ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Trustedge Capital Ltd.

1) Corporate Information

Trustedge Capital Limited (Formerly known as Adinath Exim Resources Limited) referred to as ("The Company" or "TCL") is a non-banking financial company (NBFC) registered with the Reserve Bank of India. The company''s activities primarily comprise of financing, investing in listed shares, debt instruments of companies in a wide range of industries and in mutual funds. The shares of company are listed on the BSE Limited. (Registered office at Office No. 308, 3rd Floor, Block-B, Navratna Corporate Park, Bodakdev, Bopal, Ahmedabad, Gujarat, India, 380058 and Registration no. L65100GJ1995PLC024300)

2) Basis of Preparation of Financial Statements

2.1 Statement of Compliance

The financial statements of Company 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 (referred to as "the Act") along with other relevant provisions of the Act, the Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 (as amended from time to time) and other guidelines issued by Reserve Bank of India (RBI) as applicable and amended from time to time and other accounting principles generally accepted in India. The Company uses the accrual basis of accounting in preparation of financial statements (other than Statement of Cash Flows). The financial statements have been prepared and presented on the going concern basis.

The financial statements have been prepared on a historical cost basis, except for certain financial instruments, share based payments and employee benefits plan that are measured at fair value as required or allowed by relevant accounting standard.

2.2 Presentation of financial statements

The Balance sheet, statement of profit and loss and statement of changes in equity adhere to the format prescribed in Division III of Schedule III of the Act. The statement of cash flows is prepared and presented as per the requirements of Ind AS.

A summary of the material accounting policies and other explanatory information is provided in accordance with the Companies (Indian Accounting Standards) Rules, 2015, as notified under section 133 of the Act, including applicable Indian Accounting Standards (Ind AS) and accounting principles generally accepted in India.

The financial statements are presented in Indian Rupees (^) in lakhs, except otherwise, which is also the functional currency of the Company, with rounding off to two decimals as permitted by Schedule III to the Act, unless otherwise indicated.

3) 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.

4) Critical accounting estimates and judgements

• Defined benefits and compensated absences

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

• Share based payments

The share based compensation expense is determined based on the Group''s estimate of equity instruments that will eventually vest.

5) Summary of material accounting policies

5.1 Revenue recognition

a) Interest income

Interest income is recognised in the statement of profit and loss using the effective interest rate (EIR) method for all financial assets measured at amortised cost or debt instruments measured at Fair Value through Other Comprehensive Income (FVOCI).

Interest on financial assets measured at Fair Value through Profit or Loss (FVTPL) is recognised at the contractual rate of interest.

b) Dividend income

Income from dividends on shares of corporate bodies and units of mutual funds is accounted for when the Company''s right to receive the dividend is established.

c) Other revenue from operations

• Fees, commission and other services Loan Document Charges

Loan documentation charges collected from borrowers at the time of loan origination are recognised as income in full on the date of collection, as they represent recovery of costs incurred in connection with documentation and are not considered integral to the effective interest rate of the loan.

Loan Processing Charges

Loan processing fees are collected from borrowers at the time of loan origination. In accordance with Ind AS 109 - ^Financial Instruments*, such fees are deferred at the time of collection and are recognised as income over the expected tenure of the loan on a systematic basis, in proportion to the interest accrued on the underlying loan during the period. The unamortised balance of such deferred processing fees, in respect of loans outstanding at the reporting date, is carried as a liability and presented under Other Liabilities in the Balance Sheet.

• Net gain on fair value changes

The Company recognises gains/(losses) on fair value change of financial assets measured at FVTPL and FVOCI and realised gains/(losses) on derecognition of financial assets measured at FVTPL and FVOCI on net basis.

5.2 Financial Instruments

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

Financial assets are recognised in the Company''s financial statements when the Company becomes a party to the contractual provisions of the financial instruments.

• Classification

Upon initial recognition, Financial assets (other than equity) are classified into one of the following categories:

• Financial assets at fair value through other comprehensive income (FVOCI), or

• Fair value through profit and loss account (FVTPL), or

• Amortised cost.

Financial assets that are equity instruments are classified as

• Financial assets at fair value through other comprehensive income (FVOCI), or

• Fair value through profit and loss account (FVTPL).

Classification and measurement of financial assets depend on the Company''s business model for managing the financial asset and contractual cash flow characteristics of the financial asset. 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 and measurement

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

Financial assets 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 is measured at amortised cost if it meets both of the following conditions:

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows and

• the contractual terms of the financial asset represent contractual cash flows that are Solely Payments of Principal and Interest (SPPI) on the principal amount outstanding.

