BFL Asset Finvest Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

1) Corporate information

BFL Asset Finvest Limited (''the Company'', ''BFL'') is a company limited by shares, incorporated on August 31, 1995 and domiciled in India. The Company has its registered office at 1, Tara Nagar, Ajmer Road, Jaipur-302006 (Rajasthan). The Company is dealing in shares, securities, futures and options.

The Company is registered with the Reserve Bank of India (RBI) as a Non deposit taking Non-Banking Financial Company ("NBFC") as defined under section 45-IA of the Reserve Bank of India (RBI) Act, 1934. The Company is classified under "Base Layer" pursuant to Master Direction- Reserve Bank of India (Non-Banking Financial Company- Scale Based Regulation) Directions, 2023.

The audited financial statements were subject to review and recommendation of Audit Committee and approval of Board of Directors. On May 07, 2025, Board of Directors of the Company approved and recommended the audited financial statements for consideration and adoption by the shareholders in its Annual General Meeting.

2) Basis of preparation

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under Section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act and the Master Direction - Reserve Bank of India (Non-Banking Financial Company- Scale Based Regulation) Directions, 2023 updated from time to time. The Company uses accrual basis of accounting except in case of significant uncertainties.

The financial statements are prepared on a going concern basis, as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

Company is involved in the business of investing Shares, Securities, Futures and Options for its own account and as such has no customer base/interface at all; therefore, there is no impact of following notifications issued by Reserve Bank of India (RBI): -

(i) Notification RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021- 22 dated 5 May 2021 read with Notification No. RBI/2020-21/16 DOR.No.BP.BC/3/21.04.048/2020 -21 dated 6 August 2020.

(ii) Restructured Accounts as per Appendix III-D of Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 (updated from time to time).

(iii) Disclosure pursuant to Master Direction - Reserve Bank of India (Transfer of Loan exposure) Directions, 2021 issued by the Reserve Bank of India vide their notification no. RBI Notification no. RBI/DOR/2021-22/86 DOR.STR.REC.51/ 21.04.048/2021-22 dated 24 September 24, 2021.

(iv) Disclosure pursuant to Reserve Bank of India notification RBI/2019-20/170 DOR(NBFC).CC.PD.NO.109/22.10.106/2019-20 dated March 13, 2020 pertaining to asset classification as per RBI Norms.

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.

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 or fair value through other comprehensive income (FVOCI). EIR is calculated by considering all costs and incomes attributable to acquisition of a financial asset or an 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.

(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.

(iii) Other revenue from operations

Revenue (other than for those items to which Ind AS 109 - Financial Instruments are applicable) is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation.

(iv) Recoveries of financial assets written off

The Company recognizes income on recoveries of financial assets written off on realization or when the right to receive the same without any uncertainties of recovery is established.

(v) Taxes

Incomes are recognized net of the Goods and Services Tax/Service Tax, wherever applicable

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.

3.3) Cash and cash equivalents

Cash and cash equivalents include cash on hand; 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.

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.

(i) 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 inequity and debt instruments, and cash and cash equivalents.

a. Initial Measurement

All financial assets are recognized initially at fair value including transaction costs that are attributable to the acquisition of financial assets. Generally, the transaction price is treated as fair value unless proved to the contrary. However, trade receivable that do not contain a significant financing component are measured at transaction price.

b. Subsequent Measurement

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 OCI. 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.

De-recognition 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 has 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.

Impairment of Financial Assets

The Company records allowance for expected credit losses for all loans, other debt financial assets not held at fair value through P & L, together with financial guarantee contracts. Equity instruments are not subject to impairment under Ind AS 109.

The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months'' expected credit loss.

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 the portion of Lifetime ECL that represents the ECLs that result from default events on a financial instrument that are possible within the 12 months after the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments.

The Company has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument''s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. The Company does the assessment of significant increase in credit risk at a borrower level. If a borrower has various facilities having different past due status, then the highest days past due (DPD) is considered to be applicable for all the facilities of that borrower.

Based on the above, the Company categorizes its loans into Stage 1, Stage 2 and Stage 3 as described below:

Stage 1

All exposures where there has not been a significant increase in credit risk since initial recognition or that has low credit risk at the reporting date and that are not credit impaired upon origination are classified under this stage. The Company classifies all standard advances and advances up to 30 days'' default under this category. Stage 1 loans also include facilities where the credit risk has improved and the loan has been reclassified from Stage 2.

