SIGNIFICANT ACCOUNTING POLICIES:

(A) Basis of brparation of Financial Statements:

1) The financial statements have been brpared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act 2013, as adopted consistently by the Company.

2) All items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

(B) Use of Estimates:

The brparation of financial statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. The difference between the actual results and estimates are recognised in the period in which the results are known or materialised.

(C) Revenue Recognition:

Revenue is recognised on accrual basis except dividend income which is accounted in the year in which it is received.

(D) Fixed Assets :

The Fixed Assets are stated at Cost less accumulated debrciation and after taking into consideration the lease adjustment account. All cost including financing costs relating to the borrowings attributable to the Fixed Assets are capitalised till the asset is put to use. Intangible assets are amortized over a period of 5 years.

(E) Debrciation:

Debrciation is provided based on useful lives of the assets as brscribed in Schedule II to the Companies Act, 2013.

(F) Lease Transactions:

In respect of the leases prior to 1.4.2001, transactions have been accounted / restated as per the guidance note issued by the Institute of Chartered Accountants of India on Accounting for leases and in respect of leases after 1.4.2001 the transactions have been accounted as per the (AS) 19 Leases issued by The Institute of Chartered Accountants of India.

(G) Foreign Currency Transactions:

Income and Expenditures transactions denominated in foreign currencies are normally recorded at the exchange rate brvailing at the time of the transaction.

(H) Borrowing Costs:

Borrowing Costs which are directly attributable to the acquisition / construction of fixed assets, till the time such assets are ready for intended use, are capitalised as part of the assets. Other borrowing costs are recognised as an expense in the year in which they are incurred.

(I) Miscellaneous Expenditure:

Preliminary expenses and deferred revenue expenditure are written off over a period of five years. (J) Investments:

Investments are valued as follows:

i) Investments are classified into current investments and long term investments.

ii) Current Investments are valued, scrip wise, at cost or market price whichever is lower.

iii) Long term investments are valued at cost. Provision for diminution is made scrip wise to recognise a decline, other than temporary.

(K) Stock-in Trade:

Stock-in-trade is valued item, at cost or market price whichever is lower. Cost is arrived at using First in First out (FIFO) method.

(L) Impairment of Assets:

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

(M) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities, if material, are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

(N) Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date.

(O ) Employee Benefits:

1. Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

2. Post employment and other long- term employee benefits are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognised at the brsent value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long- term benefits are charged to the Statement of Profit and Loss.

(P) Derivative Trading

1. Loss or Profit on settlement of Futures during the year is charged / credited to Statement of Profit and Loss.

2. Loss arising on account of Mark to Market of the un-expired Futures at the year end is charged to Statement of Profit and Loss.

Notes on Financial Statements for the year ended 31st March, 2015

Note 2

The Company has followed the Reserve Bank of India Guidelines applicable to the Non Banking Financial Companies in respect of prudential norms for Income Recognition, Assets Classification and Capital Adequacy.

Note 3

In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business. The provisions of all known liabilities are adequate and neither in excess of or nor short of the amounts reasonably necessary.

Note 4

In the opinion of the management, the Company is mainly engaged in the business of Investment Activities and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments as per Accounting Standard (AS) 17 on "Segment Reporting".

Note 5

Directors Remuneration :

Salary to Executive Directors as under (include under the head payment to employees):-Shri R. Sundaresan Rs. 6.50 Lacs ( P.Y. Rs. 6.50 Lacs ) Ms. Monika Agarwal Rs. 9.50 Lacs (w.e.f. 11/02/2015)

Information relating to the payment to Executive Directors does not include payment for gratuity, which is provided for group of employees on an overall basis and as per the actuarial valuation report of the Life Insurance Corporation of India.

During the year, remuneration paid to the directors are within the brscribed limit of section 196,197 & 203 read with Schedule V of the Companies Act, 2013.

Note 6

The Reserve Bank of India (RBI) vide its Notification No. DNBS. 223/CGM (US) - 2011 dated 17th January 2011 has issued directions to all NBFC's to make provision of 0.25% against standard assets with immediate effect. Accordingly, the company has made reversal of provision of Rs. (3.93) Lacs during the year against standard assets which has been charged to Statement of Profit & Loss. The above provision is treated as Tier II Capital.

Note 7

The Company has filed appeal with the Commissioner of Income Tax - Appeals - 8 for AY 2012 - 13 for disputed tax refund of Rs. 3,61,172/- arose on account of disallowance u/s 14A.

Note 8

MAT credit entitlement of Rs. 252.81 lacs as per the returns filed upto assessment year 2014 - 15 is not considered in absence of certainty of encashment considering substantial exposure to equity market.

Note 9

Company has applied the estimated useful lives of its fixed assets w.e.f. 01/04/2014 as per Schedule II of the Companies Act, 2013. Accordingly, debrciation for the Year ended 31st March, 2015 is higher by Rs.4.69 lacs respectively. The written down value of Fixed Assets whose lives have expired as at 1st April, 2014 have been adjusted net of tax, in the opening balance of Profit and Loss account amounting to Rs. 30.55 Lacs and against deferred tax amounting to Rs. 15.74 Lacs.

Note 10

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readily available, no disclosures have been made in the Accounts.

Note 11

Previous year's figures have been regrouped, rearranged and / or reclassified wherever necessary.

As per our report of even date

For RAJEN DAMANI & ASSOCIATES

Chartered Accountants

FRN. 116762W

CA Rajen J. Damani

Partner

M No. 034375

For and on behalf of the Board of Directors

Devesh Chaturvedi (Chairman)

Kantilal Shah (Director)

Charul Abuwala (Director)

Gyandeo Chaturvedi (Director)

R. Sundaresan (Executive Director & CEO)

Monika Agarwal (Executive Director & Company Secretary)

Saurabh Chaturvedi (CFO)

Place :- Mumbai

Date :- 22nd May, 2015