Accounting Policies of Sunrise Industrial Traders Ltd. Company

Mar 31, 2026

1. Background Information

Sunrise Industrial Traders Limited is a Limited Company incorporated in India in year 1972 under Companies Act, 1956. The Company is the NBFC registered with RBI. The Company is in the business of Investing Shares, Securities, commodities and bonds & is engaged in the business of shares and securities. The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report for the principal activities of the Company. The standalone financial statements of the Company as on March 31, 2026 were approved and authorised for issue by the Board of Directors on 26^th May, 2026.

2. Statement of Compliance with Ind AS

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") as prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

3. Basis of Preparation of Financial Statement

The financial statements have been prepared on accrual basis under the historical cost convention except for certain financial instruments measured at fair value at the end of each reporting period as explained in accounting policies below. The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lacs, unless otherwise indicated.

4. Use of Estimates

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures including disclosures of contingent assets and contingent liabilities as at the date of financial statements and the reported amounts of revenues and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected. Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of: fair valuation of unquoted equity investments, impairment of financial instruments, impairment of property, plant & equipment, useful lives of property, plant & equipment, provisions and contingent liabilities and long-term retirement benefits.

5. Significant Accounting Policies5.1 Financial Instruments Classification

A Financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity instruments of another entity. Financial assets, other than equity, are classified into, financial assets at fair value through other comprehensive income (FVTOCI) or fair value through profit and loss account (FVTPL) or at amortised cost. Financial assets that are equity instruments are classified as FVTPL or FVTOCI. Financial liabilities are classified as amortised cost category and FVTPL. Business Model assessment and solely payments of principal and interest (SPPI) test: Classification and measurement of financial assets depends on the business model and results of SPPI test. The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence including;

• How the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity''s key management personnel.

• The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed.

• How managers of the business are compensated (for example, whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected).

• The expected frequency, value and timing of sales are also important aspects of the Company''s assessment.

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 or newly purchased financial assets going forward.

Initial Recognition

The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments.

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

Financial assets and financial liabilities, with the exception of loans, debt securities and deposits are recognized on the trade date i.e. when a Company becomes a party to the contractual provisions of the instruments. Loans, debt securities and deposits are recognized when the funds are transferred to the customer''s account. Trade receivables are measured at the transaction price.

Subsequent Measurement Financial Assets at Amortized Cost

Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently these are measured at amortized cost using effective interest method less any impairment losses.

Debt Instruments at FVTOCI

Debt instruments that are measured at FVTOCI have contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on principal outstanding and that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. These instruments largely comprise long-term investments made by the Company.

FVTOCI debt instruments are subsequently measured at fair value with gains and losses arising due to changes in fair value recognized in OCI. Interest income and gains and losses are recognized in profit or loss in the same manner as for financial assets measured at amortized cost.

On derecognition, cumulative gains or losses previously recognized in OCI are reclassified from OCI to profit or loss.

Equity Instruments at FVTOCI

These include financial assets that are equity instruments as defined in Ind AS 32 "Financial Instruments: Presentation" and are not held for trading and where the Company''s management has elected to irrevocably designated the same as Equity instruments at FVTOCI upon initial recognition. Subsequently, these are measured at fair value and changes therein are recognized directly in other comprehensive income, net of applicable income taxes.

Gains and losses on these equity instruments are never recycled to profit or loss.

Dividends from these equity investments are recognized in the statement of profit and loss when the right to receive the payment has been established.

Fair Value through Profit and Loss Account

Financial assets are measured at FVTPL unless it is measured at amortized cost or at FVTOCI on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognized in profit or loss.

Financial Liabilities and Equity Instruments Classification as Debt or Equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Derecognition of Financial Assets and Financial Liabilities

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.

Impairment of Financial Assets

The Company recognizes a loss allowance for expected credit losses on a financial asset that is at amortized cost or fair value through OCI. Loss allowance in respect of financial assets is measured at an amount equal to life time expected credit losses and is calculated as the difference between their carrying amount and the present value of the expected future cash flows discounted at the original effective interest rate.

