Oswal Leasing Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Summary of material accounting policies

The financial statements have been prepared using the material accounting policies and measurement
bases summarized as below. These policies are applied consistently for all the periods presented
in the financial statements, except where the Company has applied certain accounting policies and
exemptions upon transition to Ind AS.

a) Basis of preparation

(i) Statement of compliance with Indian Accounting Standards (Ind AS)

These standalone financial statements (“the Financial Statements”) have been prepared in accordance
with the Indian Accounting Standards (‘Ind AS'') as notified by Ministry of Corporate Affairs (‘MCA'')
under Section 133 of the Companies Act, 2013 (‘Act'') read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended and other relevant provisions of the Act. The Company has
uniformly applied the accounting policies for the periods presented in this financial statements.

a) The Financial statements of the Company have been prepared on going concern basis and historical
cost basis except certain financial assets and liabilities measured at fair value and defined benefit
plans assets measured at fair value.

b) The Accounting Policies have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting standard requires a change in the
accounting policy niether to in use.

(ii) Historical cost convention

The financial statements have been prepared on going concern basis in accordance with accounting
principles generally accepted in India. Further, the financial statements have been prepared on
historical cost basis except for certain financial assets and financial liabilities which are measured at
fair values as explained in relevant accounting policies.

b) Property, plant and equipment
Recognition and initial measurement

Property, plant and equipment are stated at their cost of acquisition. The cost comprises purchase
price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discount and rebates are deducted in arriving
at the purchase price. 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. All other repair and maintenance costs are recognised in
statement of profit or loss as incurred. 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 recognised in statement of profit or loss as incurred.

Subsequent measurement (depreciation method, useful lives and residual value)

Property, plant and equipment are subsequently measured at cost less accumulated depreciation
and impairment losses. Cost of acquisition is inclusive of freight, duties, taxes and other incidental
expenses. Depreciation on property, plant and equipment is provided on the straight-line basis as per
the rates specified in Schedule II of the Companies Act, 2013.

Depreciation is calculated on pro rata basis from the date on which the asset is ready for use or till
the

date the asset is sold or disposed.

The residual values, useful lives and method of depreciation are reviewed at the end of each financial
year. The Company fully depreciates the assets having individual value of Rs. 5,000 or less in the year
of acquisition.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognised
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain
or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is recognized in the statement of profit and loss, when
the asset is derecognised.

Capital work-in-progress

Capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and
advances paid to acquire property, plant and equipment. Assets which are not ready to intended use
are also shown under capital work-in-progress.

c) Investment Property

Properties held to earn rentals or / and for capital appreciation or both but not for sale in the ordinary
course of business, use in the production or supply of goods or services or for administrative purposes,
are categorized as investment properties. These are measured initially at cost of acquisition, including
transaction costs and other direct costs attributable to bringing asset to its working condition for intended
use. Subsequent to initial recognition, investment properties are stated at cost less accumulated
depreciation and accumulated impairment loss, if any. The cost shall also include borrowing cost if the
recognition criteria are met. Said assets are depreciated on straight line basis based on expected life
span of assets which is in accordance with Schedule II of the Act. However, as per Ind AS 40, there is
a requirement to disclose fair value as at the balance sheet date.

d) Intangible assets

Recognition and initial measurement

Intangible assets are stated at their cost of acquisition. The cost comprises purchase price including any
import duties and other taxes (other than those subsequently recoverable from taxation authorities),
borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its
working condition for the intended use.

Subsequent measurement (amortisation method, useful lives and residual value)

Intangible assets are amortised over a period of 3 years from the date when the assets are available
for use. The estimated useful life (amortisation period) of the intangible assets is arrived basis the
expected pattern of consumption of economic benefits and is reviewed at the end of each financial
year and the amortisation period is revised to reflect the changed pattern, if any.

e) Revenue recognition

Interest income

Interest income is recorded on accrual basis using the effective interest rate (EIR) method. Additional
interest/overdue interest/penal charges, if any, are recognised only when it is reasonable certain that
the ultimate collection will be made.

Dividend income

Dividend income is recognised at the time when the right to receive is established by the
reporting date. Profit/Loss on Sale of investments is considered at the time of sale/redemption.

Brokerage income

Brokerage income is recorded on accrual basis.

Capital Gain/Profit on Sale of Investment

Gain/Loss on sale of Investment is considered at the time of Sale / Redemption.