Subsequent to initial recognition, financial assets held within this category are measured at amortised cost using the effective interest method, less any impairment losses.

Debt Instruments at FVOCI

Debt instruments that are measured at FVOCI 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. FVOCI 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 de-recognition, cumulative gains or losses previously recognised in OCI are reclassified from OCI to profit or loss.

Equity Instruments at FVOCI

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 FVOCI 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 FVOCI 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.

• Reclassification of Financial Asset

Financial assets are reclassified subsequent to their recognition only if the Company changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date, which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 ''Financial Instruments''.

• Derecognition of financial assets

Financial assets are derecognised when the contractual rights to receive cash flows from the asset have expired or have been transferred in accordance with Ind AS 109, and the Company has transferred substantially all risks and rewards associated with the asset.

• 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, in accordance with the guidelines prescribed by the Reserve Bank of India (RBI) under the Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023. 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. b. Financial Liabilities and equity instruments

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 financial liabilities and equity instruments.

• Initial recognition and measurement

All financial liabilities are recognised at fair value and in case of borrowings and payables, net of directly attributable costs. Fees of a recurring nature are directly recognised in the statement of profit and loss as finance cost.

• Subsequent measurement

• Financial liabilities are carried at amortised cost using the effective interest method.

• Derecognition

A financial liability (or a part of a financial liability) is derecognised from the Company''s balance sheet when the obligation specified in the contract are discharged, cancelled or have expired. Any gains or losses arising on derecognition of liabilities are recognised in the Statement of Profit and Loss.

5.3 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.

5.4 Investment in subsidiaries and associates

The company does not have any investments in associates and subsidiaries.

5.5 Foreign currency transactions and translation

The financial statements of the Company are presented in Indian rupees (^), which is the functional currency of the Company and the presentation currency for the financial statements.

In preparing the financial statements, Company has no transactions in currencies other than the company''s functional currencies.

5.6 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise of cash at banks, cash 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.

5.7 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.

5.8 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.

5.9 Depreciation and amortisation of property, plant and equipment and intangible assets

Depreciation on following tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

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.

5.10 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.

5.11 Employee benefits expense

I. 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.

II. Long-term employee benefits

The expected costs of other long-term employee benefits, such as long-term service incentive plan benefits (not being share-based payments), are accrued over the requisite service period, which is typically the vesting period.

• Post-employment benefits

• Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further

amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in the statement of profit and loss in the periods during which the related services are rendered by the employees.

The Company pays Provident and other fund contributions to publicly administered funds as per related Government regulations. The Company has no further obligation other than the contributions payable to the respective funds.

• Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan annually by a qualified actuary using the project unit credit method and spread over the period during which the benefit is expected to be derived from employees'' services. Remeasurement gains or losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in other comprehensive income in the period they occur and are subsequently transferred to retained earnings.

5.12 Share Based Payment

Stock options are granted to the employees under the stock option scheme. The costs of stock options granted to the employees (equity-settled awards) of the Company are measured at the fair value of the equity instruments granted. For each stock option, the measurement of fair value is performed on the grant date. The grant date is the date on which the Company and the employees agree to the stock option scheme. The fair value so determined is revised only if the stock option scheme is modified in a manner that is beneficial to the employees. The fair value of the options at the grant date is calculated by an independent valuer on the basis of Black Scholes model. This cost is recognised, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company''s best estimate of the number of equity instruments that will ultimately vest. The statement of profit and loss expense or Credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense. On cancellation or lapse of options granted to employees, the compensation charged earlier will be moved from share based payment reserve with corresponding credit in retained earnings.

5.13 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:

a. 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

b. 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 recognised 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 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.

5.14 Tax expenses

Income tax expense comprises both current and deferred tax. Current and deferred taxes are recognised 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 recognised in other comprehensive income or directly in equity.

• Current Tax

Current income-tax is recognised 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 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 Tax

Deferred income tax assets and liabilities are recognised 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 recognised 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 utilised.

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 utilised.

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 recognised as an income or expense in the period that includes the enactment or substantive enactment date.

Minimum Alternate Tax (MAT) paid in a previous years standing as the MAT credit on the asset side has now been written off and charged to the statement of profit and loss as the company has opted for Section 115BAA under Income Tax Act from Financial Year 2019-20. Accordingly, MAT is de-recognised from the Balance Sheet as there will be no future economic benefit associated with it to the Company.