Reclassification of Financial Assets

The company does not re-classify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances when the company changes its business model for managing such financial assets. The company does not re-classify its financial liabilities.

5.2 Determination of Fair Value

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 of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method and other valuation models.

5.3 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, as they are considered an integral part of the Company''s cash management.

5.4 Property Plant and Equipment and Intangible Assets

Property, plant and equipment and intangible assets are stated at cost of acquisition less accumulated depreciation / amortisation. Cost includes all expenses incidental to the acquisition of the Property, plant and equipment and intangible assets and any attributable cost of bringing the asset to its working condition for its intended use.

5.5 Capital work in progress and Capital Advances

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each Balance Sheet date are disclosed in Other Non-Financial Assets.

5.6 Depreciation and Amortization of Property, Plant and Equipment and Intangible Assets

Depreciation on following tangible fixed assets has been provided on the ''written down value (WDV).

The residual values, useful lives and method of Depreciation of property, plant and equipment are reviewed at each financial year end. Changes in the expected useful life are accounted by changing the amortisation period or methodology, as appropriate, and treated as changes in accounting estimates.

Property plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in other income/expense in the statement of profit and loss in the year the asset is derecognised. The date of disposal of an item of property, plant and equipment is the date the recipient obtains control of that item in accordance with the requirements for determining when a performance obligation is satisfied in Ind AS 115.

5.7 Impairment of Non-Financial Assets

The carrying amounts of the Company''s property, plant & equipment and intangible assets are reviewed at each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset''s

recoverable amounts are estimated in order to determine the extent of impairment loss, if any. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss, if any, is recognised in the statement of profit and loss in the period in which impairment takes place.

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

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, however subject to the increased carrying amount not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods. A reversal of an impairment loss is recognised immediately in profit or loss.

5.8 Employee BenefitsShort Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, performance incentives, etc., are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the employee renders the related service.

5.9 Accounting for Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Where the time value of money is material, provisions are measured on a discounted basis. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

Constructive obligation is an obligation that derives from an entity''s actions where:

• by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities, and

• as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities

Contingent liabilities are not recognized in the financial statements. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

5.10 Income Tax

Income tax expense comprises both current and deferred tax. Current and deferred taxes are recognized in the statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognized in other comprehensive income or directly in equity.

Current income-tax is recognized at the amount expected to be paid to the tax authorities, using the tax rates and tax laws, enacted or substantially enacted as at the balance sheet date.

Taxable profit differs from net profit as reported in the Standalone statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.

Deferred income tax assets and liabilities are recognized for temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements and is accounted for using the balance sheet liability method.

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

Deferred tax assets and liabilities are measured using tax rates and laws, enacted or substantially enacted as of the

balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as an income or expense in the period that includes the enactment or substantive enactment date. Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and they are in the same taxable entity, or a Group of taxable entities where the tax losses of one entity are used to offset the taxable profits of another and there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.

5.11 Recognition of Dividend and Interest Income

Dividend income (including from FVTOCI investments) is recognized when the Company''s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably. This is generally when the shareholders or Board of Directors approve the dividend.

5.12 Dividends on Ordinary Shares

The Company recognizes a liability to make cash or non-cash distributions to equity holders of the parent when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognized directly in equity.

Non-cash distributions are measured at the fair value of the assets to be distributed with fair value remeasurement recognized directly in equity. Upon distribution of non-cash assets, any difference between the carrying amount of the liability and the carrying amount of the assets distributed is recognized in the statement of profit and loss.

5.13 Segment Reporting

The Company is primarily engaged in the business of investment in Companies including group companies & engage of shares and securities. As such the Company''s financial statements are largely reflective of the investment business and there is no separate reportable segment.

