(X) Provisions and contingent liabilities

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

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

(XI) Foreign currency translation Initial recognition

Foreign currency transactions are recorded in the reporting currency, by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are re-translated using the exchange rate
prevailing at the reporting date. Non- monetary items, which are measured in
terms of historical cost denominated in a foreign currency, are reported using
the exchange rate at the date of the transaction.

Exchange differences

All exchange differences are accounted in the Statement of Profit and Loss.

(XII) Segment Reporting:

The company operates mainly in the business of lending finance, accordingly
there are no separate reportable segment as per Ind-AS 108-Operating Segment.

(XIII) Retirement and other employee benefits

(i) Gratuity

Payment for present liability of future payment of gratuity no provision
created due to there is no employee in the company he is completed 5
years.

(ii) Superannuation

The company has not made any defined contribution to superannuation
fund.

(iii) Provident fund

The company has not provided provident funds to its employees.

(iv) Compensated absences

At Privilege leave entitlements are recognised as a liability as per the
rules of the Company. The liability for accumulated leaves which can
be availed and/or encashed at any time during the tenure of employment.
The liability for accumulated leaves which is eligible for encashment
within the same calendar year is provided for at prevailing salary rate
for the entire unavailed leave balance as at the Balance Sheet date. But
company not having any employee who is having accumulated leaves.

(XIV) Employee Stock Option Scheme

The Company has not provided employee stock options to its employees.

(XV) Leases

The Company has not any leases hence Ind AS 116 is not applicable to the
company.

Measurement of Lease Liability

At the time of initial recognition, the Company measures lease liability as
present value of all lease payments discounted using the Company’s
incremental cost of borrowing and directly attributable costs. Subsequently, the
lease liability is -

i. increased by interest on lease liability;

ii. reduced by lease payments made; and

iii. remeasured to reflect any reassessment or lease modifications specified
in Ind AS 116 ‘Leases’, or to reflect revised fixed lease payments.

Measurement of Right-of-use assets

At the time of initial recognition, the Company measures ‘Right-of-use assets’
as present value of all lease payments discounted using the Company’s
incremental cost of borrowing w.r.t said lease contract. Subsequently, ‘Right-
of-use assets’ is measured using cost model i.e. at cost less any accumulated

depreciation and any accumulated impairment losses adjusted for any
remeasurement of the lease liability specified in Ind AS 116 ‘Leases’.

Depreciation on ‘Right-of-use assets’ is provided on straight line basis over the
lease period.

The exception permitted in Ind AS 116 for low value assets and short-term
leases has been adopted by Company.

(XVI) Fair value measurement

The Company measures its qualifying financial instruments at fair value on each
Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to
transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place in the
accessible principal market or the most advantageous accessible market as
applicable.

The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data is available to measure fair value,
maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

For the purpose of fair value disclosures, the Company has determined classes
of assets and liabilities on the basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy.