Accounting Policies of Octal Credit Capital Ltd. Company

Mar 31, 2024

B. SIGNIFICANT ACCOUNTING POLICIES

B.1 Basis of Preparation

The financial statements of the Company have been prepared to comply with the Indian
Accounting standards (''Ind AS''), including the rules notified under the relevant provisions of the
Companies Act, 2013. The financial statements have been prepared on a historical cost convention
on the accrual basis, except for the following assets and liabilities which have been measured at
fair value.

a. Certain financial assets at fair value (refer accounting policy regarding financial instruments).
The financial statements are presented in Indian Rupees (?'' Lakhs).

B.2 Summary of Significant Accounting Policies

a) Property, Plant and Equipment

On transition to Ind AS, the Company has adopted optional exception under Ind AS 101 to
measure property, plant and equipment at Indian GAAP carrying value as deemed cost.
Consequently, the Indian GAAP carrying values has been assumed to be deemed cost of
property, plant and equipment on the date of transition. Subsequently, property, plant and
equipment are carried at cost less accumulated depreciation and accumulated impairment
losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the
items.

Depreciation on the property, plant and equipment is provided over the useful life of assets as
specified in schedule II to the Companies Act, 2013. Property, plant and equipment which are
added / disposed off during the year, depreciation is provided on pro-rata basis with
reference to the date of addition / deletion.

Property, plant and equipment''s are eliminated from financial statement, either on disposal or
when retired from active use. Profits / losses arising in the case of retirement of property,
plant and equipment and gains or losses arising from disposal of property, plant and
equipment are recognised in the statement of profit and loss in the year of occurrence.

The estimated useful lives of Property, Plant & Equipments of the Company as follows:

Furniture & Fixtures : 10 years

Vehicles : 8 years

Office Equipment : 5 years

Computer & Accessories : 3 and 6 years

Air Conditioner : 10 years

Electrical Installation : 10 years

Generator : 10 years

The assets residual values, useful lives and method of depreciation are reviewed at each
financial year end and are adjusted prospectively, if appropriate.

b) Impairment of non-current assets

An asset is considered as impaired when at the date of Balance Sheet there are indications of
impairment and the carrying amount of the asset or where applicable the cash generating unit
to which the asset belongs exceeds its recoverable amount (i.e. the higher of the net asset
selling price less cost to sell and value in use). The carrying amount is reduced to the
recoverable amount and the reduction is recognised as an impairment loss in the statement of

Profit and Loss. The impairment loss recognised in the prior accounting period is reversed if
there has been a change in the estimate of recoverable amount. Post impairment, depreciation
is provided on the revised carrying value of the impaired asset over its remaining useful life.

c) Cash and Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks, cash in hand and short¬
term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Company''s cash management.

d) Employee Benefits

Payment of Gratuity Act is not applicable to the company as numbers of employees are less
than the minimum required for applicability of Gratuity Act.

e) Tax Expenses

The tax expense for the period comprises of current and deferred tax. Tax is recognised in
Statement of Profit & Loss, except to the extent that it relates to items recognised in the
comprehensive income or directly in equity respectively. In which case, the tax is also
recognised in other comprehensive income or equity.

Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities, based on tax rates and laws that are enacted or substantively
enacted at the balance sheet date.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit.

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 realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period. The
carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting
period.

f) Financial Instruments - Initial recognition, subsequent measurement and impairment

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equally instrument of another entity.

Financial Assets Initial Recognition and Measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Financial assets are classified, at initial recognition, as
financial assets measured at fair value or as financial assets measured at amortised cost.

Financial Assets - Subsequent Measurement

For the purpose of subsequent measurement financial assets are classified in two broad
categories:-

a) Financial Assets at fair value

b) Financial assets at amortised cost

Where assets are measured at fair value, gains and losses are either recognised entirely in the
statement of profit and loss (i.e. fair value through profit or loss) or recognised in other
comprehensive income (i.e. fair value through other comprehensive income)

A financial asset that meets the following two conditions in measured at amortised cost (net of
any write down for impairment) unless the asset is designated at fair value through profit or
loss under the fair value option.

a) Business Model Test: The objective of the Company''s business model is to hold the
financial asset to collect the contractual cash flow (rather than to sell the instrument).

b) Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on
specified dates to cash flow that are solely payments of principal and interest on the
principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through
other comprehensive income unless the asset is designated at fair value through profit or loss
under the fair value option.

a) Business Model Test: The financial asset is held within a business model whose objective
is achieved by both collecting contractual cash flow and selling financial assets.

b) Cash Flow characteristics Test: The contractual terms of the financial asset give rise on
specified dates to cash flow that are solely payments of principal and interest on the
principal amount outstanding.

Even if an instrument meets the two requirements to be measured at amortised cost or fair
value through other comprehensive, a financial asset is measured at fair value through profit
or loss if doing so eliminates or significantly reduces a measurement or recognition
inconsistency (sometimes referred to as an accounting mismatch) that would otherwise arise
from measuring assets or liabilities or recognising the gains and losses on them on different
bases. All other financial assets are measured at fair value through profit or loss.

