Oseaspre Consultants Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

1.    GENERAL INFORMATION ABOUT THE COMPANY

Oseaspre Consultants Limited (the Company) was incorporated on June 28, 1982. It is engaged in the business of provision of technical know-how or rendering of services in connection with the provision of technical know-how and to provide services in areas of accountancy and secretarial, etc. The Company is a public company limited by shares, incorporated and domiciled in India and is listed on the Bombay Stock Exchange (BSE). The Company’s registered office is at Neville House, J.N. Heredia Marg, Ballard Estate, Mumbai - 400 001.

2.    MATERIAL ACCOUNTING POLICIES

(a)    Statement of compliance

These Financial Statements have been prepared in accordance with the Indian Accounting Standards (‘Ind AS’) prescribed under section 133 of the Companies Act, 2013 ('Act') read with Companies (Indian Accounting Standards) Rules,2015 as amended and other relevant provisions of the Act. The accounting policies are applied consistently to all the years presented in the financial statements. The financial statements have been prepared on accrual and going concern basis.

(b)    Basis of Preparation and Presentation

The financial statements are presented in Indian Rupee ('INR' / 'Rs.'), which is the functional currency of the Company. All financial information has been rounded to the nearest lakhs with 2 decimal places, unless otherwise indicated.

All assets and liabilities have been classified as Current and Non-Current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of services rendered and the time between the rendering of the services and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle as twelve months for the purpose of Current and Non-Current classification of assets and liabilities.

The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, Level 2 or Level 3 based on the degree to which the inputs to the fair value

measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

•    Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

•    Level 3 inputs are for the asset or liability that are not based on observable market data (unobservable inputs).

(c)    Use of estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, the disclosures including disclosures of contingent liabilities as at the date of the financial statements and income and expenses. Actual results may differ from these estimates. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.

(d)    Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

(e)    Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any.

Cost includes purchase price, taxes and duties and other direct costs incurred for bringing the asset to the condition of its intended use. Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance costs are recognized in statement of profit and loss as incurred. Borrowing costs attributable to the acquisition or construction of a qualifying asset is also capitalised as part of the cost of the asset.

The Company had elected to measure all its property, plant and equipment at the previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e. April 01, 2016. The Company does not have any property, plant and equipment.

(f)    Depreciation

Depreciation on property, plant and equipment, is provided on the straight-line method, prorata to the period of use, over their useful life. The estimated useful lives and residual values are as prescribed in Schedule II to the Companies Act, 2013.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in statement of profit and loss.

(g)    Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are stated at cost less accumulated depreciation and accumulated impairment losses, if any.

Cost includes purchase price, taxes and duties and other direct costs incurred for bringing the asset to the condition of its intended use. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance costs are recognized in statement of profit and loss as incurred. Borrowing costs attributable to the acquisition or construction of a qualifying asset is also capitalised as part of the cost of the asset.

Depreciation on investment property is provided on the straight-line method, pro-rata to the period of use, over the useful life as prescribed in Schedule II to the Companies Act, 2013

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in statement of profit and loss in the period in which the property is derecognized.

The Company had elected to measure all its investment property at the previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e. April 1, 2016.

(h)    Impairment of tangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cashgenerating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in statement of profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cashgenerating unit) is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash- generating unit) in prior years. A reversal of an impairment loss is recognized immediately in statement of profit and loss.

(i)    Cash and Cash equivalents

Cash and cash equivalents includes cash in hand, demand deposits with banks and other short term highly liquid investments, which are readily convertible into cash and which are subject to an insignificant risk of change in value and have original maturities of three months or less.

(j)    Financials Instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of 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 fair value through profit or loss (‘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 fair value through profit or loss are recognized immediately in statement of profit and loss.

Financial assets:

On initial recognition, a financial asset is recognised at fair value. All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value

through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI) depending on the classification of the financial assets.

Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business model for managing financial assets.

Investment in Equity Instruments:

All investments in equity instruments classified under financial assets are initially measured at fair value. The Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. Fair value change on an equity instrument is recognised in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised in the Statement of Profit and Loss.

