Accounting Policies of Anjani Finance Ltd. Company

Mar 31, 2024

B. Significant accounting policies

1. Statement of compliance

The standalone financial statements have been prepared in accordance with Indian
Accounting standards {"Ind AS''¹) notified, under section 133 of the Companies Act, 2013
(''Act¹) read with .the rules notified under the relevant provisions of the Act.

2. Basis of Preparation

The standalone financial statements have been prepared on accrual basis and under the
historical cost convention except for certain financial instruments which are measured at
fair value at the end of each reporting period, as explained in the accounting policies
mentioned beiow.

The financial statements have been prepared in accordance with the requirements of the
information and disclosures mandated by Schedule !!l (Division - III) of the companies Act,
applicable Ind AS and other applicable pronouncements and regulations.

The financial statements including notes thereon are presented in Indian Rupees
("Rupees" or "INR"), which is the Company''s functional and presentation currency. All
amounts disclosed in the financial statements including notes thereon have been rounded
off to the nearest thousands of Rupees as per the requirement of Schedule III to the Act,
unless stated otherwise.

3. Use of Estimates, Judgments and Assumptions

The preparation of financial statements in accordance with Ind AS requires management to
make judgments, estimates and assumptions that affect the application of accounting
policies and the reported amount of assets, liabilities, income and expenses. 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 any future periods affected.

Significant areas of estimation, uncertainty and critical judgements in applying accounting
policies that have significant effect on amount recognized in the financial statements are:

vi. Measurement of defined benefit obligation.

vii. Impairment of Non-financial assets and financial assets.

4. Revenue Recognition

a. Interest income is recognized on accrual basis using the effective interest method.

b. Revenue from contract with customer is recognised upon transfer of control of promised
products or services to customers in an amount that reflects the consideration which the
Company expects to receive in exchange for those products or services. Revenue is
measured based on the transaction price, which is the consideration, adjusted for
discounts and other incentives, if any, as per contracts with the customers.

(i) Revenue from windmill energy generation is accounted for on the basis of the billing to
respective state governments as per the Power purchase Agreement entered into with
them.

{ii} Other operational revenue represents income earned from the activities incidental to the
business and is recognized when the performance obligation is satisfied and right to
receive the income is established as per the terms of the contract.

c. Dividend income is recognised in profit or loss on the date on which the company''s right to
receive payment is established.

5. Property, Plant and Equipment

a. Measurement and recognition:

An item of property, plant and equipment that qualifies as an asset is measured on initial
recognition at cost.

Following initial recognition, items of property, plant and equipment are carried at its cost
less accumulated depreciation and accumulated impairment losses, if any.

The cost of an item of property, plant and equipment comprises of its purchase price
including import duties and other non-refundable purchase taxes or levies, directly
attributable cost of bringing the asset to its working condition for its intended use and the
initial estimate of decommissioning, restoration and similar liabilities, if any.

Subsequent expenditure is capitalised only if it is probable that the future economic
benefits associated with the expenditure will flow to the company.

Depreciation is provided using straight-line method as specified in Schedule II to the
Companies Act, 2013. Depreciation on assets acquired / disposed off during the year is
provided on pro-rata basis with reference to the date of addition / disposal.

c. Derecognition: ,

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from continued use of the asset. Any gain or loss
arising on the disposal or retirement of property, plant and equipment is determined as the
difference between the sale proceeds and the carrying amount of the assets and is
recognised in Statement of Profit and Loss.

6. Intangible assets

a. Measurement and recognition: |._ccoc

Intangible assets are held at cost less accumulated amortisation ^an^.^imP^airmf^^t;_ri^,°^.^en^Sp
Intangible assets developed or acquired with finite useful life are amortised on straight line

basis over the usefullife of asset. _

Subsequent expenditure is capitalised only when it increases the 5.^''^

embodied in the specific asset to which it relates or ^when ao_odw L

achieved. All other expenditure, including expenditure on ^inteff£f^yAlAI®^rs ]n)⁹
and brands, when incurred is recognised in statement of profit

b. Amortisation .

The intangible assets of the Company are assessed to be of finite lives and are amortized
over the useful economic life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. The Company reviews amortization period on
an annua! basis. Intangible assets are amortized on straight line basis in accordance with
IND AS 38 and Schedule II to the Companies Act,2013 or based on technical estimates.

c. Derecognition:

Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and
are recognised in the Statement of Profit and Loss when the asset is derecognised.

7. Impairment of non-financial asset

The company assesses at each reporting date whether there is any objective evidence that
a non-financial asset or a group of non-financial assets are impaired. If any such indication
exists, the company estimates the amount of impairment loss. For the purpose of
assessing impairment, the smallest identifiable group of assets that generates cash inflows
from continuing use that are largely independent of the cash inflows from other assets or
group of assets is considered as cash generating unit. If any such indication exists, an
estimate of the recoverable amount of the individual asset/cash generating unit is made.