Other income

All other income is recognized on an accrual basis, when there is no uncertainty in the ultimate
realization/collection.

f) Accounting for Taxes on Income

Deferred tax has not been recognized as there is no virtual certainty.

g) Borrowing costs

Borrowing costs that are directly attributable to the acquisition and/or construction of a qualifying asset,
till the time such qualifying assets become ready for its intended use sale, are capitalised. Borrowing
cots consists of interest and other cost that the Company incurred in connection with the borrowing
of funds. 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 the Statement of Profit and Loss as incurred
basis the effective interest rate method.

h) Taxation

Tax expense recognized in Statement of Profit and Loss comprises the sum of deferred tax and current
tax except to the extent it recognized in other comprehensive income or directly in equity. Current tax
comprises the tax payable or receivable on taxable income or loss for the year and any adjustment to
the tax payable or receivable in respect of previous years. Current tax is computed in accordance with
relevant tax regulations. The amount of current tax payable or receivable is the best estimate of the tax
amount expected to be paid or received after considering uncertainty related to income taxes, if any.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously

Minimum alternate tax (‘MAT'') credit entitlement is recognised as an asset only when and to the extent
there is convincing evidence that normal income tax will be paid during the specified period. In the year
in which MAT credit becomes eligible to be recognised as an asset, the said asset is created by way
of a credit to the Statement of Profit and Loss and shown as MAT credit entitlement. This is reviewed
at each balance sheet date and the carrying amount of MAT credit entitlement is written down to the
extent it is not reasonably certain that normal income tax will be paid during the specified period.

Deferred tax is recognised in respect of temporary differences between carrying amount of assets
and liabilities for financial reporting purposes and corresponding amount used for taxation purposes.
Deferred tax assets are recognised on unused tax loss, unused tax credits and deductible temporary
differences to the extent it is probable that the future taxable profits will be available against which they
can be used. This is assessed based on the Company''s forecast of future operating results, adjusted
for significant non-taxable income and expenses and specific limits on the use of any unused tax loss.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the
tax consequences that would follow from the manner in which the Company expects, at the reporting
date to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and
liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it
is intended to realise the asset and settle the liability on a net basis or simultaneously. Deferred tax
relating to items recognised outside statement of profit and loss is recognised outside statement of
profit or loss (either in other comprehensive income or in equity).

i) Employee benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, if any, that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the related
service are recognised in respect of employees services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled.

Other long term employee benefit obligations:

The liabilities, if any, which needs to be settled after 12 months from the end of the period in which
the employees render the related services are measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of reporting period
using the projected unit credit method.

j) Impairment of financial assets

Loan assets

The Company follows a ‘three-stage'' model for impairment based on changes in credit quality since
initial recognition as summarised below:

• Stage 1 includes loan assets that have not had a significant increase in credit risk since initial

recognition or that have low credit risk at the reporting date

• Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition

but that do not have objective evidence of impairment.

• Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.

The Expected Credit Loss (ECL) is measured at 12-month ECLfor Stage 1 loan assets and at lifetime
ECL for Stage 2 and Stage 3 loan assets ECL is the product of the Probability of Default, Exposure at
Default and Loss Given Default, defined as follows:

Probability of Default (PD) - The PD represents the likelihood of a borrower defaulting on its financial
obligation (as per “Definition of default and credit-impaired” above), either over the next 12 months (12
months PD), or over the remaining lifetime (Lifetime PD) of the obligation.

Loss Given Default (LGD) - LGD represents the Company''s expectation of the extent of loss on a
defaulted exposure. LGD varies by type of counterparty, type and preference of claim and availability
of collateral or other credit support.

Exposure at Default (EAD) - EAD is based on the amounts the Company expects to be owed at the
time of default. For a revolving commitment, the Company includes the current drawn balance plus any
further amount that is expected to be drawn up to the current contractual limit by the time of default,
should it occur.

Forward-looking economic information (including management overlay) is included in determining the
12-month and lifetime PD, EAD and LGD. The assumptions underlying the expected credit loss are
monitored and reviewed on an ongoing basis.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets
has increased significantly since initial recognition. If the credit risk has not increased significantly
since initial recognition, the Company measures the loss allowance at an amount equal to 12-month
expected credit losses, else at an amount equal to the lifetime expected credit losses.When making
this assessment, the Company uses the change in the risk of a default occurring over the expected life
of the financial asset. To make that assessment, the Company compares the risk of a default occurring
on the financial asset as at the balance sheet date with the risk of a default occurring on the financial
asset as at the date of initial recognition and considers reasonable and supportable information, that
is available without undue cost or effort, that is indicative of significant increases in credit risk since
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

Write-offs

Financial assets are written off either partially or in their entirety only when the Company has stopped
pursuing the recovery. Any subsequent recoveries are credited to impairment on financial instrument
on statement of profit and loss.

k) Cash and cash equivalents

Cash and cash equivalents comprise cash in hand (including imprest), demand deposits and shortterm
highly liquid investments that are readily convertible into known amount of cash and which are subject
to an insignificant risk of changes in value.