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.

5.15 Leases

Ind AS 116 Leases was notified on 30th March, 2019 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 is effective for annual periods beginning on or after 1st April, 2019. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees - leases of ''low-value'' assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. During the previous period, the Company has discontinued its long term lease agreements and have replaced it with short term lease agreements, hence the Company reversed all the impacts related to Ind AS 116 already given in early financial years.

5.16 Segment reporting

The Company is a Non Banking Financial Company and has no activities other than those of finance company. Accordingly, there are no separate reporting segments as in Ind AS 108 "Operating Segment".

5.17 Onerous contracts

Provisions for onerous contracts are recognised 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 recognises any impairment loss on the assets associated with that contract.

5.18 Earnings per share

Basic earnings per share have been computed by dividing net income attributable to ordinary equity holders by the weighted average number of shares outstanding during the year. Partly paid-up equity share is included as fully paid equivalent according to the fraction paid up. Diluted earnings per share has been computed using the weighted average number of shares and dilutive potential shares, except where the result would be anti-dilutive.

6. Recent accounting pronouncements

The Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to existing standards under the Companies (Indian Accounting Standards) Rules from time to time. MCA has notified amendments to Ind AS 1 - Presentation of Financial Statements (classification of liabilities as current or non-current, including liabilities with covenants), Ind AS 12 - Income Taxes (International Tax Reform - Pillar Two Model Rules), Ind AS 21 - The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability), and Ind AS 7 - Statement of Cash Flows and Ind AS 107 - Financial Instruments: Disclosures (Supplier Finance Arrangements), effective from April 1, 2025.

The Company has reviewed these amendments and based on its evaluation, has determined that they do not have any impact on the Company''s financial statements.

Amendments Notified but Not Yet Effective

Amendment to Ind AS 1 — Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants (effective for annual reporting periods beginning on or after 1st April, 2026):

• Breach of a material covenant for a long-term loan arrangement on or before the end of the reporting period, with the effect that the liability becomes payable on demand, shall be classified

as a current liability unless the lender has agreed, after the reporting period and before the approval of financial statements, not to demand payment as a consequence of the breach.

• A liability shall be classified as non-current if the lender has agreed by the end of the reporting period to provide a grace period of at least twelve months after the reporting period within

which the entity can rectify the breach, and the lender does not demand immediate repayment.

• The entity must disclose information about the timing of settlement to allow users to understand the impact of the liability on the financial statements.

The Company does not expect this amendment to have a material impact on its financial statements.

5) Material Accounting policies

The material accounting policies related to preparation of
standalone financial statements are given below:

1. Financial Instruments

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.

(i) Classification of financial instruments

The Company classifies its financial assets (other than
equity) into the following measurement categories:

(a) Financial assets to be measured at amortised cost.

(b) Financial assets to be measured at fair value
through other comprehensive income.

(c) Financial assets to be measured at fair value
through profit or loss.

Financial assets that are equity instruments are
classified as FVTPL or FVOCI. 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 FVOCI

Debt instruments that are measured at FVOCI 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. FVOCI 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 de-recognition,
cumulative gains or losses previously recognised in OCI
are reclassified from OCI to profit or loss.

Equity Instruments at FVOCI

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 FVOCI 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 FVOCI 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.

Other Financial Liabilities

These are measured at amortised cost using effective
interest rate.

De-recognition 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.

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.

3. Investment in subsidiaries and associates

The company does not have any investments in associates
and subsidiaries.

4. Foreign currency transactions and translation

The financial statements of the Company are presented
in Indian rupees (''), which is the functional currency
of the Company and the presentation currency for the
financial statements.

In preparing the financial statements, Company has no
transactions in currencies other than the company''s
functional currencies.

5. 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.

6. 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.

7. 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.

8. Depreciation and amortisation of property, plant and
equipment and intangible assets

Depreciation on following tangible fixed assets has been
provided on the straight-line method as per the useful life
prescribed in Schedule II to the Companies Act, 2013.

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.

9. 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.

10. 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.

a) Material Accounting policies

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 (FVOCI) or fair value through profit and loss account (FVTPL) or at amortised
cost. Financial assets that are equity instruments are classified as FVTPL or FVOCI. 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 FVOCI

Debt instruments that are measured at FVOCI 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. FVOCI 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 de-recognition, cumulative gains or losses previously recognised in OCI are
reclassified from OCI to profit or loss.