An impairment loss is calculated as the difference between an asset''s carrying amount and
recoverable amount. Losses are recognized in profit or loss and reflected in an allowance
account. When the company considers that there are no realistic prospects of recovery of
the asset, the relevant amounts are written off. If the amount of impairment loss
subsequently decreases and the decrease can be related objectively to an event occurring
after the impairment was recognized, then the previously recognized impairment loss is
reversed through profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a
cash-generating unit) is increased to the revised estimate of its recoverable amount, but
so that the increased carrying amount does not exceed the carrying amount that would
have been in place had there been no impairment loss been recognized for the asset (or
cash-generating unit) in prior years. A reversal of an impairment loss is recognized
immediately in Statement of Profit and Loss, taking into account the normal
depreciation/amortization,

8. Employee Benefits

A. Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the services have
been rendered.

B. Long Term Employee Benefits

a Retirement benefits in the form of defined contribution plans including gratuity liability
under Payment of Gratuity Act are paid & charged to the Statement of Profit and Loss for
the year when contributions to the respective Funds are due, in such cases the actuaria
risk and the investment risk are borne by the respective funds.

b Retirement benefits in the form of defined benefit plan are recognised using Projected Unit
Credit Method where Current service cost, Past service cost anc* "^et , _du" _to
Expense/income is recognised in the statement of profit and loss and Gain/Loss du
actuarial risk and investment risk is charged to the other comprehensive income.

9. Taxation

changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

a. Current taxes

Provision for current tax is made after taking into consideration benefits admissible under
provisions of the Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit entitlement
is recognized where there is convincing evidence that the same can be realized in future.

b. Deferred Taxes

The deferred tax charge or credit the corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized only to the extent there is
reasonable certainly that the assets can be realized in future; however where there is
unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets
are recognized only if there is reasonable certainty of realization of such assets.

1

Allowance for bad and doubtful trade ra&suzapie-

ii. Recognition and measurement of pra^wa^tscontingencies.

iii. Depreciation/ Amortisation and u^Kk^Trve^^fwroperty, plant, and equioment /

Intangible Assets. ll

iv. Recognition of deferred tax. 11

v. Income Taxes.

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Mar 31, 2014

(i) Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on an accrual basis of accounting in accordance with generally accepted accounting principles in India and are to comply with the applicable accounting standards notified under Section 211 (3C) of the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 read with the general circular 15/2013 dated 13th September,2013 of the Ministry of Corporate Affairs in respect of the Companies Act,2013. The accounting policies have been consistently applied unless otherwise stated.

(ii) Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known or materialise.

(iii) Revenue Recognition

(a) Income from trading in shares and securities are accounted on accrual basis (Value wise) under the head Sales and Income from share Operation. It is management''s decision to classify shares and securities trading as investments or trading operation.

(b) Interest income on loans is recognized on accrual basis.

(c) Revenue from windmill energy generation is accounted for on the basis of the billing to Rajasthan Power Procurement Company as per the Purchase of Power Agreement entered into with them.

(iv) Fixed Assets

Fixed assets are stated at Cost Less Depreciation on Written Down method under Companies Act 1956. The costs of fixed assets not ready for their intended use before balance sheet date are disclosed under capital work- in-progress.

(v) Depreciation

Company has provided Depreciation as per written down value Method at the rates and manner prescribed in Schedule XIV of the Companies Act, 1956.

(vi) Retirement Benefits

We have been informed by the Management that payment of Gratuity, Provident Fund is not applicable to Company.

(vii) Borrowing Cost

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to acquisition or construction of qualifying assets are capitalised up to the date when such fixed assets are ready for their intended use and all other borrowing costs are charged to statement of Profit and Loss.

(viii) Provision for Taxation

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from "timing difference” between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable certainty that the future taxable profit will be available against which the deferred tax assets can be realized.

(ix) Segment Reporting

The Company has identified its operations into two major Businesses: Financial / Investment Activity and Wind Mill Energy Generation. The Company has identified its major operations into single geographical area that is within India.

(x) Contingent Liabilities:

Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but the existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

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Mar 31, 2013

(i) Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on an accrual basis of accounting in accordance with generally accepted accounting principles in India and are to comply with the applicable accounting standards notified under Section 211 (3C) of the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied unless otherwise stated.

(ii) Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known or materialise.

(iii) Revenue Recognition

(a) Income from trading in shares and securities are accounted on accrual basis (Value wise) under the head Sales and Income from share Operation. It is management''s decision to classify shares and securities trading as investments or trading operation.

(b) Interest income on loans is recognized on accrual basis.

(c) Revenue from windmill energy generation is accounted for on the basis of the billing to Rajasthan Power Procurement Company as per the Purchase of Power Agreement entered into with them.

(iv) Fixed Assets

Fixed assets are stated at Cost Less Depreciation on Written Down method under the Companies Act 1956.

The costs of fixed assets not ready for their intended use before balance sheet date are disclosed under capital work-in-progress.

(v) Depreciation Company has provided Depreciation as per written down value Method at the rates and manner prescribed in Schedule XIV of the Companies Act, 1956.