Investment in mutual funds:

All investments in mutual funds are measured at fair value through profit and loss (FVTPL) Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Impairment of Financial Asset

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category.

ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:

•    All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

•    Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

For financial assets the Company recognizes 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial

asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.

Financial liabilities and equity instruments Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements 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 an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in statement of profit and loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

Financial liabilities

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit or loss.

All financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss. Interest expense are included in the ‘Finance costs’ line item.

The effective interest method is a method of calculating the amortized cost of financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired.

(k)    Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When discounting is used, the increase in provision due to the passage of time is recognised as a finance cost.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

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 non-occurrence 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.

(l)    Revenue Recognition

Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) is measured at fair value of the consideration received or receivable. Ind AS 115 Revenue from contracts with customers outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance found within Ind ASs.

The Company recognises revenue from contracts with customers based on a five step model as set out in Ind AS 115:

Step 1 : Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met.

Step 2 : Identify performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer.

Step 3 : Determine the transaction price: The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

Step 4 : Allocate the transaction price to the performance obligations in the contract: For contract that has more than one performance obligation, the Company allocates the transactio price to each performance obligation in an amount that depicts the amount of consideration t which the Company expects to be entitled in exchange for satisfying each performanc obligation.

Step 5 : Recognise revenue when (or as) the Company satisfies a performance obligation. Income from advisory services

Income from advisory services is recognised on accrual basis as and when services are performed at point in time.

Dividend income

Dividend income from investments is recognized when the Company's right to receive payment has been established.

Interest income

Interest income from investments and financial instruments is recognised using the effective interest method. Other interest income e.g. Income tax refund is recognised at actuals.

(m)    Cost recognition

Costs and expenses are recognized when incurred and are classified according to their nature.

(n)    Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

Post-employment and other long term benefits

The provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and Payment of Gratuity Act, 1972 are not applicable to the Company.

(o)    Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to the equity shareholders 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 issue, bonus element in a rights issue and shares split that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

(p)    Taxation Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted by the end of the reporting period.

(q)    Segment Reporting

Ind AS 108 “Operating Segments” requires an entity to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. The Company's business segment is "advisory services and includes income incidental and consequential to such activities" and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liabilities, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as reflected in the Financial Statements as of and for the year ended March 31, 2025. The Company caters to the needs of only domestic market and hence there are no reportable geographical segments”.

(r)    Dividend

The Company recognises a liability for any dividend declared but not distributed at the end of the reporting period, when the distribution is authorised and the distribution is no longer at the discretion of the Company on or before the end of the reporting period. As per Corporate laws in India, a distribution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in equity. The Company distributes the dividend after deducting the taxes at applicable rates.

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Mar 31, 2024

2. MATERIAL ACCOUNTING POLICIES

(a) Statement of compliance

These Financial Statements have been prepared in accordance with 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 Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 as amended and other relevant provisions of the Act.

The accounting policies are applied consistently to all the years presented in the financial
statements.

(b) Basis of Preparation and Presentation

The financial statements have been prepared on the historical cost basis except for certain
financial instruments that are measured at fair values at the end of each reporting period, as
explained in the accounting policies below.

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, regardless of
whether that price is directly observable or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of the asset or liability, if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorised into
Level 1, Level 2 or Level 3 based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

All assets and liabilities have been classified as Current and Non-Current as per the
Company''s normal operating cycle and other criteria set out in Schedule III to the
Companies Act, 2013. Based on the nature of services rendered and the time between the
rendering of the services and their realisation in cash and cash equivalent, the Company has
ascertained its operating cycle as twelve months for the purpose of Current and Non-Current
classification of assets and liabilities.

All the Indian Accounting Standards (“Ind AS”) issued and notified by the Ministry of
Corporate Affairs are effective and considered for the significant accounting policies to the
extent relevant and applicable for the Company.

The financial statements are presented in Indian Rupees.