Equity Instruments at FVOCI

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 FVOCI 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 FVOCI 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.

Other Financial Liabilities

These are measured at amortised cost using effective interest rate.

De-recognition 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.

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.

3. Investment in subsidiaries and associates

The company does not have any investments in associates and subsidiaries.

4. Foreign currency transactions and translation

The financial statements of the Company are presented in Indian rupees (''), which is the functional
currency of the Company and the presentation currency for the financial statements.

In preparing the financial statements, Company has no transactions in currencies other than the
company''s functional currencies.

5. 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.

6. 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.

7. 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.

8. Depreciation and amortisation of property, plant and equipment and intangible assets

Depreciation on following tangible fixed assets has been provided on the straight-line method as per
the useful life prescribed in Schedule II to the Companies Act, 2013.

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.

9. 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.

10. 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.

A) Corporate Information :

Adinath Exim Resources Limited was incorporated as a limited company on 20th January 1995, under the companies act of 1956 with Register of Companies, Gujarat vide Registration no. 04-24300. The Register office of the company is situated at Ahmadabad. Company also holds a certificate of registration from Reserve Bank of India to do NBFC Business vide registration no. 01.00025 dated 20.02.1998.

The Company is engaged in the business of Financing and Investment.

b) Basis of Preparation of Financial Statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the companies act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act")/Companies Act, 1956 ("the 1956 Act"), as applicable.

c) Use of Estimates:

The preparation of financial statements in conformity with the India GAAP requires the management of the company to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

d) Expenses:

The Company provides for all expenses comprising of Employee Benefit Expenses and Other Expenses on accrual basis.

e) Revenue Recognition :

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.

Bill Discounting & Dividend income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exits.

f) Cash & Cash Equivalents (For Purpose of Cash Flow Statement)

Cash comprises cash in hand. Cash equivalents are cash at bank that are readily available for convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

g) Cash Flow Statement

Cash flow are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operation, investing and financing activities of the company are segregated based on the available information.

h) Fixed Assets & Depreciation:

Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for bringing the assets to its working condition for its intended use. They are stated at historical cost less accumulated depreciation.

Capital Assets under erection/installation are reflected in the Balance Sheet as "Capital Work in Progress".

Depreciation on assets is provided on written down value basis (WDV) on the basis of useful lives of assets as specified in schedule II of the Companies Act, 2013.

Depreciation on fix assets purchased/acquired during the year is provided on pro-rata basis according to the period each asset was put to use during the year.

i) Investment:

The investments made by the Company are categorized as long term investment and are stated at cost.

j) Impairment of Assets:

The Carrying amounts of assets are reviewed at each balance sheet date if there is any indication of Impairment based on internal/external factors. An impairment loss is recognized whenever the carrying amount of assets exceeds its recoverable amount. After impairment depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

During the year there was no impairment of assets of the company.

k) Borrowing Cost:

All Borrowing cost are expensed in the period they occur. Borrowing cost consists of interest and other cost that an entity incur in the connection with the borrowing of the funds. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

l) Taxes on Income:

Tax on income for the current period is determined on the basis of the Income Tax Act,1961.

Deferred tax is recognized on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

m) Contingent Liabilities and Contingent Assets:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

n) Retirement and Other Employee Benefits:

Gratuity liability is a defined obligation. But it has not been provided for on the basis of an actuarial valuation of projected unit credit method. The same shall be accounted for on cash basis as and when the need so arise.

o) Earning Per Shares:

The Company reports basic and diluted earnings per share (EPS) in accordance with accounting standard – 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

A) Basis of Preparation of Financial Statements:

The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain financial instrument which are measured at fair value. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211 (3C) (which continues to be applicable in terms of General circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and other relevant provisions of the Companies Act, 1956.

b) Use of Estimates:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of assets and liabilities and disclosures relating to the contingent liabilities as at the date of financial statement and the reported amount of income and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

c) Income from Operations:

Income from operations which comprises bill discounting income and dividend income are all accounted for on accrual basis.

d) Expenses:

The Company provides for all expenses comprising of Salary to Employees, Financial Expenses and Selling & Administrative Expenses on accrual basis.

e) Fixed Assets:

Tangible Assets:

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprise its purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditure related to an item of tangible assets are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are shown as capital Work-in-Progress.

Intangible Assets:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprise purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Intengible assets.

f) Depreciation, Amortisation and Depletion:

The investments made by the Company are catagorised as long term investment and are stated at cost.