Pursuant to Ind AS 108 - Operating Segments, no segment disclosure has been made in these financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

5.14 Onerous Contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract.

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Mar 31, 2025

5. Significant Accounting Policies

5.1 Financial Instruments
Classification

A Financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity
instruments of another entity. Financial assets, other than equity, are classified into, financial assets at fair value
through other comprehensive income (FVTOCI) or fair value through profit and loss account (FVTPL) or at amortised
cost. Financial assets that are equity instruments are classified as FVTPL or FVTOCI. Financial liabilities are classified as
amortised cost category and FVTPL. Business Model assessment and solely payments of principal and interest (SPPI)
test: Classification and measurement of financial assets depends on the business model and results of SPPI test. The
Company determines the business model at a level that reflects how groups of financial assets are managed together
to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence
including;

• How the performance of the business model and the financial assets held within that business model are evaluated
and reported to the entity''s key management personnel.

• The risks that affect the performance of the business model (and the financial assets held within that business
model) and, in particular, the way those risks are managed.

• How managers of the business are compensated (for example, whether the compensation is based on the fair
value of the assets managed or on the contractual cash flows collected).

• The expected frequency, value and timing of sales are also important aspects of the Company''s assessment.

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 or newly purchased financial assets going forward.

Initial Recognition

The classification of financial instruments at initial recognition depends on their contractual terms and the business
model for managing the instruments.

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

Financial assets and financial liabilities, with the exception of loans, debt securities and deposits are recognized on the
trade date i.e. when a Company becomes a party to the contractual provisions of the instruments. Loans, debt
securities and deposits are recognized when the funds are transferred to the customer''s account. Trade receivables
are measured at the transaction price.

Subsequent Measurement
Financial Assets at Amortized Cost

Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal outstanding and that are held within a business model whose objective is to
hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently these are
measured at amortized cost using effective interest method less any impairment losses.

Debt Instruments at FVTOCI

Debt instruments that are measured at FVTOCI have contractual terms that give rise on specified dates to cash flows
that are solely payments of principal and interest on principal outstanding and that are held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial assets. These instruments
largely comprise long-term investments made by the Company.

FVTOCI debt instruments are subsequently measured at fair value with gains and losses arising due to changes in fair
value recognized in OCI. Interest income and gains and losses are recognized in profit or loss in the same manner as
for financial assets measured at amortized cost.

On derecognition, cumulative gains or losses previously recognized in OCI are reclassified from OCI to profit or loss.

Equity Instruments at FVTOCI

These include financial assets that are equity instruments as defined in Ind AS 32 "Financial Instruments: Presentation"
and are not held for trading and where the Company''s management has elected to irrevocably designated the same
as Equity instruments at FVTOCI upon initial recognition. Subsequently, these are measured at fair value and changes
therein are recognized directly in other comprehensive income, net of applicable income taxes.

Gains and losses on these equity instruments are never recycled to profit or loss.

Dividends from these equity investments are recognized in the statement of profit and loss when the right to receive
the payment has been established.

Fair Value through Profit and Loss Account

Financial assets are measured at FVTPL unless it is measured at amortized cost or at FVTOCI on initial recognition. The
transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are
immediately recognized in profit or loss.

Financial Liabilities and Equity Instruments
Classification as Debt or Equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Derecognition of Financial Assets and Financial Liabilities

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires
or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.

Impairment of Financial Assets

The Company recognizes a loss allowance for expected credit losses on a financial asset that is at amortized cost or
fair value through OCI. Loss allowance in respect of financial assets is measured at an amount equal to life time
expected credit losses and is calculated as the difference between their carrying amount and the present value of the
expected future cash flows discounted at the original effective interest rate.

Reclassification of Financial Assets

The company does not re-classify its financial assets subsequent to their initial recognition, apart from the exceptional
circumstances when the company changes its business model for managing such financial assets. The company does
not re-classify its financial liabilities.

5.2 Determination of Fair Value

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 of a financial instrument on initial recognition is normally the transaction price (fair value of the
consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial
instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices
(financial liabilities held) and using valuation techniques for other instruments. Valuation techniques include
discounted cash flow method and other valuation models.

5.3 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, that are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above, as they are considered an integral part of the Company''s cash management.