All equity instruments are measured at fair value in the balance sheet, with value changes
recognised through other comprehensive income, except for those equity instruments for
which the entity has elected to present value changes in the statement of profit and loss.

Financial Assets - De-recognition

A financial asset (or where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e. removed from the Company''s statement of
financial position) when:

a) The rights to receive cash flows from the asset have expired or

b) The Company has transferred its rights to receive cash flow from the asset or has assumed
an obligation to pay the received cash flow in full without material delay to a third party
under a pass-through arrangement and either i) the company has transferred substantially
all the risks and rewards of the asset, or ii) the company has neither transferred nor
retained substantially all the risks and rewards of the assets, but has transferred control of
the asset.

When the company has transferred its rights to receive cash flow from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks
and rewards of ownership. When it has neither transferred nor retained substantially all of
the risks and rewards of the asset, nor transferred control of the asset, the Company continues
to recognise the transferred to recognise the transferred asset to the extent of the Company''s
continuing involvement. In that case, the company also recognises an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights
and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying of the asset and the maximum amount of
consideration that the company could be required to repay.

Financial Liabilities - Initial Recognition and Measurement

The financial liabilities are recognised initially at fair value and in the case of loans and
borrowings and payables, net of directly attributable transaction costs. The Company''s
financial liabilities include trade and other payable, loans and borrowings including bank
overdrafts.

Financial Liabilities - Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss

Financial Liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through
profit or loss.

Gains or losses on liabilities held for trading are recognised in the statement of profit and loss.
Financial liabilities designated upon initial recognised at fair value through profit or loss are
designated at the initial date of recognition and only if the criteria in Ind AS 109 as satisfied.

Financial Liabilities - Loans and Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using Effective Interest Rate (EIR) Method. Gains and losses are recognised in
profit and loss when the liabilities are de-recognition as well as through the EIR amortisation
process. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation in
includes as finance costs in the statement of profit and loss.

Financial Liabilities - De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another, from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit and loss.

g) Revenue Recognition and Other Income
Sale of Shares & Securities

Income from Sale of Shares is recognised on the date of transaction.

Interest income

For all financial instruments measured at amortised cost, interest income is recorded using the
effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period,
where appropriate to the net carrying amount of the financial asset. Interest income is
included in the other income in the statement of profit and loss.

---

Mar 31, 2015

A. Basis of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 and the guidelines issued by the Reserve Bank of India, wherever applicable.

The financial statement has been prepared under the historical cost convention using accrual method of accounting

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting standards generally accepted in India requires judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities and the disclosures relating to Contingent Assets and Contingent liabilities as on the date of the financial statements and the reported amount of Revenues and Expenses during reporting period. Management believes that the estimates used in the preparation of the Financial Statements are prudent and reasonable. Actual results could differ from those estimates.

C. Fixed Assets

All Fixed Assets are stated at acquisition cost less accumulated depreciation.

D. Depreciation

Depreciation on Fixed Assets has been provided on straight-line method. Depreciation is provided on based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

E. Investments

Investments are long term in nature and are stated at cost of acquisition. In the opinion of the management, the decline in the market value of investment is temporary in nature; hence no provision for diminution in the value of investments has been made.

F. Inventories

Shares and Securities purchased for trading purpose are shown as Inventories under the head current assets and are valued at cost or market price whichever is lower.

G. Revenue Recognition

Sales

Income from Sale of Shares is recognised on the date of transaction.

Interest Income

Interest on Loan is recognised on a time proportion basis taking into account the outstanding amount and the applicable rate.

H. Retirement Benefits

Payment of Gratuity Act is not applicable to the company as numbers of employees are less than the minimum required for applicability of Gratuity Act.

I. Taxation

Provision of Current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rate as applicable. The deferred tax charge is recognized using the enacted tax rate. Deferred tax Assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized.

Deferred tax asset/liabilities are reviewed as at Balance sheet date based on the developments during the year and reassess assets/liabilities in terms of Accounting Standard – 22 issued by ICAI.

J. Earning Per Share (EPS)

Basic and diluted earnings per share are computed in accordance with Accounting Standard 20 "Earnings per Share".

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 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.

K. Provision, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the notes to financial statements.

---

Mar 31, 2014

A) Method of Accounting

The accompanying financial Statements are prepared under the historical cost convention on accrual basis of accounting. These are presented in accordance with the normally accepted Accounting Principles in India, provisions of the Companies Act, 1956, and the guidelines issued by the Reserve Bank of India, wherever applicable. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

B) Revenue Recognition Sales

Income from Sale of Shares is recognized on the date of transaction.

Interest Income

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

C) Fixed Assets

Fixed Assets are stated at cost inclusive of expenses related to acquisition. Fixed assets are valued at cost less depreciation.

D) Depreciation

The Company provides depreciation on Straight Line method in terms of Section 205(2)(b) of the Companies Act''1956.

E) Investments

Investments are long term in nature and are stated at cost of acquisition. In the opinion of the management, decline in the fair market value of investments are of temporary nature, hence no provision has been made.

