Accounting Policies of Geetanjali Credit and Capital Ltd. Company

Mar 31, 2024

1. SIGNIFICANT ACCOUNTING POLICIES:

(i) Statement of Compliance:

These standalone financial statements of the Company 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, the provisions of the
Companies Act, 2013 (‘the Act’) (to the extent notified). The Ind AS are prescribed under
Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and relevant amendment rules issued thereafter.

The Company has consistently applied accounting policies to all years. Comparative Financial
information has been re-grouped, wherever necessary, to correspond to the figures of the
current year.

(ii) Basis of preparation and presentation

The standalone financial statements have been prepared on accrual basis under the historical
cost convention except for the certain financial instruments that are measured at fair values as
required by relevant Ind AS:

a) certain financial assets and liabilities (including derivative instruments)

b) defined employee benefit plans - plan assets are measured at fair value Historical cost is
generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.

(iii) Use of estimates and judgement:

The preparation of standalone financial statements in conformity with Ind AS requires
management to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amount of assets and liabilities, revenues and expenses
and disclosure of contingent liabilities. Such estimates and assumptions are based on
management’s evaluation of relevant facts and circumstances as on the date of standalone
financial statements. The actual outcome may diverge from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.

Useful lives of property, plant and equipment:

The Company reviews the useful life of property, plant and equipment at the end of each
reporting period. This reassessment may result in change in depreciation expense in future
periods.

Fair value of financial assets and liabilities and investments:

The Company measures certain financial assets and liabilities on a fair value basis at each
balance sheet date or at the time they are assessed for impairment. Fair value measurements
that are based on significant unobservable inputs (Level 3) requires estimates of operating
margin, discount rate, future growth rate, terminal values, etc. based on management’s best
estimate about future developments.

(iv) Functional and presentation currency:

Items included in the standalone financial statements of the Company are measured using the
currency of the primary economic environment in which the Company operates (i.e. the
“functional currency”). The standalone financial statements are presented in Indian Rupee, the
national currency of India, which is the functional currency of the Company.

(v) Revenue Recognition:

The Company has recognised revenue pursuant to a contract (other than a contract listed in
paragraph 5 of Ind AS 115) only if the counterparty to the contract is a customer. A customer is
a party that has contracted with an entity to obtain services that are an output of the entity’s
ordinary activities in exchange for consideration.

Interest Income: Interest income from a financial asset is recognized when it is probable that
the economic benefits will flow to the Company and the amount of income can be measured
reliably.

Interest income is accrued on a timely basis, by reference to the principal outstanding and at
applicable effective interest rate (EIR). The effective interest method is a method of calculating
the amortised cost of a financial asset and allocating interest income over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash receipts
(including all fees paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the financial
asset, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

(vi) Taxation:

Income tax expense represents the sum of the tax currently payable and deferred tax.

a) Current tax: Current tax is the amount of tax payable on the taxable income for the year as
determined in accordance with the applicable tax rates and the provisions of the Income Tax
Act, 1961 and other applicable tax laws.

b) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered as an
asset if there is convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognized as an asset in the Balance Sheet when it is highly probable
that future economic benefit associated with it will flow to the Company.

c) Deferred tax: Deferred tax is recognized using the balance sheet approach. Deferred tax
assets and liabilities are recognized on temporary differences between the carrying amounts of
assets and liabilities in the standalone financial statements and the corresponding tax bases
used in the computation of taxable profit. Deferred tax liabilities are generally recognized for
all taxable temporary differences.

Deferred tax assets are generally recognized for all deductible temporary differences to the
extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be utilized.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and liabilities.

(vii) Property, Plant and Equipment:

Property, plant and equipment are carried at cost less accumulated depreciation and impairment
losses, if any. The cost of property, plant and equipment comprises its purchase price/
acquisition cost, net of any trade discounts and rebates, any import duties and other taxes (other
than those subsequently recoverable from the tax authorities), any directly attributable
expenditure on making the asset ready for its intended use, other incidental expenses and
interest on borrowings attributable to acquisition of qualifying property, plant and equipment
up to the date the asset is ready for its intended use.

Depreciation on Property, plant and equipment (other than freehold land) has been provided on
the Diminishing method as per the useful life prescribed in Schedule II to the Companies Act,
2013, in whose case the life of the assets has been assessed as under based on account the
nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past
history of replacement, anticipated technological changes, manufacturers warranties and
maintenance support, etc.

The estimated useful life of the tangible assets and the useful life are reviewed at the end of
each financial year and the depreciation period is revised to reflect the changed pattern, if any.
An item of property, plant and equipment is derecognized 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 an item of property, plant and equipment is determined

as the difference between the sales proceeds and the carrying amount of the asset and is
recognized in the statement of profit and loss.

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Mar 31, 2015

1. Basis of Accounting

* The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 ("the 1956 Act”) (which continues to be applicable in respect of Section 133 of the Companies Act, 2013("the 2013Act”) in terms of General Circular 15/2013 Dated September 13, 2013 Act, as applicable.

* The Company follows the mercantile system of accounting. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. Use of Estimates:-

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any revision to an accounting estimate is recognized prospectively in the year of revision.

3. Revenue Recognition :-

Income/Expenses are accounted for on accrual basis and provisions are made for all known expenditure.

4. Fixed Assets:-

Fixed Assets are stated at cost of acquisition or construction, net of accumulated depreciation and adjustments arising from exchange rate variations relating to borrowings attributed to Fixed Assets. Cost includes incidental expenses capitalized from time to time on their due recognition, trial run expenses and interest attributable to the project till the date of commissioning.

5. Depreciation:-

Depreciation is calculated on Straight Line Method at the rates and in the manner prescribed in Schedule II of the Companies Act, 2013

6. Inventories:-

Inventories held in the form of shares are valued at lower of cost or net realizable value.