Tangible Assets

Depreciation on fixed assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, which is mentioned as under.

Type of asset Rate

Plant & Machinery 13.91%

Furniture 18.10%

Computers 40.00%

g) Impairment:

An assets is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to the statement of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

h) Investment:

Long-term investments and current maturities of Long-term investments are stated at cost, less provision for other than temporary diminution in value.

i) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss in the period in which they are incurred.

j) Taxation:

Income Tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense comprises of current tax and deffered tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period.

Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deffered tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

k) Provision, Contingent Liabilities and Contingent Assets:

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provision is not discounted to their present value and is determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.

l) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit.

m) Earning Per Shares:

The Company reports basic and diluted earnings per share (EPS) in accordance with Accounting Standard - 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

A) Basis of Preparation of Financial Statements:

The financial statements have been prepared on an accrual basis, on a historical cost convention and are materially in compliance with the requirements of the Companies Act, 1956 as well as the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the data of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

c) Income from Operations:

Income from operations which comprises interest and bill discounting income and other income are all accounted for on accrual basis.

d) Expenses:

The Company provides for all expenses comprising of Salary to Employees and Administrative Expenses on accrual basis.

e) Fixed Assets:

Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for bringing the assets to its working condition for its intended use. They are stated at historical cost less accumulated depreciation.

Depreciation on assets is provided on written down value basis (WDV) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

f) Investment:

The investments made by the Company are categorized as long term investment and are stated at cost.

g) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

h) Taxes on Income:

Tax on income for the current period is determined on the basis of the Income Tax Act,1961.

Deferred tax is recognized on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

i) Contingent Liabilities and Contingent Assets:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

j) Impairment of Assets:

Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less than its carrying amount, the carrying amount is adjusted to its recoverable amount.

k) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit.

l) Earning Per Shares:

The Company reports basic and diluted earnings per share (EPS) in accordance with accounting standard - 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

(iii) The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs. 10/-. All Equity Shares carry one vote per share without restrictions and are entitled to Dividend, as and when declared. All shares rank equally with regard to the Company''s residual assets.

A) Basis of Preparation of Financial Statements

The financial statements have been prepared on an accrual basis, on a historical cost convention and are materially in compliance with the requirements of the Companies Act, 1956 as well as the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b) Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the data of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialised.

c) Income from Operations :

Income from operations which comprises interest income and other income are all accounted for on accrual basis.

d) Expenses :

The Company provides for all expenses comprising of Salary to Employees and Administrative Expenses on accrual basis.

e) Fixed Assets :

Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for bringing the assets to its working condition for its intended use. They are stated at historical cost less accumulated depreciation.

Depreciation on assets is provided on written down value basis (WDV) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

f) Investment :

The investments made by the Company are catagorised as long term investment and are stated at cost.

g) Borrowing Cost :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

h) Taxes on Income :

Tax on income for the current period is determined on the basis of the Income Tax Act 1961.

Deferred tax is recognised on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i) Contingent Liabilities and Contingent Assets :

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

j) Impairment of Assets :

Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less then its carrying amount, the carrying amount is adjusted to its recoverable amount.

k) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit.

l) Earning Per Shares :

The Company reports basic and diluted earnings per share (EPS) in accordance with accounting standard – 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

A) System of Accounting:

The company adopts the accrual basis in the preparation of the accounts.

b) Income From Operations:

Income from operations which comprises interest income and other income are all accounted for on accrual basis.

c) Expenses:

The Company provides for all expenses comprising of administrative and others on accrual basis.

d) Fixed Assets:

Fixed Assets are capitalised at cost inclusive of expenses.

e) Depreciation:

Depreciation on Fixed assets is provided as per Written Down Value method in terms of Section 350 of the Companies Act, 1956 at the rates prescribed under Schedule XIV of the said Act.

f) Investments:

The Company values the investment at cost. The company adopts FIFO method for valuation of its investments.

g) Miscellaneous Expenditure:

Preliminary and Public-Issue expenditure are written off over a period of 5 years.

h) Taxes on Income :

Tax on income for the current period is determined on the basis of the income tax act, 1961.

Deferred tax is recognised on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i) Contingent Liabilities:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note.

j) Impairment of Assets:

Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less then its carrying amount, the carrying amount is adjusted to its recoverable amount.

k) Retirement Benefits :

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit.

l) Earning Per Shares :

The Company reports basic and diluted earning per share in accordance with accounting standard – 20 on earning per share. Basic EPS is computed by dividend the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.