5.4 Property Plant and Equipment and Intangible Assets

Property, plant and equipment and intangible assets are stated at cost of acquisition less accumulated depreciation /
amortisation. Cost includes all expenses incidental to the acquisition of the Property, plant and equipment and
intangible assets and any attributable cost of bringing the asset to its working condition for its intended use.

5.5 Capital work in progress and Capital Advances

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances
given towards acquisition of property, plant and equipment outstanding at each Balance Sheet date are disclosed in
Other Non-Financial Assets.

5.6 Depreciation and Amortization of Property, Plant and Equipment and Intangible Assets

Depreciation on following tangible fixed assets has been provided on the ''written down value (WDV).

The residual values, useful lives and method of Depreciation of property, plant and equipment are reviewed at each
financial year end. Changes in the expected useful life are accounted by changing the amortisation period or
methodology, as appropriate, and treated as changes in accounting estimates.

Property plant and equipment is derecognised on disposal or when no future economic benefits are expected from its
use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is recognised in other income/expense in the statement of profit and
loss in the year the asset is derecognised. The date of disposal of an item of property, plant and equipment is the date
the recipient obtains control of that item in accordance with the requirements for determining when a performance
obligation is satisfied in Ind AS 115.

5.7 Impairment of Non-Financial Assets

The carrying amounts of the Company''s property, plant & equipment and intangible assets are reviewed at each
reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset''s

recoverable amounts are estimated in order to determine the extent of impairment loss, if any. An impairment loss is
recognised whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss, if any, is
recognised in the statement of profit and loss in the period in which impairment takes place.

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

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate
of its recoverable amount, however subject to the increased carrying amount not exceeding the carrying amount that
would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the
asset in prior accounting periods. A reversal of an impairment loss is recognised immediately in profit or loss.

5.8 Employee Benefits
Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, performance incentives, etc., are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss for the year in which the employee renders the related
service.

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Mar 31, 2024

5. Significant Accounting Policies

5.1 Financial Instruments
Classification

A Financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or
equity instruments of another entity. Financial assets, other than equity, are classified into, financial assets
at fair value through other comprehensive income (FVTOCI) or fair value through profit and loss account
(FVTPL) or at amortised cost. Financial assets that are equity instruments are classified as FVTPL or FVTOCI.
Financial liabilities are classified as amortised cost category and FVTPL. Business Model assessment and
solely payments of principal and interest (SPPI) test: Classification and measurement of financial assets
depends on the business model and results of SPPI test. The Company determines the business model at a
level that reflects how groups of financial assets are managed together to achieve a particular business
objective. This assessment includes judgement reflecting all relevant evidence including;

• How the performance of the business model and the financial assets held within that business model are
evaluated and reported to the entity''s key management personnel.

• The risks that affect the performance of the business model (and the financial assets held within that
business model) and, in particular, the way those risks are managed.

• How managers of the business are compensated (for example, whether the compensation is based on
the fair value of the assets managed or on the contractual cash flows collected).

• The expected frequency, value and timing of sales are also important aspects of the Company''s
assessment.

If cash flows after initial recognition are realised 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 or newly purchased
financial assets going forward.

Initial Recognition

The classification of financial instruments at initial recognition depends on their contractual terms and the
business model for managing the instruments.

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

Financial assets and financial liabilities, with the exception of loans, debt securities and deposits are
recognised on the trade date i.e. when a Company becomes a party to the contractual provisions of the
instruments. Loans, debt securities and deposits are recognised when the funds are transferred to the
customer''s account. Trade receivables are measured at the transaction price.

Subsequent measurement
Financial Assets at Amortised Cost

Financial assets having contractual terms that give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal outstanding and that are held within a business model
whose objective is to hold such assets in order to collect such contractual cash flows are classified in this
category. Subsequently these are measured at amortised cost using effective interest method less any
impairment losses.

Debt Instruments at FVTOCI

Debt instruments that are measured at FVTOCI have contractual terms that give rise on specified dates to
cash flows that are solely payments of principal and interest on principal outstanding and that are held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets. These instruments largely comprise long-term investments made by the Company.