F) Inventories

Shares and Securities purchased for trading purpose are shown as stock in shares and securities under the head current assets and are valued at lower of cost or market price.

G) Retirement Benefit

Payment of Gratuity Act is not applicable to the company as numbers of employees are less than the minimum required for applicability of Gratuity Act.

H) Taxation

a) Provision for taxation has been made as per current rules & regulations of the Income Tax Act, 1961.

b) Deferred tax liabilities or assets are recognized using the future tax rates, to the extent the management feels that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets/liabilities can be realized. Such assets/ liabilities are reviewed as at each Balance Sheet date, to reassess realization.

---

Mar 31, 2013

A) Method of Accounting

The accompanying financial Statements are prepared under the historical cost convention on accrual basis of accounting. These are presented in accordance with the normally accepted Accounting Principles in India, provisions of the Companies Act, 1956, and the guidelines issued by the Reserve Bank of India, wherever applicable. The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.

B) Revenue Recognition Sales

Income from Sale of Shares is recognised on the date of transaction.

Interest Income

Interest on Loan is recognised on a time proportion basis taking into account the outstanding amount and the applicable rate.

C) Fixed Assets

Fixed Assets are stated at cost inclusive of expenses related to acquisition. Fixed assets are valued at cost less depreciation.

D) Depreciation

The Company provides depreciation on Straight Line method in terms of Section 205(2)(b) of the Companies Act'' 1956.

E) Investments

Investments are long term in nature and are stated at cost of acquisition. In the opinion of the management, decline in the fair market value of investments are of temporary nature, hence no provision has been made.

F) Inventories

Shares and Securities purchased for trading purpose are shown as stock in shares and securities under the head current assets and are valued at lower of cost or market price.

G) Retirement Benefit

Payment of Gratuity Act is not applicable to the company as numbers of employees are less than the minimum required for applicability of Gratuity Act.

H) Taxation

a) Provision for taxation has been made as per current rules & regulations of the Income Tax Act, 1961.

b) Deferred tax liabilities or assets are recognized using the future tax rates, to the extent the management feels that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets/liabilities can be realized. Such assets/ liabilities are reviewed as at each Balance Sheet date, to reassess realization.

---

Mar 31, 2012

A) Method of Accounting

The accompanying financial Statements are prepared under the historical cost convention on accrual basis of accounting. These are presented in accordance with the normaly accepted Accounting Principles in India, provisions of the Companies Act, 1956, and the guidelines issued by the Reserve Bank of India, wherever applicable. The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis,

B) Revenue Recognition Sales

Income from Sale of Shares is recognised on the date of transaction.

Interest Income

Interest on Loan is recognised on a time proportion basis taking into account the outstanding amount and the applicable rate.

C) Fixed Assets

Fixed Assets are stated at cost inclusive of expenses related to acquisition. Fixed assets are valued at cost less depreciation.

D) Depreciation

The Company provides depreciation on Straight Line method in terms of Section 205(2)(b) of the Companies Act''1956.

E) Investments

Investments are long term in nature and are stated at cost of acquisition. In the opinion of the management, decline in the fair market value of investments are of temporary nature, hence no provision has been made.

F) Inventories

Shares and Securities purchased for trading purpose are shown as stock in shares and securities under the head current assets and are valued at lower of cost or market price.

G) Retirement Benefit

Payment of Gratuity Act is not applicable to the company as numbers of employees are less than the minimum required for applicability of Gratuity Act.

H) Taxation

a) Provision for taxation has been made as per current rules & regulations of the Income Tax Act, 1961.

b) Deferred tax liabilities or assets are recognized using the future tax rates, to the extent the management feels that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets/liabilities can be realized Such assets/ liabilities are reviewed as at each Balance Sheet date, to reassess realization.

---

Mar 31, 2011

1. Accounting Convention & System of Accounting

The accompanying financial Statements are prepared under the historical cost convention on accrual basis of accounting. These are presented in accordance with the normally accepted Accounting Principles in India, provisions of the Companies Act, 1956, and the guidelines issued by the Reserve Bank of India, wherever applicable.

2. Fixed Assets

Fixed Assets are stated at cost inclusive of expenses related to acquisition. Fixed assets are valued at cost less depreciation.

3. Depreciation

The Company provides depreciation on Straight Line method in terms of Section 205<2)(b) of the Companies Act''1956.

4. Investments

Investments are long term in nature and are stated at cost of acquisition. In the opinion of the management, decline in the fair market value of investments are of temporary nature, hence no provision has been made,

5. Revenue Recognition

Sales

Income from Sale of Shares is recognised on the date of transaction.

Interest Income

Interest on Loan is recognised on a time proportion basis taking into account the outstanding amount and the applicable rate.

6. Stock in Trade

Shares and Securities purchased for trading purpose are shown as stock in shares and securities under the head current assets and are valued at lower of cost or market price.

7. Retirement Benefit

Payment of Gratuity Act is not applicable to the company as numbers of employees are less than the minimum required for applicability of Gratuity Act.