Stage 2

All exposures where there has been a significant increase in credit risk since initial recognition but is not credit impaired are classified under this stage. 30 Days Past Due is considered as significant increase in credit risk.

Stage 3

All exposures assessed as credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of that asset have occurred are classified in this stage. For exposures that have become credit impaired, a lifetime ECL is recognized and interest revenue is calculated by applying the effective interest rate to the amortized cost (net of provision) rather than the gross carrying amount. 90 Days Past Due is considered as default for classifying financial instrument as credit impaired. If an event (for e.g. any natural calamity) warrants a provision higher than as mandated under ECL methodology, the Company may classify the financial asset in Stage 3 accordingly.

(ii) Financial liabilities

A Financial liability includes liabilities that represent a contractual obligation to deliver cash or another financial asset 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 de-recognition of liabilities are recognized in the Statement of Profit and Loss.

3.5) Taxes 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.

3.6) Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and are liable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. The Company also discloses present obligations for which a reliable estimate cannot be made. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

3.7) Foreign currency translation

No Foreign currency transaction during the relevant financial year.

3.8) Segment Reporting

The Company operates in a single reporting segment i.e. financing. Since, it does not meet the quantitative thresholds laid down under the Ind AS 108 - Operating Segments for reportable segments, it has not been considered for segment reporting.

3.9) Title deeds of Immovable Properties not held in name of the Company

The Company does not possess any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee) whose title deeds are not held in the name of the Company in the financial statements of financial year ended March 31, 2025.

3.10) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31, 2025 and March 31, 2024.

3.11) Details of Benami Property Held

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under in the financial years ended March 31, 2025 and March 31, 2024.

3.12) Willful Defaulter

The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in the financial years ended March 31, 2025 and March 31, 2024.

3.13) Relationship with Struck off Companies

The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

3.14) Registration of Charges or Satisfaction with Registrar of Companies (ROC)

There are no charges or satisfactions which are yet to be registered with Registrar of Companies beyond the statutory period.

3.15) Compliance with number of Layers of Companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2025 and March 31, 2024.

3.16) Compliance with approved Scheme(s) of Arrangements

No scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

3.17) Utilization of Borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has also not received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons

or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

3.18) Investment Property

The company does not hold any investment property.

3.19) Undisclosed income

There are no transactions not recorded in the books of accounts.

3.20) CSR Expenses

The provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company.

3.21) Previous year Comparatives

Previous year''s figures have been regrouped/reclassified wherever necessary, to conform to current year''s classification.

---

Mar 31, 2024

4) 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.

4.1) Income

(i) Interest income

The Company recognizes interest income using Effective Interest Rate (EIR) on all financial assets
subsequently measured at amortized cost or fair value through other comprehensive income (FVOCI).
EIR is calculated by considering all costs and incomes attributable to acquisition of a financial asset or
an 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.

(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.

(iii) Other revenue from operations

Revenue (other than for those items to which Ind AS 109 - Financial Instruments are applicable) is
measured at the amount of transaction price (net of variable consideration) allocated to that
performance obligation.

(iv) Recoveries of financial assets written off

The Company recognizes income on recoveries of financial assets written off on realization or when the
right to receive the same without any uncertainties of recovery is established.

(v) Taxes

Incomes are recognized net of the Goods and Services Tax/Service Tax, wherever applicable

4.2) 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.

4.3 ) Cash and cash equivalents

Cash and cash equivalents include cash on hand; 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.

4.4 ) 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.

(i) 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 inequity and debt instruments, and cash
and cash equivalents.

a. Initial Measurement

All financial assets are recognized initially at fair value including transaction costs that are
attributable to the acquisition of financial assets. Generally, the transaction price is treated as

fair value unless proved to the contrary. However, trade receivable that do not contain a
significant financing component are measured at transaction price.

b. Subsequent Measurement

Equity investments designated under FVOCI

All equity investments are 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 OCI. 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.

De-recognition 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 has 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.

Impairment of Financial Assets

The Company records allowance for expected credit losses for all loans, other debt financial assets not
held at fair value through P & L, together with financial guarantee contracts. Equity instruments are not
subject to impairment under Ind AS 109.

The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime
expected credit loss), unless there has been no significant increase in credit risk since origination, in
which case, the allowance is based on the 12 months'' expected credit loss.