FVTOCI debt instruments are subsequently measured at fair value with gains and losses arising due to
changes in fair value recognised in OCI. Interest income and gains and losses are recognised in profit or loss
in the same manner as for financial assets measured at amortised cost.

On derecognition, cumulative gains or losses previously recognised in OCI are reclassified from OCI to profit
or loss.

Equity Instruments at FVTOCI

These include financial assets that are equity instruments as defined in Ind AS 32 "Financial Instruments:
Presentation" and are not held for trading and where the Company''s management has elected to irrevocably
designated the same as Equity instruments at FVTOCI upon initial recognition. Subsequently, these are
measured at fair value and changes therein are recognised directly in other comprehensive income, net of
applicable income taxes.

Gains and losses on these equity instruments are never recycled to profit or loss.

Dividends from these equity investments are recognised in the statement of profit and loss when the right to
receive the payment has been established.

Fair Value through Profit and Loss Account

Financial assets are measured at FVTPL unless it is measured at amortised cost or at FVTOCI on initial
recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value
through profit or loss are immediately recognised in profit or loss.

Financial Liabilities and Equity Instruments
Classification as Debt or Equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance
of the contractual arrangements entered into and the definitions of a financial liability and an equity
instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue
costs.

Derecognition of Financial Assets and Financial Liabilities

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the
asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity.

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
Impairment of Financial Assets

The Company recognizes a loss allowance for expected credit losses on a financial asset that is at amortized
cost or fair value through OCI. Loss allowance in respect of financial assets is measured at an amount equal
to life time expected credit losses and is calculated as the difference between their carrying amount and the
present value of the expected future cash flows discounted at the original effective interest rate.

Reclassification of Financial Assets

The company does not re-classify its financial assets subsequent to their initial recognition, apart from the
exceptional circumstances when the company changes its business model for managing such financial assets.
The company does not re-classify its financial liabilities.

5.2 Determination of Fair Value

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 of a financial instrument on initial recognition is normally the transaction price (fair value of
the consideration given or received). Subsequent to initial recognition, the Company determines the fair
value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets
held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments.
Valuation techniques include discounted cash flow method and other valuation models.

5.3 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term
deposits, as defined above, as they are considered an integral part of the Company''s cash management.

5.4 Property Plant and Equipment and Intangible Assets

Property, plant and equipment and intangible assets are stated at cost of acquisition less accumulated
depreciation / amortisation. Cost includes all expenses incidental to the acquisition of the Property, plant
and equipment and intangible assets and any attributable cost of bringing the asset to its working condition
for its intended use.

5.5 Capital work in progress and Capital Advances

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress.
Advances given towards acquisition of property, plant and equipment outstanding at each Balance Sheet
date are disclosed in Other Non-Financial Assets.

5.6 Depreciation and Amortisation of Property, Plant and Equipment and Intangible Assets

Depreciation on following tangible fixed assets has been provided on the ''written down value (WDV).

The residual values, useful lives and method of Depreciation of property, plant and equipment are reviewed
at each financial year end. Changes in the expected useful life are accounted by changing the amortisation
period or methodology, as appropriate, and treated as changes in accounting estimates.

Property plant and equipment is derecognised on disposal or when no future economic benefits are
expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is recognised in other
income/expense in the statement of profit and loss in the year the asset is derecognised. The date of
disposal of an item of property, plant and equipment is the date the recipient obtains control of that item in
accordance with the requirements for determining when a performance obligation is satisfied in Ind AS 115.

5.7 Impairment of Non-Financial Assets

The carrying amounts of the Company''s property, plant & equipment and intangible assets are reviewed at
each reporting period to determine whether there is any indication of impairment. If any such indication
exists, the asset''s recoverable amounts are estimated in order to determine the extent of impairment loss, if
any. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable
amount. The impairment loss, if any, is recognised in the statement of profit and loss in the period in which
impairment takes place.

