Accounting Policies of Indo Credit Capital Ltd. Company

Mar 31, 2024

1. CORPORATE INFORMATION

1.1 Indo Credit Capital Limited is a listed public limited company incorporated in 1993. Its shares are listed
on Bombay and Ahmedabad Stock Exchanges. Company is primarily engaged in the business of finance
and investments.

1.2 The Company has obtained a Certificate of Registration as Non Deposit Accepting Non-Banking Finance
Company (NBFC) vide Registration No.:01.00039 dated 27^th February, 1998.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES

2.1 Statement of Compliance:

These financial statements have been prepared in accordance with Ind AS as prescribed undersection
133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and
other provisions of the Companies Act, 2013 as amended from time to time.

2.2 Basis of preparation

These financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

2.3 Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that
affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as
at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Accounting estimates could change from period to period and actual results could
differs from those estimates. Appropriate changes in estimates are made as the management becomes
aware of changes. Changes in estimates are reflected in the financial statements in the period in which
changes are made.

2.4 Revenue Recognition:

Revenue is recognized on accrual basis when no significant uncertainty as to its determination or
realization exists.

2.5 Property, Plant & Equipments:

Property, Plant & Equipments have been recorded at actual cost inclusive of duties, taxes and other
incidental expenses related to acquisition, improvement and installation.

2.6 Depreciation:

Depreciation on tangible assets has been provided on the straight-line method over the useful lives of
assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on assets purchased/sold
during the year has been proportionately charged.

2.7 Impairment of Fixed Assets:

Fixed assets are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the amount
by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an
asset''s net selling price and value in use.

2.8 Investments:

Investments are Long Term Investments and are stated at cost and provision is made for diminution, other
than temporary, in value of the investments. Current Investments are valued at the lower of cost and fair
value. Profit or Loss on sale of investments is recorded at the time of transfer of title from the company.

2.9 Borrowing Cost:

Borrowing costs directly attributable to the acquisition or construction of qualifying fixed assets are
capitalized as a part of cost of that assets till such time the fixed assets are substantially ready for their
intended use. Qualifying fixed assets is an asset that necessarily takes a substantial period of time to get
ready for their intended use or sale. All other borrowing costs are charged to Statement of Profit and Loss
over the tenure of the borrowing.

2.10 Employees'' Benefits

The provision of Provident Fund Act, 1952 and payment of Gratuity Act, 1972 are not applicable to the
Company at present.

2.11 Taxes on Income

Taxes on Income are accounted in the same period to which the revenue and expenses relate.

Provision for Current Income Tax is made on the basis of estimated taxable income, in accordance with
the provisions of the Income Tax Act, 1961 and rules framed there under.

Deferred tax is the tax effect of timing differences. The timing differences are differences between the
taxable income and accounting income for a period that originate in one period and are capable of
reversal in one or more subsequent periods.

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period.

2.12 Earning Per Share (EPS)

Basic earnings per share is computed by dividing the profit/ (loss) after tax by the weighted average
number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing
the profit/(loss) after tax by the weighted average number of equity shares considered for deriving basic
earnings per share.

---

Mar 31, 2014

(a) Methods of Accounting: The accounts ofthe company are prepared under the historical cost convention and on an accrual basis and on the accounting principle of going concern and in accordance with applicable accounting standard except where otherwise are stated.

(b) Fixed Assets: Fixed Assets are recorded at Cost.

(c) Depreciation: Depreciation on Fixed Assets is provided on "Straight Line Method" in accordance with Companies Act, 1956 at the rates and in the manner prescribed in Schedule XIV of the said Act. The depreciation on assets acquired during the year is provided on pro-rata basis.

(d) Investments: Investment held by the Company is classified as (i) capital assets (ii) trading assets.

The Capital assets are shown under the head of "Investments" and are of long-term nature. The said assets are valued at cost. The diminution in value, if any, is provided where the diminution is of a permanent nature.

The trading assets are shown under the head of "current assets" and are held principally for re-sale. The said assets are valued at cost or market price whichever is lower.

(e) Revenue Recognition: Expenses and Income are accounted for on accrual basis. However, Public issue and preliminary expenses has been amortized.

(f) Borrowing Cost: The Company follows the practice of capitalizing interest on borrowings for capital expenditure up to the date the asset is put to use. All other borrowing costs are charged to revenue.

(g) Taxes On Income : According to the requirements of AS-22 being "Accounting for taxes on income" issued by the ICAI, the Company has recognized "Deferred Tax" on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

"Deferred Tax Liability" (DTL) is recognized against reasonable certainty that sufficient future taxable income will be available against which such liability will be set off.

In the current year DTL of '' 217/- is debited to Statement of Profit & Loss and credited to Deferred Tax Liability Account.

(h) Use of Estimates: The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which results are known / materialized.

(i) Impairment of Fixed Assets: Fixed assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset''s net selling price and value in use.

---

Mar 31, 2012

(a) Methods of Accounting:

The accounts of the company are prepared under the historical cost convention and on an accrual basis and on the accounting principle of going concern and in accordance with applicable accounting standard except where otherwise are stated.