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 the portion of Lifetime ECL that represents the ECLs
that result from default events on a financial instrument that are possible within the 12 months after
the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis or a collective basis,
depending on the nature of the underlying portfolio of financial instruments.

The Company has established a policy to perform an assessment, at the end of each reporting period,
of whether a financial instrument''s credit risk has increased significantly since initial recognition, by
considering the change in the risk of default occurring over the remaining life of the financial instrument.
The Company does the assessment of significant increase in credit risk at a borrower level. If a borrower

has various facilities having different past due status, then the highest days past due (DPD) is considered
to be applicable for all the facilities of that borrower.

Based on the above, the Company categorizes its loans into Stage 1, Stage 2 and Stage 3 as described
below:

Stage 1

All exposures where there has not been a significant increase in credit risk since initial recognition or
that has low credit risk at the reporting date and that are not credit impaired upon origination are
classified under this stage. The Company classifies all standard advances and advances up to 30 days''
default under this category. Stage 1 loans also include facilities where the credit risk has improved and
the loan has been reclassified from Stage 2.

Stage 2

All exposures where there has been a significant increase in credit risk since initial recognition but is not
credit impaired are classified under this stage. 30 Days Past Due is considered as significant increase in
credit risk.

Stage 3

All exposures assessed as credit impaired when one or more events that have a detrimental impact on
the estimated future cash flows of that asset have occurred are classified in this stage. For exposures
that have become credit impaired, a lifetime ECL is recognized and interest revenue is calculated by
applying the effective interest rate to the amortized cost (net of provision) rather than the gross carrying
amount. 90 Days Past Due is considered as default for classifying financial instrument as credit impaired.
If an event (for e.g. any natural calamity) warrants a provision higher than as mandated under ECL
methodology, the Company may classify the financial asset in Stage 3 accordingly.

(ii) Financial liabilities

A Financial liability includes liabilities that represent a contractual obligation to deliver cash or another
financial asset 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 de-recognition of liabilities are recognized in the Statement of Profit
and Loss.

4.5 ) Taxes
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 under
lying 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.

---

Mar 31, 2019

(1) SYSTEM OF ACCOUNTING

a. The accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. All expenditure and income to the extent considered payable and receivable respectively are accounted for on accrual basis except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted for on cash basis.

d. Transactions in futures & options and currency segments have been accounted for on ‘net for the day’ basis.

(2) USE OF ESTIMATES

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

(3) FIXED ASSETS

The only fixed asset is Building which has been stated at cost.

(4) DEPRECIATION

No depreciation has been provided for on Company’s building.

(5) VALUATION OF INVENTORIES

Inventories of shares have been valued at lesser of cost ascertained following first-in-first-out method and the respective market values of individual shares.

Exposure in futures and options has been valued at market value.

(6) INVESTMENTS

Investments are stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long-term nature of such investments and existence of adequate underlying assets.

Market value of quoted shares has been separately disclosed in the relevant note.

Dividend and capital gain from sale of shares held as investments have been disclosed separately in the relevant note.

---

Mar 31, 2018

(1) SYSTEM OF ACCOUNTING

a. The accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. All expenditure and income lo the extent considered payable and receivable respectively are accounted for on accrual basis except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted for on cash basis.

d. Transactions in futures & options and currency segments have been accounted for on ‘net for the day’ basis.

(2) USE OF ESTIMATES

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

(3) FIXED ASSETS

The only fixed asset is Building which has been stated at cost.

(4) DEPRECIATION

No depreciation has been provided for on Company''s building.

(5) VALUATION OF INVENTORIES

Inventories of shares have been valued at lesser of cost ascertained following first-in-first-out method and the respective market values of individual shares.

Exposure in futures and options has been valued at market value.

(6) INVESTMENTS

Investments are stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long-term nature of such investments and existence of adequate underlying assets.

Market value of quoted shares has been separately disclosed in the relevant note.

Dividend and capital gain from sale of shares held as investments have been disclosed separately in the relevant note.

---

Mar 31, 2015

(1) SYSTEM OF ACCOUNTING

a. The accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. All expenditure and income to the extent considered payable and receivable respectively are accounted for on accrual basis except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted for on cash basis.

d. Transactions in futures & options and currency segments have been accounted for on 'net for the day' basis.

(2) USE OF ESTIMATES

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

(3) FIXED ASSETS

The only fixed asset is Building which has been stated at cost.

