Accounting Policies of Easy Fincorp Ltd. Company

Mar 31, 2024

2. Material Accounting Policy Information

The Material accounting policies applied in the preparation of these Ind AS financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation and Presentation of Financial Statements

(a) Statement of Compliance with Ind AS

These financial statements have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under Section 133 of the
Companies Act, 2013 (“the Act”) read together with the Companies (Indian Accounting Standards) Rules, 2016 (as amended).

The presentation and grouping of individual items in the balance sheet, the statement of profit and loss and the statement of cash flow , as
well as the statement of changes in equity, are based on the principle of materiality.

(b) Historical Cost Convention

These financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention
on the accrual basis except for certain financial instruments which are measured at fair values.

(c) Classification of Current and Non-Current

All assets and liabilities have been classified as current or non-current as per the Company’s operating cycle and other criteria set out in the
Schedule III to the Companies Act, 2013. Based on the nature of operation and the time between the rendering of supply & services and their
realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current and
noncurrent classification of assets and liabilities.

(d) Use of estimates

The preparation of the financial statements in conformity with IND AS requires management to make estimates, judgments and assumptions.
These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates
are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to
the financial statements.

(e) Fair value measurements
Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the
use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an
instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing
models based on a discounted cash flow analysis, with the most significant input being the discount rate that reflects the credit risk of
counterparty. This is the case with listed instruments where market is not liquid and for unlisted instruments.

The management consider that the carrying amounts of financial assets (other than those measured at fair values) and liabilities recognized
in the financial statements approximate their fair value as on March 31, 2024 and March 31, 2023.

There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers between Level 1 and
Level 2 during the year.

2.2 Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs
that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other
borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

2.3 Revenue Recognition

Revenue is recognised when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the
entity. Revenue is measured at the fair value of the consideration received or receivable excluding taxes or duties collected on behalf of the
government.

The specific recognition criteria described below must also be met before revenue is recognised.

Other Income

Interest income is recognised on accrual basis as per effective interest rate method.

2.4 Short- term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits
such as salaries, performance incentives and ex-gratia, etc., are recognised as an expense at the undiscounted amount in the Statement of
Profit and Loss for the year in which the employee renders the related service.

Retirement benefit costs and termination benefits:

As per terms of employment, leave salary and other retiral benefits are not payable to the employee of the Company.

2.5 Accounting for Taxes on Income
Current income tax

Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted, at the year end date. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognised for all deductible temporary differences,
the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent it is probable that future
taxable profit will be available. In case of unused tax losses and unused tax credits, deferred tax assets are recognised only if there is
convincing evidence or the Company has sufficient taxable temporary differences against which the unused tax credit or unused tax losses
can be utilised by the Company. 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. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in
equity.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and they are in the same
taxable entity, or a Group of taxable entities where the tax losses of one entity are used to offset the taxable profits of another and there
are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.

Deferred tax asset arising from single transaction shall be recognised to the extent it is is probable that taxable profit will be available
against which the deductible temporary difference can be utilised and a deferred tax for all the deductible and taxable temporary
differences associates with:

(i) right-of-use assets and lease liabilities and

(ii) decommissioning restoration and similar liabilities and the corresponding amounts recognised as part of cost of related assets.

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Mar 31, 2014

A) Income:

i) The Accounts have been prepared on the priciple of going concern, under the historical cost convention and on accrual basis

ii) Income on Inter Corporate Deposits is accounted on time accrual basis.

b) Expenditure

It is the policy of the Company to provide for all expenses on accrual basis.

c) Taxation

i) Provision for current income tax is made on the basis of taxable income for the year as determined as per the provisions of the Income Tax Act, 1961.

ii) Deferred Income Tax is accounted for by computing the tax effect on timing differences, which arise during the year, and is capable of reversal in the subsequent periods.

d) Amortization of Miscellaneous Expenditure:

Preliminary and share issue expenses are amortized in the year of incurrence of expenditure.

e) Impairment Of Assets

If the carrying amount of Fixed Assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determine

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Mar 31, 2013

A) Income:

i) The Accounts have been prepared on the priciple of going concern, under the historical cost convention and on accrual basis

ii) Income on Inter Corporate Deposits is accounted on time accrual basis.

b) Expenditure

It is the policy of the Company to provide for all expenses on accrual basis.

c) Taxation

i) Provision for current income tax is made on the basis of taxable income for the year as determined as per the provisions of the Income Tax Act, 1961.

ii) Deferred Income Tax is accounted for by computing the tax effect on timing differences, which arise during the year, and is capable of reversal in the subsequent periods.

d) Amortization of Miscellaneous Expenditure:

Preliminary and share issue expenses are amortized in the year of incurrence of expenditure.

e) Impairment Of Assets.

If the carrying amount of Fixed Assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determine

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Mar 31, 2012

A) Income:

i) The Accounts have been prepared on the principle of going concern, under the historical cost convention and on accrual basis

ii) Income on Inter Corporate Deposits is accounted on time accrual basis.

b) Expenditure

It is the policy of the Company to provide for all expenses on accrual basis.

c) Taxation

i) Provision for current income tax is made on the basis of taxable income for the year as determined as per the provisions of the Income Tax Act, 1961.

ii) Deferred Income Tax is accounted for by computing the tax effect on timing differences, which arise during the year, and is capable of reversal in the subsequent periods.

d) Amortization of Miscellaneous Expenditure:

Preliminary and share issue expenses are amortized in the year of incurrence of expenditure.

e) Impairment Of Assets

If the carrying amount of Fixed Assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determine

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Mar 31, 2011

A) Income:

i) The Accounts have been prepared on the principle of going concern, under the historical cost convention and on accrual basis

ii) Income on Inter Corporate Deposits is accounted on time accrual basis.

b) Expenditure It is the policy of the Company to provide for all expenses on accrual basis.

c) Taxation

i) Provision for current income tax is made on the basis of taxable income for the year as determined as per the provisions of the Income Tax Act, 1961.

ii) Deferred Income Tax is accounted for by computing the tax effect on timing differences, which arise during the year, and is capable of reversal in the subsequent periods.

iii) Provision for Fringe Benefit Tax is made as per applicable provisions under Income Tax Act 1961.

d) Amortization of Miscellaneous Expenditure:

Preliminary and share issue expenses are amortized equally over a period of ten years.

e) Impairment Of Assets

If the carrying amount of Fixed Assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

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Mar 31, 2010

A) Income:

i) The Accounts have been prepared on the priciple of going concern, under the historical cost convention and on accrual basis

ii) Income on Inter Corporate Deposits is accounted on time accrual basis.

b) Expenditure

It is the policy of the Company to provide for all expenses on accrual basis.

c) Taxation

i) Provision for current income tax is made on the basis of taxable income for the year as determined as per the provisions of the Income Tax Act, 1961.

ii) Deferred Income Tax is accounted for by computing the tax effect on timing differences, which arise during the year, and is capable of reversal in the subsequent periods.

iii) Provision for Fringe Benefit Tax is made as per applicable provisions under Income Tax Act 1961.

d) Amortization of Miscellaneous Expenditure:

Preliminary and share issue expenses are amortized equally over a period of ten years.

e) Impairment Of Assets

If the carrying amount of Fixed Assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.