(b) Fixed Assets:

Fixed Assets are recorded at Cost.

(c) Depreciation:

Depreciation on Fixed Assets is provided on "Straight Line Method" in accordance with Companies Act, 1956 at the rates and in the manner prescribed in Schedule XIV of the said Act. The depreciation on assets acquired during the year is provided on pro-rata basis.

(d) Investments:

Investment held by the Company is classified as (i) capital assets (ii) trading assets.

The Capital assets are shown under the head of "Investments" and are of long-term nature. The said assets are valued at cost. The diminution in value, if any, is provided where the diminution is of a permanent nature.

The trading assets are shown under the head of "current assets" and are held principally for re-sale. The said assets are valued at cost or market price whichever is lower.

(e) Revenue Recognition:

Expenses and Income are accounted for on accrual basis. However, Public issue and preliminary expenses has been amortized.

(f) Borrowing Cost:

The Company follows the practice of capitalizing interest on borrowings for capital expenditure up to the date the asset is put to use. All other borrowing costs are charged to revenue.

(g) Taxes On Income :

According to the requirements of AS-22 being "Accounting for taxes on income" issued by the ICAI, the Company has recognized "Deferred Tax" on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

"Deferred Tax Liability" (DTL) is recognized against reasonable certainty that sufficient future taxable income will be available against which such liability will be set off.

In the current year DTL ofRs. 582/- is debited to Statement of Profit & Loss and credited to Deferred Tax Liability Account.

(h) Use of Estimates:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which results are known / materialized.

(i) Impairment of Fixed Assets:

Fixed assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset's net selling price and value in use.

---

Mar 31, 2010

(a) Methods of Accounting:

The accounts of the company are prepared under the historical cost convention and on an accrual basis and on the accounting principle of going concern and in accordance with applicable accounting standard except where otherwise is stated.

(b) FIXED ASSETS .

Fixed Assets are recorded at Cost.

(c) DEPRECIATION:

Depreciation on Fixed Assets is provided on "Straight Line Method" in accordance with Companies Act, 1956 at the rates and in the manner prescribed in Schedule XIV of the said Act. The depreciation on assets acquired during the year is provided on pro-rata basis.

(d) Investments:

Investment held by the Company are classified as (i) capital assets (ii) trading assets.

The Capital assets are shown under the head of "Investments" and are of long-term nature. The said assets are valued at cost. The diminution in value, if any, is provided where the diminution is of a permanent nature.

The trading assets are shown under the head of "current assets" and are held principally for re-sale. The said assets are valued at cost or market price whichever is lower.

(e) Revenue Recognition:

Expenses and Income are accounted for on accrual basis. However, Public issue and preliminary expenses has been amortized.

(f) Borrowing Cost:

The Company follows the practice of capitalizing interest on borrowings for capital expenditure up to the date the asset is put to use. All other borrowing costs are charged to revenue.

(g) TAXES ON INCOME:

According to the requirements of AS-22 being "Accounting for taxes on income" issued by the ICAI, the Company has recognized "Deferred Tax" on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

"Deferred Tax Liability" (DTL) is recognized against reasonable certainty that sufficient future taxable income will be available against which such liability will be set off.

In the current year DTL of Rs. 1,088/- is debited to Profit & Loss Account and credited to Deferred Tax Liability Account.

---

Mar 31, 2009

(a) Methods of Accounting: The accounts of the company are prepared under the historical cost convention and on an accrual basis and on the accounting principle of going concern and in accordance with applicable accounting standard except where otherwise is stated.

(b) FIXED ASSETS : Fixed Assets are recorded at Cost.

(c) DEPRECIATION : Depreciation on Fixed Assets is provided on "Straight Line

Method" in accordance with Companies Act, 1956 at the rates and in the manner prescribed in Schedule XIV of the said Act. The depreciation on assets acquired during the year is provided on pro-rata basis.

(d) Investments: Investment held by the Company are classified as (i) capital assets (ii) trading assets.

The Capital assets are shown under the head of "Investments" and are of long-term nature. The said assets are valued at cost. The diminution in value, if any, is provided where the diminution is of a permanent nature.

The trading assets are shown under the head of "current assets" and are held principally for re-sale. The said assets are valued at cost or market price whichever is lower.

(e) Revenue Recognition: Expenses and Income are accounted for on accrual basis. However, Public issue and preliminary expenses has been amortized.

(f) Borrowing Cost: The Company follows the practice of capitalizing interest on borrowings for capital expenditure up to the date the asset is put to use. All other borrowing costs are charged to revenue.

TAXES ON INCOME: According to the requirements of AS-22 being "Accounting for taxes on income" issued by the ICAI, the Company has recognized "Deferred Tax" on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

"Deferred Tax Liability" (DTL) is recognized against reasonable certainty that sufficient future taxable income will be available against which such liability will be set off.

In the current year DTL of Rs.1,4107- is debited to Profit & Loss Account and credited to Deferred Tax Liabililty Account.