(c) Use of estimates and judgments

In the course of applying the policies outlined in all notes under Note 2 above, the Company
is required to make judgments, estimates and assumptions about the carrying amount of
assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period, or in the period of revision and future period, if the revision
affects current and future period.

(d) Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and
accumulated impairment losses, if any.

Cost includes purchase price, taxes and duties and other direct costs incurred for bringing
the asset to the condition of its intended use. Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. All other repair and maintenance costs are
recognized in statement of profit and loss as incurred. Borrowing costs attributable to the
acquisition or construction of a qualifying asset is also capitalised as part of the cost of the
asset.

Depreciation on property, plant and equipment, is provided on the straight-line method, pro¬
rata to the period of use, over their useful life. The estimated useful lives and residual values
are as prescribed in Schedule II to the Companies Act, 2013.

The estimated useful lives, residual values and depreciation method are reviewed at the end
of each reporting period, with the effect of any changes in estimate accounted for on a
prospective basis.

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset
and is recognized in statement of profit and loss.

The Company had elected to measure all its property, plant and equipment at the previous
GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e. April 01,
2016.

(e) Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation.
Investment properties are stated at cost less accumulated depreciation and accumulated
impairment losses, if any.

Cost includes purchase price, taxes and duties and other direct costs incurred for bringing
the asset to the condition of its intended use. Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost
of the item can be measured reliably. All other repair and maintenance costs are recognized
in statement of profit and loss as incurred. Borrowing costs attributable to the acquisition or
construction of a qualifying asset is also capitalised as part of the cost of the asset.

Depreciation on investment property is provided on the straight-line method, pro-rata to the
period of use, over the useful life as prescribed in Schedule II to the Companies Act, 2013

An investment property is derecognized upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from the
disposal. Any gain or loss arising on derecognition of the property (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is
included in statement of profit and loss in the period in which the property is derecognized.

The Company had elected to measure all its investment property at the previous GAAP
carrying amount as its deemed cost on the date of transition to Ind AS i.e. April 1, 2016.

(f) Impairment of tangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its
tangible assets to determine whether there is any indication that those assets have suffered
an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any). When it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates
the recoverable amount of the cash-generating unit to which the asset belongs. When a
reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to individual cash-generating units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable and consistent allocation basis can be
identified.

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. If the recoverable amount of an asset (or cash-generating unit) is
estimated to be less than its carrying amount, the carrying amount of the asset (or cash¬
generating unit) is reduced to its recoverable amount. An impairment loss is recognized
immediately in statement of profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised estimate of its recoverable amount, so that the
increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognized for the asset (or cash- generating unit)
in prior years. A reversal of an impairment loss is recognized immediately in statement of
profit and loss.

(g) Cash and Cash equivalents

Cash and cash equivalents includes cash in hand, demand deposits with banks and other
short term highly liquid investments, which are readily convertible into cash and which are
subject to an insignificant risk of change in value and have original maturities of three
months or less.

(h) Financials Instruments

Financial assets and financial liabilities are recognised when the Company becomes a party
to the contractual provisions of 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 fair value through profit or
loss (‘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 fair value through
profit or loss are recognized immediately in statement of profit and loss.

Financial assets:

On initial recognition, a financial asset is recognised at fair value. All recognized financial
assets are subsequently measured in their entirety at either amortized cost or fair value
through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI)
depending on the classification of the financial assets.

Financial assets are not reclassified subsequent to their recognition, except if and in the
period the Company changes its business model for managing financial assets.

Investment in Equity Instruments:

All investments in equity instruments classified under financial assets are initially measured
at fair value. The Company may, on initial recognition, irrevocably elect to measure the
same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. Fair value change
on an equity instrument is recognised in the Statement of Profit and Loss unless the
Company has elected to measure such instrument at FVOCI. Fair value changes excluding
dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts
recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss.
Dividend income on the investments in equity instruments are recognised in the Statement
of Profit and Loss.

Investment in mutual funds:

All investments in mutual funds are measured at fair value through profit and loss (FVTPL)
Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the contractual rights to receive the cash flows
from the asset.