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Mar 31, 2024

2. Summary of significant accounting policies

The financial statements have been prepared using the material accounting policies and measurement
bases summarized as below. These policies are applied consistently for all the periods presented in the
financial statements, except where the Company has applied certain accounting policies and exemptions
upon transition to Ind AS.

a) Basis of preparation

(i) Statement of compliance with Indian Accounting Standards (Ind AS)

These standalone financial statements (“the Financial Statements”) have been prepared in accordance
with the Indian Accounting Standards (‘Ind AS'') as notified by Ministry of Corporate Affairs (‘MCA'') under
Section 133 of the Companies Act, 2013 (‘Act'') read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended and other relevant provisions of the Act. The Company has uniformly applied
the accounting policies for the periods presented in this financial statements. The financial statements for
the year ended March 31,2024. are the first financial statements which has been prepared in accordance
with Ind AS and other applicable guidelines issued by the Reserve Bank of India (‘RBI'').

a) The Financial statements of the Company have been prepared on going concern basis and historical cost
basis except certain financial assets and liabilities measured at fair value and defined benefit plans assets
measured at fair value.

b) The Accounting Policies have been consistently applied except where a newly issued accounting standard
is initially adopted or a revision to an existing accounting standard requires a change in the accounting
policy niether to in use.

(ii) Historical cost convention

The financial statements have been prepared on going concern basis in accordance with accounting
principles generally accepted in India. Further, the financial statements have been prepared on historical
cost basis except for certain financial assets and financial liabilities which are measured at fair values as
explained in relevant accounting policies.

b) Property, plant and equipment

Recognition and initial measurement

Property, plant and equipment are stated at their cost of acquisition. The cost comprises purchase
price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discount and rebates are deducted in arriving
at the purchase price. 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. All other repair and maintenance costs are recognised in
statement of profit or loss as incurred 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 recognised in statement of profit or loss as incurred.

Subsequent measurement (depreciation method, useful lives and residual value)

Property, plant and equipment are subsequently measured at cost less accumulated depreciation and
impairment losses. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.
Depreciation on property, plant and equipment is provided on the straight-line basis as per the rates
specified in Schedule II of the Companies Act, 2013.

Depreciation is calculated on pro rata basis from the date on which the asset is ready for use or till the
date the asset is sold or disposed.

The residual values, useful lives and method of depreciation are reviewed at the end of each financial
year. The Company fully depreciates the assets having individual value of Rs. 5,000 or less in the year of
acquisition.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss
arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is recognized in the statement of profit and loss, when the asset is
derecognised.

Capital work-in-progress

Capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and
advances paid to acquire property, plant and equipment. Assets which are not ready to intended use are
also shown under capital work-in-progress.

c) Investment Property

Properties held to earn rentals or / and for capital appreciation or both but not for sale in the ordinary
course of business, use in the production or supply of goods or services or for administrative purposes,
are categorized as investment properties. These are measured initially at cost of acquisition, including
transaction costs and other direct costs attributable to bringing asset to its working condition for intended
use. Subsequent to initial recognition, investment properties are stated at cost less accumulated
depreciation and accumulated impairment loss, if any. The cost shall also include borrowing cost if the
recognition criteria are met. Said assets are depreciated on straight line basis based on expected life
span of assets which is in accordance with Schedule II of the Act. However, as per Ind AS 40, there is a
requirement to disclose fair value as at the balance sheet date.

d) Intangible assets

Recognition and initial measurement

Intangible assets are stated at their cost of acquisition. The cost comprises purchase price including
any import duties and other taxes (other than those subsequently recoverable from taxation authorities),
borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its
working condition for the intended use.

Subsequent measurement (amortisation method, useful lives and residual value)

Intangible assets are amortised over a period of 3 years from the date when the assets are available for
use. The estimated useful life (amortisation period) of the intangible assets is arrived basis the expected
pattern of consumption of economic benefits and is reviewed at the end of each financial year and the
amortisation period is revised to reflect the changed pattern, if any.

e) Revenue recognition

Interest income

Interest income is recorded on accrual basis using the effective interest rate (EIR) method. Additional
interest/overdue interest/penal charges, if any, are recognised only when it is reasonable certain that the
ultimate collection will be made.