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

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, however subject to the increased carrying amount not
exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had
no impairment loss been recognised for the asset in prior accounting periods. A reversal of an impairment
loss is recognised immediately in profit or loss.

5.8 Employee Benefits

Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries, performance incentives, etc., are recognised as an
expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the employee
renders the related service.

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Mar 31, 2015

I) The Company adopts the accruals concept in the preparation of accounts.

ii) Fixed Assets are valued at cost less accumulated depreciation on written down value method. The Company has adopted the depreciation as per provisions specified in Part C of Schedule II of Companies Act,2013.

iii) Investments and Stock in Shares are valued at cost.

iv) Dividends are accounted for as and when received and Interest is accounted on accrual basis.

v) The Company is not liable to Gratuity according to management.

vi) Market Value of Quoted Shares & Securities held as Stock in trade on 31-03-2015 was Rs.44,91,87,086.60 (Previous year Rs.40,29,96,844.90)

vii) Figures are re-arranged and/ or re-grouped wherever necessary

viii) Holding of Shares as Investments & Stock In Trade as shown in Notes 5 & 7 to accounts includes the shares lent by the company under SLBM and remains lent as on 31st March,2015 Bhel Ltd -6750 shares & Bhel Ltd - 1000 shares. Open outstanding sale position of 8500 shares of HDFC Bank Ltd in FNO segment remains to be settled.

ix) Taxation:

Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year after taking credit of MAT.

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Mar 31, 2013

I) The Company adopts the accruals concept in the preparation of accounts.

ii) Fixed Assets are valued at cost less accumulated depreciation on written down value method. Rates of depreciation are calculated as per Section 205 (2) (a) of the Companies Act, 1956 as specified in Schedule XIV of the said Act.

iii) Investments and Stock in Shares are valued at cost.

iv) Dividends are accounted for as and when received and Interest is accounted on accrual basis.

v) The Company is not liable to Gratuity according to management.

vi) Market Value of Quoted Shares & Securities held as Stock in trade on 31.03.2013 was Rs. 35,47,43,835.80 (Previous year Rs.30,63,47,491.38)

vii) Figures are re.arranged and/ or re.grouped wherever necessary

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Mar 31, 2012

I) The Company adopts the accruals concept in the preparation of accounts.

ii) Fixed Assets are valued at cost less accumulated depreciation on written down value method. Rates of depreciation are calculated as per Section 205 (2) (a) of the Companies Act, 1956 as specified in Schedule XIV of the said Act.

iii) Investments and Stock in Shares are valued at cost.

iv) Dividends are accounted for as and when received and Interest is accounted on accrual basis.

v) The Company is not liable to Gratuity according to management.

vi) Market Value of Quoted Shares & Securities held as Stock in trade on 31-03-2012 was Rs. 30,63,47,491.38

vii) Figures are re-arranged and/ or re-grouped wherever necessary

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Mar 31, 2011

I) The Company adopts the accruals concept in the preparation of accounts.

ii) Fixed Assets are valued at cost less accumulated depreciation on written down value method. Rates of depreciation are calculated as per Section 205 (2) (a) of the Companies Act, 1956 as specified in Schedule XIV of the said Act.

iii) Investments and Stock in Shares are valued at cost.

iv) Dividends and Interest are accounted on cash basis.

v) The Company is not liable to Gratuity according to management.

vi) Market Value of Quoted Shares held as Stock in trade on 31-03-2011 was Rs. 8,60,37,813.50

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Mar 31, 2010

I) The Company adopts the accruals concept in the preparation of accounts.

ii) Fixed Assets are valued at cost less accumulated depreciation on written down value method. Rates of depreciation are calculated as per Section 205 (2) (a) of the Companies Act, 1956 as specified in Schedule XIV of the said Act.

iii) Investments and Stock in Shares are valued at cost.

iv) Dividends and Interest are accounted on cash basis.

v) The Company is not liable to Gratuity according to management.

vi) Market Value of Quoted Shares held as Stock in trade on 31-03-2010 was Rs. 7,45,42,256/-.