Expected credit losses are recognized for all financial assets subsequent to initial recognition
other than financials assets in FVTPL category.

ECL is the weighted-average of difference between all contractual cash flows that are due to
the Company in accordance with the contract and all the cash flows that the Company
expects to receive, discounted at the original effective interest rate, with the respective risks
of default occurring as the weights. When estimating the cash flows, the Company is
required to consider:

• All contractual terms of the financial assets (including prepayment and extension) over
the expected life of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that are integral
to the contractual terms.

For financial assets the Company recognizes 12 month expected credit losses for all
originated or acquired financial assets if at the reporting date the credit risk of the financial
asset has not increased significantly since its initial recognition. The expected credit losses
are measured as lifetime expected credit losses if the credit risk on financial asset increases
significantly since its initial recognition. The Company assumes that the credit risk on a
financial asset has not increased significantly since initial recognition if the financial asset is
determined to have low credit risk at the balance sheet date.

Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements 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 an
entity after deducting all of its liabilities. Equity instruments issued by the Company are
recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognized and deducted directly
in equity. No gain or loss is recognized in statement of profit and loss on the purchase, sale,
issue or cancellation of the Company’s own equity instruments.

Financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial liabilities are initially measured at the amortised cost
unless at initial recognition, they are classified as fair value through profit or loss.

All financial liabilities are subsequently measured at amortized cost using the effective
interest method. Financial liabilities carried at fair value through profit or loss are measured
at fair value with all changes in fair value recognised in the Statement of Profit and Loss.
Interest expense are included in the ‘Finance costs’ line item.

The effective interest method is a method of calculating the amortized cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or
(where appropriate) a shorter period, to the net carrying amount on initial recognition.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired.

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Mar 31, 2014

(a) Basis of Accounting:

The Financial Statements are prepared under the historical cost convention on an accrual basis and are in accordance with requirements of the Companies Act, 1956.

(b) Fixed assets and Depreciation:

Fixed assets are stated at cost of acquisition less accumulated depreciation.

Depreciation is provided on the written down value method, at the rates specified in Schedule XIV to the Companies Act, 1956.

(d) Investments

Long term investments are stated at cost, less provision for diminution in value (other than temporary) where applicable.

Short term investments are stated at lower of cost and fair value.

(e) Contingent Liabilities:

Contingent Liabilities are not provided for, and If any are separately disclosed.

(f) Taxation

Income tax / savings comprises Current tax and Deferred Tax charge or credit. Provision for current tax is made on the estimated taxable income at the tax rate applicable to the relevant assessment year.

The deferred tax assets are recognised based on the principles of prudence. Deferred tax assets and deferred tax liabilities are calculated by applying the rate and the tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Assets are reviewed at each Balance Sheet date.

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Mar 31, 2012

(a) Basis of accounting

The financial statements are prepared under the historical cost convention, on an accrual basis, in accordance with requirements of the Companies Act, 1956.

(b) Fixed assets

Fixed assets are stated at cost inclusive of incidental expenses

(c) Depreciation

Depreciation on fixed assets has been calculated on written down value at the rates as per Schedule XIV to the Companies Act, 1956.

(d) Investments

Long term investment are stated at cost less provision for diminution in value (other than temporary) where applicable. Short term investment are stated at cost and fair value

(e) Taxation

i) Current tax is measured at the amount expected to be paid in accordance with The Income Tax Act, 1961. ii) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods

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Mar 31, 2011

A) Basis of accounting :

The financial statements are prepared under Historical Cost Convention on accrual basis.

b) Long term investments are stated at cost less provision for diminution in value (other than temporary) where applicable. Short term investments are stated at lower of cost and fair value.

c) Fixed Assets : Fixed Assets are capitalised at cost inclusive of incidental expenses

d) Depreciation : Depreciation on fixed assets has been calculated on written down value at the rates as per Schedule XIV to the Companies Act, 1956.

e) Contingent Liabilities:

Contingent Liabilities are not provided for, and if any separately disclosed.