7. Investments:-

Long term Investments are stated at acquisition cost less provision, if any, for diminution in value other than temporary. Current Investments, if any, are carried out at lower of cost and fair value.

8. Segment Reporting:-

The Company deals in only one reportable segment i.e. Financial Service Sector as per Accounting Standard 17 "Segment Reporting”.

9. Taxes on Income:-

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961

10. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimate, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligations or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

11. Earnings Per Share:

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

12. Cash Flow Statement:

Cash flow are reported using indirect method, whereby profit before tax is adjusted for the effects of the 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 flow from operating, investing and financing activities of the Company is segregated.

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Mar 31, 2014

1. Basis of Accounting

* The financial statements have been prepared and presented under historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India ("GAAP") and comply with the mandatory Accounting Standards ("AS") as notified as per the Companies Accounting Standards (Rules), 2006 to the extent applicable and with the relevant provisions of the Companies Act, 1956.

* Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. Use of Estimates:-

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any revision to an accounting estimate is recognized prospectively in the year of revision.

3. Revenue Recognition :-

Income/Expenses are accounted for on accrual basis and provisions are made for all known expenditure.

4. Fixed Assets:-

Fixed Assets are stated at cost of acquisition or construction, net of accumulated depreciation and adjustments arising from exchange rate variations relating to borrowings attributed to Fixed Assets. Cost includes incidental expenses capitalized from time to time on their due recognition, trial run expenses and interest attributable to the project till the date of commissioning.

5. Depreciation:-

Depreciation is calculated on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

6. Inventories:-

Inventories held in the form of shares are valued at lower of cost or net realizable value.

7. Investments:-

Long term Investments are stated at acquisition cost less provision, if any, for diminution in value other than temporary. Current Investments, if any, are carried out at lower of cost and fair value.

8. Segment Reporting:-

The Company deals in only one reportable segment i.e. Financial Service Sector as per Accounting Standard 17 "Segment Reporting".

9. Taxes on Income:-

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961

10. Amount Due to Micro, Small and Medium Enterprises:

Based on the information available with the Company in respect of MSME (as defined in the Micro, Small and Medium Enterprises Development Act, 2006) there are no delays in payment of dues to such enterprise during the year.

The identification of Micro, Small and Medium Enterprises Suppliers as defined under "The Micro, Small and Medium Enterprises Development Act, 2006" is based on the information available with the management. As certified by the management, the amounts overdue as on March 31, 2014 to Micro, Small and Medium Enterprises on account of principal amount together with interest, aggregate to ' Nil (P. Y. Nil).

11. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the financial statements by way of Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1. Basis of Accounting

* The financial statements have been prepared and presented under historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India ("GAAP") and comply with the mandatory Accounting Standards ("AS") as notified as per the Companies Accounting Standards (Rules), 2006 to the extent applicable and with the relevant provisions of the Companies Act, 1956.

* Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. Use of Estimates:-

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any revision to an accounting estimate is recognized prospectively in the year of revision.

3. Revenue Recognition :-

Income/Expenses are accounted for on accrual basis and provisions are made for all known expenditure.

4. Fixed Assets:-

Fixed Assets are stated at cost of acquisition or construction, net of accumulated depreciation and adjustments arising from exchange rate variations relating to borrowings attributed to Fixed Assets. Cost includes incidental expenses capitalized from time to time on their due recognition, trial run expenses and interest attributable to the project till the date of commissioning.

5. Depreciation:-

Depreciation is calculated on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

6. Inventories:-

Inventories held in the form of shares are valued at lower of cost or net realizable value.

7. Investments:-

Long term Investments are stated at acquisition cost less provision, if any, for diminution in value other than temporary. Current Investments, if any, are carried out at lower of cost and fair value.

8. Segment Reporting:-

The Company deals in only one reportable segment i.e. Financial Service Sector as per Accounting Standard 17 "Segment Reporting".

9. Taxes on Income:-

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961

10. Miscellaneous Expenditure:-

The total preliminary and public issue expenses are to be amortised over a period of 10 years.

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Mar 31, 2012

ACCOUNTING CONVENTION:-

The accompanying financial statements have been prepared in accordance with the historical cost convention and in accordance with mandatory accounting standards issued by the Institute of Chartered Accountants of India.

INVESTMENTS:-

Investments have been valued at cost by the management.

REVENUE RECOGNITION:-

Income and the expenditure are accounted for on accrual basis.

FIXED ASSETS:-

Fixed assets are stated at original cost plus any directly attributable cost of bringing the asset to their working condition for intended use.

DEPRECIATION:-

Depreciation is provided on straight-line method at the appropriate rates in accordance with Schedule XIV of the Companies Act, 1956.

PRELIMINARY & PUBLIC ISSUE EXPENSES:-

The total preliminary and public issue expenses are to be amortised over a period of 10 years

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Mar 31, 2011

1. SIGNIFICANT ACCOUNTING POLICIES

* ACCOUNTING CONVENTION:-

The accompanying financial statements have been prepared in accordance with the historical cost convention and in accordance with mandatory accounting standards issued by the Institute of Chartered Accountants of India.

* INVESTMENTS:-

Investments have been valued at cost by the management.

* REVENUE RECOGNITION:-

Income and the expenditure are accounted for on accrual basis.

* FIXED ASSETS:-

Fixed assets are stated at original cost plus any directly attributable cost of bringing the asset to their working condition for intended use.

* DEPRECIATION:-

Depreciation is provided on straight-line method at the appropriate rates in accordance with Schedule XIV of the Companies Act, 1956.

* PRELIMINARY & PUBLIC ISSUE EXPENSES:-

The total preliminary and public issue expenses are to be amortised over a period of 10 years.