Accounting Policies of Ramchandra Leasing and Finance Ltd. Company

Mar 31, 2024

1. Company information

Ramchandra Leasing and Finance Limited ("the Company'') is domiciled and
incorporated in India and its shares are publicly traded on the Bombay Stock Exchange
(BSE) in India. The Company''s registered office is located at 201/1, Rudra Plaza, Opp. VMC
Gas Office, Dandia Bazar Main Road, Vadodara, Gujarat - 390001. The Company is
engaged in the business of finance and trading in shares and securities, derivatives etc.
The Company obtained permission from the Reserve Bank of India for carrying on the
business of Non-Banking Financial Institutions on 12.03.1998 vide Reg. No. 01.00109. The
Company is presently classified as Loan Company. Summary of Significant Accounting
Policies

(a) Accounting Convention:

The financial statements have been prepared and presented in accordance with Ind AS
under the historical cost convention on the accrual basis except for certain financial
instruments which are measured at fair value at the end of each reporting period, as
explained in the accounting policies mentioned below. Historical cost is generally based on
the fair value of the consideration given in exchange of goods or services. The Company
complies with the Accounting Standards issued by the Institute of Chartered Accountants
of India and the relevant provisions of the Companies Act, 2013, to the extent applicable
and directions prescribed by the Reserve Bank of India. The financial statements are
presented in Indian rupees.

(b) Statement of compliance:

The financial statements have been prepared as a going concern in accordance with Indian
Accounting Standards (Ind AS) notified under the Section 133 of the Companies Act, 2013
("the Act") read with the Companies (Indian Accounting Standards) Rules, 2015 and
other relevant provisions of the Act.

(c) Property, Plant and Equipment:

i) Property, Plant and Equipment''s are stated at cost less accumulated depreciation, and
impairment losses if any. Cost comprises the purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.

ii) On transition to IND AS, the company has elected to continue with the carrying value
of all its property plant & equipment recognized as at 1 April 2018 measured as per
previous GAAP and use that carrying value as deemed cost of property, plant and
equipment.

(d) Use of Estimates and Judgments

The preparation of the Ind AS financial statements in conformity with the generally
accepted accounting principles in India requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities as of the Balance
Sheet date, reported amount of revenue and expenses for the year and disclosure of
contingent liabilities and contingent assets as of the date of Balance Sheet. The estimates
and assumptions used in these Ind AS financial statements are based on management''s
evaluation of the relevant facts and circumstances as of the date of the Ind AS financial
statements. The actual amounts may differ from the estimates used in the preparation of
the Ind AS financial statements and the difference between actual results and the estimates
are recognized in the period in which the results are known/materialize.

(e) Depreciation on Property, Plant and Equipment:

Depreciable amount for property, plant and equipment is the cost of an asset, or other
amount substituted for cost, less its estimated residual value.

Depreciation on property, plant and equipment is provided on WDV Method as per the
useful life prescribed in Schedule II to the Companies Act, 2013.

(f) Trade and other payables:

These amounts represent liabilities for goods and services provided to the Company prior
to the end of financial period which are unpaid. They are recognized at their fair value.

(g) Other income:

Interest: Interest income is calculated on effective interest rate, but recognized on a time
proportion basis taking into account the amount outstanding and the rate applicable.

Dividend: Dividend income is recognized when the right to receive dividend is established.

Insurance Claim: Insurance Claims are recognized when the claims are assessed to be
receivable.

Rental Income: Rental income from operating leases is accrued based on the terms of the
relevant lease.

(h) Cash and cash equivalents:

i) Cash and cash equivalents in the balance sheet comprise cash at bank and on hand
and short-term deposit with original maturity up to three months, which are subject to
insignificant risk of changes in value.

ii) For the purpose of presentation in the statement of cash flows, cash and cash
equivalents consists of cash and short- term deposit, as defined as they are considered
as integral part of company''s cash management.

(i) System of Accounting:

i) The books of accounts are maintained on mercantile basis except where otherwise
stated.

ii) The financial statements are prepared under the historical cost convention in
accordance with the applicable Accounting Standards issued by The Institute of
Chartered Accountants of India and as per the relevant representational requirements
of the Companies Act, 2013.

iii) Accounting policies not specifically referred to are consistent with generally accepted
accounting practices, except where otherwise stated.