Dividend income

Dividend income is recognised at the time when the right to receive is established by the reporting date.
Profit/Loss on Sale of investments is considered at the time of sale/redemption.

Brokerage income

Brokerage income is recorded on accrual basis.

Capital Gain/Profit on Sale of Investment

Gain/Loss on sale of Investment is considered at the time of Sale / Redemption.

Other income

All other income is recognized on an accrual basis, when there is no uncertainty in the ultimate realization/
collection.

f) Borrowing costs

Borrowing costs that are directly attributable to the acquisition and/or construction of a qualifying asset,
till the time such qualifying assets become ready for its intended use sale, are capitalised. Borrowing cots
consists of interest and other cost that the Company incurred in connection with the borrowing of funds. 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 the Statement of Profit and Loss as incurred basis the effective
interest rate method.

g) Taxation

Tax expense recognized in Statement of Profit and Loss comprises the sum of deferred tax and current
tax except to the extent it recognized in other comprehensive income or directly in equity. Current tax
comprises the tax payable or receivable on taxable income or loss for the year and any adjustment to
the tax payable or receivable in respect of previous years. Current tax is computed in accordance with
relevant tax regulations. The amount of current tax payable or receivable is the best estimate of the tax
amount expected to be paid or received after considering uncertainty related to income taxes, if any.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously

Minimum alternate tax (‘MAT'') credit entitlement is recognised as an asset only when and to the extent
there is convincing evidence that normal income tax will be paid during the specified period. In the year
in which MAT credit becomes eligible to be recognised as an asset, the said asset is created by way of a
credit to the Statement of Profit and Loss and shown as MAT credit entitlement. This is reviewed at each
balance sheet date and the carrying amount of MAT credit entitlement is written down to the extent it is not
reasonably certain that normal income tax will be paid during the specified period.

Deferred tax is recognised in respect of temporary differences between carrying amount of assets and
liabilities for financial reporting purposes and corresponding amount used for taxation purposes. Deferred
tax assets are recognised on unused tax loss, unused tax credits and deductible temporary differences
to the extent it is probable that the future taxable profits will be available against which they can be used.
This is assessed based on the Company''s forecast of future operating results, adjusted for significant
non-taxable income and expenses and specific limits on the use of any unused tax loss. Unrecognised
deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax
consequences that would follow from the manner in which the Company expects, at the reporting date
to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are
offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to
realise the asset and settle the liability on a net basis or simultaneously. Deferred tax relating to items
recognised outside statement of profit and loss is recognised outside statement of profit or loss (either in
other comprehensive income or in equity).

h) Employee benefits
Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, if any, that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled.

Other long term employee benefit obligations:

The liabilities, if any, which needs to be settled after 12 months from the end of the period in which the
employees render the related services are measured as the present value of expected future payments
to be made in respect of services provided by employees up to the end of reporting period using the
projected unit credit method.

i) Impairment of financial assets

Loan assets

The Company follows a ‘three-stage'' model for impairment based on changes in credit quality since initial
recognition as summarised below:

• Stage 1 includes loan assets that have not had a significant increase in credit risk since initial
recognition or that have low credit risk at the reporting date

• Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition
but that do not have objective evidence of impairment.

• Stage 3 includes loan assets that have objective evidence of impairment at the reporting date

The Expected Credit Loss (ECL) is measured at 12-month ECLfor Stage 1 loan assets and at lifetime ECL
for Stage 2 and Stage 3 loan assets ECL is the product of the Probability of Default, Exposure at Default
and Loss Given Default, defined as follows:

Probability of Default (PD) - The PD represents the likelihood of a borrower defaulting on its financial
obligation (as per “Definition of default and credit-impaired” above), either over the next 12 months (12
months PD), or over the remaining lifetime (Lifetime PD) of the obligation.

Loss Given Default (LGD) - LGD represents the Company''s expectation of the extent of loss on a
defaulted exposure. LGD varies by type of counterparty, type and preference of claim and availability of
collateral or other credit support.

Exposure at Default (EAD) - EAD is based on the amounts the Company expects to be owed at the time
of default. For a revolving commitment, the Company includes the current drawn balance plus any further
amount that is expected to be drawn up to the current contractual limit by the time of default, should it
occur.