(vi) Retirement Benefits We have been informed that payment of Gratuity, Provident Fund is not applicable to Company.

(vii) Borrowing Cost Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to acquisition or construction of qualifying assets are capitalised up to the date when such fixed assets are ready for their intended use and all other borrowing costs are charged to statement of Profit and Loss.

(viii)Provision for Taxation Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act. 1961.

Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable ertainty that the future taxable profit will be available against which the deferred tax assets can be realized.

(ix) Segment Reporting

The Company has identified its operations into two major Businesses: Financial / Investment Activity and Wind

Mill Energy Generation.The Company has identified its major operations into single geographical area that is within India.

(x) Contingent Liabilities:

Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but the existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

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Mar 31, 2012

(i) Basis of Preparation of Financial Statements

The financial statements have been prepared and presented on an accrual basis under the historical cost convention and in accordance with the applicable accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied unless otherwise stated.

(ii) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affects the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(iii) Revenue Recognition

(a) Income from trading in shares and securities are accounted on accrual basis (Value wise) under the head Sales and Income from share Operation. It is management's decision to classify shares and securities trading as investments or trading operation.

(b) Interest income on loans is recognized on accrual basis.

(c) Revenue from windmill energy generation is accounted for on the basis of the billing to Rajasthan Power Procurement Company as per the Purchase of Power Agreement entered into with them.

(iv) Fixed Assets

Fixed assets are stated at Cost Less Depreciation on Written Down method under Companies Act 1956. Incidental Expenditure directly attributable to construction is accumulated as Capital Work in Progress.

(v) Depreciation

Company has provided Depreciation as per written down value Method at the rates and manner prescribed in . Schedule XIV of the Companies Act, 1956.

(vi) Retirement Benefits

We have been informed that payment of Gratuity, Provident Fund is not applicable to Company.

(vii) Borrowing Cost

Borrowing cost is recognized as expense in the period in which these are incurred.

(viii) Provision for Taxation

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

The Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates and tax laws that have been enacted or substantively enacted as at the Balance Sheet date.

(ix) Segment Reporting

The Company has identified its operations into two major Businesses: Financial / Investment Activity and Wind Mill Energy Generation.

The Company has identified its major operations into single geographical area that is within India.

(x) Contingent Liabilities:

Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such , liabilities.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but the existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

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Mar 31, 2010

(1) Basis of Preparation of Financial Statements

The Financial Statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with accounting principles generally accepted in India ("Indian GAAP") and are in compliance with Accounting Standard issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of Companies Act, 1956.

(2) Revenue Recognition

(i) Income from trading in shares and securities are accounted on accrual basis (Value wise) under the head Sales and Income from share Operation. It is managements decision to classify shares and securities trading as investments or trading operation.

(ii) Interest income on loans is recognized on accrual basis.

(iii) Revenue from windmill energy generation is accounted for on the basis of the billing to Rajasthan Power Procurement Company as per the Purchase of Power Agreement entered into with them.

(3) Fixed Assets

Fixed assets are stated at Cost Less Depreciation on Written Down method under Companies Act 1956. Incidental Expenditure directly attributable to construction is accumulated as Capital Work in Progress.

(4) Depreciation

Company has provided Depreciation as per written down value Method at the rates and manner prescribed in Schedule XIV of the Companies Act, 1956.

(5) Retirement Benefits

We have been informed that payment of Gratuity, Provident Fund is not applicable to Company.

(6) Borrowing Cost

Borrowing cost is recognised as expense in the period in which these are incurred.

(7) Provision for Taxation

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

The Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates and tax laws that have been enacted or substantively enacted as at the Balance Sheet date.

(8) Segment Reporting

The Company has identified its operations into two major Businesses: Financial / Investment Activity and Wind

Mill Energy Generation.

The Company has identified its major operations into single geographical area that is within India.

(9) Contingent Liabilities:

Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but the existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

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Mar 31, 2009

(A) METHOD OF ACCOUNTING

Company maintain its accounts on accrual basis following the historical cost convention in compliance with the Accounting Standards Specified to be mandatory by Institute of Chartered Accountant of India and Relevant Provision of the Companies Act, 1956.

(B) REVENUE RECOGNITION

(i) Income from trading in shares and securities are accounted on accrual basis (Value wise) under the head Sales and Income from share Operation It is managements decision to classify shares and securities trading as investments or trading operation.

(ii) Interest income on loans is recognized on accrual basis.

(C) EXPENSES

It is Companys policy to account for all expenses on accrual basic except certain expense of traditional nature

(D) FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost less accumulated depreciation on Written Down method under Companies Act 1956.

(E) RETIREMENT BENEFITS

We have been informed that payment of Gratuity, Provident Fund is not applicable to Company.

(F) PROVISION FOR TAXATION

Provision for Income tax and fringe benefit tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

The Deferred Tax resulting from timing difference between book & taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as at the Balance Sheet date.