(4) DEPRECIATION

No depreciation has been provided for on Company's building.

(5) VALUATION OF INVENTORIES

Inventories of shares have been valued at lesser of cost ascertained following first-in-first-out method and the respective market values of individual shares. Exposure in futures and options has been valued at market value.

(6) INVESTMENTS:

Investments are 'stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long-term nature of such investments and existence of adequate underlying assets.

Market value of quoted shares has been separately disclosed in the relevant note.

Dividend and capital gain from sale of shares held as investments have been disclosed separately in the relevant note.

---

Mar 31, 2014

(1.) SYSTEM OF ACCOUNTING

a. The accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. All expenditure and Income to the extent considered payable and receivable respectively are accounted for on accrual basis except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted for on cash basis.

d. Transactions in futures & options and currency segments have been accounted for on 'net for the day' basis.

(2.) FIXED ASSETS

The only fixed asset is Building which has been stated at cost.

(3.) DEPRECIATION

No depreciation has been provided for on Company's building.

(4.) VALUATION OF INVENTORIES AND INVESTMENTS:

a. Inventories are stated at cost or market value whichever is less. FIFO method has been adopted for identifying a security in company's stock in depository account.

b. Exposure in futures and options has been valued at market value.

c. Investments are stated at cost. No provision in diminution in value of investments in unlisted equities has been considered necessary in view of their long-term nature. The market value of quoted shares, however, have been separately disclosed elsewhere.

---

Mar 31, 2013

(1) SYSTEM OF ACCOUNTING

a. The accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. At expenditure and income to the extend considered payable and receivable respectively are accounted for on accrual Dais except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted tor on cash basis.

d. Transactions in Mores & options and currency segments have been accounted for on 'net for the day' basis. ,

(2) FIXED ASSETS

The only fixed asset is Building which has been stated at cost.

(3) DEPRECIATION

No depreciation has been provided for on Company's building.

(4) VALUATION OF INVENTORIES AND INVESTMENTS;

a. Inventories are stated at cost or market value whichever is less. FIFO method has been adopted for identifying a security in company's stock.

b. Exposure in futures and options has been valued at market value.

c. Investments are slated at cost. No provision in diminution in value of investments has been considered necessary in view to their long-term nature. the market value of quoted shares, however, have been separately disclosed elsewhere.

(5) DEFERRED TAX ASSET:

Deferred tax asset has been created 'his year in respect of carried forward MAT and the business loss excluding loss under capital gains huge industrial general rate of 30.9%. Its brought forward balance would have been Rs. 20,905/- if it were created in the preceding year also.

---

Mar 31, 2012

(1) SYSTEM OF ACCOUNTING

a. The accounts are prepared on the historical cost basis and on the accounting principles ot a going concern.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

c. All expenditure and income to the extent considered payable and receivable respectively are accounted for on accrual basis except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted for on cash basis.

d. Transactions in futures & options and currency segments have been accounted for on 'net for the day' basis.

(2) FIXED ASSETS

The only fixed asset is Building which has been stated at cost.

(3) DEPRECIATION

No depreciation has been provided for on Company's building.

(4) VALUATION OF INVENTORIES AND INVESTMENTS:

a. Inventories are stated at cost or market value whichever is less. FIFO method has been adopted for identifying a security in company's stock.

b. Exposure in futures and options has been valued at market value.

c. Investments are stated at cost. No provision in diminution in value of investments has been considered necessary in view of their long-term nature. The market value of quoted shares, however, have been separately disclosed elsewhere.

---

Mar 31, 2011

1) SYSTEM OF ACCOUNTING

The accounts are prepared on the historical cost basis and on the accounting principles of a going concern Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

A) All expenditure and income to the extent considered payable and receivable respectively are accounted for on accrual basis except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted for on cash basis.

B) Transactions in futures & options and currency segments have been accounted for on 'net for the day' basis

2) FIXED ASSETS

The only fixed asset is Building which has been stated at cost.

3). DEPRECIATION

No depreciation has been provided for on Company's building.

4). VALUATION OF INVENTORIES AND INVESTMENTS:

Inventories are stated at cost or market value whichever is less FIFO method has been adopted for identifying a security in company's stock

Exposure in futures and options has been valued at market value.

Investments are stated at cost. No provision in diminution in value of investments has been considered necessary in view of their long-term nature. The market value of quoted shares, however, have been separately disclosed elsewhere.