (RBI) Directions 1998.

b) Revenue Recognition :

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

c) Investments:

Investments being long term in nature are valued at cost subject to provision for permanent diminution in the value of on vestments.

d) Inventories :

Inventories are valued at lower of cost or market price, taken on aggregate basis for each

e) Miscellaneous Expenditure :

Share Issue Expenses are amortised over a period of ten years.

f) Retirement Benefits :

Payment of Gratuity Act is not applicable to the Company as number of employees are less than minimum required for applicability of Gratuity Act.

g) Taxation :

Deferred Tax Assets for current year loss has not been recognised as there is no reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.