Forward-looking economic information (including management overlay) is included in determining the
12-month and lifetime PD, EAD and LGD. The assumptions underlying the expected credit loss are monitored
and reviewed on an ongoing basis.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets
has increased significantly since initial recognition. If the credit risk has not increased significantly since
initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected
credit losses, else at an amount equal to the lifetime expected credit losses.When making this assessment,

the Company uses the change in the risk of a default occurring over the expected life of the financial asset.
To make that assessment, the Company compares the risk of a default occurring on the financial asset
as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of
initial recognition and considers reasonable and supportable information, that is available without undue
cost or effort, that is indicative of significant increases in credit risk since 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

Write-offs

Financial assets are written off either partially or in their entirety only when the Company has stopped
pursuing the recovery. Any subsequent recoveries are credited to impairment on financial instrument on
statement of profit and loss.

j) Cash and cash equivalents

Cash and cash equivalents comprise cash in hand (including imprest), demand deposits and shortterm
highly liquid investments that are readily convertible into known amount of cash and which are subject to
an insignificant risk of changes in value.

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Mar 31, 2014

1. ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, treating the entity as a going concern and in accordance with the applicable accounting standards and relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION

Interest income is recognized on time-proportion basis

3. INVESTMENTS

Investments are stated at cost. Diminution in value of investments, other than permanent in nature is not provided for.

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Mar 31, 2013

1. ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, treating the entity as a going concern and in accordance with the applicable accounting standards and relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION

Interest income is recognized on time-proportion basis

3. INVESTMENTS

Investments are stated at cost. Diminution in value of investments, other than permanent in nature is not provided for.

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Mar 31, 2012

1. ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, treating the entity as a going concern and in accordance with the applicable accounting standards and relevant provisions of the Companies Act, 1956.

2. REVENUE RECOGNITION

Interest income is recognized on time-proportion basis

3. INVESTMENTS

Investments are stated at cost. Diminution in value of investments, other than permanent in nature is not provided for.

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Mar 31, 2011

1. The Financial statements are prepared under the historical cost convention treating the entity as a going concern. Incomes and expenses are accounted for on accural basis, except wherever stated otherwise.

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Mar 31, 2010

A. All the costs, revenues, assets and liabilities are accounted for on accrual basis.

b. All the fixed assets are valued at historical cost less depreciation. All costs directly attributable to the acquisition of fixed assets are capitalised.

c. Depreciation is provided on the Written Down Value Method as per the rates specified in Schedule XIV to the Companies Act, 1956.

d. Provision for current tax is made after taking into consideration the benefits available under the provisions of the Income Tax Act, 1961. Defered Tax resulting from the Timing difference between the book and taxable profit is accounted for by adopting the tax rates and laws that have been enacted as on the date of the Balance Sheet.

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Mar 31, 2009

A. All the costs, revenues, assets and liabilities are accounted for on accrual basis.

b. All the fixed assets are valued at historical cost less depreciation. All costs relating to the acquisition of fixed assets are capitalised.

c. Depreciation is provided on the Written Down Value Method as per the rates specified in Schedule XIV to the Companies Act, 1956.

d. Provision for current tax is made after taking into consideration the benefits available under the provisions of the Income Tax Act, 1961. Defered Tax resulting from the Timing difference between the book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the date of the balance sheet

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Mar 31, 2008

A. All the costs, revenues, assets and liabilities are accounted for on accrual basis.

b. All the fixed assets are valued at historical cost less depreciation. All costs relating to the I acquisition of fixed assets are capitalised.

c. Depreciation is provided on the Written Down Value Method as per the rates specified in Schedule XIV to the Companies Act, 1956.

d. Provision for current tax is made after taking into consideration the benefits available under the provisions of the Income Tax Act, 1961. Defered Tax resulting from the Timing difference between the book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the date of the balance sheet.

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Mar 31, 2007

A All the costs, revenues, assets and liabilities are accounted for on accrual basis.

b. All fixed assets are valued at historical cost less depreciation. All costs relating to the acquisition of fixed assets are capitalised.

c Depreciation is provided on the Written Down Value Method as per the rates specified in Schedule XIV to the Companies Act. 1956.

d Provision for current tax is made after taking into consideration the benefits available under the provisions of the Income Tax Act, 1961 Defered Tax resulting from the timing difference between the book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the date of the balance sheet.

