Accounting Policies of Deccan Transcon Leasing Ltd. Company

Mar 31, 2024

Significant Accounting Policies

Basis of Preparation of Standalone Financial Statements

These standalone financial statements are prepared in accordance with Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises
mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013,
Companies (Accounting Standards) rules, 2015 and Companies (Accounting Standards) amendments
Rules 2016 and other applicable provisions of the Act.

Use of Estimates

The preparation of standalone financial statements is in conformity with GAAP requires judgments,
estimates and assumptions to be made that affect the reported amount of assets and liabilities,
disclosure of contingent liabilities on the date of the financial statements and the 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.

Accounting Convention

The company follows the mercantile system of accounting, recognizing income and expenditure on
accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting
policies not referred to specifically otherwise, are consistent with the generally accepted accounting
principles.

The following significant accounting policies are adopted in the preparation and presentation of
these standalone financial statements:

1. Revenue recognition

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

Income from services: Revenue from services is recognized when services have been rendered and
there should be no uncertainty regarding consideration and its ultimate collection.

Interest Income: Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable.

2. Fixed Assets

a) Fixed are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment, if any;

b) Costs directly attributable to acquisition are capitalized until the Fixed Assets are ready for use, as
intended bythe management;

c) Subsequent expenditures relating to fixed assets are capitalized only when it is probable that
future economic benefits associated with these will flow to the Company and the cost of the item
can be measured reliably. Repairs & maintenance costs are recognized in the Statement of profit &
Losswhen incurred;

d) The cost and related accumulated depreciated are eliminated from the financial statements upon
sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of
Profit or Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair
value less cost to sell.

e) Depreciation onTangible Assets in case ofcompanyis provided in such a manner so that the cost of
asset (Net ofrealizable value) will be amortized over their estimated remaining useful life on WDV
basis as per the useful life prescribed under Schedule II to the Companies Act 2013.

D Depreciation methods, useful lives, and residual values are reviewed periodically, including at each
financial year end;

3. IMPAIRMENT

The Management periodically assesses, using external and internal sources, whether there is an
indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value
of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling
price and value in use, which means the present value of future cash flows expected to arise from the
continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and
only if, the reversal can be related objectively to an event occurring after the impairment loss was
recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided
that this amount does not exceed the carrying amount that would have been determined (net of any
accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior
years.

4. RETIREMENT BENEFITS & OTHER EMPLOYEE BENEFITS

All short term employee benefits are accounted on undiscounted basis during the accounting period
based on services rendered by employees.

The Company''s contribution to Provident Fund and Employees State Insurance Scheme is determined based
on a fixed percentage of the eligible employees'' salary and charged to the Statement of Profit and Loss
on accrual basis.

The Group has made provision for payment of Gratuity to its employees. This Provision is made as per the
method prescribed under the Payment of Gratuity Act. The cost of providing gratuity under this plan is
determined on the basis of actuarial valuation at year end. Under the Gratuity Fund Plan, the holding
company contributes to a LIC administered Group Gratuity Fund on behalf of employees.

5. FOREIGN EXCHANGE TRANSACTIONS

Foreign-currency denominated monetary assets and liabilities if any are translated at exchange rates in
effect at the Balance Sheet date. The gains or losses resulting from the transactions relating to purchase
of current assets like Raw Material etc. are included in the Statement of Profit and Loss. Revenue,
expense and cash-flow items denominated in foreign currencies are translated using the exchange rate
in effect on the date ofthe transaction.

6. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash flows.
The cash flows from operating, investing and financing activities are segregated.

7. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset
are capitalized as part of the cost of that asset till such time the asset is ready for its intended use. A
qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its
intended use. Costs incurred in raising funds are amortized equally over the period for which the funds
are acquired. All other borrowing costs are charged to profit and loss account.

8. INCOME TAX

The accounting treatment for the Income Tax in respect of the Company''s income is based on the
Accounting Standard on ''Accounting for Taxes on Income'' (AS-22). The provision made for Income Tax
in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the
assessable Income Tax rate applicable to the relevant assessment year after considering various

deductions available under the Income T ax Act, 1961.

Deferred tax is recognized for all timing differences; being the differences between the taxable
incomes and accounting income that originate in one period and are capable of reversal in one or
more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or
substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability
is reviewed at each Balance Sheet date and consequential adjustments are carried out.

9. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the period. Diluted earnings per share is computed by
dividing the profit after tax by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value which is the average market value of the outstanding shares. Dilutive
potential equity shares are deemed converted as of the beginning of the period, unless issued at a
later date. Dilutive potential equity shares are determined independently for each period presented.