(j) Revenue Recognition:

Ind AS 115 applies, with limited exceptions, to all revenue arising from contracts with its
customers. Ind AS 115 establishes a five-step model to account for revenue arising from
contracts with customers and requires that revenue be recognized at an amount that
reflects the consideration to which an entity expects to be entitled in exchange for
transferring goods or services to a customer. Ind AS 115 requires entities to exercise
judgment, taking into consideration all of the relevant facts and circumstances when
applying each step of the model to contracts with their customers. It also specifies the
accounting for the incremental costs of obtaining a contract and the costs already related

to fulfilling a contract. The Company has adopted the modified retrospective method of
applying Ind AS 115 Revenue from Contract with customers in its initial year of application.
Revenue is measured at the fair value of the consideration received or receivable.

Sale of goods: Revenue from sale of products is recognized at the point in time when
control of the asset is transferred to the customer, generally when the product is shipped
to the customer.

Other Revenues: Other operating revenues comprise of income from ancillary activities
incidental to the operations of the Company and is recognized when the right to receive
the income is established as per the terms of the contract. Service income is recognized
as and when services are rendered as per the terms of the contract.

(k) Investment:

Investments are classified into non-current investments and current investments. Non¬
current investments are stated at cost and provisions have been made wherever required
to recognize any decline, other than temporary, in the value of such investments. Current
investments are carried at lower of cost and fair value and provision wherever required,
made to recognize any decline in carrying value.

(l) Retirement Benefits:

i) Leave encashment benefits are charged to Profit & Loss account in each year on the
basis of actual payment made to employee. There are no rules for carried forward
leave.

ii) No provision has been made for the retirement benefits payable to the employees since
no employee has yet put in the qualifying period of service and the liability for the
same will be provided when it becomes due.

(m) Inventories:

Inventories are valued at cost (using FIFO method) or net realizable value, whichever is
lower.

(n) Impairment of Assets:

At the end of each reporting period, the Company reviews the carrying amounts of its
assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss, if any. When it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates
the recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the estimates of future cash
flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less
than it carrying amount, the carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss is recognized immediately in the
statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a
cash-generating unit) is increased to the revised estimate of its recoverable amount, but
so that the increased carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognized for the asset (or cash
generating unit) in prior years. A reversal of an impairment loss is recognized immediately
in the statement of Profit and Loss.

(o) Earnings per Share:

i) Earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equities shares
outstanding during the period.

ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the
period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all diluted potential equity
shares.

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Mar 31, 2015

A) System of Accounting:

i) The books of accounts are maintained on mercantile basis except where otherwise stated.

ii) The financial statements are prepared under the historical cost convention in accordance with the applicable Accounting Standards issued by The Institute of Chartered Accountants of India and as per the relevant representational requirements of the Companies Act, 2013.

iii) Accounting policies not specifically referred to are consistent with generally accepted accounting practices, except where otherwise stated.

b) Revenue Recognition:

i) 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.

ii) Interest income is recognized on time proportion basis.

iii) Dividend income is recognized when right to receive is established.

iv) Profit / Loss on sale of investments accounted on the trade dates.

c) Investment:

Investments are classified into non-current investments and current investments. Non-current investments are stated at cost and provisions have been made wherever required to recognize any decline, other than temporary, in the value of such investments. Current investments are carried at lower of cost and fair value and provision wherever required, made to recognize any decline in carrying value.

d) Retirement Benefits:

i) Leave encashment benefits are charged to Profit & Loss account in each year on the basis of actual payment made to employee. There are no rules for carried forward leave.

ii) No provision has been made for the retirement benefits payable to the employees since no employee has yet put in the qualifying period of service and the liability for the same will be provided when it becomes due.

e) Inventories:

Inventories are valued at cost (using FIFO method) or net realisable value, whichever is lower.

f) Impairment of Assets:

The carrying amounts of assets are reviewed at the balance sheet date to determine whether there are any indications of impairment. If the carrying amount of the fixed assets exceeds the recoverable amount at the reporting, the carrying amount is reduced to the recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use, the value in use determined by the

present value estimated future cash flows. Here carrying amounts of fixed assets are equal to recoverable amounts.

g) Earning Per Share:

i) Earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all diluted potential equity shares.

h) Provisions:

Contingent Liabilities and Contingent Assets Provisions are recognised when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

Contingent liability is disclosed for: i) Possible obligations which will be confirmed by future events not wholly within the control of the company, or ii) Present obligation arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

i) Accounting for Taxes on Income:

i) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii) Deferred Tax is recognized subject to the consideration of prudence on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

j) Contingent Liability:

a) Claims against the company not acknowledged as debts Nil Previous Year Nil

b) Guarantees to Banks and Financial institutions against credit facilities extended to third parties Nil Previous Year Nil

c) Other money for which the company is contingently liable Nil Previous Year Nil