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Mar 31, 2005

1. ACCOUNTING POLICIES

a. All the costs, revenues, assets and liabilities are accounted for on accrual basis

b. All fixed assets are valued at historical cost less depreciation All costs relating to the acquisition of fixed assets are capitalised.

c. Depreciation is provided on the Written Down Value Method as per the rates specified in Schedule XIV to the Companies Act, 1956.

d. Provision for current tax is made after taking into consideration the benefits available under the provisions of the Income Tax Act, 1961. Defered Tax resulting from the `timing difference between the book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the date of the balance sheet.

2. Calls in Arrears from Others Rs. 16,125/-(Previous Year Rs. 16,125/-) as per the records of the Company. However, the bank has already remitted Rs.1,51,750/- clubbed under the other liabilities, which is subject to reconciliation for want of information from the bank.

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Mar 31, 2004

1. ACCOUNTING POLICIES

a. All the costs, revenues, assets and liabilities are accounted for on accrual basis

b. All fixed assets are valued at historical cost less depreciation. All costs relating to the acquisition of fixed assets are capitalised.

c. Depreciation is provided on the Written Down Value Method as per the rates specified in Schedule XIV to the Companies Act, 1956.

d. Provision for current tax is made after taking into consideration the benefits available under the provisions of the Income Tax Act, 1961. Defered Tax resulting from the timing difference between the book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the date of the balance sheet.

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Mar 31, 2003

A. All the costs, revenues, assets and liabilities are accounted for on accrual basis.

2. Equity Share Application Money Refundable account; Rs.85,814/-(Previous Year Rs.85,814/-) is subject to reconciliation for want of certain information from the bank.

3. Calls in Arrears from Others Rs.16,125/-(Previous Year Rs.16,125/-) as per the records of the Company. Howerver, the bank has already remitted Rs.1,51,750/- clubbed under the other liabilities, which is subject to reconciliation for want of information from the bank.

4. SEGMENT INFORMATION

The Company has one reportable primary segment of Finance. Hence Segment Reporting is not applicable.

5. The Board of Directors is of the opinion that section 45IC of RBI Act is applicable to the Company. Therefore, Rs. 3,80,000/- which were earlier transferred to General Reserve from Special Reserve Account have been transferred back to Special Reserve. A further sum of Rs. 6,20,000/- has been transferred from Profit & Loss Account to Special Reserve Account in compliance to the provisions of Section 45 1C of the Reserve Bank of India Act.

6. RELATED PARTY DISCLOSURES

Disclosure of Related Party Transactions as per Accounting Standard - 18 issued by the Institute of Chartered Accountants of India

Related Parties Subsidiaries None

Associate Oswat Woollen Mills Limited

Key Managerial Personnel The company does not have any key managerial personnel. The affairs of the company are managed by the Board of Directors. The Directors of the Company are as under :-

1. Mr. Kamal Oswal 4. Mr. Vijay Gupta

2. Mr. Amarjeet Singh 5. Mr. Navdeep Sharma

3. Mr. Dinesh Gogna 6. Mr. Narinder Kumar Tyagi

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Mar 31, 2002

A. All the costs, revenues, assets and liabilities are accounted for on accrual basis.

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Mar 31, 2001

1. ACCOUNTING POLICIES

a. All the costs, revenues, assets and liabilities are accounted for on accrual basis.

2. Equity Share Application Money Refundable account; Rs.85,814/- (Previous Year Rs.85,814/-) is subject to reconciliation for want of certain information from the bank.

3. The Unpaid Dividend account; Rs.7,469/-(Previous Year Rs.7,469/-) is subject to reconciliation for want of information from bank and therefore it has not been transferred to the Central Government account.

4. Calls in Arrears from Others Rs.16,125/-(Previous Year Rs.16,125/-) as per the records of the Company. Howerver, the bank has already remitted Rs.1,51,750/- clubbed under the other liabilities, which is subject to reconciliation for want of information from the bank.

5. ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PARA 3 & 4 OF PART II OF SCHEDULE-VI OF THE COMPANIES ACT, 1956.

a. EXPENDITURE IN FOREIGN CURRENCY NIL b. EARNING IN FOREIGN EXCHANGE NIL

6. Previous Years' figures have been regrouped/rearranged wherever necessary to make them comparable.

7. Schedules 1 to 8 form an integral part of the accounts and have been duly authenticated.

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Mar 31, 2000

A. All the costs, revenues, assets and liabilities are accounted for on accrual basis.

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Mar 31, 1999

A. All the costs, revenues, assets and liabilities are accounted for on accrual basis.